In line with an announcement made by finance minister Arun Jaitley in his latest Budget speech, the labour ministry has extended full-benefit, fixed-term jobs — already a feature in the labour-intensive garment and leather industries — to all sectors of the economy. Legitimising fixed-term employment with all these benefits across industries is important to avoid unproductive disputes and litigation and could encourage formal employment over informal employment, analysts said. In line with an announcement made by finance minister Arun Jaitley in his latest Budget speech, the labour ministry has extended full-benefit, fixed-term jobs — already a feature in the labour-intensive garment and leather industries — to all sectors of the economy. A notification to this effect, amending the relevant rules under the Industrial Employment (Standing Orders) Act, 1946, has been issued by the ministry of labour and employment. The move would have multiple benefits: It would boost creation of ‘formal jobs’, reduce instances of informal hiring, which continues to be the norm in the unorganised sector, and spare businesses the undue burden of keeping regularised contract employment, even as their labour requirements are seasonal. The labour market flexibility will help the manufacturing sector, on the cusp of a revival after a prolonged slump. The facility was introduced in the garment sector in June 2016 and later, the cabinet decided to extend it to leather and footwear sectors. Fixed term workmen will be entitled to benefits similar to the permanent workforce like EPF, ESIC, defined working hours, minimum wages, allowances and other statutory dues. “He (fixed-term workman) shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statue,” according to the notification. Defining a ‘fixed term employment workman’ as “one who has been engaged on the basis of a written contract of employment for a fixed period”, the government added: “No employer of an industrial establishment shall convert the posts of the permanent workmen existing in his industrial establishment on the date of the commencement of the (notification)” to that of fixed term workman. This gives protection to existing permanent employees. Henceforth, “no notice of termination shall be necessary in the case of temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen”. Of the country’s estimated 50 million workforce, hardly 10% is in the organised sector are entitled to social security benefits such as provident fund and benefits like defined working hours, minimum wages, allowances and other statutory dues. Unorganised sector workers are mostly deprived of these benefits. Legitimising fixed-term employment with all these benefits across industries is important to avoid unproductive disputes and litigation and could encourage formal employment over informal employment, analysts said. The move would positively impact influence the economy as it would create more formal jobs while also allaying concerns of the employers of the risk of costly permanency of workforce even while employing workers for project-based, limited-duration requirements. According to the notification, a temporary workman, who have completed three months of continuous service, “shall be given two weeks notice of intention to terminate his employment if such termination is not in accordance with the terms of the contract of his employment”.
Source: Financial Express
Donald Trump has a clear policy. He claims he will not spare anyone in his quest to make America great, again. We can debate over the effectiveness of his policy measures, depending upon our political and economic affiliations, but that won't change the reality on ground. Therefore, Trump administration's decision to launch a trade challenge to most of India’s export subsidy programs at the World Trade Organisation, should not surprise us. "These export subsidy programs harm American workers by creating an uneven playing field on which they must compete," U.S. Trade Representative Robert Lighthizer said in a media statement. There could be two ways India can respond to the situation. We can either opt for the traditional route to fight out our right to subsidise exports at WTO's dispute settlement panel. Or we can use this opportunity to realise that the subsidies will not be there forever and our industries need to be effective and innovative to the extent that they create a niche for themselves. If we go for the first route, we would at most be able to buy out some more time to conduct our business in the traditional way for a few more years. As is clear from the perspective of SC Ralhan, a hand tool exporter from Ludhiana who was also president of the Federation of Indian Exporters Organisation, “ Indian government is not giving any direct subsidies. We have a ground to fight our case and the government is preparing its strategy to fight the case.”
CAN WE WIN THE CASE?
A lot of schemes incentives that India offers to promote its exports fall are allowed to only for countries with per capita income of $1000. Another criteria, especially in the textiles sector, allows subsidies only till a company reaches the scale of 3.25% of world trade.
In the textiles sector, India touched the threshold of 3.25% share in world trade in 2008. The WTO allows 8 years time period to faze out subsidies and, therefore, the government would want to avoid using the 3.25% criteria. Rather, it would want to focus on the $1000 threshold the Indian crossed only in 2015 and was reported at the WTO in 2017. So, in case, the government plays smart and manages to seek some respite from the WTO dispute settlement panel, the country may be allowed a few more years to give subsidies based on which year ( 2015 or 2017) is settled upon for reaching recognising India's entry into the $1000 per capita income country. DK Nair, former secretary general of Confederation of Indian Textiles Industry says “ Not all of our schemes are of the nature of subsidies. For example the TechnologyUpgradation Fund Scheme (TUFS) is given to all industries and not just export oriented. There are many other schemes that could benefit Indian exporters and will not be difficult to defend at the WTO platform.”
THE OTHER OPTION
Even if India manages to buy some more time for its exporters, the technicalities of the WTO rules suggest that there is no infinite time available for the Indian exporters. India as a country has failed to improve its export infrastructure over the years and this is why smaller countries like Bangaldesh and Vietnam have forged ahead of India in many areas. One of the reasons for India's slow progress exports sector is its inability to promote large manufacturing units. The average size of an Indian manufacturing units is less around 70 employees. Whereas in China, Bangladesh and Vietnam it is around 500. This makes it difficult for Indian exporters to achieve the economies of scale and offer competitive pricing t buyers. Apart from this, Indian exporters have failed to adopt the responsible business practices like better facilities for labourers, environment friendly raw material etc, which makes many of the top notch western companies to reject Indian manufacturing units. In a recently held conference by India Responsible Business Forum, Rishi Sher Singh, a supply chain expert said “ that the Western companies are becoming conscious of who the source their material from. What are their labour polices and how responsible they are towards their employees. Indian companies will have to recognise the changing global scenario and upgrade their production facilities.” Apart from adopting responsible business practices, Indian exporters also need rationalisation of many labour laws – not necessarily the hire and fire policy- that allows companies to expand their businesses. While the government often talks about labour reforms in conferences, unfortunately, its understanding of it has remained limited to allowing businesses to hire and fire workers at will, which in the absence of due procedures and best human resource practices, will create industrial relations crisis. Rather, the government needs to do away with such laws that make it difficult for companies to upgrade machinery without the permission of labour unions. There are many other archaic rules that mar the growth of Indian exporters and there is a need for the government to re- explore its understanding of labour reforms. Last but not least, the government must invest in research and development that allows Indian companies to move towards value addition. Though it is difficult, China after all these years of being the manufacturing hub of the world is known for low end manufacturing, but not impossible. We need to make a start somewhere, with a concsious mind that subsidy-based mechanisms can keep us alive but will never allow us to thrive.
Source: Catch News
With India's apparel exports further declining by 10.25 per cent during the month of February 2018 against the corresponding month of February 2017, industry body Apparel Export Promotion Council (AEPC) has raised concerns over the downward trend. As per the latest trade data released by AEPC, India's readymade garments (RMG) exports were worth roughly $1.44 billion in February 2018 against the corresponding month of February 2017, which was about $1.60 billion. In rupee terms export for February 2018 was Rs 92.8 billion as against Rs 107.7 billion in February 2017, with the decline of 13.86 per cent in rupee terms. According to HKL Magu, chairman of AEPC, already apparel production was on a declining curve with industry registering decline of 10.4 per cent in the apparel production for the period April-January 2017-18. "Now, for the period April- February 2017-18, there has been a drastic decline of 10.25 per cent in the apparel exports. Given the kind of uncertainty which has been prevailing due to US challenging India's export subsidy program at WTO, we are seriously worried about the future of the Industry. Exports are on a continuous decline since October 2017," said Magu. The downward trend is further accentuated by competing nations such as Bangladesh which has registered an 8.68 per cent improvement for the period July 2017-February 2018 over last year. AEPC has also raised concerns over the US filing a complaint at the WTO about India's export subsidy programmes like Merchandise Exports from India Scheme (MEIS), Export Oriented Units Scheme, and Export Promotion Capital Goods Scheme, among others. Commenting further on the complaint filed by US, Magu said that the move has "turned up 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," AEPC chairman added. Cumulatively, while India's RMG export to World in the April-February of 2017-18 was to the tune of $15.22 billion, posting a fall of 2.19 per cent compared to the same period of the previous financial year. During April-February 2016-17, India's apparel exports were to the tune of $15.55 billion. RMG exports from Bangladesh for the period of July 2017-February 2018 stood at US $ 20.25 billion, which is an increase of 8.68 per cent improvement over previous year's figure of US $ 18.6 billion, as per the data released by Export Promotion Bureau (EPB) of Bangladesh.
Source: Business Standard
Fibre production in India should match the projected doubled production of textile and clothing products by 2025, according to the country’s textile commissioner Kavita Gupta, who inaugurated the regional office of the Synthetic and Rayon Textiles Export Promotion Council in the premises of Southern India Mills’ Association (SIMA) in Coimbatore last week. With an apparel and textile industry revenue target worth $300 billion by 2025 and India’s cottonand synthetic fibre production at 6.5 billion kg and 2.5 billion kg respectively now, the country needs around 9 billion kg of synthetic fibre to meet the target, she said. Cotton and synthetic fibres should go hand-in-hand, several newspapers in south India quoted her as saying. About 2.5 lakh new jobs have been created in the garments and made-ups sector since the government announced a relief package for them in June 2016, she said. The readymade garment industry is the largest contributor to the country’s textile exports and employs about 12 million persons now.
Source: Fibre2Fashion
The NCDC scheme offers assistance to cooperative units in the form of reimbursement - the state releases assistance and claims reimbursements from the corporation. A day after it was reported that two cooperative garment units from Osmanabad district attempted to cheat the government but managed to obtain funding under the National Cooperative Development Corporation (NCDC) scheme anyway, Maharashtra Chief Minister Devendra Fadnavis ordered the textile secretary to probe the matter and submit a report within a month. On Tuesday, The Indian Express reported that two cooperative textile units — Tararani and Sai Mahila garment co-operative societies — based in the Kadaknathwadi village of Osmanabad’s Vashi taluka were granted funds despite a 2014 inquiry report concluding that the two committed serious irregularities while depositing their own members’ share capital for their proposed units, as required under the NCDC scheme. Not only did the two companies withdraw money multiple times over seven years from what was stated to be the members’ share capital for the projects, but one company also transferred almost its entire share capital by cheque to the other, which the latter then presented to officials as evidence of its share capital. “Secretary of the textile department has been asked to conduct an immediate probe and submit a report in a month,” said a representative of the Chief Minister’s Office (CMO) on Tuesday. Meanwhile, the Nationalist Congress Party (NCP) alleged that the case is evidence of public money being granted to party activists of the Bharatiya Janata Party. “This issue is not about just two societies but there are many such societies in the state. An inquiry must be ordered into the financial assistance given to all such societies. In this case, the funds should be recovered and action should be taken against officials involved,” said Dhananjay Munde, NCP leader and leader of the Opposition in the Maharashtra Legislative Council. In addition, data from Maharashtra’s Textiles department shows that cooperative societies have shown a poor track record in repayment of funds under the scheme. Government data shows as of March 31, 2017, such cooperative societies owe the Maharashtra government Rs 704.66 crore. The total amount recovered under the NCDC scheme until now is Rs 35.95 crore – a recovery ratio of 4.85 per cent. The state government has disbursed Rs 375.54 crore to such societies as financial assistance under the NCDC scheme till March 31, 2017. As many of these societies have failed to make their repayment instalments over the years, the interest and the penal interest has been levied, said officials. The NCDC scheme offers assistance to cooperative units in the form of reimbursement – the state releases assistance and claims reimbursements from the corporation. Also, while financial assistance was extended to 445 garment and powerloom societies, only 240 of these are in working condition while another 39 societies are currently constructing their units. Of the remaining, 85 societies are idle while 81 societies are undergoing liquidation. Sources in the government conceded that the recovery ratio of the scheme is poor. “The Textile department gives Rs 1,000 crore subsidy to these units from the state electricity board. The electricity rate for these societies is Rs 2.5 per unit, much lower than what other industrial units pay. But we don’t know whether garment or powerloom societies are being run at these units. The government must conduct a survey of all such units to ensure that they are being used for the purpose they were granted funds for,” said an official.
Source: The Indian Express
The rupee slipped by 3 paise to finish at a four-month low of 65.20 against the US currency on Tuesday on some dollar buying by importers and banks ahead of the US Federal Reserve's key policy meet. The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 per cent from Monday's close of 65.17. Meanwhile, the 30-share BSE Sensex rebounded by 73.64 points or 0.22 per cent at 32,996.76. The greenback's gains against major global currencies ahead of the US Federal Reserve's key policy meet that kicks off later in the day, in which it is expected to hike interest rates, weighed on the domestic unit, dealers said. The rupee started on a negative note at the Interbank Foreign Exchange (forex) market and remained under pressure for the better part of the session on a firm dollar overseas. It finally settled at 65.20, revealing a loss of 3 paise, or 0.05 per cent. The rupee had closed at this level on November 16 last year. On Monday, the rupee had tumbled 23 paise to close at 65.17 against the dollar due to concerns over a widening current account deficit. Foreign investors, however, put in Rs 3.44 billion on net basis in the domestic stock markets. The 10-year bond yield was at 7.608 per cent compared to its previous close of 7.607 per cent. Bond yields and prices move in opposite directions. The Reserve Bank of India on Tuesday fixed the reference rate of the rupee at 65.1993 against the US dollar and 80.4625 for the euro. In cross currency trade, the rupee fell against the pound to close at 91.4942 from 90.5582 earlier. It also lost against the euro to finish at 80.4625 from 79.7750. The rupee traded at 61.33 per 100 Japanese yens from 61.50 on Monday. In the forward market, the benchmark six-month forward premium payable in August moved down to 122.50-124.50 paise against 124-126 paise earlier. The February 2019 contract eased to 240-242 paise against 243.50-245.50 previously.
Source: Business Standard
Egypt's Foreign Minister Sameh Shoukry will be in New Delhi on Wednesday for the seventh session of the Egypt-India joint committee on bilateral relations. During his visit, Shoukry will also meet Prime Minister Narendra Modi and deliver a message from Egyptian President Abdel Fattah el-Sisi concerning ways to boost bilateral relations. Shoukry will lead the Egyptian delegation during the session which will begin its meetings on Thursday at the level of senior officials and then at the ministerial level on March 23. During his visit, the minister will discuss bilateral relations between the two countries and ways of developing them in all fields, as well as regional and international issues of common concern. Egypt is keen to develop cooperation with India in all fields within the framework of historical relations between the two countries. This has been reflected in visits and meetings between the Egyptian president and Modi since 2015, as well as joint coordination between the two countries in international forums, according to Ahmed Abu Zeid, spokesperson of Egypt's ministry of foreign affairs. Abu Zeid added that the economic cooperation between the two countries is particularly important as the total Indian investment in Egypt exceeds USD 3 billion while the volume of trade between the two countries exceeded USD 2 billion in 2017. This has been reflected in visits and meetings between the Egyptian president and Modi since 2015, as well as joint coordination between the two countries in international forums, according to Ahmed Abu Zeid, spokesperson of Egypt's ministry of foreign affairs. Abu Zeid added that the economic cooperation between the two countries is particularly important as the total Indian investment in Egypt exceeds USD 3 billion while the volume of trade between the two countries exceeded USD 2 billion in 2017. He also mentioned the strong cultural cooperation between both countries. During the visit, the minister will participate in the economic forum organised by the Federation of Indian Chambers of Commerce and Industry in cooperation with the Egyptian commercial office in New Delhi. Shoukry is expected to deliver a lecture at a policy research centre in New Delhi during which he will discuss Egypt's vision of several regional and international developments, and he will also hold discussions with his Indian counterpart Sushma Swaraj.
Source: DNA
Rains in Argentina and the US southern Plains, trade spats, the prospect of a US interest rate rise. There were many themes in play on the first day of northern hemisphere spring (which raises another topic in vogue, that of crop plantings, too). But arguably the, surprise, subject which caused the biggest market moves on Tuesday was India.
‘Momentum destroyed’
It was seen as fuelling a tumbled of 2.6% to 12.56 cents a pound in New York raw sugar futures for May, with the decline coming as India announced the ditching of export taxes on the sweetener, amid expectations of record output. “While that had been widely expected, and does not suddenly make exports commercially viable at current price levels, it has taken the momentum out of yesterday’s rally," said Agrilion Commodity Advisors. That said, many investors anyway may have seen the sharp rebound in prices as a cause for fresh selling. “Newswires seem to be trending to larger and larger harvests in particularly the northern hemisphere,” said Sucden Financial, adding that “funds are seemingly in no hurry to profit take” on short bets.
Cotton area drop
India was also seen as helping New York cotton futures for May soar by 2.3% to 83.08 cents a pound, back above their 20-day moving average, with the rise following an estimate by the Cotton Association of India that the country’s sowings of the fibre for 2018-19 could tumble by 12%. “We are expecting lower sowing in Maharashtra and Telangana due to pink bollworm attacks," Atul Ganatra, association president, told Reuters. “Many farmers in these states are likely to switch to other crops like soybeans.” Such talk is particularly sensitive for the cotton market in coming at a time of one of the other themes, ie President Donald Trump’s drive to stem overall US imports from China in particular, and the potential for Beijing to restrict US crop exports in return. With India the second-ranked cotton exporter (after the US), prospects of a downturn in the country’s output and shipments would appear to cut the likelihood of cotton being a target for Chinese retribution.
Source: Agrimoney.com
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1392.50 |
USD/Ton |
-0.28% |
3/20/2018 |
|
VSF |
2335.29 |
USD/Ton |
0% |
3/20/2018 |
|
ASF |
2761.33 |
USD/Ton |
0% |
3/20/2018 |
|
Polyester POY |
1368.83 |
USD/Ton |
-0.23% |
3/20/2018 |
|
Nylon FDY |
3660.73 |
USD/Ton |
0% |
3/20/2018 |
|
40D Spandex |
5996.02 |
USD/Ton |
0% |
3/20/2018 |
|
Nylon POY |
3392.49 |
USD/Ton |
0% |
3/20/2018 |
|
Acrylic Top 3D |
2966.45 |
USD/Ton |
0% |
3/20/2018 |
|
Polyester FDY |
1625.24 |
USD/Ton |
0% |
3/20/2018 |
|
Nylon DTY |
3826.41 |
USD/Ton |
0% |
3/20/2018 |
|
Viscose Long Filament |
5964.46 |
USD/Ton |
0% |
3/20/2018 |
|
Polyester DTY |
1605.51 |
USD/Ton |
0% |
3/20/2018 |
|
30S Spun Rayon Yarn |
3045.35 |
USD/Ton |
0% |
3/20/2018 |
|
32S Polyester Yarn |
2166.46 |
USD/Ton |
-0.15% |
3/20/2018 |
|
45S T/C Yarn |
3013.79 |
USD/Ton |
0% |
3/20/2018 |
|
40S Rayon Yarn |
3187.36 |
USD/Ton |
0% |
3/20/2018 |
|
T/R Yarn 65/35 32S |
2713.99 |
USD/Ton |
0% |
3/20/2018 |
|
45S Polyester Yarn |
2319.51 |
USD/Ton |
0% |
3/20/2018 |
|
T/C Yarn 65/35 32S |
2540.42 |
USD/Ton |
0% |
3/20/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
3/20/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
3/20/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
3/20/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
3/20/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
3/20/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15779 USD dtd. 20/3/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to benefit the textile and garment, footwear, and food and beverage industries in Vietnam as the commitments on opening markets made in the old TPP have not changed, experts feel. The benefits would, however, be lower than it would have been with the TPP. US President Donald Trump withdrew from the TPP after he was elected last year. Japan is the second largest export market for Vietnamese textile and garment industry, with an annual growth rate of 23 per cent. Its garment imports from Vietnam is much smaller than those from China — 6 per cent versus 65 per cent. But the latter is on the decrease, while the former is rising because of preferential tariffs, according to a report in a Vietnamese newspaper. CPTPP, however, is less attractive than the TPP and offers fewer opportunities to increase output and exports. But it is expected to lead to a greater level of export diversification. The World Bank estimates that CPTPP would help Vietnam’s gross domestic product increase by 1.1 per cent more by 2030, while export turnover to CPTPP countries may increase to $80 billion, or 25 per cent of Vietnam’s total export turnover. Of this, the important business fields of Vietnam, including food and beverage, footwear and textile and garment would see export turnover increase by $10.1 billion, $6.9 billion and $0.5 billion, respectively. (DS)
Source: Fibre2fashion
ISLAMABAD - Pakistan’s textile exports recorded growth of 7.17 percent during eight months (July to February) of the ongoing financial year (2017-18). The country exported textile and clothing products worth $8.8 billion during July-February period of the year 2017-18 as against $8.2 billion of the corresponding period of the previous year, according to the Pakistan Bureau of Statistics (PBS). The growth in textile and clothing products exports enhanced the country’s overall exports to $14.8 billion during July-February of 2017-18 as compared to $13.3 billion of the corresponding period of the last year. “These results have been achieved due to the export-friendly policies and incentives of the government and the renewed efforts towards seeking better market access by the Ministry of Commerce,” the Ministry of Commerce said. The positive trend in the international demand and exchange rate correction are also expected to help sustain this rising trend in the coming months. According to the PBS, the main driver of growth was the value-added textile sector. Exports of ready-made garments went up by 13.08 percent in the first eight months of the ongoing financial year. Similarly, exports of knitwear increased by 13.3 percent during the period under review. Exports of bedwear went up by 4.51 percent in value. Similarly, exports of made-up articles, excluding towels, increased by 7.32 percent. Art, silk and synthetic textile exports grew by 80.08 percent during the period under review. Exports of cotton yarn witnessed an increase of 1.87 percent and exports of cotton cloth recorded minor growth of 0.04 percent. However, exports of cotton carded tumbled by 97.87 percent. Exports of tents, canvas and tarpaulin also declined by 39.49 percent. Meanwhile, the exports of food commodities recorded massive increase of 21.74 percent during July-February period of the ongoing financial year. In food commodities, exports of rice recorded growth of 22.14 percent, fish 10.18 percent and vegetables exports went up by 39.78 percent. Meanwhile, exports tobacco enhanced by 123.6 percent and wheat exports also recorded growth during eight months of the current fiscal year. On the other hand, the imports went up by 17.09 percent and were recorded at $39.1 billion during first eight months of the current financial year as against $33.4 billion during the same period last year. The country spent $9 billion on the imports of petroleum group, 34.9 percent higher than a year ago. In the petroleum sector, the government imported petroleum products worth $4.9 billion and spent $2.5 billion on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $1.4 billion and liquefied petroleum gas (LPG) worth $208 million. The PBS data showed that country had spent $7.56 billion on importing machinery during first eight months of the ongoing financial year. The third biggest component was food commodities whose imports rose 6.32 percent year-on-year to $4.2 billion.
Source: PK Nation
The Pakistan Textile Exporters Association (PTEA) has praised the release of Rs 5 billion to clear claims of duty drawback of taxes (DDT) allowed under the Prime Minister’s Trade Enhancement Initiatives, saying the move will offer the needed flip to textile exports. PTEA chairman Shaiq Jawed termed the move a positive step for sustainable growth. The financial stress of textile exporters would be mitigated through payment of outstanding duty drawback of taxes and technology upgradation fund schemes, but immediate payment of stuck-up liquidity in sales tax, income tax and customs rebate refund regime also needs to be addressed to derive maximum industrial growth and a significant rise in exports, Pakistani media reports quoted Jawed as saying. Forty six billion rupees of textile exporters are blocked in sales tax refund regime, Rs 8.5 billion are held on account of custom rebate and 15 billion rupees under income tax refund, he said. This is adversely affecting the textile industry, which is unable to tap its potential, he added.
Source: Fibre2fashion
Pakistan’s textile production and earning capacity is far lower as it earns $1 billion through products manufactured from a million cotton bales while Bangladesh and Vietnam earn $6 billion and $8 billion respectively, State Bank of Pakistan senior economist Asma Khalid told a recent seminar on ‘Stimulating Firm Productivity for Growth’ organised by the bank. While Sindh led in product innovation, Punjab was ahead in skills development implementation, the seminar, whose co-organisers included the International Growth Centre (IGC), the Consortium of Development Policy Research (CDPR) and the Institute of Business Administration, was told. Pakistan’s trade cost has remained stagnant compared to India and China’s consistently declining costs each year, said Salam Ali from IGC. Speakers said the higher demand for garments in China has created opportunities for Pakistan to get a bigger share of the former’s import pie, according to Pakistani media reports. Between 2013 and 2015, Pakistan’s garment exports increased by 10 per cent to the European Union compared to Bangladesh’s 13 per cent and India’s 17 per cent, indicating that Pakistan has yet not fully exploited the benefits of the generalised system of preferences plus status, CDPR’s Zara Salman said.
Source: Fibre2fashion
The National Council of Textile Organizations (NCTO) has launched Textiles in the News (TIN), a new website promoting the US textiles industry. The first original content is an opinion piece by NCTO President & CEO Auggie Tantillo titled Why NCTO Launched Textiles in the News. As part of NCTO’s American Textiles: We Make Amazing public relations effort to rebrand the US textiles industry, TIN’s mission is to showcase the dynamism of the US textiles industry and cover the policy issues that disproportionately impact the sector. This will be done through linking to the most relevant news and opinion pieces produced by other media outlets about or affecting the US textiles industry, generating original content, including news and opinion from US textiles industry leaders and policy experts, and tracking US textiles industry social media posts. “While some may have an outdated perception of the US textiles industry, those working in the sector know it is a global powerhouse,” said NCTO President & CEO Auggie Tantillo. “As a national trade association representing domestic textile manufacturers, NCTO wants to make sure policymakers, business leaders, journalists, prospective workforce entrants and others have greater awareness of this crucial fact. This is the rationale behind creating TIN,” Tantillo continued. Noting that trade press and international, national and local media outlets are posting compelling content daily about plant expansions, new products, innovation and policy issues important to the textile supply chain, Tantillo said: “NCTO’s Textiles in the News website is designed to make these exciting and informative developments easy to access, track and digest.” “For those interested in US textiles, and the extremely positive and pervasive impact our industry is making to better our lives, please visit TIN. NCTO trusts you will find the website compelling and informative. To the media, please keep generating great stories on the modern US textiles industry. NCTO wants to drive readers to that content.”
Source: Innovation in Textiles
WASHINGTON, United States — The US apparel and footwear industry on Tuesday joined the growing list of opponents in corporate America to the sweeping tariffs that President Donald Trump is expected to impose this week on goods imported from China. The American Apparel and Footwear Association (AAFA), many of whose members rely on imports, sent a letter to the White House along with 16 other related business groups objecting to the tariffs. AAFA members include VF Corp, Tapestry Inc, HanesBrands Inc and Ralph Lauren Corp. The group's letter followed one sent Sunday by 45 trade groups objecting to Trump's expected announcement implementing the new tariffs. The AAFA letter also followed one sent Monday from more than 20 large retailers opposing the tariffs. Additionally, more than 80 shoe companies wrote a letter echoing the anti-tariff sentiments. The Trump administration is said to be preparing tariffs against Chinese information technology, telecommunications and consumer products in an attempt to force changes in Beijing's intellectual property and investment practices. Washington could impose more than $60 billion in tariffs on goods ranging from electronics to apparel, footwear and toys. A so-called Section 301 action would allow Trump to impose unilateral tariffs on China in response to a conclusion by the US government that the Chinese had violated intellectual property rules. The tariffs would not need congressional approval. Tuesday's letter, which was also signed by Council of Fashion Designers of America and the Footwear Distributors and Retailers of America, focuses on specific problems that could stem from the tariffs, including higher consumer clothing costs. "Such tariff increases would hurt US consumers, US workers, and US companies," the letter said. Steve Lamar, executive vice president of the American Apparel and Footwear Association, said that because tariffs are already high on products like shoes, companies could be forced to either raise prices or reduce their American workforce if faced with increased taxes. "We're hearing about this form all of our members," Lamar said. "Our phones are ringing off the hook."
Source: Business of Fashion
WASHINGTON (Reuters) - The U.S. apparel and footwear industry on Tuesday joined the growing list of opponents in corporate America to the sweeping tariffs that President Donald Trump is expected to impose this week on goods imported from China. The American Apparel and Footwear Association (AAFA), many of whose members rely on imports, sent a letter to theWhite House along with 16 other related business groups objecting to the tariffs. AAFA members include VF Corp, Tapestry Inc, HanesBrands Inc and Ralph Lauren Corp. The group's letter followed one sent Sunday by 45 trade groups objecting to Trump's expected announcement implementing the new tariffs. The AAFA letter also followed one sent Monday from more than 20 large retailers opposing the tariffs. Additionally, more than 80 shoe companies wrote a letter echoing the anti-tariff sentiments. The Trump administration is said to be preparing tariffs against Chinese information technology, telecommunications and consumer products in an attempt to force changes in Beijing's intellectual property and investment practices. Washington could impose more than $60 billion in tariffs on goods ranging from electronics to apparel, footwear and toys. A so-called Section 301 action would allow Trump to impose unilateral tariffs on China in response to a conclusion by the U.S. government that the Chinese had violated intellectual property rules. The tariffs would not need congressional approval. Tuesday's letter, which was also signed by Council of Fashion Designers of America and the Footwear Distributors and Retailers of America, focuses on specific problems that could stem from the tariffs, including higher consumer clothing costs. "Such tariff increases would hurt U.S. consumers, U.S. workers, and U.S. companies," the letter said. Steve Lamar, executive vice president of the American Apparel and Footwear Association, said that because tariffs are already high on products like shoes, companies could be forced to either raise prices or reduce their American workforce if faced with increased taxes. "We're hearing about this form all of our members," Lamar said. "Our phones are ringing off the hook."
Source: Business Standard
A Chinese company on Monday held a groundbreaking ceremony for textile factories in Malawi, which the African nation's government said will greatly promote its industrialization drive. The China-Malawi Cotton Co is building the factories in Malawi's central Salima district, about 93 kilometers from the capital Lilongwe, with an investment of $44.2 million in the first phase and a further $36 million in the second phase. "This is a dream come true for Malawi to become a producing country instead of a consuming country," Malawian President Peter Mutharika said at the ceremony. He said that with the factories, the country could export textile products to regional and international markets. Ju Wenbin, chairman of the China-Malawi Cotton Co, said the project will have a full-fledged cotton spinning factory, a weaving mill and a towel factory. The first phase of the project will be completed in June next year and 1,500 local people will be employed.
Source: Global Times
A textile museum is set to open this spring in Romania. The museum is the initiative of Florica Zaharia, a Romanian who returned to the country after running the textile conservation department of the Metropolitan Museum. The museum will open in locations in Băiţa and in Hărţăgani, both villages in the Băiţa commune, in western Romania’s Hunedoara county. Visitors will be able to see the museum, set to include items from the collection of the Zaharia family, beginning 2019, Adevarul reported. In Băiţa, the museum will have two locations, one in a historical building and the other in the locality’s general store. Hărţăgani, a village of a little over 1,000 inhabitants, is where Florica Zaharia was born and the place where her family decided to retire upon returning from the United States. Zaharia, who graduated from the Nicolae Grigorescu Arts University in Bucharest, specialized in decorative arts, tapestry and textiles. She worked on the film costumes for the 1983 film Bear’s Eye, directed by Stere Gulea, before leaving Romania. She and her husband lived in Mauritania for two years, and afterwards headed for New York. Although she did not speak English, Zaharia managed to get hired at the Metropolitan Museum after a recruitment agency showed the institution two tapestries she had made. She later went on to manage the museum’s textile conservation department.
Source: Romania Insider
Garment factory workers produce items of apparel at a facility in Kandal province in 2016. Heng Chivoan. A group representing some of the largest apparel brands in the US and Europe – including Gap, H&M and ASOS – expressed “growing concern” on Tuesday over several controversial labour laws and ongoing court cases against unionists described as restrictive and unjust. In an open letter to Prime Minister Hun Sen, the apparel groups also call for amendments to the contentious 2016 Trade Union Law and ask the government to strengthen the Arbitration Council, a dispute resolution body that has gained a reputation for fairness and independence. Since the passage of the Union Law, the number of cases heard by the council has plummeted, which unions attribute to the law’s onerous registration rules and other restrictions on unions’ activities. In the letter, the apparel companies warn that restrictions on freedom of association “will make Cambodia an unattractive and expensive place to do business”. The groups also call for an end to the harassment of labour activists like Central Director Moeun Tola and Coalition of Cambodian Apparel Workers’ Democratic Union President Ath Thorn, both of whom are facing criminal charges. “Five months have passed with little progress in your government fulfilling those commitments,” the letter reads. The brands also ask Cambodia to drop a proposed ban on independent research during the minimum wage negotiation process, as well as a controversial draft law on labour disputes – two floated measures that the Ministry of Labour had already said it would scuttle in October 2017. The group of brands, which also includes the US-based American Apparel & Footwear Association and UK-based Ethical Trading Initiative, has asked for a meeting with the premier to discuss its concerns. Prime Minister Hun Sen takes a photograph with representatives of the garment industry last August on Phnom Penh's Diamond Island. Facebook Heng Sour, the spokesman for the Ministry of Labour, said “most of the language” in the letter was out-of-date and “not representing reality”. In particular, he said, the ministry already withdrew the proposed research ban, as well as the labour dispute draft law. “The ministry will update the facts and real information to the concerned parties once we officially receive the letter,” Sour said. Asked why the brands had not been informed of the changes, Sour blamed people with “bad intentions” for misleading them. “Our friends will be happy with what we update them on. They might stop sourcing their information from ill-minded informants in the future,” he said. Cambodia’s garment industry, which employs more than 700,000 people, is a backbone of the country’s economy, and government officials have expressed concern about potential sanctions from the US and European Union stemming from an ongoing crackdown on the political opposition, civil society and dissenting voices. Lawmakers for the now-defunct Cambodia National Rescue Party – whose leader was jailed and whose forced dissolution prompted an international outcry – have lobbied international brands and buyers to put pressure on the government. Former CNRP lawmaker Mu Sochua said the ousted lawmakers have been in touch with the groups in the letter, which she said “demonstrates the brands’ serious concern of the political situation”. “Ignoring their call for specific actions can lead to their pulling out,” Sochua said in a message. “Not good for the industry when the EU and US considering economic sanctions.” Ken Loo, of the employer-representing body Garment Manufacturers Association in Cambodia, declined to comment in detail on the brands’ letter, but questioned how the Union Law had hindered unions’ rights. But Solidarity Center Senior Program Officer Khun Tharo said he shared the concerns listed in the letter, including lack of progress on addressing recommendations shared by the International Labour Organization in July. “So far, we don’t see any action yet in terms of government action to implement that road map,” Tharo said. “I would believe that the government would consider and would take some significant steps to improve and address the concerns” in light of the brands’ letter, he added.
Source: The Phnom Penh Post
The government has decided to provide the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) 500 acres of land inside a special economic zone located in Mirersharai of Chittagong in a bid to boost apparel exports in the years to come. Bangladesh Economic Zone Authority (Beza), which deals with these zones, believes that the move would help garment makers earn $50 billion from exports by 2021. The Beza and BGMEA will sign a memorandum of understanding in this regard today. “BGMEA has a target to export $50 billion worth of apparels by 2021, but it has no roadmap to achieve the target,” Paban Chowdhury, executive chairman of the Beza, told The Daily Star yesterday. “The government has decided to provide them the land so that they can set up new factories, create more employment and earn more from exports,” he said. Chowdhury said the Beza was considering an option to give the BGMEA another 1,500 acres of land inside the same zone. He said the Beza would be able to complete development works inside the zone by this year and would-be investors could start setting up factories by March next year. According to him, entrepreneurs establishing their industrial units in the zone or relocating there would get all kind facilities, including tax exemptions on business earnings. Investors will also enjoy exemptions from VAT on electricity and taxes on sale and self-generated or purchased electricity for 10 years. All purchases, excluding petroleum products, will get VAT and sales tax exemptions, Chowdhury said. The BGMEA welcomed the government move saying it would help exporters establish more factories at a convenient place. Siddiqur Rahman, president of the BGMEA, said they would allocate the land for setting up garment and backward and forward linkage industries. “Anyone from home and abroad can purchase land at the zone for establishing garment factories,” he said. BGMEA also expects around five lakh new jobs to be created in this zone.
Source: The Daily Star
Egyptian Cotton is the most recognised cotton brand in the US, according to a recent consumer research report. The research was carried out by an independent US-based marketing agency, PBM, on a sample of 522 American consumers, who had recently purchased cotton goods. Egyptian cotton fibre is one of the best because of its length, strength, and softness. Egyptian Cotton was also the name most people associated with quality and were prepared to pay a premium for, ahead of Pima cotton, Turkish cotton, and Supima. While a huge 86 per cent of those questioned couldn’t name an actual brand, of those who could name one type of cotton, 95 per cent cited Egyptian Cotton, with the remaining 5 per cent naming Pima. When asked to rate the importance of listed qualities, 52 per cent of consumers said texture was the most important consideration when buying a cotton product. Only 2 per cent considered products being manufactured in the US as an important factor. When consumers were asked to arrange a list of cotton brands in order of perceived quality 89 per cent placed Egyptian Cotton as one of their top two choices. Pima made top two in 45 per cent of selections, followed by Turkish Cotton (35 per cent), Supima (19 per cent) and Sea Island Cotton (12 per cent). When asked which brand they would pay a premium for, 61 per cent said Egyptian Cotton which was also the consumers’ preferred option for towels and bedding. Wael Olama, chairman of the Cotton Egypt Association (CEA) said, “This survey underlines the strength of the Egyptian Cotton brand in the mind of the consumer.” The Cotton Egypt Association recently unveiled a new brand identity and digital platform to re-enforce Egyptian Cotton as the finest cotton in the world. Khaled Schuman, executive director of the Cotton Egypt Association said, “We are extremely proud of the thorough accreditation programme we have created in association with Bureau Veritas. The success of this is mirrored in the increase in retailer confidence we have experienced in the UK.”
Source: Fibre2Fashion
South Korean President Moon Jae-in has praised the revision of the Labour Standards Act limiting maximum weekly working hours to 52, terming it as a first step towards a dignified life. The revision approved by the country’s National Assembly last week is an important step in improving the quality of life and creating jobs, he told his senior aides. The country will now move on from being a country with the longest working hours among the Organisation for Economic Cooperation and Development and deaths linked to strain caused by overwork, Moon said. Rejecting concerns over the impact of reduced working hours, he said the introduction of regulations limiting working hours in the past has brought positive results to the economy. “Enabling working people to spend evenings with their families, and enabling parents to raise their children together are also critical to resolving the serious low-birth rate problem,” a Korean newspaper report quoted Moon as saying. The country’s birthrate fell to a record low last year. (DS)
Source: Fibre2fashion
