The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 26 MARCH, 2018

NATIONAL

INTERNATIONAL

Exporters urge RBI to reconsider the ban on LoUs

Exporters have urged the Reserve Bank of India to reconsider the ban on letters of undertaking (LoUs), which was triggered by the $2 billion fraud at the Punjab National Bank, as it was causing distress to players in sectors such as textiles and leather and increasing their operating costs. “With some banks deciding to cancel LoUs that have already been issued, the situation has become worse as exporters do not have enough cash to pay upfront for their imports,” said Ajay Sahai, Director-General, FIEO. An LoU is a guarantee given by one bank to another to repay a loan on behalf of a client and which allows the client to raise short-term credit to mainly pay for an import. FIEO, an umbrella body representing a number of export organisations, has written to the RBI requesting its intervention in extending help to exporters hit by the move to ban LoUs. In the letter, FIEO has asked the RBI to consider introducing LoUs with safeguards as alternative instruments were increasing the operating cost of exporters by up to 3 per cent. It also stressed that existing LoUs or LoCs (letters of comfort) should be allowed to live their normal validity as some banks have asked exporters to deposit equivalent amount in lieu of the instruments. “Although the RBI banned issuing of fresh LoUs, some banks have gone an extra mile and have cancelled LoUs already issued. Where LoUs have validity till, let us say September 2018, banks have cancelled them and asked the exporter to deposit the money in cash. “This has created a huge problem as the exporter would be expecting to make the payment only in September and it is not possible for him to make an upfront payment at once,” Sahai said. While a handful of sectors using LoUs such as textiles, leather, and gems and jewellery have been considerably hit by the ban, a majority of small exporters have not been affected by the RBI’s decision as they mostly use Letter of Credit and bank guarantee for their business.

Source: Business Line

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 Amendments to Foreign Trade Policy 2015-2020

Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan ***** Notification No.5 412015-20 New Delhi, Dated 22--March 2018

Subject:- Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated and Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation and EPCG scheme till 01.10.2018.

S.O(E): In exercise of powers conferred by Section 5 of FT(D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20.

1. Exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme under Para 4.14 of FTP 2015-20 is extended upto 01.10.2018.

2. Exemption from Integrated Tax and Compensation Cess under EPCG Scheme under Para 5.01 (a) of FTP 2015-20 is extended upto 01.10.2018. Effect of this Notification: Para 4.14 and Para 5.01 (a) of Foreign Trade Policy 2015-20 are amended as above. L

Source: DGFT

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China Commerce Minister arrives today: India to push on huge trade deficit

Chinese Commerce Minister Zhong Shan reaches New Delhi on Monday for official trade talks. In the backdrop of a possible trade war between the United States and China, India is looking to get China to reduce tariffs on our export, senior government officials suggested. The bilateral engagement, under the aegis of the India-China joint economic forum, will be significant for India since Beijing has decided to discuss India’s ballooning trade deficit, commerce and industry minister Suresh Prabhu said. India’s import from China was $61.3 billion and exports stood at a much lesser $10.2 billion, leaving in its wake a massive $51.1 billion trade deficit in 2016-17. The government has been worried by increasing friction between the US — India’s largest export destination — and China, India’s largest import source, which could lead to a fall in global demand and rise in the cost of trade. However, Delhi also feels the current situation offers an opportunity to push for trade concessions from Beijing. “After the lengthy military standoff between both nations at the disputed Doklam plateau of Bhutan, further conclusive talks on trade issues looked slim but Shan’s visit signifies they want to engage a major trade partner,” an expert said.

Trying hard to find balance

Both nations signed an agreement in September 2014 to achieve bilateral trade balance by 2019. The five-year programme is a joint medium-term road map for promoting trade and investment. “The agreement acknowledges the pitfalls of one-way trade but since it is non-binding, the scope of deliberations with regard to reducing the trade deficit depends heavily on intent, as well as the presence of a free environment for discussion,” a senior commerce ministry official said. The agreement also talks of easing of restrictions by the Chinese government against high potential export items from here, such as bovine meat, fruit & vegetables and basmati rice. Of these, only basmati has seen a breakthrough, with 14 firms allowed to export to China in 2016.The government is throwing its weight behind a long-term plan of revising the export basket to China. Raw materials like cotton, iron ore and copper have come under scrutiny as the government and exporters try to shift priorities towards value-added products. The ministry has identified key sectors such as hardware, electronics, pharmaceuticals, textiles and auto components to boost export.

 Aiming higher up the value chain

“The government aims to slowly but steadily revise its export basket to China, so that over the next few years, higher forex-earning value added goods make up the majority of export rather than raw materials,” the official said. With a burgeoning middle class and rising labour costs, China is expected to relinquish its dominance over the labour-intensive and low-end manufacturing space in the near future. The commerce ministry is egging domestic firms to step up into this space, spread across textiles, leather and food processing, among others. But, this is expected to take time. In the last financial year, India’s highest export earners with regard to China were iron ore, cotton and organic chemicals worth $1.4 billion, $1.3 billion and $887 million. These, with other raw materials like copper, constituted more than 70 per cent of India’s export to China, said Ajay Sahai, director general Federation of Indian Export Organisations.“However, the trend is slowly changing. While now cotton is increasingly being imported from China and manufactured yarn exported back, the reverse was true five-six years back,” he added. Currently, the top five export categories to China are all input products. These are used by China to manufacture costlier goods, which it then ships abroad — often back to India. India imports products much higher up the value chain from its northern neighbour with electrical machinery topping the list at $21.98 billion, organic chemicals at $5.61 billion and plastic articles at $1.8 billion.

Source: Business Standard

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Export subsidies should go

It is tempting to pass off the recent US action against India’s export subsidies at the World Trade Organisation as yet another example of the superpower’s growing economic aggression against trade partners. But that would be incorrect. Since August last year, when the WTO officially notified that India’s per capita Gross National Income (GNI) had crossed $1,000 three years in a row, a formal complaint against India at the multilateral forum was just waiting to happen. According to WTO rules, countries can give export subsidies only as long as their per capita GNI is below $1,000. Once it is established that the higher income is there to stay (with three consecutive years of GNI breaching the $1,000 threshold), countries can no longer enjoy the special dispensation of export subsidies which is otherwise banned under WTO rules. The fact that it was the US that complained against India was just a matter of chance. It could have been any other member such as the EU, Japan or Australia that could have raised the dispute as all of them are unhappy with India’s continued use of export subsidies.

For and against

One might argue that expecting a country to change a plethora of export subsidy schemes, including extremely popular ones like the Merchandise Export from India Scheme (MEIS) used across sectors, at a drop of a hat, could be considered harsh. The fact, however, remains that breaching the $1,000 mark was not an overnight development: India could see it coming. In fact the Foreign Trade Policy, which was announced in 2015, as well as the review of the policy announced last year, talked about the need to re-calibrate existing export promotion schemes. However, nothing was done on the ground. Instead of trying to wean exporters off the export subsidy schemes, the FTP review went ahead and increased the number of items covered under MEIS and also increased the level of entitlement in certain cases. In its defence, India has said that it believes that it is entitled to an eight-year phase-out period and would put this forth in the discussions it has with the US. Its contention is based on the argument that when the Agreement on Subsidies and Countervailing Measures was implemented in 1994-95, the countries with GNI higher than $1,000 got eight years to get rid of their export subsidies and, therefore, it should get the same. But obviously the two situations are not comparable as initially the phase-out period was extended to give comfort to members when the pact kicked in and more than two decades have passed since then. India’s efforts to establish that it would be fair to extend the same dispensation to all have not borne fruit yet at the WTO.

Pushing its case

Recently, officials from the commerce ministry, in their interaction with the media, pointed out that India had submitted a paper way back in 2011 stressing that the phase-out period for export subsidies should be eight years from the time it crossed threshold; it has been demanding and discussing the matter at the WTO since then. An effort to make the demand a part of the discussion agenda at the Nairobi ministerial meeting of the WTO in December 2015 did not succeed. So, what exactly is making the country optimistic about having its demand met now? The least that India should have done to prepare for the eventuality was to have a contingency plan ready. It should have held wide-ranging discussions with industry and related ministries to look at the best possible alternatives to the export subsidy schemes which could include technology upgrading funds, capital expenditure subsidies and funds for research and development. Some discussions happened but no concrete plan emerged. Especially in the area of textiles, where India itself has accepted that its time to extend export subsidies runs out in 2018 ( the sector reached export competitiveness as defined by the WTO back in 2010), there should have been some movement. Although the textile ministry held a few meetings with the commerce ministry on the issue, nothing moved on the ground as it did not want to push the industry out of the comfort zone of receiving the subsidies it is familiar with. However, it is not too late for action. Since it takes at least a couple of years for a dispute at the multilateral forum to run its course, New Delhi has to use this time effectively to draw up alternative schemes. All the ministries need to take the matter seriously and cooperate with the commerce ministry to decide on ways to continue extending support to exporters without violating WTO rules. India cannot afford to be caught napping the second time round when the WTO is ready to pronounce judgment on the matter.

Source: Business Line

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This collaboration gives a tribal touch to haute couture

Mumbai-based fashion brand IraSoeil has decided to outsource work to a company set up by tribal women in the Junnar taluka of Pune district. An MoU in this regard was signed during the Magnetic Maharashtra summit held earlier this year, and the actual work began in Pune on Saturday. This marked the first time that work at the ground level has started under an MoU signed during the summit for Pune district. This is also the second MoU, signed by the Tribal Development Department, to go into production.

The department had participated in the Magnetic Maharashtra summit for the first time this year. Various MoUs were signed between the department and industry bodies. Textile, education and skill development were some of the major areas for which MoUs were signed. The unit which began work in Junnar was also the result of one such MoU. Sanjita Prasad, a partner at IraSoeil, said this was the first time that they would be engaging with seamstresses outside Mumbai. “While the quality of the work can do with improvement, the spirit and willingness of the women to learn is commendable,” she said. The first batch of around 200 garments will be ready for delivery in the next fortnight or so, she added. To begin with, 80 tribal women will be engaged in the project, and the set-up in Junnar can increase its capacity to accommodate 200. Machines have been issued to these women from the Tribal Development Department, and the women are trained in the garment manufacturing. In the initial phases, Prasad said, cut garments would be sent for final sewing, but later on, the fabric would be issued to them to cut and sew. “Of course they would require some sort of training, and we are ready to provide it to them,” she said. Mainly dependent on agriculture, tribal families find it hard to get disposable income. Ayush Prasad, project director, Integrated Tribal Development Project (ITDP), Ghodegaon, said the Industrial Revolution in India had begun with textile. “Similarly, we have chosen the labour-intensive garments sector to help create productive wage employment for tribal women, for an industrial revolution in their villages with their participation,” he said. These enterprises, he said, would be able to develop their brand and create sustainable employment for the women. “We shall help them in their growth story. The entrepreneurial spirit and enthusiasm of these women will help in growing the enterprise,” he said.

Source: The Indian Express

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Kenya to reduce permit costs for Indian textile workers

The workers’ permit fees for Indian expatriates in the textiles and apparel sector in Kenya will be reduced from 200,000 Kenyan shilling (KES) to 10,000 KES by the end ofMarch. According to industry, tradeand cooperatives cabinet secretary Adan Mohamed, the incentive aims at enabling export-oriented garment factories source labour with specialised skills. The Indian expatriates will transfer the skills to local workers, Mohamed was quoted as saying by a local newspaper report. This is a step to do away with barriers that make it difficult for Indian businesses to invest in Kenya, he added.

Source: Fibre2Fashion

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Welspun proposes technical textile, pipe-making projects in TS

Interest subsidy, power tariff subsidy and SGST reimbursements will be some of the other incentives. Besides land, the incentives approved range from one-time capital subsidy of ?40 crore, interest subsidy, power tariff subsidy, SGST reimbursement and benefits under T-TAP. Technical woven fabricThe other proposal pertaining to technical textile is by Welspun India Ltd. With an investment of ?409 crore, the project, on 150 acres, is for manufacturing technical woven fabric, stitch bonded fabrics and non-wovens. The $2.3 billion, diversified Welspun Group proposes to set up three manufacturing facilities in Telangana entailing an investment of over Rs.1,900 crore. Two of them would be dedicated to the high growth technical textiles, while the other would be for making line pipes. The $2.3 billion, diversified Welspun Group proposes to set up three manufacturing facilities in Telangana entailing an investment of over ?1,900 crore. Two of them would be dedicated to the high growth technical textiles, while the other would be for making line pipes. The employment opportunities, both direct and indirect, estimated to be generated would be more than 5,000. The Group, with companies that are fully integrated players in home textiles as well as pipes, plates and coils, has presence in steel, infrastructure and energy space too. Welspun is the latest to join the growing list of well-known names preferring Telangana, something both senior officials and Ministers attribute to the TS-iPASS policy, industry-friendly climate and a support eco-system in the State. The Welspun companies that proposed the projects – all three to come up in Shabad mandal, Ranga Reddy district – are expected to firm up their plans with the State government approving a set of customised benefits for them recently. Approved incentives For the ?1,261-crore technical textile project of Welspun Flooring, for manufacturing floor covering carpets and LVT, the incentives approved by the government include allotment of 500 acre of encumbrance-free undeveloped industrial land with external infrastructure such as roads, power and water. A one-time capital subsidy of ?80 crore, interest subsidy at the rate of 8% per annum on eligible capital investment; power tariff subsidy, 100% gross SGST reimbursement for a stipulated period, besides benefits applicable under the Telangana Textile and Apparel Policy (T-TAP) are to be made available. The project is expected to provide direct employment to 1,000 people and indirect job opportunities to 2,000 people. Technical woven fabric The other proposal pertaining to technical textile is by Welspun India Ltd. With an investment of ?409 crore, the project, on 150 acres, is for manufacturing technical woven fabric, stitch bonded fabrics and non-wovens.

Source: The Hindu

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As cocoons price shoot up, sericulture farmers in Kerala have twinkle in eyes

IDUKKI: The state’s sericulture farmers have twinkle in their eyes, thanks to the silkworm cocoons’ price, which has touched an all-time high of Rs 620 per kilogram, almost double of last year. Yet, amid the euphoria, they fear the downturn in the overseas market for silk goods could lead to a fall in price. Kerala’s share of the country’s total production is meagre compared to Tamil Nadu and Karnataka, which contribute more than 90 per cent. Idukki is one of the three leading districts in cocoon cultivation, with the others being Palakkad and Wayanad. Cocoons are cultivated largely in the Marayur, Kanthalloor, Pallanadu and Vattavada areas of Idukki district. They are in high demand due to the richer silk content compared to those produced elsewhere in the country.The increase in price has come at a time when farmers seriously started thinking of abandoning sericulture due to rising input costs and price stagnation. Manikandan, a farmer at Chinnarvara, said one reason for the increase in cocoons’ price was the hike in anti-dumping levy on raw silk from China. “With the price of silk imported from China becoming expensive due to the levy, the rate of indigenously produced silk also increased,” he said. District sericulture officer Jaison Joseph believes the increase in price will attract more farmers, whose number in Idukki alone has come down from 1,000 to 70. “Earlier, the district sericulture cooperative federation and central silk board unit were functioning at Marayur, procuring raw silk as well as cocoon from farmers and marketing them to its members like weavers’ co-operative societies and major consumers. However, these federations have stopped functioning recently and the entire process is now under the control of the Department of Rural Development,” said Joseph. “The department presently provides 50 per cent subsidy to those farmers belonging to the Scheduled Caste and Scheduled Tribe categories for cultivating mulberry leaves, installing drip irrigation systems, constructing rearing sheds, etc. Many farmers in the general category withdraw from cultivation as they aren’t eligible for subsidy,” he said.“The decline in output may have also led to the demand and consequent increase in prices. Export may be hit, but there’s a huge domestic market to cater to,” said the officer. Dharmaraj, a sericulture farmer in Marayur said, “The farmers usually buy silkworms from the district’s border villages. For 100 eggs, Rs 1,900 is paid, with each egg consisting of 600 silkworms of seven days’ growth, which are stored in the sheds inside the farm. Construction of a shed costs Rs 1 lakh. The farmers feed the worms with mulberry leaves for 15 days, after which they are rested for three days. After 18 days, the worms weave cocoons around them which are then supplied to reelers. They eliminate the worms through a heat process, preserve the silk threads and supply the same to weavers for making saris.” “On an acre of land, 4,500 to 5,000 plants can be raised, from which 1 lakh cocoons weighing 100 kilograms could be harvested. Farmers can make a profit in the Rs 10,000- Rs 45,000 range every 65 days. In course of time, as the mulberries crop, the main feed for the silk worms develops, the profit is likely to rise as high as Rs 75,000. The price of cocoon is determined based on the amount of silk content in cocoons,” he said.Dharmaraj, who has been rearing silkworms for a decade, considers it an economically viable enterprise as the perennial crop can be grown four to five times a year. “However, the withdrawal of subsidy and other incentives provided by the government have put us in trouble amid fluctuation in price and rising input costs,” said Dharmaraj.

Source: The New Indian Express

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Silk Expo dazzles in range

Artisans from the Gramin Hastkala Vikas Samiti are in Goa currently for National Silk Expo ongoing at the Taleigao Community Centre. For those who are in the market for exquisite weaves, this is the right time to check out the expo that ends today. The exhibition has varied weaves, ranging from Uppadas, Banaras silks, Gadwals, Dharmavaram, Jamdanis, Jamawars and Sambalpuris. For the non-saree wearer there is plenty on offer such as, dress materials, fashion jewelry, home furnishing, garment from different states. Artisans from 14 handloom weaving states including Rajasthan, Andhra Pradesh, Karnataka, Bihar, Odisha, Chhattisgarh, Madhya Pradesh, Gujarat, Jammu and Kashmir, West Bengal are at the expo displaying more than 1,50,000 variety of their work. The silk and cotton handloom products on display have a price range between Rs 500 and Rs two lakh at the upper end for exclusive hand crafted sarees. Coimbatore silk, Kanjeewaram silk, crepe and georgettes from Bengaluru are some of the traditional handlooms at the expo. Besides there is tassar, kantha, Bhagalpur silk material for shoppers. Jayesh Kumar Gupta, the organizer of the expo said that the main objective of the exhibition was to promote weavers and provide a market to the handloom industry.

Source: The Navhind times

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Global Textile Raw Material Price 2018-03-25

Item

Price

Unit

Fluctuation

Date

PSF

1397.44

USD/Ton

0.28%

3/25/2018

VSF

2343.58

USD/Ton

0%

3/25/2018

ASF

2771.13

USD/Ton

0%

3/25/2018

Polyester POY

1391.10

USD/Ton

0%

3/25/2018

Nylon FDY

3673.72

USD/Ton

0%

3/25/2018

40D Spandex

6017.30

USD/Ton

0%

3/25/2018

Nylon POY

5985.63

USD/Ton

0%

3/25/2018

Acrylic Top 3D

1638.92

USD/Ton

0%

3/25/2018

Polyester FDY

3404.53

USD/Ton

0%

3/25/2018

Nylon DTY

2976.98

USD/Ton

0%

3/25/2018

Viscose Long Filament

1670.59

USD/Ton

0%

3/25/2018

Polyester DTY

3839.99

USD/Ton

0%

3/25/2018

30S Spun Rayon Yarn

3056.16

USD/Ton

0%

3/25/2018

32S Polyester Yarn

2163.06

USD/Ton

-0.15%

3/25/2018

45S T/C Yarn

3024.49

USD/Ton

0%

3/25/2018

40S Rayon Yarn

3198.67

USD/Ton

0%

3/25/2018

T/R Yarn 65/35 32S

2723.62

USD/Ton

0%

3/25/2018

45S Polyester Yarn

2327.75

USD/Ton

0%

3/25/2018

T/C Yarn 65/35 32S

2549.44

USD/Ton

0%

3/25/2018

10S Denim Fabric

1.48

USD/Meter

0%

3/25/2018

32S Twill Fabric

0.90

USD/Meter

0%

3/25/2018

40S Combed Poplin

1.26

USD/Meter

0%

3/25/2018

30S Rayon Fabric

0.71

USD/Meter

0%

3/25/2018

45S T/C Fabric

0.75

USD/Meter

0%

3/25/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15835 USD dtd. 25/3/2018). 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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Turkey to support textile, garment investments

ISTANBUL : Turkey’s Economy Minister Nihat Zeybekci said on Friday that the country will support investment incentives for textile and garment industries. Zeybekci’s remarks came at an award ceremony of Istanbul Textile and Raw Materials Exporters Association for the top exporters in 2017. “From now on, investment incentives for textile and garment [industries] will be supported,” Zeybekci said, adding that a decree would be announced soon.

Source: Anadolu Agency

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Belgrade new base for Turkish firms for easier access to EU

Belgrade is now the new base for medium and big Turkish firms as the city offers easier access to the European market and helps reduce logistics time and costs. These companies, including 10 from the textile sector, have invested $100 million in Serbia and are aiming to raise their capacity in future. Many are attracted to the incentives offered. Serbia's highly trained power and lower minimum wage increase add to the attraction, Istanbul Textile and Apparel Exporters Association (ITKIB) chairman Hikmet Tanriverdi was quoted as saying in a report in a Turkish daily. According to Turkey's Ambassador to Belgrade Tanju Bilgiç, Turkish companies provide employment to 15,000 Serbians in Belgrade. A factory will soon be opened there, providing employment for 1,000 people, he said. Tanriverdi said costs are very high in Turkey due to taxes on imported raw material. Being in Serbia means moving fast and conducting flexible and low-capacity production, Irfan Özhamaratli, vice chairman of the Istanbul Chamber of Industry (ICI), said. Certain companies have adopted the clustering system, which means until training is provided in Serbia, they recruit workers from Turkey. (DS)

Source: Fibre2Fashion

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UK assures tariff-free access for Bangla goods post Brexit

Labour rights in the garment industry, tariff-free access to Bangladeshi goods, education and the Rohingya crisis were the key issues discussed in the second Bangladesh-UK Strategic Dialogue held in London last week. The United Kingdom assured tariff-free market access for Bangladeshi goods entering the UK market after the latter leaves the European Union. The United Kingdom encouraged Bangladesh to continue addressing human and labour rights issues in the garment industries. Led by the permanent under-secretary at the UK’s Foreign and Commonwealth Office Simon McDonald and his Bangladeshi counterpart foreign secretary Mohammad Shahidul Haque, the dialogue involved an exchange of views on political and bilateral issues, economic and development cooperation, security and defence cooperation and current global issues, according to Bangladesh media reports. “The status quo is changing for both parties in different ways,” said Md Khorshed. “We are trying to map our priorities and go for a more engaging and win-win kind of partnership.” The third such strategic dialogue, launched in 2017, will be held in Dhaka in 2019.

Source: Fibre2Fashion

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US tariffs on Chinese imports risk disrupting US, global trade, say economists

The recent US proposal to impose huge tariffs on Chinese imports may lead to China's retaliation and disruption of global trade, exposing the US economy to risks, say economists. Dr Nasser Saidi, former chief economist of the Dubai International Financial Center, told Xinhua by e-mail on Friday that US President Donald Trump kept his protectionist campaign promises by imposing tariffs on aluminum and steel earlier and now on intellectual property products on the pretext of "unfair practices," which may trigger a trade war. This poses "a clear risk that the Trump trade war will disrupt the global trade engine and derail the ongoing global economic recovery," he said. Trump's moves "are likely to lead to retaliation by China," and the Asian country as the world's second largest economy has "a wide range of options including (imposing) tariffs on aircraft (Boeing and others) and transport equipment, as well as non-tariff barriers," the economist added. This tit-for-tat scenario poses a risk for global trade, he said, with the global stock markets as an example, which have plunged since Thursday in response to the growing economic policy uncertainty. In another e-mail interview with Xinhua on Friday, Tim Fox, chief economist of Dubai's biggest banking group Emirates NBD, said these measures by the Trump administration "also expose the US economy to risks if China retaliates, especially against the US agriculture sector." "Of course, China has the ultimate retaliation card if they want to play it, namely it's holding of US treasuries," Fox said. Fox warned "Once (the United States) starts a trade war with China, (it) could be very hard to reverse." US President Donald Trump signed a memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China and restrict Chinese investments in the United States, fueling fears that the world's two largest economies could be sliding toward a trade war.

Source: China Daily.

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Bangladesh-Jute export to India faces new hurdles

The Indian authority has initiated an investigation into the import of jute sacking cloth from Bangladesh following allegations that the item was being brought in large quantities to evade the anti-dumping duty (ADD) on jute sacking bags. On January 5 last year, India had slapped ADD ranging from $19 to $352 a tonne on jute yarn/twine, hessian fabric and jute sacking bags brought from Bangladesh and Nepal after a year-long investigation. But the Indian Jute Mills Association alleged that a section of clever importers were bringing in jute sacking cloth in abundance from Bangladesh to get round the ADD. Subsequently, the association filed an application with the Directorate General of Anti-Dumping & Allied Duties, which then opened the investigation. The investigation would look to determine the existence, degree and effect of the alleged circumvention by poring through trade data from October 2016 to December 2017 and examine the need to extend the existing ADD to the circumventing product. Until the investigation wraps up, the Indian importers of jute products have been instructed to give undertaking of payment of ADD if their consignment of sacking cloth is found to be circumventing the existing tariff, as per a notice on March 24. The customs office also slapped bank guarantee at the highest rate of ADD on the import of jute sacking cloth from today as protective measure to safeguard the duty element. This means that they have imposed barriers in such a way that none can export jute products from here, said Mohammed Mahbubur Rahman Patwari, managing director of Alijan Jute Mill. “My buyer has already informed that it would not be possible to buy from us by paying such a high rate of bank guarantee.” There is also a possibility of imposing zero duty once the investigation concludes, but until then the bank guarantee has to be provided, he said. Exports of jute products have declined after India imposed ADD on jute products from Bangladesh. As a result, mills are sitting on increased stockpiles of jute goods, according to the Bangladesh Jute Mills Association (BJMA). Taking benefit of this situation, importers from different countries are offering prices at much lower than the production cost of mills. And many mills are exporting even after incurring losses to pay bank loan, wages and salaries to workers, the BJMA said. “If the Indian government slaps ADD on import of jute sacking cloth, this will add salt to injury,” said Muhammad Shams-uz-Zoha, the BJMA chairman in a letter to state minister for textiles and jute yesterday. Gopi Kishan Sureka, chief executive of Fiber 'N Fibre, a jute exporter, said no one in India will import under such uncertainty and the export of jute products to the neighbouring country will also come to a halt. The requirement of bank guarantee will also block a large chunk of money of importers, he said. “The Indian authority should have given some time as many importers have already made payment in advance and placed orders,” Sureka added. Exports of jute and jute goods to India fell 18 percent year-on-year to $109 million in the July-February period of this fiscal year, according to data from the Export Promotion Bureau. During the period, shipment of jute bags fell sharply while exports of jute sacking cloth soared. India accounted for 15 percent of Bangladesh's total export receipts of $741 million from jute and jute goods in the first eight months of the fiscal year, according to EPB data.

Source: The Daily Star.

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Pakistani textile exporters oppose rupee depreciation plan

Representatives from Pakistan’s value-added textile sector recently opposed a government proposal to let the Pakistani rupee depreciate further, saying it will push up cost of imports rather than boost exports. Rupee depreciation will increase the cost of imported raw materials, such as dyes and chemicals, used in manufacturing of goods for export, they feel. Devaluation of currency can help only once while foreign buyers demand discounts, said Jawed Bilwani, chairman of Pakistan Apparel Forum, which represents Pakistan Hosiery Manufacturers and Exporters Association, Pakistan Readymade Garments Manufacturers and Exporters Association, Pakistan Knitwear and Sweater Exporters Association and Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association. Foreign buyers took, in the form of discounts, half of the advantage of the 5 per cent rupee depreciation in December last year, while prices of imports went up by more than 70 per cent, Pakistani newspaper reports quoted Bilwani as saying. Bilwani said the government should bring down the cost of electricity, gas and water and quickly settle billions of rupees in refund claims of exporters related to sales, income and duty drawback to improve exports. If the government still desires to devalue the currency, it should be depreciated gradually, he added.

Source: Fibre2Fashion

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Pakistan : Govt agrees to stop cotton imports during crop picking

ISLAMABAD: The government has agreed to put a halt to cotton imports during crop harvest in an effort to ensure farmers get an attractive price and are encouraged to plant more in the next season as cotton production has dropped sharply over the past four years. Earlier, on the persistent demand from textile millers, the current government allowed duty-free import of cotton, but that hurt the interest of Pakistan’s growers and benefitted Indian farmers who have been exporting a significant quantity of cotton in times of need. Pakistani farmers have suffered as the government has focused more on framing industry-friendly policies over its tenure since June 2013. According to a report submitted to the cabinet by a special committee, cotton production has faced virtual stagnation since 1991-92 fluctuating in the range of 10 to 12 million bales. In 2015-16, the output even dropped below 10 million bales, standing at 9.9 million.

Workshop on drought-resistant crop varieties held

Pakistan’s annual consumption needs are estimated at 15 million bales, turning the country into a net importer of cotton. The committee, headed by Planning Commission Deputy Chairman Sartaj Aziz, was constituted by the cabinet in order to examine the challenges faced by the cotton farmers. It recommended that cotton import should not be allowed during crop picking. It suggested that cotton seed supply industry should be regulated by rationalising over 700 such companies. The seed act and plant breeders’ rights act may be implemented properly and extension services may be improved through promoting better crop husbandry and employing information technology-based solutions, it said. The committee suggested that cotton cultivation may be expanded in Khyber-Pakhtunkhwa and Balochistan – the two provinces that have a very insignificant contribution to the overall cotton production. It also focused on improving spinning and ginning processes by adopting better technology, shifting the current weight-based pricing system to the one based on quality and cotton labeling by ginners to show quality features. The committee proposed that partnerships may be initiated for a variety of development and marketing activities and the capacity of National Biosafety Committee and the Federal Seed Certification and Registration Department should be built as regulators. For two and a half decades, Pakistan’s cotton output remains virtually stagnant. It also outlined different causes for the stagnant production which included the use of inappropriate first generation rather than fourth generation Bt technology, absence of better quality seeds, lack of solution to the cotton leaf curl virus, low-quality ginning process and heavy contamination in cotton. Owing to these reasons, the income of farmers had gone down and plantation area shrank 20% between 2004 and 2016. It recommended that the target for cotton production should be set at 25 million bales by 2025 by increasing the plantation area from 2.4 to 3.5 million hectares, up 45%, and the yield up to 1,200 kg per hectare. It suggested that research funds may be provided for a restructured Pakistan Central Cotton Committee. It proposed a Rs2.5-billion cotton research fund for a period of five years through competitive grants managed by the Pakistan Agricultural Research Council (Parc) under an inter-provincial committee. The cabinet, in a meeting held in the first week of March, approved all the recommendations of the committee.

Source: The Express Tribune

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MSU cotton development program supporting supply chain

The Fashion Design and Merchandising program at Mississippi State University educates consumers and retailers on the advantages of cotton.

Brad Robb

Monica Taylor and Peyton Shaffer are seniors in Mississippi State University’s Retail and Cotton Development Program where students get broad exposure to the cotton supply chain from farming operations to the fashion runways of New York. Cotton producers in the Delta may not know about an invaluable ally they have in their corner with broad influence that expands with every graduation commencement at Mississippi State University. Housed under the School of Human Sciences, the Center for Retail Cotton Product Development (CRCPD) was launched in 2014 to bridge connections between apparel brands, retailers, supply chain partners, and MSU. Building and maintaining that value and the viability of those connections is accomplished in part through the department’s Fashion Design and Merchandising (FDM) major. At the helm of the FDM concentration is Dr. Charles Freeman, assistant professor. At one time a custom tailor, Freeman holds an undergraduate degree in Textiles and Consumer Sciences, a master’s degree in Creative Design, and a doctorate in Human Ecology. “Fashion plays a large role in how we view ourselves and others,” says Freeman. “The Mississippi Delta produces excellent cotton, and through the FDM program, we are workingto educate both consumers and retailers on the advantages of wearing and working with cotton over synthetics.” MSU Freshman Madison Glusenkamp, a member of the Fashion Board Club, models a cotton-rich denim outfit during the club's 2017 fashion event - Renegad. FDM is one of the fastest growing majors at MSU. “There are only a few programs like ours across the country, and it is the only four-year program of its type in Mississippi,” explains Freeman. “We currently have 140 undergraduate students and that number increases with each registration period.” The major is so specialized it attracts students from all over the United States. “This program is all about finding various ways to bring cotton and retail together,” says senior Monica Tayler from Toledo, Ohio. “Those unaware of the FDM program think just because these students are in fashion, they know nothing about agriculture. Nothing could be further from the truth.”

RESEARCH

The founding of the CRCPD has allowed the focus of the program to shift and expand student involvement in research activities, and connect their career goals in the fashion industry with myriad of supply chain partners. Peyton Shaffer, a senior from Biloxi, Miss., illustrates the diversity in goals the program allows students to have. “I love fashion design, and this program has given me an extremely broad knowledge base of so much more than just fashion,” says Schaffer. “I want to take what I’ve learned and build on it with a law degree and become an attorney for a design company.” FDM education efforts impact farmers and retailers. Freeman often gets requests from outside the university to conduct research on various topics. “One recent request asked the students to delve into research that would shed light on the impact the Better Cotton Initiative (BCI) is having on cotton farmers in our state,” says Taylor. “It’s a very complex subject, but findings from our research efforts clearly show BCI is having a negative impact on U.S. cotton. Our cotton producers have been meeting or exceeding BCI requirements for years, and the costs they require for membership are the last thing our growers need when their farming margins are already so tight.”

SUSTAINABILITY, ORGANICS

Another student-centric project provided important insight into consumer views on subjects like sustainability and organics. One project currently being conducted is cooperatively funded by the CRCPD, Cotton Incorporated, and MSU’s School of Chemical Engineering. “We are working to create a bio-polymer from cottonseed oil that is 100 percent biodegradable,” explains Freeman. The multi-group effort has led to the creation of a cottonseed oil-based fiber that is stable enough to actually allow the team of researchers to conduct electro-spinning tests, create nonwovens products, and, hopefully, over the next two years, conduct some fiber extrusion trials. “The polymer has zero styrene and no external chemicals,” says Freeman. “We’re hoping it leads to a fiber product that could one day replace polyester.” On a more academic or professor level, Freeman and his cooperators are looking toward patenting some new products they hope to commercialize that will increase demand for and market value of gin trash. “It involves replacing wood pulp in the manufacturing of construction materials, but I can’t say much more than that right now,” says Freeman. Freeman, his students, and the CRCPD are breaking new agricultural ground for U.S. cotton, and they are doing it without a tractor or a plow.

Source: Delta Farm Press

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Three-day 19th Textile Asia 2018 fair from 27th

KARACHI - Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and Ecommerce Gateway Pakistan are jointly organising a three-day 19th Textile Asia 2018-International Textile, Garments Machinery and Clothing Trade Fair from 27th – 29th March, 2018 at Karachi Expo Centre. PRGMEA chairman (central) Shaikh Mohammad Shafiq said that this trade fair is expected to host more than 2,000 foreign delegates as well as 65,000 visitors from trade and corporate sector. The focus of this trade fair is value-addition in textile industry to increase the export of value-added textile and garment products. This 3-day trade fair has been termed as South Asia’s biggest B2B textile, garment, embroidery, digital printing machineries and chemical and allied services fair. More than 1,000 international brands will display their products in over 800 booths and over 2,000 foreign delegates from 27 countries mainly from Austria, China, Czech Republic, France, Germany, Italy, Korea, Japan, Turkey, UK, USA etc will grace the event. Ms Li Yang from Department of Commerce of Zhejiang Province, China is visiting Textile Asia as guest of honor. She is promoting Zhejiang Export Fair in Textile Asia for business, investment and joint venture opportunities.

Source: The nation

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