According to the official, India allowed duty-free import of readymade garments from Bangladesh under SAFTA in 2006 and this facility was limited to eight million pieces. However, in 2010, this quantitative restriction was lifted. "Bangladesh imports Chinese fabrics and converts them into garments using its cheap labour. It exports these garments to India without the need for paying any import duties. India`s garment imports from Bangladesh increased from $106.72 million during April-December period of 2016 to $124.14 million in the corresponding period of 2017, according to a report. Amid a fast increasing import of garments made of Chinese fabrics from Bangladesh, the Indian textiles industry is seeking "tweaking of South Asian Free Trade Area (SAFTA) rules of origin" to make use of yarn and fabrics of Indian origin mandatory for exporting apparel to India, an official said on Tuesday. According to the official, India allowed duty-free import of readymade garments from Bangladesh under SAFTA in 2006 and this facility was limited to eight million pieces. However, in 2010, this quantitative restriction was lifted. "Bangladesh imports Chinese fabrics and converts them into garments using its cheap labour. It exports these garments to India without the need for paying any import duties. "Since import of made-in-China fabrics is meant for export, Bangladesh imposes no import duties on them. This is actually facilitating backdoor entry of Chinese textiles into India," Confederation of Indian Textile Industry (CITI India) Chairman Sanjay K. Jain told IANS. He also said the duty-free facility given to Bangladesh on grounds of it being a Least Developed Countries (LDC) was actually benefiting China`s textile exports. Indian domestic garment manufacturers have to pay a 20 per cent import duty if they use the same Chinese fabric, he added. According to CITI India, India`s garment imports from Bangladesh increased from $106.72 million during April-December period of 2016 to $124.14 million in the corresponding period of 2017. "We have demanded tweaking of SAFTA rules of origin to make the use of yarn and fabrics of Indian origin mandatory for allowing duty-free quota-free market. "This is expected to prevent China from taking undue advantage of a facility that is meant for LDCs," Jain said on the sidelines of a seminar on "Recent Trends on Eco-Friendly Textiles & Sustainable Fashion" organised by the J.D. Birla Institute. This measure is also expected to give a fillip to India`s export of yarn and fabrics to Bangladesh and other LDCs which at present are being supplied by China, he said. "India has now extended this duty-free quota-free facility to all 49 LDCs on a non-reciprocal basis and again without any sourcing restrictions. So, it is expected that in the coming future, we may have more Bangladesh-type situation," Jain said. Citing the international practices of imposing sourcing restrictions, he said the US imposed sourcing restriction under NAFTA for accepting duty free import of garments from Mexico and other NAFTA members. "India itself has accepted sourcing restrictions imposed by Japan that hurt its apparel exports to Japan under India-Japan CEPA," he added. In the Goods and Service Tax (GST) regime, the industry has been under severe stress with increasing imports of garments from Bangladesh and other countries. "In the pre-GST scenario, import of garments from Bangladesh and other countries were attracting a CVD (Countervailing Duty) of 12.5 per cent and education cess of 3 per cent. "However, post-GST, the same has been removed, hence there is no cost for import of garments from Bangladesh and for other countries," Jain said.
Source: Zee Business
COIMBATORE : Supply chain management has become a buzzword in recent years. Though much has been said about an efficient supply chain, small and medium-scale units, with particular reference to the apparel sector, fail to give adequate thrust to this link in the chain. The resultant outcome has now become obvious. Many of the garment manufacturing units, as industry insiders put it, “is in dire straits." "Inefficiency in supply chain can be a killer. The industry will need to look at this more seriously," said Susindaran, Chief Executive Officer of Kay Ventures. Urging apparel manufacturers to look inward to wipe out inefficiencies in the system, he said "while FTAs (Free Trade Agreements) and other government-to-government negotiations are beyond the control of the industry, the sector should look at processes that are within its control and plug leakages."During a panel discussion on the Indian textile industry’s competitiveness, he said “wages are going up and we cannot ask the government to reduce wages. Our business model should, therefore, be drawn in such a way that we can accommodate a reasonable level of inflation, for, at the end of the day, the bottom of the pyramid should survive.” “But in costing (of a product), there is some percentage of wastage, which will have to be plugged, and an international standard and benchmark set, to remain globally competitive. This would eventually help improve the bottom line by 4-5 per cent.” “Look inward, wipe out inefficiencies and ensure that you emerge a flawless executor. Step up your process, collaborate with your customer, become a partner and grow together,” Susindaran told the audience, sharing his experience, growth story. Technology and best business practice can help. Disruptive ideas will emerge, he said, citing Uber and Ola, and the way they have disrupted the transportation model, aggregated capacities. “Likewise, in the garmenting and weaving sector, capacities exist but are not utilised fully. Use technology to optimise the capacity across the supply chain. Link the supply chain in such a way that if there is a lacuna in the production line, there can be an instant alert and the issue addressed immediately,” he said. Asked if the linkage would be possible considering that the sector is highly fragmented and technology investments unaffordable for small and tiny garmenting units, he said “the units should get connected to Artificial Intelligence, machine learning and all production lines - connected to Internet of Things.” He urged industry stakeholders to “revolutionise and drive out inefficiencies in the system. Use best practices, top it with technology, collaborate and emerge.”
Source: Business Line
Operating margins of the denim industry fell from 13 per cent in 2015-16 to around 10 per cent in FY18. This is on the back of continued overcapacity in fabric and mismatch between denim fabric and garment capacity additions. India Ratings and Research (Ind-Ra) anticipates the domestic denim sector will continue to face margin pressures during FY19, with 15-20 per cent of capacity not utilised. Led by Nandan Denim, Arvind, KG Denim, Jindal Worldwide and Aarvee Denim, India is a leading denim fabric manufacturer in the world, with a capacity of about 1,500 million metres per annum (mmpa). The competition is set to intensify, with several players having undertaken capacity additions of another 100-150 mmpa by FY19. However, this is not being met with similar rise in garmenting capacity, according to Ind-Ra. “Long-term demand potential for the segment remains intact due to denim’s versatile fashion appeal among the young populace, rising disposable income and untapped semi-urban pockets. However, Ind-Ra expects denim fabric capacity additions to outpace garmenting capacity additions over the short term,” the report stated. “Ind-Ra expects the present downturn to be relatively prolonged, partly on account of the regulatory disruptions the industry underwent in FY17–FY18. Ind-Ra expects operating margins to remain in the range of 10-11 per cent in FY18-19.” Denim industry operating margins decline to 10% amid overcapacity. Factors that could ease the situation include softening of cotton prices due to rise in sowing, coupled with capacity absorption to some extent by export. According to Ind-Ra, with farmers switching from soybean to cotton, the 2017-18 season has seen about 19 per cent rise in the natural fibre. The higher production could soften cotton prices during FY19 and help curtail margin contraction for denim fabric manufacturers. “Exporters will also see some impact on margins because of reduced duty drawback, notwithstanding the increase in availability of input tax credit. Further, any adverse outcome of the ongoing dispute with the US Trade Representative at the World Trade Organization with regard to India’s export promotion schemes could have a material impact on exporters’ margins,” Ind-Ra stated. While part of the denim fabric surplus will get absorbed in global markets, India’s denim manufacturers majorly depend on the domestic market, with export below 20 per cent of total production. In FY17, denim fabric export stood at 142 million metres (FY16 saw 132 mm), against import of 9 mm (FY16 saw 10 mm).
Source: Business Standard
UCO Bank was established by industrialist and Gandhian, GD Birla, in 1943, in Calcutta as “The United Commercial Bank Ltd” during the Swadeshi Movement. It was nationalised on July 19, 1969 along with 13 other major Scheduled Commercial Banks. In 1985, by an Act of Parliament, the name of the bank was changed to “UCO Bank”. Today it has a pan-India presence with remarkable growth and is one of the more reliable financial institution in India. For many years, UCO Bank has been providing excellent customer service, meeting socio-economic obligations. Keeping parity with global banking, the Bank has worked effectively to adapt to the changes with active participation in different segments of the economy. Keeping with the priorities of the Government and the RBI, UCO Bank has also streamlined its policies to augment credit to the SME sector. Small and Medium Enterprise Sector is the area of thrust for the banking and financial sector as a whole. The entrepreneurs in the MSME sector are mostly first generation businessmen who need nurturing, guidance and timely assistance. To give focussed attention to the SME sector, the Bank has a separate vertical.
Why MSME Finance ?
MSME is fast emerging as a growth area with immense potential contributing almost 37 per cent of India’s GDP. MSME account for 40 per cent of the total workforce. In order to cater to a large section of this segment, UCO Bank ofifers these MSME products: UCO Trader; UCO Udyog Bandhu; UCO Doctor; Artisans Credit Card; Laghu Uddayami Credit Card; PMEGP Swarojgar Credit Card; UCO Commercial Vehicle; UCO Bunkar Rinn Yojana; UCO CA Scheme; UCO Roop Sangam. Initiatives by UCO Bank to boost lending to MSMEs include: Financing MSME Entrepreneurs at a cheaper rate of interest; providing collateral- free loans up to ₹200 lakh (CGTMSE Coverage); Online MSME loan application facility; and emphasis on cluster based financing. It provides training to field stafff and conducts workshops on a regular basis to make them aware of the various MSME products. It has Specialised MSME Branches/HUBs across the country to cater to the needs of MSME entrepreneurs. The Bank has also registered with RXIL on the TReDS platform for financing trade receivables of MSMEs.
Moving to ‘Digital India’
An portal on Bank’s website enables entrepreneurs to apply for all types of MSME loans. Online application for loans under MUDRA Yojana can also be submitted through the website. The status of these applications can be tracked online by the applicants on a real-time basis. Credit facilities under the Pradhan Mantri Mudra Yojana, can be applied through the UCO Mobile Banking app. Online applications under Stand-up India scheme are being directly forwarded to the branches and monitored on a real-time basis. Applications under the PMEGP scheme are monitored via the PMEGP e-tracking system and margin money claims are lodged through online system. The MSME sector in our country has a bright future. Within the next few years, coverage of this sector under institutional credit will grow significantly. The initiatives of the Government of India such as ‘Make in India’, and ‘Digital India’, will provide huge opportunities of growth to this segment. Banks and other financial institutions will fuel this growth by extending adequate and timely credit to the MSME sector. The writer is the General Manager, Retail & MSME Department, UCO Bank.
Source: Business Line
Ahead of the rollout of the E-way bill from April 1, Finance Secretary Hasmukh Adhia on Wednesday asked businesses and transporters to get ready for it and enrol for the new system. At present, just 11 lakh businesses have enrolled for it. “But I am not too sure whether traders, dealers and transporters are still ready. I would like to appeal to them to register themselves on the E-way bill portal...they should not then tell us that we didn’t inform them,” he said at the Foundation Day of the Goods and Services Tax Network (GSTN). The E-way bill for intra-State movement will be implemented after two weeks. “We will announce the schedule at least three days in advance, but not immediately because we want to observe how the E-way bill portal functions for inter-State movement of goods” Adhia said. GSTN Chairman Ajay Bhushan Pandey expressed confidence that the E-way bill will role out smoothly this time. “Whenever you roll out such a system, there could be issues in the initial phases. So based on our experience, this time around extensive testing has been done. Assurance has been given by NIC that this time the system should work,” he said. Chief Economic Advisor Arvind Subramanian too came out in support of the GSTN and said that though there were technical glitches, the system was able to respond to it. He also called for a clear protocol for sharing of GST data with government departments as it would improve compilation of GDP estimates and also give a better picture of the economy.
Source: Business Line
NEW DELHI: Exports from special economic zones (SEZs) grew 18 per cent in February to Rs 22,364 crore as compared to the year-ago month, EPCES today said. EPCES said the major sectors recording healthy growth include chemicals, pharmaceuticals, electronics, engineering, plastics, rubber, and gems and jewellery. "Total exports in February this year from SEZs amounted to Rs 22,364 crore as against Rs 18,990 crore in February 2017," the Export Promotion Council for SEZ and Export Oriented Unit (EPCES) said in a statement. During April-February of 2017-18 financial year, exports from these zones recorded a growth of 17 per cent to Rs 4.93 lakh crore. During April-February of 2017-18 financial year, exports from these zones recorded a growth of 17 per cent to Rs 4.93 lakh crore. Vinay Sharma, Officiating Chairman of EPCES said despite a challenging business environment, SEZs managed to register a healthy year-on-year growth. He said the government should remove roadblocks related to taxation in order to boost growth of SEZs.
Source: Economic Times
The Centre overshot its full year fiscal deficit estimate by 20 per cent by the end of February despite easing its deficit goalposts in the Revised Estimates for 2017-18. The fiscal deficit touched ₹7,15,699 crore, or 120.3 per cent of the Revised Estimate of ₹5,94,849 crore, between April 2017 and February 2018. It was lower at 113.4 per cent of the target in the corresponding period a year ago. The Centre’s revenue deficit also jumped up to a similar level, amounting to ₹5,24,407 crore, or 119.3 per cent of the Revised Estimate, in the first 11 months of the fiscal. It was, however, much higher at 142.5 per cent of the target a year ago. Despite uncertain tax revenue, Finance Minister Arun Jaitley, in the Union Budget, had relaxed the deficit targets for the current fiscal to ensure that the expenditure needed to revive growth doesn’t get curtailed. Accordingly, the fiscal deficit was pegged at 3.5 per cent of the GDP in the Revised Estimate for 2017-18, against the Budget Estimate of 3.2 per cent. Slower-than-expected revenue collections, particularly receipts from non-tax revenue, seem to be the main reason for the precarious fiscal situation of the Centre at the end of February. Revenue receipts amounted to ₹11,77,678 crore, or 78.2 per cent of the target, in the period under review. Of this, tax revenue amounted to ₹10,35,546 crore or 81.6 per cent of the Revised Estimate. Non-tax revenue was just ₹1,42,132 crore, or 60.2 per cent of the target. Overall revenue receipts between April and February amounted to ₹12,83,472 crore, or 79.1 per cent of the Revised Estimate, which is a partial improvement from the same period last fiscal. The Centre’s expenditure, however, was on track — total spending amounted to ₹19,99,171 crore, or 90.1 per cent of the Revised Estimate. Of this, revenue expenditure was ₹17,02,085 crore, or 87.5 per cent of the target, while capital spending was ₹2,97,086 crore and exceeded the full year target by nearly 9 per cent. While the Finance Ministry is confident of meeting the fiscal deficit targets for 2017-18, analysts said that improvement in on-tax revenue will be crucial. “The extent to which the non-tax revenue can be shored up in March 2018 would crucially determine if the actual fiscal deficit for 2017-18 breaches the Revised Estimate. Total expenditure needs to contract by 2 per cent on a year-on-year basis in March 2018, to avoid exceeding the level included in the Revised Estimate of the fiscal,” said Aditi Nayar Principal Economist, ICRA.
Source: Business Line
India will meet its fiscal deficit target of 3.5 per cent of GDP for the 2017/18 fiscal year ending this month, a top finance ministry official said on Thursday. “Quite confident that fiscal deficit will be within 3.5 per cent of GDP,” Economic Affairs Secretary Subhash Chandra Garg said on Twitter. “We now have flash (preliminary) numbers until 28th March,” Garg said, adding, they indicate that the government was “very close” to the revised fiscal deficit and revenue deficit estimates for the current fiscal year. On Wednesday, India had reported a fiscal deficit of Rs 7.2 lakh crore ($110.42 billion) for April-February, which was 120.3 per cent of the budgeted target for the current fiscal year.
Source: Business Line
The package will accord informal sector workers social safety net, besides boosting job creation, it said. The Cabinet Committee on Economic Affairs on Wednesday extended the larger government-sponsored EPF benefits, currently available under the Pradhan Mantri Rozgar Protsahan Yojana for new employees in the textiles and garment sector, to all the sectors. The Cabinet Committee on Economic Affairs on Wednesday extended the larger government-sponsored EPF benefits, currently available under the Pradhan Mantri Rozgar Protsahan Yojana for new employees in the textiles and garment sector, to all the sectors. This was a Budget promise. “The government of India will now contribute the employer’s full admissible contribution for the first three years from the date of registration of the new employee for all the sectors including existing beneficiaries for their remaining period of three years,” an official release said. The package will accord informal sector workers social safety net, besides boosting job creation, it said. Under the special package for the textile and garment sector unveiled by the government in June 2016, a crucial component was an undertaking that the government will bear the entire 12% employer’s contribution to the retirement fund for new employees for the first three years — against 8.33% for other sectors – under the Pradhan Mantri Rozgar Protsahan Yojana. The scheme’s objective was to encourage job creation. A cumulative increase of $30 billion in export of textiles and garments and Rs 74,000-crore investments in the employment-intensive sector over three years, were envisaged.
Source: The Financial Express
India’s Future Group recently announced a 50:50 joint venture, KR Future Fashions, with Khimji Ramdas (KR) to operate Fashion at Big Bazaar (fbb) apparel stores in Oman and Gulf Coordination Council (GCC) countries. The venture will have an investment of $11.71 million each from the two sides. Fbb runs affordable clothing brand stores in India. Both the companies will have the right to appoint three directors to the board of the new company based in Oman, Future Retail said in a filing to Bombay Stock Exchange this month. KR will combine its market expertise across legal regulations and compliances, real-estate selection and local finance options with the Future Group’s sourcing, selecting and merchandising of suitable apparel and retail operating expertise, according to a report in a top Indian financial newspaper. (DS)
Source: Fibre2Fashion
Now, weavers from the State can go on foreign trips and sell their products directly. The Handlooms and Textiles (HT) Department is planning to organise exhibitions in other countries. “For the first time, the Department of Handlooms and Textiles is planning to arrange display of handloom products abroad. The expos will enhance sales and give exposure for weavers in the international market,” said Handlooms and Textiles Additional Director K. Srikanth Prabhakar. Many weavers are marketing their products abroad through the Handloom Exports Promotion Council (HEPC), Chennai, who are encouraging exports from Andhra Pradesh. The weavers are exporting silk saris, silk panchalu, bedsheets, towels and other material through exporters. “Once the government clears the proposal, we will go for direct sale in other countries, where handloom products have good demand. Weavers can study the market in other countries, have interactions with exporters, make garments as per demand and increase the quality,” the official said.
Huge potential
“At present, the market in foreign countries is about ₹150 crore per year, and we are thinking of doubling it, thanks to the NRIs, who are helping a lot in promotion of handloom products,” Mr. Prabhakar told The Hindu. “I have participated in many exhibitions in A.P. and other States in India. Arranging foreign trips and expos is good news for us. The idea will help boost exports,” said B. Rama Rao, a weaver from East Godavari district. “The Project Management Unit (PMU) of Infrastructure Leasing and Financial Services (ILFS), Vision Group of Planning Department, Akash and the National Handloom Development Corporation (NHDC) are helping in promoting handloom products. We are exploring market avenues in Ireland and European countries, where furnishing material has a market,” Mr. Prabhakar added.
Source: The Hindu
Imphal: Textiles, Commerce and Industries Minister Shri Thongam Biswajit Singh inaugurated a Powerloom Unit, having 11 looms, today at the Industrial Estate, Takyelpat. Addressing the inaugural function, the Minister expressed the need to encourage and promote weavers in the State, and said Manipur has the highest number of weavers in the country. He said that introduction of the powerloom will increase production which will increase the income for the weavers. However, there are also concerns over the survival of traditional handloom due to growth in powerloom sector, he said. Observing that there is a need to protect the traditional handloom weavers, he said that certain items should be reserved for production through traditional handloom weaving process only and should not be touched by powerlooms. He appealed to the powerloom entrepreneurs not to produce these reserved items. Minister Biswajit inaugurates Powerloom unit at Takyelpat Industrial Estate. He said the government is also trying to release the list of items (to be included in the Manipur State Textile Policy under the Reservation of the Articles for Production Act 1985)which are reserved for traditional handloom weavers by April. He further expressed that the traditional weavers need not worry over the growth of powerlooms. Minister Biswajit said industrialisation is a must in every society, however, the State is today facing unemployment problem.He also explained the Mission for Economic Empowerment of Traditional Artisans/ Craftsman (MEETAC) and said that it is aimed at promoting the traditional crafts/arts sector of the State. MEETAC is the brainchild of the State Governor, he said adding that the mission also aims to provide market for handloom and handicraft products in bulk quantity. Lauding the State handloom and handicrafts artisans, the Minister also said that today handloom and handicraft products of the State have reached the international market. The main objective of the Handloom and Textiles is growth of the State's economy and increase production of weavers, he said. Minister Biswajit also said that it is his firm belief that the cotton plantation at Kwatha will be a success and that plantation at Jiribam will soon start. He further said that the main objective of the government is to improve production, increase income and to generate employment. Minister Biswajit also announced a power incentive for powerloom weavers as encouragement. He also said that the Apparel and Garment Centre will also be set up at Imphal East and Industrial Estate in all districts.
Source: IT News
The Indian rupee took a hefty knock, plunging 21 paise, to 65.18 against the US dollar, as fiscal deficit concerns and global trade war fears kept forex traders wary. The rupee opened on a bullish note at 64.88 against Tuesday’s close of 64.97 at the inter-bank foreign exchange and traded in a tight range. It turned volatile mid afternoon and succumbed to heavy selling pressure, breaching the key 65-mark to touch a low of 65.30 before recouping early losses towards the fag-end trade to settle at 65.18, a steep loss of 21 paise.
Source: Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1406.18 |
USD/Ton |
0% |
3/28/2018 |
|
VSF |
2334.33 |
USD/Ton |
-1.01% |
3/28/2018 |
|
ASF |
2788.45 |
USD/Ton |
0% |
3/28/2018 |
|
Polyester POY |
1406.18 |
USD/Ton |
0% |
3/28/2018 |
|
Nylon FDY |
3680.75 |
USD/Ton |
-0.43% |
3/28/2018 |
|
40D Spandex |
6054.92 |
USD/Ton |
1.33% |
3/28/2018 |
|
Nylon POY |
2995.59 |
USD/Ton |
0% |
3/28/2018 |
|
Acrylic Top 3D |
1689.00 |
USD/Ton |
0% |
3/28/2018 |
|
Polyester FDY |
3871.96 |
USD/Ton |
0.21% |
3/28/2018 |
|
Nylon DTY |
6023.05 |
USD/Ton |
0% |
3/28/2018 |
|
Viscose Long Filament |
1653.95 |
USD/Ton |
0% |
3/28/2018 |
|
Polyester DTY |
3425.81 |
USD/Ton |
0% |
3/28/2018 |
|
30S Spun Rayon Yarn |
3075.26 |
USD/Ton |
0% |
3/28/2018 |
|
32S Polyester Yarn |
2176.58 |
USD/Ton |
0% |
3/28/2018 |
|
45S T/C Yarn |
3043.39 |
USD/Ton |
0% |
3/28/2018 |
|
40S Rayon Yarn |
2342.30 |
USD/Ton |
0% |
3/28/2018 |
|
T/R Yarn 65/35 32S |
2565.37 |
USD/Ton |
0% |
3/28/2018 |
|
45S Polyester Yarn |
3218.67 |
USD/Ton |
0% |
3/28/2018 |
|
T/C Yarn 65/35 32S |
2740.65 |
USD/Ton |
0% |
3/28/2018 |
|
10S Denim Fabric |
1.49 |
USD/Meter |
0% |
3/28/2018 |
|
32S Twill Fabric |
0.91 |
USD/Meter |
0% |
3/28/2018 |
|
40S Combed Poplin |
1.27 |
USD/Meter |
0% |
3/28/2018 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
3/28/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
3/28/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15934 USD dtd. 28/3/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Things must be extremely bad for some people to say they “feel dead and buried” even while they are still alive. But that is the situation with the sacked textile workers in the country. A detailed report on the once prosperous textile sector by this paper titled: “We feel dead and buried – sad tales from sacked textile workers” published on March 18 vividly tells the story of the textile worker, from the inception of the first modern textile firm, Kaduna Textile Ltd (KTL), founded and financed by the 19 Northern states in 1957, to about year 2002 when it was shut down, as well as stories of other textile workers in the country. Sudden loss of job is always a harrowing experience. But it is especially so when those sacked used to enjoy some of the best of whatever made life tick, only to fall to ground zero. The matter becomes sadder when the workers left unceremoniously without being paid any entitlements. This is the fate of many of the sacked workers. Nigeria had about 200 textile firms in the 1980s but only 128 of them survived until the 1990s. However, by 2008, more than half of them had closed shop. Seven years later, only about 33 were functional; today, there are less than 25 of them in operation. The textile sector was the biggest manufacturing industry in the country in the 1980s, and the third largest in Africa, after Egypt and South Africa. Prof Adesoji Adesanya of the Nigerian Institute of Social and Economic Research (NISER) put the conservative estimates of indirect and direct job losses at about three million, that is “if you put together the expanded opportunities for cotton growers, ginneries, spinning, weavers, colouring and patterning of clothing. When the going was good, many textile workers had no problem catering to the needs of their families. The job losses expectedly came with many social dislocations. We had breadwinners who could no longer provide for their families. They could no longer afford to pay their children’s school fees; they could no longer pick their medical bills; many were ejected from their rented apartments over unpaid rents; in short, many lost their dignity. For instance, Wordam Simdik lost his 19-year-old son over his inability to pay his medical bill following his admission after he was stabbed by some of his friends. He joined the friends because his father could not afford to send him to school. Mama Asabe Audu Jaba whose husband was one of the first set of workers at KTL where he had worked for 44 years until the firm closed in 2002 died in 2009 without any entitlements. That is not all; she also watched two of her 11 children die slowly at home because she could not afford to take them to hospital when they fell ill. There are countless other heartrending stories. Suffice it to say that the story of the textile sector is a tragic story of a once flourishing industry that has now gone comatose. Successive governments seemed to have realised the potential of the sector to lift many Nigerians out of the unemployment market and have therefore pumped so much money to revive it. Unfortunately, this has not made a dent on the sector. Could it be the money was not properly applied? Maybe; maybe not. But there are other issues to address. The textile sector, like other sectors, cannot grow in a situation where power supply is epileptic. Then, smuggling is not helping matters. But smuggling will always thrive since goods produced locally are more expensive than imported ones. Therefore, the government has to address these issues holistically. The tragic fortune is that labour is still affordable in the country. Perhaps to encourage the sector, the government can compel its ministries, agencies and departments to start patronising the textile industries so they can have something to do on a sustainable basis. Military, police National Youth Service Corps (NYSC) uniforms can be contracted out to the local textile mills. On their part, the textile firms too have to upgrade their equipment such that they can improve on their design and make their products attractive and truly competitive.
Source: The Nation
Prime Minister Hun Sen announced yesterday that in 2023 garment and footwear industry workers can expect a minimum wage of at least $250 per month. Speaking to thousands of garment workers in Phnom Penh’s Por Senchey district yesterday, Mr Hun Sen said that in 1997, Cambodia had only 64 factories with more than 80,000 workers who earned only $40 per month. He added that now there were more than 1,100 garment and footwear factories where workers earned $153 per month in 2017 and $170 starting this year, which could add up to more than $200 including other benefits. “If we compared the wages of workers last year and this year to other countries, we see that Cambodia’s wages are higher than some countries such as Bangladesh, Sri Lanka, India, Myanmar, Indonesia, Laos and Pakistan,” he said. “The income of workers seems to increase every year, but we have to think about the risks. If we do not have serious measures, the factory will move to a country with a lower salary than Cambodia and then the government will lose more than $40 million a year, but the wage for workers still must be increased every year.” The premier added that the CPP political platform to be implemented in 2019-2023 outlined approximate figures for the minimum wage of garment workers. “According to economists’ estimates, in 2023 the minimum wage for garment and footwear industry workers will be no less than $250 per month,” Mr Hun Sen said. “I emphasize that in order to assure more and more income, workers have to ensure peace. Our stomach problems are very important,” he added, meaning that when workers protest they lose income and have less to spend on food. Kaing Monika, deputy secretary general for the Garment Manufacturers Association in Cambodia, said yesterday that the wage level would adjust itself to the labour market, which would help ensure survival and competitiveness of the Cambodian private sector in general, not just for the garment and footwear sector. “Of course, it’s a big concern for our labour intensive industry. I think it might be more appropriate and practical to a larger extent to let the market economy decide on the wage level rather than trying to regulate it so much. It’s the economy that will pay, not the law,” he said. “I’m afraid we would price ourselves out, unless we could continue to maintain smooth and harmonious industrial relations between the management and the workers together with upgraded skills and competency as well as move up the value chain of our products.” Mr Monika added that all forms of support from the government would be of utmost importance, particularly in terms of a reduction in the cost of doing business. Far Saly, president of the National Trade Unions Coalition, supported the plan of increasing garment workers’ wages and said he thought they should get between $200 and $210 per month in 2020. “We are in a situation where we compete with other countries, so we cannot demand more than the affordability of providers, but we still demand increased wages for workers,” he said. He added that workers could live decently with a minimum wage of $200 per month, which would be between $250 and $270 combined with other benefits.
Source: Khmer Times
OAK RIDGE, Tenn. - The United States is exporting more man-made fiber, textiles and apparel in the global market, increasing by more than $3 billion in 2017 from $74 billion the year before. Tennessee is a big part of that. The state ranks fifth in the country for textile jobs that employ almost 14,000 people in the state. The new figures from the National Council of Textile Organizations show even more potential for growth in the area of man-made fiber, and Lloyd Wood, director of public affairs for the trade group, said the Volunteer State has an advantage over neighboring states. "Tennessee is particularly strong in carbon fiber with the Oak Ridge Labs," he said. "If you're talking about carbon fiber, if you're talking about other man-made fibers, Tennessee is number one in the country in those jobs." According to the U.S. Commerce Department, North America and Asia are the largest markets for American textile imports. Some trade experts say President Donald Trump's recent tariffs on Chinese imports may start a trade war that could affect exports. Wood said his trade group supports trading relationships that are based on reciprocity. In the last year, two textile-plant expansions in Mountain City and Pikeville meant more than $170,000,000 invested in the economy and more than 1,000 jobs. Wood said the challenge to the state is to foster programs that offer job training to support these industries. "One of the big challenges for the industry is working together with your local schools - with your community colleges, with your universities - to make sure that we have a workforce that can operate this very sophisticated machinery," he said. The University of Tennessee has the Textiles and Nonwovens Development Center, and Tennessee Tech has a merchandising and design program to help train workers in the industry.
Source: Public News Service
I read an interesting article the other day about a cotton spinning company based in Manchester, England. Although the company, by Bangladesh's standards, produces high volumes of product, it has established a niche for itself in the UK and Japan with customers who appreciate both quality and locality of resource. The article highlighted a growing trend in Europe and US with buyers wanting businesses to develop their products either domestically, or at least somewhere closer to home. The example of the English spinning company is just one of many. The re-emergence of knitwear and jersey factories in Leicester, England, the growth in manufacturing of products in Portugal and the North Coast of Africa for some of the biggest brand names in Europe, Donald Trump's election pledge of reinvigorating US manufacturing companies, all point towards a shift happening in the current apparel supply chain model. The advantages to western buyers and to local entrepreneurs undertaking these ventures are many. Companies taking over redundant sites in the West are being encouraged by their governments to do so through various incentives and attractive purchase price of business premises. Purchasing products from the Far East carry with it risks of unfavourable currency exchange rate fluctuations, particularly with the shadow of Brexit looming over Europe which is affecting the exchange rate of both the Pound Sterling and Euro. Local end consumers in the US, UK and Europe are attracted by “Made in” tag of domestically produced items and are even willing to pay a premium to purchase them. Finally, buyers are always looking at ways to reduce lead-times from order deliveries. Having a supply base closer to home allows greater flexibility in ordering as well as the opportunity to respond quickly to changes in market demand and emerging trends. The question that we must now ask is, “How should Bangladesh respond to these changes?” It is no longer optional to rely solely on the fact that the country can offer lower prices for products due to cheaper labour and raw material costs. Increase in labour costs will soon be upon us. Moreover, the majority of Bangladeshi manufacturers have produced apparel with six weeks lead time till now—whereas retailers could easily place an order closer to home and receive their goods sooner. Therefore, it implies that Bangladesh needs to reconsider its current production process and find an alternative approach to the whole apparel production cycle. The reshoring trend signals new challenges for Bangladesh's apparel industry—if not immediately, then surely within 10-15 years from now. To transform this challenge into an opportunity, while we must strive to continue on the path of developing our products with integrity, developing new innovative techniques throughout the production cycle—from fabric and trim purchasing, to product development, production and finishing and finally, shipment of goods to customer—must be combined with concerted efforts to reduce development and shipping lead times, as well as the need to shake off the long-held obsession of chasing volume driven business. Instead, concentrating more on developing smaller quantity premium products that earn higher prices is needed. This will also serve us better to adjust to the growing globally trend of online shopping. Unlike old-fashioned retailers, most online based marketing companies are looking for and placing orders of smaller quantities while looking for high quality products. This makes the time ripe for us to rethink our over dependence on apparel export to traditional markets such as the EU and the US. We need to explore and expand access to Asian markets that are closer to home like China, India, Japan, South Korea, etc. where more than half the world's population is based. Bangladesh, being a major apparel producing country, must take the latest changes in the textile industry seriously, not only to defend itself from external shocks, but to also proactively pursue whatever opportunities that may arise. Mostafiz Uddin is Managing Director of Denim Expert Limited, and Founder & CEO of Bangladesh Apparel Exchange (BAE).
Source: The Daily Star
The Belgian textile, wood and furniture industry should see “a slight increase” in production and turnover in 2018 after a “relatively stable” 2017. The sectoral federation, Fedustria, indicated this during its Annual General Meeting. Taken together, these three sectors had a turnover of €10.2 billion in 2017, showing a slight decline (of 2%) in employment to around 38,250 jobs. The job rate is likely to remain stable in 2018. Last year, the turnover in the textile industry declined by 4.6%, to €4.7 billion. With high exports, the sector in particularly suffered as a result of the euro’s strength. Employment has remained stable since 2014 within the textile industry, with around 19,600 workers. The confidence of entrepreneurs in the sector reached its highest level since the crisis in 2008 to 2009. Investments in the industry slightly declined in 2017 (down by 5.5%), after having shot up by 32.1% in 2016. The furniture sector also saw its turnover reduced in 2017, to some €2.4 billion (down by 4%). The decrease has been observed across all product groups, and Fedustria attributes this to the growth in e-commerce within the sector, to the success of second-hand purchases and the review of family budget priorities. The rate of employment within the furniture industry slightly declined (by 1.9%), reaching a total of 10,784 direct jobs. Investments decreased by 9% in 2017, after an increase of 7.4% in 2016. On the other hand, the turnover for the wood manufacturing industry increased by 7% in value in 2017, exceeding the cap of €3 billion. Employment increased in 2017 for the second consecutive year (up by 1.3%) for a total of 7,841 workers, whilst 2017 investments reached a record amount of €156 million (an increase of 3%). Fedustria moreover observes that textile, wood and furniture companies “are still experiencing a lot of difficulties filling vacant posts”, in particular in West Flanders. Lastly, although it is “pleased with the measures taken by the Michel government to strengthen competitiveness,” the sector is still confronted with an 11% “average” wage handicap, which prevents Belgian companies “from taking full advantage of the window of opportunity.” Fedustria is also critical of energy costs in Belgium and requests that the government completely removes the historical wage handicap, compared to neighbouring countries, and implements a new “tax shift”.
Source: The Brussels Times
An EU-funded startup wants to solve the problem of choosing the right size when shopping for clothes online. iSizeYou, a mobile app for Android and iOS that’s still in beta, is using consumers’ smartphones to target the wholly unsustainable problem of online apparel returns, which were estimated to run as high as 40 percent and cost European e-commerce retailers 400 million euro ($492 million) in 2016. Because they can’t try before they buy like they can in a brick-and-mortar store, online shoppers often purchase an item in multiple sizes and take advantage of liberal return policies to send back products that don’t fit. Retailers end up eating the costs for the sake of keeping the customer. In essence, iSizeYou envisions consumers using its app to capture body measurements and use the resulting data to find the best size recommendations with participating online retailers such as launch partner Piacenza Cashmere. It’s a similar approach to True Fit’s integration across myriad e-tailers. But for now, the app has some kinks to work out. In their app profile, users are prompted to enter their height and weight, secure hair away from their neck and shoulders and wear dark, close-fitting clothing from head to toe (with shoes removed). iSizeYou recommends against using a smartphone camera’s self timer, which can lead to inaccurate results, so users must enlist a bystander to snap the two, full-body photos captured from behind and of their side profile, from which the app generates its measurements and sizing recommendations. iSizeYou largely was born out of the EU’s Horizon 2020 research and innovation program, from which it received 70 percent of its 1 million euro ($1.2 million) funding, and aims for privacy by not capturing the individual’s face or storing the photos on a corporate server, said researcher José Antonio Tornero, according to Valencia Plaza. Researchers from the Terrassa campus of Universitat Politècnica de Catalunya, the Technological University of Munich, the Metal Technological Institute of Valencia (Aidimme), iDeal and Holonix in the corporate sector and Piacenza Cashmere came together to create iSizeYou, which officially launched in January following initial development activities in January 2017.
Source: Sourcing Journal online
The Russian Ministry of Industry and Trade has announced plans to double the country’s technical fibres production by 2020. To implement these plans, Russia will expand the use of its large reserves of oil and other resources, including timber and other raw materials for the production of synthetics. Currently, the domestic production of technical fibres can meet only 30% of Russia’s annual demand, however, as part of the government plans, this might change. “Thanks to Russia’s well-developed oil and chemical industries and the presence of large-scale technical textiles consumers domestically, the industry has good chances for a rapid growth during the next several years,” commented Russia’s Deputy Minister of Industry and Trade Viktor Yevtukhov. “We are planning to use the experience of some foreign countries in this field, one of which is UAE, which in recent years has mobilised its fuel and energy resources for the needs of the domestic technical textiles market.” The country brought its synthetic fibres supplies to the world market to US$1.3 billion over the last ten years. Currently, Russia occupies more than 13% of the world oil production market, however, the volume of its synthetic textile materials exports is eight times less than in the UAE. Prior to 2014, the dependence on imports in Russia varied in the range of 80-90%. However, the beginning of the financial crisis in Russia in 2014, ruble has made further imports of technical textiles unprofitable. As a result, many importers began to consider the prospects of localising the production. According to the Vice-President of the Russian Union of Chemists Sergei Golubkov, currently, chemical industry accounts for about 1.8% in the Russian GDP, which is significantly lower than the average rate of 10-14% for developed countries. Golubkov also said that reaching the EU levels would contribute to the growth of the Russian technical textiles industry. Denis Mantrov, the spokesman of the Russian Ministry of Industry and Trade, also noted that low taxes and customs duties, as well as the proximity of Russia to both European and Asian markets, provides additional advantages to the domestic industry. In addition, most workers, employed in the Russian technical textiles industry, receive salaries that are generally lower than those in the countries of Asia Pacific. For example, salaries of Chinese factory workers have almost tripled over the last decade and now stand at US$ 700, which is significantly higher than in Russia. In Russia, there are currently a number of companies ready to fight for the domestic technical textiles market through the launch of new investment projects. One of them is BTK Group, which recently invested US$ 45 million in a new plant in the Russian Rostov region for the production of high-tech fabrics, with capacity of 12 million metres per year. Another leading Russian producer Energokontrakt has recently invested US$ 35 million in the aramid fabrics production in the Moscow region. Finally, Thermopol, which is a producer of Holofiber, a synthetic insulation for outerwear, plans to significantly increase its production and to launch a range of innovative products very soon. The Russian government established a special Industrial Development Fund to provide support for the implementation of projects like these. To date, the Expert Council of the Fund has already selected almost 35 projects that will receive cheap loans with interest rates no more 5% per annum for a period of seven years. Total amount of allocated loans is estimated at about US$ 1,5 billion. Thus, the government plans to solve the problem of a shortage of long term funds, which in recent years has become one of the most pressing problems for domestic producers. The majority of these project will be implemented within the Ivanovo region, a centre of Russian technical textiles production, where a cluster for the production of polyester fibre is currently being established. The new cluster will include a new synthetic fibre plant, as well as a number of other enterprises. One of these is a local company Protex, which recently received a loan of 300 million rubles for the production of fleece fibre.
Source: Innovation in Textiles
The Swiss Textile Machinery Association (Swissmem), recently conducted a two-day symposium in Tashkent, Uzbekistan, showcasing the technology and know-how of 14 leading textile machinery manufacturers from Switzerland. Already a strong producer of raw cotton and yarns, Uzbekistan plans to add value and quality through textile technology investment. The event was opened by the Swiss Ambassador to Uzbekistan, Olivier Chave, and Bakhodir Alikhanov, the first deputy chairman of Uzbekistan Textile and Garment Association. It was attended by hundreds of delegates from the Uzbek textile and clothing sector, as well as a large contingent of students from the textile faculty of Tashkent University. Uzbekistan aims to take its textile manufacturing capabilities to the next stage, by investing in latest-technology for downstream processes of fabric manufacture, finishing, and making-up. Ernesto Maurer, president of the Swiss Textile Machinery Association said, “The fact that the Uzbek currency is now convertible for international exchange is the foundation for a significant increase in foreign trade. And the presence of many important representatives of the Uzbekistan textile industry at the symposium is proof that there is great enthusiasm to take advantage of the new opportunities, especially in the development of business in the value-added areas of textile production, downstream from the established raw cotton and yarn sectors.” The member companies of Swissmem that took part in the symposium include Amsler Tex, Benninger, ITEMA, Jakob Müller, Loepfe Brothers, Luwa, Maag Brothers, Rieter, Rieter Components (Bräcker, Graf, SSM), Saurer, Stäubli Sargans, and Steiger. Cornelia Buchwalder, secretary general of Swissmem said, “The machinery manufacturers presenting their technology at the event were gratified at the level of interest shown. Along with industrialists, it was especially pleasing to welcome many textile students to learn about the Swiss companies and their products. After all, we are planning to create new partnerships and project for the future, and these are the people who will be involved in this process in the years to come.”
Source: Fibre2Fashion
WASHINGTON (AP) — The U.S. economy grew at a solid 2.9 percent annual rate in the final three months of last year, a sharp upward revision that caps three quarters of the fastest growth in more than a decade. The Trump administration is hoping the economy will accelerate further this year, aided by sizable tax cuts and increased government spending. The gross domestic product, the country's total output of goods and services, grew at a faster clip than its previous estimate of 2.5 percent, the Commerce Department reported Wednesday. That 2.9 percent fourth quarter advance followed gains of 3.1 percent in the second quarter and 3.2 percent in the third quarter. It's the strongest nine-month stretch of growth in a dozen years, since the economy expanded at rates of 3.7 percent, 3.5 percent and 4.3 percent from the third quarter of 2004 through the first quarter of 2005Wednesday's revision, the government's third and final look at GDP in the quarter, was better than analysts had been expecting. "The economy's wheels were spinning faster than we thought in the fourth quarter," said Chris Rupkey, chief financial economist at MUFG Union Bank in New York. "There is nothing in today's report that holds the economy back from its historical run to beat the 10-year expansion of the Clinton years in the 1990s." The current expansion is already the third longest on record and will become the second longest, surpassing the expansion of the 1960s next month. If it lasts through June 2019, it will become the new record-holder, surpassing the 10-year expansion from March 1991 to March 2001. The updated growth figure reflected in part more spending by consumers in services including auto repairs. Overall consumer spending grew at the fastest pace in three years. The revision also reflected less of a slowdown in inventory rebuilding than previously thought, stronger business spending on new structures and more spending by state and local governments. For the year, the GDP expanded 2.3 percent, a solid rebound from a 1.5 percent GDP increase in 2016, which had been the weakest showing since the last recession ended in 2009. President Donald Trump often points to the pickup in growth last year as evidence that his economic program of tax cuts, deregulation and stronger enforcement of trade deals is already having a positive impact. During the 2016 campaign, Trump promised to double growth, which has averaged a lackluster 2.2 percent annually since the recession ended. While Trump has talked about hitting GDP growth of 4 percent or better, his budget is based on an expectation that the economy will expand at average annual rates of 3 percent over the next decade. That forecast has been challenged as overly optimistic by private forecasters who point to the retirements of the baby boom generation and lagging productivity as factors likely to constrain growth. But economists have been revising up their GDP forecasts for this year and 2019 based on Trump's success in winning approval in December of $1.5 trillion in tax cuts over the next decade and a February budget deal that will boost government spending on the military and domestic programs by $300 billion over the next two years. Private economists do not expect the burst in government stimulus to last, forecasting that expected growth around 2.9 percent this year and 2.7 percent in 2019 will be followed by a return to slower rates closer to 2 percent. Interest rate increases from the Federal Reserve to guard against inflation and rising rates triggered by increasing government deficits are expected to slow growth in coming years.
Source: Financial Express
