The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19 MARCH, 2018

NATIONAL

INTERNATIONAL

 

Centre, states sanction Rs 10,000 cr refunds due to exporters: Finance Ministry

New Delhi: The Centre and states have sanctioned more than Rs 10,000 crore as GST refunds to exporters, the finance ministry said on Friday. In a statement the ministry said many of the errors plaguing the claims for refunds are on account of inadequate familiarisation of the exporters with the GST laws and data entry errors in the various GSTRs / forms. "In order to overcome the causes of the delay in sanctioning of refunds, Government has taken various steps, which includes amendments in the rules, changes in the business procedures of common portal and customs automated system to address the systemic issues," the statement said. The issue of refunds to exporters has been delayed for over eight months now, with exporters complaining that delay in GST refunds has blocked their working capital. The revenue department, on the other hand, has argued that there are discrepancies in forms submitted by exporters with the customs department and those with the GST Network (GSTN). "So far more than Rs 10, 000 crore has already been sanctioned by CBEC and states. "A standard operating procedure applicable to both Central and State GST has been put in place by virtue of various Circulars and clarifications issued with regard to processing of ITC (input tax credit) refund," the statement said. After the GST council meet last week, Central Board of Excise and Customs Chairperson Vanaja Sarna had said that the department has already paid refunds worth Rs 5,000 crore to exporters. The statement further said that the "Government wants to assure the exporting community that it is keen to see that all their eligible refund claims are considered and sanctioned at the earliest". The CBEC has taken an initiative to observe a special drive refund sanction fortnight from March 15 to 29, on an all India scale for which additional staff and infrastructure has been mobilised. "GST Council, in its last meeting on March 10, has directed all States tax authorities to proactively clear refund claims. "Exporting community is requested to take benefit of this fortnight and wholeheartedly come forward to get their errors rectified to enable sanction of refunds," the statement added.

Source: PTI

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WTO ministerial: 50 nations to take up global trade issues

The government said that 50 nations will engage in free and frank discussions on global trade here this week to explore the options for resolving various issues and re-invigorating the WTO. Representatives from 50 countries will be gathering in New Delhi on 19-20 March for an informal World Trade Organisation (WTO) ministerial meeting. It will look at issues both at the negotiating table and also in other areas.PTI

Source: Financial Express

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9th Atexcon emphasised on growing importance of domestic markets

Asian Textile Conference (ATEXCON), the flagship event of Confederation of Indian Textile Industry (CITI), was held in Mumbai. The theme of the was: ‘Textile industry: moving beyond the conventional paradigms’. The event brought together leading players of Asian textile industry, global input suppliers and service providers to deliberate upon key areas of business, including regional as well as global issues concerning this sector. The conference also focussed on emerging opportunities through cross-country co-operation. Participants benefitted through direct interactions with government officials, industry, mill owners, potential customers of machinery, etc. The event started with a welcome address by Sanjay Kumar Jain, Chairman, CITI and a special address by Sanjay Jayavarthanavelu, MD, LMW. The inaugural session also saw the release of 9th ATEXCON Knowledge Paper. The theme presentation was given by Prashant Agarwal, Joint Managing Director, Wazir Advisors who in his speech stressed on the points which India can follow not only to be competitive and remain relevant but to be a leader in the global textile space. He said India holds an edge over other markets owing to its domestic market and all we need to do is to focus on technology and automation and having a large scale and quality-oriented production to capture the international market. “Consumption trends are something, which are driving the domestic market. Now when we talk about 2025 target, we are 122-billion-dollar industry, $37 billon is our export, $85 billion is our domestic market. And if our export grows by nice per cent CAGR, achieving the target is not a herculean task. As far as domestic market is concerned, if it grows by 11 per cent CAGR, the target of 220 billion dollar is not difficult to achieve by 2025. So, when we talk about $300 billion target, we really have to focus on our industry,” he said. The presentation was followed by inaugural address by textile commissioner Kavita Gupta. She talked about policy initiatives taken by the government for the welfare of the industry. “We are doing everything what it takes to strengthen the textile sector. Keeping power issues in mind, we have introduced solar driven powerlooms, which are available on highly subsidised rates. Upgradation is happening in the industry on every level. Technical textile is another where we are focussing diligently. Clusterwise development has been planned for this segment. It’s highly profitable area of textile and we are promoting it on a pan-India basis,” she said. Vote of Thanks was given by T RajKumar, deputy chairman, CITI.

Pathbreaking sessions

The first session was based on the theme ‘Policy support to achieve $300 billion market’, attended by textile commissioner Kavita Gupta, Sanjay K Jain, Chairman, CITI, DR P Alli Rani, Chairman and MD, CCI, Ujjawal Lahoti, Chairman, TEXPROCIL, Narain Aggarwal, Chairman, SRTEPC among otheres. The panellists deliberated on current policy support available to the industry, issues being faced by the industry, post-GST trade scenario and strategies for inclusive growth, policy perspectives for an integrated textiles industry and policy support required to achieve the target exports. The session was moderated by Jain.

The following session, ‘Innovations and technological developments shaping the future of textile manufacturing’ was about new product developments, technologies and India’s competitiveness in the global market. The third session ‘Global value chain – trade and investment perspectives’, saw the discussion on topics such as importance of regional economic integration in textile industry, leveraging the benefits of trade agreements, trade & investment perspectives and key challenges faced by the textile industry on the international front. The lead presentation was by Christian Schindler, Director General, ITMF-Zurich. Opening remarks were by Prem Malik, past chairman, CITI.

Focus on domestic markets

The fourth and the last session saw the presence of DL Sharma, Prashant Agarwal, Rahul Mehta, President (CMAI), Mohit Dhanjal, Director-Retail, Raymond; Anindya Ray, EVP & CSO, Arvind Lifestyle; Alok Banerjee, CEO, Retail, Bombay Dyeing. The panellists discussed present structure of retail sector in Asia, emerging trends and opportunities in retailing sector and strategies being adopted to collaborate textile manufacturing with the changing retail scenario. Mehta made some valid points when he said not much has changed since last years in the relationship that a manufacturer and retailer share with each other. The industry is still going by the rules, which hold limitations, especially when it comes to the domestic market. “Domestic market is something, which saved the day during the times of global recession and the need of the hour is to really focus on this particular space. There is a limitless growth in the domestic market if it is exploited well with innovative strategies in manufacturing and retailing areas,” he emphasised.

Source: Fashionating World

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E-wallet will address GST refund issue of exporters, says Suresh Prabhu

New Delhi: Introduction of e-wallet mechanism will effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime, commerce and industry minister Suresh Prabhu has said. Under the e-wallet mechanism, a notional credit would be transferred to exporters’ accounts based on their past record and the credit can be used to pay taxes on inputs. Prabhu said that secretaries in the commerce and finance ministries are working on the matter. “The only way it can be addressed properly is through e-wallet (mechanism). Finance ministry has to take a call on this. E-wallet will actually address the issue because then you (exporters) do not have to pay and seek refunds,” he told PTI. According to exporters, delay in refund of taxes is blocking their working capital and impacting shipments. The issue of refunds to exporters has been delayed for over eight months now. The revenue department, on the other hand, has argued that there are discrepancies in the forms submitted by exporters with the customs department and those with the GST Network (GSTN). As per exporters, about Rs20,000 crore is stuck on account of delay in refund of duty claims under the new indirect tax regime. Before GST, exporters used to get ab-initio exemptions from duties. But now they have to pay first and then seek refund. The prime minister’s office had earlier called a meeting of top officials of commerce and finance ministries to discuss the issue of GST refunds. The GST council in its meeting earlier this month decided to implement e-wallet scheme for refunds to exporters by 1 October. Meanwhile, the CBEC field formations have launched ‘GST refund fortnight’ beginning Saturday to quickly sanction pending refunds to exporters. Federation of Indian Export Organisations (FIEO) had stated that e-wallet could help resolve the problem of liquidity. Exporters may use it like a running account where money will be debited from e-wallet when duty paid supplies have to be undertaken and the amount is credited when the proof of exports is made available.

Source: Financial Express

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Nobel-winner Paul Krugman warns India story could end with mass unemployment

Krugman said India's growth story was incredible but it never got the attention it deserved because China hogged the world's attention. Paul Krugman, the American economist who won a Nobel Prize in 2008, has warned that India could end up with huge mass unemployment if it does not grow its manufacturing sector. "There is this concept called artificial intelligence that you should be wary of. In future, while diagnosis may be outsourced to a doctor in India, it could also go to a firm based on artificial intelligence. Things like this could be a cause for worry for Indian services sector," Krugman said while speaking at a News 18 event. "Japan is no longer a superpower because its working-age population declined, and China is looking the same. In Asia, India could take the lead but only if it also develops its manufacturing sector, not only the services one,” he said. “India’s lack in the manufacturing sector could work against it, as it doesn't have the jobs essential to sustain the projected growth in demography. You have to find jobs for people,” he said. On the other hand, India can also ride the next wave of globalisation on its demographic dividend. "India's growth story is quite unique. Services propelling growth to an extent that hasn't been seen anywhere else in the world and the possibilities of service globalisation has only just begun. Globalisation of service trade has a huge potential. That's one reason to be especially hopeful of India’s progress. It has the first-mover's advantage here," he said. Krugman said India's growth story was incredible but it never got the attention it deserved because China hogged the world's attention. "Rest of the world is not paying as much attention to India as it should. If China wasn't around, we would have said what an incredible story India is. Quadrupling of GDP per capita in a very short time, becoming a better place to do business etc." Krugman said India's growth story would continue to improve at a higher rate. "India's working-age population is projected to grow substantially. Countries across the world from Japan to Italy to China are suffering or are about to suffer from lack of manpower to propel their growth." He said there were still huge parts of India that had yet to realise their full potential. "Prime Minister Modi talked about bringing electricity to parts of India that have never seen it. When such a plan is fulfilled you obviously will see a huge boost to your economy."

Source: The Economic Times

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Fully automatic powerloom for coir geo textiles launched

The Central Coir Research Institute of Coir Board in Alapuzha in Kerala has launched a fully automatic power loom for producing quality coir geo textiles. The new loom is versatile and could produce 5-6 times more quantity of coir geo textiles of good quality and is also cost effective. The loom, launched by the Board Chairman, C P Radhakrishnan, can be procured by the new/young entrepreneurs under Coir Udyami Yojana, and Mudra banking system under self employment schemes. The Coir geo textiles are eco-friendly, environmental friendly, bio degradable, natural, durable and cheapest when compared with other vegetable fibre products. As the quantity of export of the coir geo textiles showed an increasing trend this invention would fulfill the demand from within the Country and abroad, the board said in a release here. Stating that exporters have evinced keen interest on the new power loom for coir geo textiles, it said thatco-operative sector can also install the new loom in their units to increase production and thereby ensuring a good remuneration to the coir workers.

Source: Business Standard

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We are in dialogue with govt on sourcing norms: H&M’s Janne Einola

New Delhi: Janne Einola is confident that the Swedish fashion retailer Hennes & Mauritz (H&M) will soon be the biggest international apparel retailer in India on the back of its new online store, outpacing Spanish fast fashion brand Zara. The 43-year-old has been working with H&M for 21 years and has been spearheading India business as country manager ever since it launched in 2015. The company has just launched its e-commerce platform, in line with the global strategy of online expansion. H&M also plans to open around 17 new brick-and-mortar stores in India in addition to its online store. The company had nearly doubled annual sales in India between December 2016 and November 2017 to about Rs950 crore from Rs491.5 crore. In an interview, he talks about the brand’s pricing strategy, strongest markets and why India needs to alter its sourcing norms. Edited excerpts: Aren’t you a little late in the day in launching your online store, given that your rivals already have online operations? It is early instead. We are one of the first brands that are here on 100% FDI and we are one of the few who are actually launching our own online store. We want to have a home store where we can guarantee the quality of products. Online store is a big milestone as a part of our expansion. With this launch, H&M brand will get more visibility and we can reach the locations where we are not physically present. The online store is hm.com. We have the same store in 44 global markets and India is the 45th. The online shop will be available for everybody across India. The delivery time for tier-I cities like Delhi Mumbai, Bangalore, Chennai and Hyderabad will be one to two days and for tier-II, it will be three to four days. The delivery fee is Rs149 and the return policy is 30 days. How has your pricing strategy worked out in India? Do you plan to alter it? Our prices have been the same ever since we launched in India. We did not come with India-specific prices. These are global prices and so is the collection. We don’t see any need to touch the prices. Currently, what we are looking at is to offer best quality products in a sustainable way. Our starting price is Rs299 in kids’ segment, Rs399 in both women and men. Which are your strongest markets? India is one of the fastest growing markets for the company. We have been longest in Delhi and we are happy with the sales in all tier-I cities. Tier-II cities are the new markets where we are entering. Chennai is a market that surprised us the most, given the notion that it is a traditional market. We have 29 stores in 12 cities. Last year, we opened 17 stores and we will do around the same number this year as well, depending on availability of space. We have just opened up in Mysore and Ahmedabad. How has the Indian market changed over the years? Digitization has changed a lot of things globally especially the behaviour of customers. It’s no longer enough to just have a good product or a good price; it is about customer experience. We have to make it easier for the customers to shop and enhance their experience. India has changed in terms of ease of doing business. Good decisions have been taken by the government. There were relaxations in the FDI policy. In terms of fashion, with the emergence of social media, fashion here is no different than fashion globally. Customers are following Indian as well as global celebrities and are excited about global fashion as soon as it enters our stores. We do see an interest for more colours in India. How do you think the recent changes in FDI policy and sourcing norms will help international retailers like you? It doesn’t really change things; it just gives more time. For the first five years, you can set off the overall sourcing with global sourcing. The changes will enhance the investment interest of many companies for India. However, there is a room for improvement when it comes to the sourcing norms as these are not really fair. If a company enters with offline stores, it has to comply with the 30% local sourcing norms, even if it is sourcing more than that for global operations. But if it comes via online mode, it doesn’t need to comply with the sourcing norms. This doesn’t really make sense. We are also in dialogue with the government on sourcing norms. We have been sourcing from India for 30 years; this should be taken into account. Where you source from should be the criteria, not where or what you source for. How much do you source from India for local and global operations together? Let’s just say that if we are earning Rs950 crore from here, the sourcing is many times more, in terms of value. What is India shopping for? A lot of colour and prints. This summer will be dominated by floral prints. People are strongly going for such dresses. There is also a strong demand for basic wear (everyday wear). Our studio collections are liked by customers. When I was here to see how the market in India works for the first time, there was a lot more traditional wear than there is now. There has been a tremendous growth in western wear segment in the past few years.

For 2018, which segment is your biggest bet?

Kids and ladies. We are huge in the women’s section; 70% of the customers who come to our stores are women. We are looking at huge growth in the kids’ section, which is a combination of market development and our good quality products. These two will be our biggest drivers. Where do you shop? Everything I have in my wardrobe is H&M. I have a few trousers and a sweater from COS (another H&M group brand) but mostly, I wear H&M. What is your own style? White shirt and (any) pants. I used to wear denim pants with a white shirt and blazer but India is too hot for blazers.

Source: Livemint

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India's apparel exports decline 10.25% in February 2018

Apparel exports from India were to the tune of $1.44 billion (approx.) in February 2018, showing a decline of 10.25 per cent compared to $1.60 billion (approx.) exports made in the corresponding month of the last year, as per the latest official trade data. In rupee terms too, the value of exports declined by 13.86 per cent to Rs 9275.08 crore. “Already apparel production is on a declining curve with industry registering decline of 10.4 per cent for the period April-January 2017-18. On the other hand, for the period July 2017-February 2018, apparel exports from Bangladesh has registered an 8.68 per cent improvement over last year. Given the kind of uncertainty which has been prevailing due to US challenging India’s export subsidy programme at WTO, we are seriously worried about the future of the industry,” said HKL Magu, chairman, Apparel Export Promotion Council (AEPC). India’s garment exports are witnessing a continuous decline since October 2017. AEPC is also worried about the fact that the US has filed a complaint at the WTO about India’s export subsidy programmes like Merchandise Exports from India Scheme, Export Oriented Units Scheme, Export Promotion Capital Goods Scheme etc. Talking about the complaint, Magu said, “The fact that the US has filed a complaint at the WTO about India’s export subsidy programmes has turned the heat further on India. The withdrawal of export subsidies is only going to benefit countries like Bangladesh which is already showing consistent growth in their RMG exports. It is a drastic situation and we would like to request the government to intervene immediately to redress the situation and also allow the release of the refunds as until refunds start flowing, things will not improve both on the production as well as export front.” In April-February 2017-18, India’s clothing exports have registered $15.22 billion (approx.), showing a decrease of 2.19 per cent compared to $15.55 billion (approx.) registered in the same period of previous financial year. Meanwhile, readymade garment exports from Bangladesh during July 2017-February 2018 increased by 8.68 per cent to $20.25 billion, according to the data released by the Export Promotion Bureau of Bangladesh.

 Source: Fibre2fashion

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Global Textile Raw Material Price 2018-03-18

Item

Price

Unit

Fluctuation

Date

PSF

1400.21

USD/Ton

-0.11%

3/18/2018

VSF

2335.00

USD/Ton

0%

3/18/2018

ASF

2760.98

USD/Ton

0%

3/18/2018

Polyester POY

1371.81

USD/Ton

0.23%

3/18/2018

Nylon FDY

3660.26

USD/Ton

0%

3/18/2018

40D Spandex

5995.26

USD/Ton

0%

3/18/2018

Nylon POY

5963.71

USD/Ton

0%

3/18/2018

Acrylic Top 3D

1605.31

USD/Ton

0.25%

3/18/2018

Polyester FDY

3392.06

USD/Ton

0%

3/18/2018

Nylon DTY

2966.08

USD/Ton

0%

3/18/2018

Viscose Long Filament

1625.03

USD/Ton

0.98%

3/18/2018

Polyester DTY

3825.92

USD/Ton

0%

3/18/2018

30S Spun Rayon Yarn

3044.96

USD/Ton

0%

3/18/2018

32S Polyester Yarn

2177.23

USD/Ton

0%

3/18/2018

45S T/C Yarn

3013.41

USD/Ton

0%

3/18/2018

40S Rayon Yarn

2540.10

USD/Ton

0%

3/18/2018

T/R Yarn 65/35 32S

3186.95

USD/Ton

0%

3/18/2018

45S Polyester Yarn

2697.87

USD/Ton

0%

3/18/2018

T/C Yarn 65/35 32S

2335.00

USD/Ton

0%

3/18/2018

10S Denim Fabric

1.47

USD/Meter

0%

3/18/2018

32S Twill Fabric

0.90

USD/Meter

0%

3/18/2018

40S Combed Poplin

1.26

USD/Meter

0%

3/18/2018

30S Rayon Fabric

0.71

USD/Meter

0%

3/18/2018

45S T/C Fabric

0.74

USD/Meter

0%

3/18/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15777 USD dtd. 18/3/2018). 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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China's economy kicks off 2018 on forecast-beating data

China's economy kicked off 2018 on a strong note with better-than-expected data for the first two months. Industrial output expanded at 7.2 percent year-on-year in the first two months, accelerating from 6.2 percent growth in December 2017, the National Bureau of Statistics (NBS) said in a statement. The growth was faster than the 6.3 percent growth during the same period last year, and was well above analyst expectations. Retail sales of consumer goods grew 9.7 percent year-on-year, faster than the same period last year. Fixed-asset investment grew 7.9 percent, up from 7.2 percent for the full year of 2017. "The economy had a good start with accelerating industrial production, active consumption, and stable prices," said NBS spokesperson Mao Shengyong. A breakdown of the data pointed to higher quality growth, which the country has been trying to prioritize over mere pace. Industrial structure continued to improve, with production in high-tech industries and the equipment manufacturing sector expanding by 11.9 percent and 8.4 percent, respectively. Output of new energy vehicles saw a surge of 178.1 percent year-on-year during the period, while industrial robots production jumped by 25.1 percent, NBS data showed. While such rapid growth was partly due to a low comparable base, it indicated that emerging sector expansion is accelerating, according to Mao. The mining sector grew by a modest 1.6 percent year-on-year, lagging behind the 7 percent growth achieved by the manufacturing sector. Amid the drive to restructure and optimize industry, the country aims to reduce overcapacity in traditional sectors such as coal, iron, and steel while facilitating growth in emerging areas. China plans to cut 30 million tons of ineffective steel capacity and 150 million tons of coal capacity in 2018, according to a government work report released earlier this month. Wednesday's data also showed that consumers in China tend to spend more on high-quality goods, a trend that is in line with the country's overall consumption upgrade. One of the main contributors to retail sales growth was automobile sales. While the total volume of sales only saw modest climb, the average sales price jumped, indicating that the demand for cars is more quality-oriented, according to Mao. "China's economy has maintained a stable and sound momentum. Such momentum will lay a solid foundation for the economy to achieve its annual growth and employment target," Mao said. China aims to see economic expansion at around 6.5 percent this year, unchanged from 2017, according to the government work report. It also planned to keep the surveyed urban unemployment rate within 5.5 percent, the first time the country has used this indicator as a projected target. In the first two months, the urban unemployment rate was below 5 percent, lower than the same period last year, NBS data showed. In 2017, the economy achieved better-than-expected growth of 6.9 percent, underpinned by strong consumption, stable investment, and a comeback in exports. Earlier data showed that China's export growth in February came in at 36.2 percent, a high reading that analysts said was a surprise given that holiday effects were expected to limit the pace of increase. As China continues to improve the quality of goods, exports should be able to keep stable growth, Mao said.

Source: China Daily.

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US GSP scheme revival – implications

Pakistan’s renewal of EU’s GSP plus status was smooth sailing. The revival of US’s GSP scheme is another story. Admittedly, as important an export destination as US is for Pakistan’s goods, the GSP scheme does not impact exports significantly. This is mostly because it does not cover much of textiles, leather and apparel and partly because there is a general lack of awareness and interest in the products it does cover. Pakistan uses its trade policy as a political tool; cases in point are the frequent trade obstacles with Afghanistan and the general attitude of kowtowing to China, resulting in the increasing bilateral trade deficit. The United States, on the other hand, has followed a different policy as far as Pakistan is concerned. Or it did before Trump came to the helm. US’s GSP scheme expired in December last year. The US House of Representatives passed a bill to renew it for 120 countries, including Pakistan, for the next three years till December 2020. Now it has to be passed by the Senate and then finally signed by Trump. The question is, between the Trumpian tariff war and its hard stance against Pakistan, would he be inclined to grant Pakistan the concessions? If the bill is rejected, in itself it will not deeply impact Pakistan’s exports. But if it is a step towards US wielding imports from Pakistan as a tool to discipline Pakistan into falling in line, then that would have serious repercussions. In terms of export partners EU as a trading bloc is the biggest market but US is Pakistan’s biggest market country wise with $3.7 billion exported in the last fiscal year. As yet, Pak-US trade has been business as usual with a record high of $6 billion touched last year. In the latest figures, Pakistan’s exports for 7MFY18 have increased by 6 percent on a year-on-year basis, indicating that politics has not impacted economics. However, given the path Trump is walking on, this may very well be a precarious situation.

Source: Business Recorder

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Bangladesh-322 Alliance-affiliated RMG factories complete material components

The Alliance continues to achieve unprecedented progress in our efforts to improve safety within the readymade garment industry in BangladeshA total of 322 RMG factories affiliated with the Alliance for Bangladesh Worker Safety have completed all material components in their corrective action plans. Some 88% of factory remediation is complete across all active factories, including 84% of items most critical to life safety. The Alliance, a platform of North American apparel buyers to improve safety standards in the Bangladesh RMG industry, made the announcement at a press briefing on the latest update on remediation at a hotel in the city on Thursday. “I am pleased to note that the Alliance continues to achieve unprecedented progress in our efforts to improve safety within the readymade garment industry in Bangladesh. Our factory remediation work is progressing at a rapid pace, and we remain on track to meet our stated commitments by the end of the year,” Jim Moriarty, executive director of the Alliance, said. “As of today, 322 Alliance-affiliated factories have completed all material components in their corrective action plans and are considered substantially remediated. 88% of factory remediation is complete across all active factories, including 84% of items most critical to life safety, said Moriarty, also former US ambassador to Bangladesh. As many as 290 Alliance factories have required structural retrofitting. Of those, 264 factories or 91% have fully completed retrofitting, meaning that their foundations, columns and beams are now able to meet the imposed load demands required of an industrial building. Nearly 90% of remediation is complete, and worker empowerment initiatives have been implemented and fully embraced throughout the entire factory workforce, said Moriarty. “Our job now is to transfer our knowledge, best practices and worker safety innovations to credible partners who can own and continue this work locally, which is the only way it can truly be sustained over the long term,” he added. “Make no mistake about it: Alliance member brands are committed to safety. The new safety monitoring organization, funded largely by member brands, will continue to require that factories meet the high safety standards implemented by the Alliance,” he further said. Moriarty said they were holding talks with the government of Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association, the International Labour Organization, and other stakeholders on the exact details of this transition, about which he added, “We expect to announce details in the coming weeks.”

Source: Dhaka Tribune

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Africa : Raw Cotton Export Undermines Industrialisation – Minister

The federal government has underscored the unprecedented opportunities for economic growth and development the cotton sector offers African economies but cautioned that continued export of raw cotton with little or no value addition by the continent’s producers was unsustainable in view of global instability in the prices of the commodity. Government said the quest for industrialisation can only be attained if African economies can develop this viable sector and put in place a profit- oriented goal setting agenda and a performance – based holistic review. Minister of state for industry, trade and investment, Aisha Abubakar, said this at the 16th African Cotton Association (ACA) Annual International Congress in Abuja weekend. Abubakar,who highlighted the sharp decline in the contribution of Cotton Textile and Garment (CTG) sector to the Nigerian economy , said it was regrettable that while Asia and India produce 60 per cent of global cotton output, Africa produces only about 16 per cent in spite of its huge potentials. Abubakar therefore charged the continent’s economies to leverage on their potentials and develop their capacities by strengthening the sector and providing producers the support to enhance competitiveness and technology if they wished to be competitive in the global market arena. “The global market value was about $1.6 trillion in 2015 alone, and this shows how important the sector is to the economies of the producing countries. “It, therefore, means that Africa’s quest for industrialisation can be achieved by developing this viable sector,’’ she added. Permanent secretary, ministry of industry, trade and investment,Mr Edet Akpan, also said there was the need for the right capacity and technology in the production of highly – competitive cotton and other products needed for both domestic and international markets if Nigeria was to benefit substantially from the sector.

Source: Leadership.ng

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Pakistan : Plan prepared to boost cotton output

ISLAMABAD - To boost the cotton production and increase its cultivation area by 45 percent by 2025, an action plan has been prepared which recommends to rationalize existing excessive incentives for sugarcane. The recommendation was part of the action plan presented to a meeting of the federal cabinet for increasing the cotton production in the country. According the minutes of the meeting, available with The Nation, the cabinet was informed that due to different factors cotton production had faced virtual stagnation since 1991-92, which had been fluctuating between 10 and 12 million bales, with a disastrous fall to 9.9 million bales in 2015-16. However the cotton consumption was 15 million bales, making Pakistan a net importer of cotton, the action plan said. The reason for stagnation includes use of inappropriate 1st generation, rather that 4th Generation BT technology; absence of quality seeds; lack of solution to CLCV problem; low quality of ginning; and Pakistan's being the most contaminated cotton. These reason had led to declining cotton profitability and 20 percent decrease in the cotton area between 2004 and 2016. The action plan recommended that the cotton production target may be fixed at 25 million bales by 2025 by increasing area from 2.4 million hectares (a 45 % increase) and yield up to 1200 kg/hectare. Research funding may be provided with a restructured PCCC to revive the textile industry financial contributions. Cotton research may be revitalized from PSDP at Rs 2.5 billion for 5 years through competitive FRANTS managed by PARC under IPC. It was also recommended that partnership may be initiated for variety development and marketing, the Seed Act and Plant Breeder Rights Act may be implemented, Sub-standard cotton seed and BT cotton varieties may be regulated.It was also recommended that cotton sector may be regulated by rationalizing over 700 seed companies and disallowing cotton import during cotton picking season.It was recommended in the action plan that Cotton Cultivation may be expended in KP and Balochistan. Spinning and ginning may be improved through better technology, shifting of current weight based pricing to quality based system, and bale labeling by ginners showing quality features. The existing excessive incentives for sugarcane may be rationalized, by replacing its current pricing mechanism with a new linking sugarcane price to the wholesale price of sugar in order to ensure a level playing field for all commodities. The cabinet was also requested that the administrative control of Pakistan Cotton Central Cotton Committee should be transferred to National Food Security and Research Division to strengthen public private partnership in cotton research through increased funding from the public sector and more pro-cotton policies in the overall policy framework. Furthermore, National Food Security and Research Division should also submit an annual report to the cabinet on the actual results achieved by PCCC and implementation of this action plan. The cabinet approved to transfer Pakistan Cotton Central Cotton Committee and related matters from the ministry of textile industry to ministry of National Food Security and Research Division.

Source: The Nation

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1st 2017 data show fall in Cambodian garment sector growth

Cambodian labour minister Ith Sam Heng recently told the ministry’s annual meeting that the country’s garment sector grew by 4 per cent last year to reach $7.6 billion, which marks a relative growth rate slowdown. According to government statistics, the sector grew by 7.2 per cent in 2016 to $7.3 billion, up from $6.8 billion the year before. This is the first official reporting of 2017 export data for the sector, though the customs department under the ministry of economy and finance has not released data from the second half of 2017. The slower growth rate was anticipated by industry representatives, according to a report by a top Cambodian newspaper. (DS)

Source: Fibre2Fashion

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Cambodia : Canada praises progress in factory labour conditions

Donica Pattie, Canada’s Ambassador to Thailand, Cambodia and Laos, on Friday lauded Cambodia’s recent advancements in factory labour conditions, which she said might prompt Canada to increase purchases from Cambodian textile manufacturers, according to a high-ranking Cambodian official. Ms Pattie, who is based in Bangkok, met this week with Ith Samheng, the Cambodian Minister of Labour and Vocational Training, in Phnom Penh. According to Mr Samheng, the ambassador said the kingdom continues to be one of Canada’s biggest suppliers of textiles, and, in light of recent positive developments in factory working conditions, her government plans to strengthen that relation. “Canada values our efforts in this regard and considers Cambodia a role model when it comes to improving labour conditions,” Mr Samheng said. “They have discontinued orders from other countries that do not abide by international labour standards, but they will continue their relation with us,” he said, hinting also at the possibility that Canada might increase orders in the near future. “If we continue on this path, they could even increase the amount of orders they place with Cambodian manufacturers.” A report released last month by Better Factories Cambodia (BFC), a programme of the International Labour Organisation, found that compliance in the garment industry with working conditions regulations has improved substantially in the last four years. Kaing Monika, deputy secretary general at the Garment Manufacturers Association in Cambodia, told Khmer Times that with the help of the International Labor Organization and its BFC programme the lives of workers in the garment industry have improved substantially in recent years. “There’s been a remarkable improvement in working conditions and rights, such as full freedom of association and the right to collective bargaining,” he said. “Developments in social security and the regular wage adjustment on an annual basis are also positive points for the workers. This would continue to ensure our preferential access to the EU market.” According to Mr Samheng, to date Canada has purchased more than $90 million in Cambodian textile products.

Source: Khmer Times

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USA : Indigo demonstrates 14% rise in cotton yield in dry fields

Indigo Ag, Inc., a company dedicated to harnessing nature to help farmers sustainably feed the planet, has demonstrated an average yield gain of 14 per cent in the dry cottonfields of West Texas. This is an improvement upon 2016, in which the average gain was 11 per cent. The gains reflect y-o-y improvement, validating research and development approach. "These results affirm that Indigo's proprietary discovery and development processes lead to continuous performance improvement," said Dr Jonathan McIntyre, Indigo's head of research and development. "Not only do we utilise data generated in lab assays and greenhouse experiments, but also we collect information from commercial fields, gaining insights to improve our products even after commercialisation. These insights translate into better results for growers, processors, and consumers." Indigo harvest has thus far been collected from 23 commercial fields across Texas, comprising over 2,500 acres. Yield increases were evaluated based on the control — cotton grown in adjacent fields from seeds without microbial treatment — and were achieved without increased water or chemical application. Seed variety and management practices were consistent across fields. Indigo Cotton's overall win rate inWest Texas was 91 per cent, with yield increases seen on both dryland and irrigated acres. These results are consistent with five years of company field trials. The 14 per cent average yield gain demonstrated represents an additional $68 per acre for US. "I had Indigo-treated cotton in a side-by-side comparison with untreated cotton. Throughout the year, the Indigo plants were visibly healthier and taller," said Justin Busenlehner, a cotton grower from Ballinger, Texas. "The Indigo-treated cotton had at least a third more root mass than the untreated cotton. When scouting the field, I noticed 1-1.25 more bolls per foot on the Indigo-treated cotton. I was pleased with the results last year and I have already contracted cotton acres this year." "Consistent with the work that we've been doing at Texas A&M since 2011, we see that microbes isolated under drought conditions can have a significant positive impact on plant health and growth," said Dr Gregory Sword, Texas A&M AgriLife Research entomologist and Indigo collaborator. "Partnering microbes with cotton plants in fields throughout Texas and beyond can help to support farmer yields and profits, despite challenging growing conditions. We're excited to see a second year of effective commercial products on the market."

Source: Fibre2Fashion

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High-visibility apparel: Emphasis put on clothing to protect kids from traffic accidents

Bunka Fashion College students show raincoats they designed that won the top prize at a contest for high-visibility safety designs for children’s wear at their school in Shibuya Ward, Tokyo, in November. Students at Bunka Fashion College in Tokyo participated in an unusual contest last November, presenting clothing they designed to protect children by making them highly visible through such elements as reflective materials and fluorescent colors. The contest was held as part of efforts to introduce high-visibility safety designs for children’s wear to help safeguard children from traffic accidents, by making it easier for drivers to see the wearer, even at night or in bad weather conditions. Companies and other entities are trying to improve the designs as well as the functions of such apparel in the hope that children will wear it every day. First prize in the contest went to a pair of raincoats using the motifs of a beetle for boys and a butterfly for girls. The “wings” employ reflective materials and can even cover the body of a child who is wearing a schoolbag on their back — a feature to ensure the safety of children when traveling to and from school on rainy days. A jacket with high visibility from the Arch&Line brand that can be worn by boys and girls “Sewing water-repellent fabric was not easy, but we were able to blend good designs [and functions],” said Hana Inoue, 19, the leader of the winning team. Preschoolers and elementary school students in the lower grades were the most vulnerable to deaths or injuries from traffic accidents while walking in 2015, according to a study by the Institute for Traffic Accident Research and Data Analysis. The largest age group in terms of such victims was 7-year-olds — at 1,462 — followed by children aged 8 and 6. To protect children from traffic accidents, the Japan Traffic Safety Education Association compiled in 2016 its own standards for children’s clothing, based on the Japanese Industrial Standards (JIS) for high-visibility clothing. Under the association’s standards, for example, long sleeves should incorporate two or more reflective materials that are 50 millimeters or more apart from each other. Green, yellow and six other colors are recommended for fluorescent fabrics. Yet design is an important factor to encourage children to wear such apparel in their daily life. The Nissenken Quality Evaluation Center, which tests the quality of textile products, therefore sought help from Bunka Fashion College, a school known for producing such renowned designers as Hiroko Koshino and Kenzo Takada.

Products put to practical use Some companies are already marketing safety clothing designed for children. In mid-February, Arch Co. released a jacket for 5- to 8-year-olds under its Arch&Line brand mainly for children. The product looks like a regular jacket, but it meets the JIS standards for high-visibility safety clothing by using a special fabric coated with glass, which can reflect even faint light. This feature can make it easier for the wearer to be seen not only at night, but also if they were trapped under a collapsed building in case of a disaster, according to the Tokyo-based firm. The jacket is currently available only at Arch’s outlet in Osaka. “We can meet the needs of parents who want to protect their children,” an Arch public relations officer said. Kanko Gakuseifuku Co., a major manufacturer for school uniforms based in Okayama, worked with major textile firm Toray Industries, Inc. and a uniform maker in Yokohama to develop high-visibility safety vests, which were donated to elementary school students in Yokohama. The vests have reflective materials around the waistline, and the garments’ high collars and wide shoulders are designed to make children plainly visible even when they carry a schoolbag on their back. The Japan Traffic Safety Education Association has been receiving an increasing number of requests from manufacturers who want their products accredited as meeting the association’s standards for high-visibility safety clothing for children. “We want to devise more ideas [for such products], so that parents and area residents will think that it’s better for kids to wear this type of apparel for safety,” said Shigeki Kato, a senior association official.

Source: The Japan News

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C&F brings variety to product introductions

At the New York Market – New bedding, a set of indoor/outdoor pillows and a table linens collection are on display from C&F Enterprises’ C&F Home division. In bedding, the company will debut the Nelly Onyx quilt set with the intention of adding a touch of shabby chic to consumers’ home décor. Its design is a black-on-white vintage rose print which reverses to a black and white ticking pattern. Made of cotton, Nelly Onyx includes a quilt and coordinating standard sham(s). C&F Home’s new indoor/outdoor pillow collection is named Magnolia, and it’s been executed in collaboration with the company’s partner, Colonial Williamsburg. This pillow is fade- and mildew-resistant, and its style is meant to bring a touch of southern charm to one’s living space, which lasts through rain or shine. The new table linens grouping is called Tansy. The collection’s colorway features shades of blue, Aegean, coral, purple and yellow, and it’s designed with a Jacobean floral atop a white ground. Tansy also reverses to an Aegean grid pattern for alternate styling options. The collection is crafted of cotton which is machine washable for easy care, and includes a round placemat, table runner, napkin and bedding set. C&F is also launching new lines under its carol & frank brand. These include a mix-and-match bedding collection combining Mallory, a classic seersucker, Dabney, a raw-edge ruffle; and Lola, a decorative pillow designed with a floral embroidery. The company’s showroom is located at 295 Fifth Ave., Suite 710.

Source: Home Textiles Today

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Depreciating trend continues at Australian wool auctions

The continued at Australian wool auction sales in the sale week ending March 16, although the rate of falls slowed considerably. During the sale week 37 of the current season, the Australian Wool Exchange - Eastern Market Indicator (AWEX EMI) fell by 27ac for the week and settled at a week ending figure of 1751ac/clean kg. Merino wool movements during the week were all to the negative with the superfine sector most affected. The fall in prices for wool finer than 18.5 micron was exacerbated by diminishing quality and losses of 50 to 60ac were recorded. The fine and medium wools held on better with prices 20 to 30ac lower. The skirting segment behaved similarly but the cardings and crossbred wools performed the best with 10 to 15ac lost and a large portion of that due mainly to the stronger and disadvantageous USD v AUD rates. “Merino wools of all types and descriptions were allowed to drift backwards from the outset by buyers, but the under-current of swelling demand became evident towards the close of selling and arrested the slide on quite a few of the type sectors,” Australian Wool Innovation (AWI) said in its ‘Wool Market’ weekly report. “The foreign exchange rates on all of the major currencies didn’t really stimulate overseas buyers to move tradesentiment to the positive either. Those rates all appreciated against the Australian dollar (AUD) by varying degrees of between 0.4 per cent and 0.8 per cent. As such, the EMI when expressed in US dollars was far less affected and drifted 13usc lower or 0.9 per cent lower to 1379usc/clean kg,” the report said. After a few weeks of going against the trend of most other currencies moving up against the AUD, the euro finally succumbed and joined that trend and recorded the strongest movement. For buyers using this currency, this dulled the AUD falls and eliminated most of the advantages of the weaker auction prices. This remains probably theoretical only though, as buyers reported a high percentage of the wool on offer was not suitable to this market due to quality factor. The factors hampering wool markets at present remain similar to the past few weeks since Chinese New Year break put the skids under the market. The high prices and finance access issues, combined with the reduction in quality of wool on offer are predominant factors affecting the market. Additionally, it seems having the major buyer of wool globally basically out of action for a week whilst wool auctions forged ahead regardless probably didn’t help either, AWI said. Access to finance is an issue that all would understand. Put simply, it takes twice as much today to fill the same order for the same type it did eight years ago. Also, with wool prices being considered on the high side at present, this usually prevents local buyers stepping in to stock wool whilst waiting for clearer demand signals from their clients. Essentially this means too much risk for very little reward for the buyer exporters, explains the report. Conversely, the sellers are happy to continue to sell and take current prices on offer and hence the sliding market. So, whilst demand is still there, and supply is okay, this lull is typical of spot markets reacting to the immediate hand-to-mouth demand situation that the wool market has been operating for years now, it adds. For sale week 38, around 39,000 bales is rostered for auction in Australia. A firming tendency in prices on the better wools and a lift in buying intent from exporters witnessed at the close this week just may signal a slowing in the fall, says AWI.

Source: Fibre2Fashion

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