The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 4 APRIL, 2018

NATIONAL

INTERNATIONAL

ComMin seeks inter-ministerial views on new industrial policy

The commerce ministry has circulated a draft cabinet note seeking views of different departments on the proposed industrial policy that aims to promote emerging sectors, Union minister Suresh Prabhu said. "We have circulated (the draft policy) to all the ministries for their views," the commerce and industry minister told PTI. He said that the policy aims at modernising the existing industries, reducing regulatory hurdles and encourage adoption of frontier technologies such as robotics and artificial intelligence. The proposed policy will completely revamp the Industrial Policy of 1991. After receiving comments from various ministries and departments, the commerce and industry ministry will finalise the note and move it to the Cabinet for the final approval. The Department of Industrial Policy and Promotion (DIPP) in August last year floated a draft industrial policy with the aim to create jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion FDI annually. The department is working on an outcome-oriented actionable policy that provides direction, and charts a course of action for a globally competitive Indian industry that leverages skill, scale and technology. Talking about public procurement policy, Prabhu said the ministry would ensure that products made in India will have a preference of minimum purchase by public sector companies. "Many ministries have to agree (on this), so we are holding a series of meetings," he said. He also said that the ministry is trying to ensure that even self-help groups (SHGs) and artisans could offer their goods on the government e-market place (GeM) portal. "We are trying to propose that products made by SHGs and artisans should also be displayed (at GeM). We will have to follow a due course and quality control," he added. Prime Minister Narendra Modi during a review meeting had expressed concern over barriers imposed against domestic manufacturers and suppliers in tenders being floated for public procurement.

Source: Business Standard

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Jawaharlal Nehru Port Trust handles record volume at 4.83 million TEUs in FY18

Jawaharlal Nehru Port Trust , port, Nhava Sheva India Gateway Terminal The use of a RFID container tracking service has helped in meeting shippers’ expectations regarding end-to-end visibility of their supply chain. Jawaharlal Nehru Port Trust (JNPT), India’s largest public port, ended financial year 2017-2018 with record volumes, handling 4.83 million twenty foot equivalent units (TEUs), a year-on year (y-o-y) growth of 7.4%. The growth in volumes was led by APM Terminals-operated Gateway Terminals India, whose yearly traffic surged 13% y-o-y to 2.03 million TEUs. The port-owned Jawaharlal Nehru Container Terminal (JNCT) registered a 3.4% y-o-y decline, to 1.48 million TEUs. JNCT’s ship calls also fell to 438, from 473 in the previous year. DP World Nhava Sheva-controlled Nhava Sheva India Gateway Terminal (NSIGT) saw volumes surge 48% y-o-y to 659,400 TEUs. New concessionaire BMCT, which opened full-fledged operations in early February this calendar year, loaded and discharged 23,212 TEUs in its first two months. Statistics released by radio frequency identification (RFID) services provider DMICDC Logistics Data Services shows there has been a substantial reduction in JNPT dwell times (the duration a ship berths at the terminal). Of all the terminals, the latest data, available for February, showed APM Terminals Mumbai had the least dwell time, with an average dwell time of 41 hours, down from 45.8 hours in January. The overall JNPT dwell time for February improved to 47 hours from 48 hours in the month of January 2018. The use of a RFID container tracking service has helped in meeting shippers’ expectations regarding end-to-end visibility of their supply chain. The tagging and tracing of cargo empowers shippers to keep a tab on goods while in transit through the port, right till the inland container depots, freight stations and right up till the end users. This has also helped to reduce the cost of logistics operations while simultaneously improving the predictability of the cargo and creating an optimal route for it. Nonetheless, JNPT faces increasing competition from private ports such as Adani-owned Mundra and Hazira. Anil Devli, CEO, Indian Shipowners’ Association (INSA), said JNPT needs to take more steps to remain competitive. He said, “The two private ports have the terminals and they have the necessary cargo support. The terminals are also part of shipping lines. In Mundra, you have MSC themselves operating a terminal which is the second largest shipping company in the world. In Hazira, you have CMA, which is the third largest. I think JNPT will have to be more proactive in trying to attract these larger companies to come with larger vessels, so they need to improve their move count.” Separately, Maersk India on Tuesday said India’s export-import growth outdid some of the world’s largest economies to register 9% y-o-y growth in FY18. Indian exports jumped from 1% y-o-y growth in the first quarter to 14% y-o-y growth in the fourth quarter, registering a strong turn-around. In fact, India’s 12-month import-export growth closed at 9%, compared with the global growth average of 4%, cementing the country’s position as being amongst the fastest growing major markets worldwide. According to Steve Felder, MD, Maersk India, a case in point is the turnaround in India’s trade with North America which grew at double the pace, compared to 2016. Felder said, “As the local market stabilises further, we expect to see more of such wins in 2018, and are looking forward to participating in and indeed enabling the India growth story.” India’s containerised auto exports benefited the country’s western region, catering mainly to Egypt and Nigeria, registering a growth of 5%, y-o-y in 2017-18. Containerisation in India currently stands at 55% of the country’s total import-export trade, and is expected to grow significantly in the years to come. One of the propellers of this trend is expected to be increasing containerisation of India-made automobiles, which helped grow India’s overall auto exports by 20% in 2017-18, headed mainly for the US, Algeria and Russia.

Source: Financial Express

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Manufacturing sector activity falls to 5-month low in March, says survey

New Delhi : India’s manufacturing sector activity fell to a five-month low in March as new business orders rose at a slower pace and firms showed little appetite for recruitment, says a monthly survey. The Nikkei India Manufacturing Purchasing Managers Index (PMI), fell from 52.1 in February to a five-month low of 51.0 in March, indicating the slowest improvement in operating conditions recorded by the survey since last October. This is the eighth consecutive month that the index remained above the 50-point-mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. “India’s manufacturing sector continued to grow, albeit at the weakest pace since October, reflecting weaker gains in new business and a decline in employment for the first time in eight months,” said Aashna Dodhia, economist at IHS Markit and author of the report. Ms. Dodhia noted that the impact of U.S. tariffs on steel and aluminium on India is expected to be limited as India’s exports in both metals to the U.S. accounted for less than 0.4% of total merchandise exports. Though new export orders rose in March, Ms. Dodhia said, “On a negative note, further advances in trade disputes could potentially weigh on sales to international clients”. On the employment front, firms reduced their payroll numbers for the first time in eight months, albeit at a fractional pace. “PMI employment data gave warning signs in the labour market,” Ms. Dodhia said, adding that “manufacturers operating in consumption and intermediate market groups signaled no appetite for recruitment”.

Business sentiments remain weak

Meanwhile, business sentiment remained weak, reflecting some concerns regarding business prospects over the next 12 months. “Indeed, amid a slower expected pace of recovery in consumer spending, IHS Markit marginally downgraded its real GDP forecast to 7.3% for fiscal year 2017-2018,” Ms. Dodhia said. On the prices front, the survey noted that the recent “build-up of inflationary pressures eased in March, with softer increases in both input costs and output prices recorded”.

Source: Economic Times

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The Fabric of India: A Vibrant Journey Through Artisan Villages

A colorful trek through artisan villages reveals the true magic of the country’s treasures. “Walk carefully,” my guide says, pointing down at my shoes. Crisp and white, my brand-new sneakers are clearly out of place in the textile-making village of Bagru, where every step is a potential minefield of color waiting to turn the stark canvas of leather covering my feet into a mosaic of vibrant hues. I tiptoe, carefully navigating through the indigo-, red-, and yellow-stained earth for only a few minutes before resigning to the fact that my efforts are futile. Nothing, it seems, in this tucked-away artisan community near Jaipur can exist without the exuberant touch of color. Roughly 30,000 people call Bagru home, and on this warm January morning, nearly all of them appear to be busying themselves with their crafts. In the dyeing section of town, pits of pigment made from scrap iron, alum, wood bark, and herbs bubble up from deep vats in the ground. Barefoot craftspeople, their extremities already stained from the early hours of the day’s work, crouch over the vats with posture finessed from years of repetitive movement, submerging belts of fabric into the dye and laying them wide on long swathes of dusty earth. Dip, remove, dip, pile. I watch, suddenly conscious of my all-black clothing—another faux pas of colorlessness that clearly identifies me as an outsider—hypnotized by the precision of each swift yet careful step. I’ve come to this mecca of textiles to learn about the centuries-old practices behind one of the world’s most famous centers of craft. India is indeed a magnet for design junkies like myself: A mythical, magical place draped in golds, pinks, and greens, this land of spices, silks, and handmade treasures is unlike any other. But I’m not content to simply visit the shops of Mumbai or Delhi, so I’ve enlisted the Boston-based outfitter Audley Travel to create an artisan’s trail of sorts, weaving from Bagru and Jaipur to Agra and Varanasi, to meet the makers behind the art. In Bagru, that means wandering from workshop to workshop, examining miles of beautiful fabrics before they make their journey to the crowded boutiques of Jaipur and beyond. In the printing district, I watch members of the Chhipa community—an artisan caste that has been dyeing and woodblock-printing textiles since the 17th century—apply intricate designs with the exactitude of a machine. In a small atelier no larger than a railway car, I meet the block makers: a father and son, sitting cross-legged on the floor and hunched over makeshift lap tables with hammers and nails in hand. They transfer labyrinthine patterns from paper to teak and rosewood in ceremony-like silence, stopping only when I ask about an exquisite indigo textile. In lieu of a response, the elder of the two—a man who, my guide explains, is largely credited with keeping the block-printing tradition of Bagru alive today—offers me a block etched with a diamond motif and a border of tiny leaves. He leads me to an outspread textile, and, without a word, I understand: It is my turn to try my hand at printing. I apply the pattern block by block, then stand back to inspect my work. Instantly I’m disappointed to see that it bears almost no resemblance to the perfectly patterned pieces all around me. I thank the men for their hospitality and point once again to the indigo beauty I had been admiring. Five yards, please. Minutes later, my souvenir carefully folded over my lap, I’m watching the landscapes of rural Indiasweep by from the backseat of an SUV. The car swerves and sways—zipping past herds of camels shepherded by bearded men and merging with commercial trucks covered in vivid murals—until at last Jaipur comes into view. The Pink City, named for its plenitude of salmon-colored facades is hardly the quiet village from which I’ve come, but it’s no less rich in beautiful objects to adore. As the SUV idles on a busy street, I admire the tiny shops packed cheek to jowl with copper pots, elaborate bangles, and hand-painted pottery. Workshops overflow with more evidence of the talent hiding behind every door: giant slabs of marble carved into the sacred forms of Hindu gods, intricate jaaliscreens, and dazzling saris lined with glittering threads of gold. Beyond the thick walls of the Old City, I discover more of Jaipur’s treasures at Samode Haveli, a royal mansion turned luxury hotel where the courtyards are enveloped in a carpet of dahlias, lilies, orchids, and geraniums and every nook is piled high with elaborate tilework and thick velvet. In any other destination, this level of too-muchness might seem ostentatious, but here, among the blushing pink buildings and legends of maharajas, it couldn’t be more fitting. Indeed, outside of an artisan’s workshop, the best way to see the magic of India’s local crafts is from the inside of a hotel. Samode Haveli—which was first constructed by the Samode royal Rawal Sheo Singh 175 years ago—is a study in mid-19th-century extravagance with its woven damasks, Kashmir rugs, and hand-painted murals. The same can be said of Amanbagh, the pale pink sandstone property that I visit in the Aravalli mountains of Rajasthan, en route to Agra. Another palace—this one the former hunting estate of the king of Alwar—the 40-room resort is a blend of traditional Mughal architecture and Golden Age–inspired extravagances, with soaking tubs chiseled from local marble and the pervasive sound of melodic Bansi flutes. At the Oberoi Amarvilas, where nearly every window perfectly frames the neighboring Taj Mahal, I find some of the finest examples of Indian craftsmanship yet: handwoven tapestries, etched-glass chandeliers, gilded wallpaper, and jaali screens so precisely carved, they require a second glance. That human hands have created such detailed and meticulous works is difficult to fathom.That is, until I arrive in Varanasi. The loom master’s hands are the first thing I notice. Whittled by age and moving with the rhythmic flair of a pianist, they are gifted with the kind of dexterity that comes from decades of honing a craft. Here, in the legendary weaving district of Varanasi, where the country’s famous silks are copiously produced, one’s hands—tools, really—are everything. I’ve only just arrived in this holy city on the Ganges River but already I’m under its spell, having meandered through its perplexing knot of alleyways and courtyards to reach this little house, where an old loom that stretches nearly wall to wall claps in a gentle rhythm. The loom master’s movements are deliberate yet swift as he works the thread back and forth with his hands and pushes the foot pedal with his feet. It’s a full-body performance, so quick and efficient, and after several minutes of watching, my untrained eyes finally identify the intricate pattern he is creating. Such expertise is apparent at every stop. In another workshop, I find a barefoot man sitting on the ground with his legs outstretched, methodically working his way through a blueprint, using a hammer and metal puncher to transfer a design from paper to the Jacquard cards the loom master uses for his creations. And the designs for the blueprint? Someone makes those by hand, too. Understanding the long—and long-standing—processes behind such rare and beautiful objects is perhaps as great a gift as are the objects themselves. Still, I have yet to find the perfect souvenir, so I wander deeper into the narrow alleys, mentally marking my way back out (left at the fruit cart, then straight until the blue-green temple) until a kindly shopkeeper beckons me inside with a cup of warm tea. One by one, he presents an array of silks, commenting on each in what little English he knows. “Hand,” he says, then, “expensive.” It’s just what I’ve been looking for: silk made on the handloom—no motor, no hurry. I smile, pointing to the red flower on my dress, and with that, the yellow and blue are whisked away, and six different red silks flutter down. In India, it’s the color worn by brides, representing love, luck, and fertility—and it’s perfect. I buy 10 yards of a gold-speckled variety, then wend my way back through the alleys, for one last walk among the masters.

Source: The Robb report

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MCX Cotton gears up for a fresh rally

Cotton prices have been volatile in a broad sideways range since the beginning of this year. The cotton futures contract on the Multi Commodity Exchange (MCX) has been trading sideways in a wide range of ₹19,300-21,300 per bale (of 170 kg). Within this range, the contract made a low of ₹19,850 per bale last week and has surged over three per cent from this low. It is currently trading at ₹20,570. The Cotton Association of India (CAI) revising down the production estimate for 2017-18 crop year to 362 lakh bales from 367 lakh bales estimated earlier is supporting the prices.

Outlook

A breakout on either side of the current ₹19,300-21,300 range will decide the next trend. But the bias on the chart is bullish. The 21-week moving average has crossed over the 55- and 100-week moving averages. This is a bullish signal indicating that the downside could be limited in the short-term. The 21-week moving average has been providing strong support since February and has been limiting the downside well. All these indicators on the charts suggests that the contract is likely to breach the current range above ₹21,300 and extend its up move in the coming weeks. A strong break and a decisive weekly close above ₹21,200 will be the first sign of bullishness. An eventual break above ₹21,300 can take the contract higher to ₹21,500 initially. Further break above ₹21,500 will then increase the likelihood of the contract targeting ₹23,000 over the medium- to long-term. High risk appetite traders with a medium- and long-term perspective can go long at current levels and accumulate on dips at ₹20,000 and ₹19,850. Stop-loss can be placed at ₹19,700 for the target of ₹22,300. Revise the stop-loss higher to ₹20,850 as soon as the contract moves up to ₹20,250. The outlook for the contract will turn negative only if it records a decisive weekly close below ₹19,800. The next targets are ₹19,500 and ₹19,300. But such a strong fall looks unlikely at the moment.

Note: The recommendations are based on technical analysis and there is a risk of loss in trading.

Source: Business Line

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VDMA: German Technology meets Indian Textiles and Nonwovens – visitor registration is now open

Decision-makers from the Indian textile and nonwoven industry are warmly invited to register under www.germantech-indiantextile.de for the next VDMA Textile Machinery Conference and B2B-Forum from 15 to 16 May 2018 in Mumbai (Hotel The Leela). Registration is mandatory. The VDMA will bear organizational costs (no entrance fee). Deadline for registration: April 30, 2018. The VDMA organizes the event in close co-operation with the VDMA India Office, important media partners and Indian textile associations such as CITI. More than 30 well-known VDMA textile machinery and component manufacturers (link) will hold 36 application-oriented presentations about spinning, knitting, weaving, finishing, dyeing and embroidery. Other important cross topics, such as automation, digitalization (Industry 4.0) and smart production technologies will show all kind of Indian textile manufacturers how to improve their competitiveness.

 State-of-the-art-technology will be presented in three sessions:

•           Textile machinery & components for the fiber & yarn industry (May 15, 2018)

•            Textile machinery & components for the technical textiles and nonwovens industry (May 15 & 16, 2018)

•            Textile machinery & components for the apparel, home textile & carpet industry (May 15 & 16, 2018) – program: www.germantech-indiantextile.de/program.html

•            Networking among the participants and experts will be reached also through a B2B meeting area and conference dinner / high tea.

In addition, a training seminar at Veermata Jijabai Technological Institute will take place on 17 May 2018 at the premises of VJTI in Mumbai. Mrs. Regina Brückner, chairperson of the VDMA Textile Machinery Association states: “The knowledge needed to keep up in the textile business is changing at a faster rate, which makes lifelong learning a must. The knowledge transfer at the VDMA event will improve the competitiveness of the Indian textile industry not only in the short but also in the medium and long-term. The students of today are the decision-makers and technical managers of tomorrow.”

Participating VDMA member companies:

Andritz küsters, autefa solutions germany, benninger zell, brückner textile technologies, dilo systems, dilo temafa, lindauer dornier, erbatech, erhardt+leimer, festo, groz-beckert, interspare, iq-sps, küsters textile, mahlo, mayer & cie., karl mayer, monforts, neuenhauser, oerlikon manmade fibers, reseda binder, saurer accotex, saurer texparts, sedo treepoint, setex, texpa, thies, trützschler nonwovens & man-made fibers, trützschler spinning, weitmann & konrad – weko, welker vacuum, zsk.

Source: VDMA Press Release

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Global Textile Raw Material Price 2018-04-03

Item

Price

Unit

Fluctuation

Date

PSF

1396.81

USD/Ton

0%

4/3/2018

VSF

2351.35

USD/Ton

-0.14%

4/3/2018

ASF

2784.08

USD/Ton

0%

4/3/2018

Polyester POY

1413.51

USD/Ton

0.40%

4/3/2018

Nylon FDY

3674.98

USD/Ton

-0.43%

4/3/2018

40D Spandex

5886.33

USD/Ton

0%

4/3/2018

Nylon POY

2990.89

USD/Ton

0%

4/3/2018

Acrylic Top 3D

1694.31

USD/Ton

0%

4/3/2018

Polyester FDY

3865.89

USD/Ton

0%

4/3/2018

Nylon DTY

6013.60

USD/Ton

0%

4/3/2018

Viscose Long Filament

1662.49

USD/Ton

0.48%

4/3/2018

Polyester DTY

3420.44

USD/Ton

0%

4/3/2018

30S Spun Rayon Yarn

3070.44

USD/Ton

0%

4/3/2018

32S Polyester Yarn

2173.17

USD/Ton

0%

4/3/2018

45S T/C Yarn

3038.62

USD/Ton

0%

4/3/2018

40S Rayon Yarn

3213.62

USD/Ton

0%

4/3/2018

T/R Yarn 65/35 32S

2720.44

USD/Ton

0%

4/3/2018

45S Polyester Yarn

2338.62

USD/Ton

0%

4/3/2018

T/C Yarn 65/35 32S

2561.35

USD/Ton

0%

4/3/2018

10S Denim Fabric

1.48

USD/Meter

0%

4/3/2018

32S Twill Fabric

0.91

USD/Meter

0%

4/3/2018

40S Combed Poplin

1.27

USD/Meter

0%

4/3/2018

30S Rayon Fabric

0.71

USD/Meter

0%

4/3/2018

45S T/C Fabric

0.75

USD/Meter

0%

4/3/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15909 USD dtd. 3/4/2018). 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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Euro zone factory boom stumbles again in March but growth solid - PMI

The euro zone's manufacturing boom stumbled for a third month in March as optimism waned and demand ebbed, a survey showed on Tuesday, but output remained robust and expansion was still broad-based across the region. Factories in the bloc ended 2017 with record strong growth so any slowdown from that pace is unlikely to stop decision-makers at the European Central Bank moving away from their ultra-easy policy stance. IHS Markit's final manufacturing Purchasing Managers' Index (PMI) for the euro zone sank to an eight-month low of 56.6 in March from 58.6, in line with an earlier flash estimate and still comfortably above the 50 mark that separates growth from contraction. An index measuring output, which feeds into a composite PMI due on Thursday which is seen as good guide to economic health, fell to a 16-month low of 55.9 from 59.6, a little below its flash estimate. "We should not be too worried by the fall in the PMI as some moderation in the pace of growth from the surge seen at the turn of the year was inevitable," said Chris Williamson, chief business economist at survey compiler IHS Markit. "The overall pace of growth nevertheless remains robust by historical standards, with decent PMI readings seen in all countries, including Greece, to indicate a steady, broad-based expansion." Earlier sister surveys showed although growth slowed in the currency union's four biggest economies it still stayed strong. Yet factories were at their least optimistic since the end of 2016 and demand for products was at its weakest in 16 months. Some of that fall in demand may have been due to manufacturers increasing prices again while a strong euro probably played a part in making the bloc's exports less attractive. In February, factories had raised prices at their fastest pace in nearly seven years. An index measuring output prices remained high at 57.3 in March, down from 58.4 a month before. Inflation was 1.4 percent last month, official flash estimates due later on Tuesday are expected to show according to a preliminary Reuters poll, still well below the ECB's 2 percent target ceiling. Euro zone economic growth has already peaked, another Reuters poll found last month, but the ECB will probably decide this summer to slash its bond purchases if things develop as expected, policymaker Ewald Nowotny said last week.

Source: Business Standard

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New York Fed launches U.S. Libor contender, slow takeup seen

The New York Federal Reserve launched a benchmark U.S. rate on Tuesday to potentially replace Libor, and market participants hope it will prove more reliable after a long and complex switchover. The Secured Overnight Financing Rate (SOFR) set at 1.80 percent. SOFR is based on the overnight Treasury repurchase agreement market, which trades around $800 billion in volume daily. Publishing the rate is the first step in a multi-year plan to transition more derivatives away from the London interbank offered rate (Libor), which regulators say poses systemic risks if it ceases publication.  Analysts have struggled to explain a recent jump in Libor, which has reached nine-year highs USD3MFSR=X even as bank credit quality is seen as solid. Increased issuance of short-term Treasury securities and declining demand for credit due to tax reforms are deemed the most likely factors. A decline in interbank lending has reduced the robustness of the rate, which is sometimes estimated rather than based on actual transactions. “It’s going to be based on a very, very robust set of transactions. I don’t think a lot of the issues and unknown volatility around Libor is going to exist,” said Blake Gwinn, an interest rate strategist at NatWest Markets in Stamford, Connecticut. “Instances like what we’ve been going through this past month where it’s not even a clear cut bank credit issue or a dollar funding issue per se. It’s kind of got everybody scratching their heads trying to figure out why it’s doing what it’s doing,” Gwinn said.

Source: Financial Express

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Bangladesh-Exports decline 1.38pc

Export earnings fell 1.38 percent year-on-year to $3.05 billion in March due to a decline in leather goods shipment. March's receipts fell short of the $3.16 billion target for the month, according to data from the Export Promotion Bureau (EPB). Leather and leather goods sector—the second largest export earner after garments—fetched $848.78 million in the July-March period, down 8.04 percent year-on-year. The shipment of leather and leather goods went down largely as the relocation of tanneries from Hazaribagh to Savar has hampered production of such goods. All the tanneries have been relocated, but only 25 out of 155 have so far started production in their new location, industry people said. Garments exports grew 9.11 percent year-on-year to $22.83 billion in July-March. Knitwear exports rose 11.61 percent to $11.32 billion and woven garments exports increased 6.75 percent to $11.51 billion during the period. Garment shipment, which account for more than 80 percent of the national export, grew because of the increased sales of high-value items and the depreciation of the local currency against the US dollar. “The higher exchange rate of the US dollar helped exports a bit,” said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association. The exchange rate rose to Tk 84 a dollar, up from Tk 78 and Tk 80 previously. Rahman said garment exports would grow by 10 percent at the end of the current fiscal year as the market trend is favourable for Bangladesh. Thanks to the significant improvement of the structural, fire and electrical safety in garment factories, western retailers and brands are coming with bulk orders, he said. Nearly 90 percent remediation work in the garment factories has already been completed, which has brightened the image of the sector. Bangladesh is also home to the highest number of green garment factories in the world, according to Rahman. Moreover, the country is moving towards high-value items from basic garments. As a result, exporters are getting better prices, he said. Jute and jute goods also fared well in July-March thanks to the diversification in the sector. The demand for jute goods from Bangladesh is rising as customers are gradually giving up the use of harmful polythene globally. In July-March, jute and jute goods fetched $818.09 million, up 11.91 percent year-on-year, EPB data showed. Jute production surged from 65 lakh bales in 2014 to 70 lakh bales last year for better prices ensured by a government rule that made its use mandatory in goods packaging, according to the jute ministry. More than 100 crore sacks were additionally produced thanks to the new rule. Local entrepreneurs also expanded the export base by increasing the number of products made from the natural fibre to 240 this year from 135 last year. Overall, exports grew 6.33 percent year-on-year to $27.45 billion in July-March period. It, however, narrowly missed the periodic target of $27.55 billion. Shipment of agricultural products grew 15.46 percent year-on-year to $472.23 million, while frozen food exports were up 6.57 percent to $407.71 million. Home textile export surged 15.08 percent to $669.87 million and footwear shipment rose 5.84 percent to $187.09 million. Exports of plastic goods fell 19.49 percent to $73.59 million in the July-March period.

Source: The Daily Star.

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May says go-it-alone Britain will thrive after Brexit

LONDON - British Prime Minister Theresa May Thursday marked the start of the one-year countdown to Brexit by embarking on a whistle-stop tour of England, Scotland, Wales and Northern Ireland. She had signed Article 50 exactly a year ago, which means Britain's membership to the European Union (EU) will end on March 28, 2019. "Today, one year until the United Kingdom leaves the EU and begins to chart a new course in the world, I am visiting all four nations of the Union to hear from people across our country what Brexit means to them," May said ahead of her tour. She is trying to deliver the message that she is determined to ensure there will be a bright future for every part of go-it-alone Britain. "I am determined that as we leave the EU, and in the years ahead, we will strengthen the bonds that unite us. As we leave the EU, powers will return from Brussels to the parliaments and assemblies of the UK, closer to the people we all serve and with greater ability to deliver for their needs," she said. She said each devolved region of Britain will see an increase in their decision-making powers. "As the prime minister, I have an absolute responsibility to protect the integrity of the United Kingdom as a whole. That means ensuring that no new barriers are created within our common domestic market and that the UK is able to meet its international obligations in the future. No prime minister could leave these things to chance," she added. The main opposition Labour Party has said it will back a trade deal with the EU only if the deal meets the six yardsticks it has laid down, which includes Britain retaining the benefits of the European single market and customs union. Labour's Shadow Chancellor John McDonnell said in a radio interview Thursday that the conditions were nowhere near being met. He said Labour would not vote for the deal unless the government acted sensibly and negotiated to get a pact that meets the six tests.

Source: China Daily.

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Steep Chinese tariffs on 128 US imports

China has imposed tariffs on 128 US imports worth $3 billion as a counter measure to US duties on steel and aluminum that, according to Beijing, "seriously infringed" its interests. China has termed Washington’s assertion about steel and aluminum imports from the former being a threat to national security an “abuse” of World Trade Organisation (WTO) guidelines. The decision was taken by the Chinese state council’s custom tariffs commission followed weeks of rhetoric, according to a news agency report. China has urged the United States to stop its "economic intimidation" and had warned earlier that it was ready to hit back. The US measures "are directed only at a few countries, seriously violating the principle of non-discrimination as a cornerstone of the multilateral trading system, which seriously infringed the interests of the Chinese side," said a statement on the Chinese commerce ministry website. "We hope that the United States can withdraw measures that violate WTO rules as soon as possible to put trade in the relevant products between China and the US back on a normal track," the commerce ministry statement said. Tariffs of 10 per cent on aluminum and 25 per cent on steel by the United States have reportedly angered US allies as well. Though the US Government has temporarily suspended the tariffs for the European Union (EU), Argentina, Australia, Brazil, Canada, Mexico and South Korea, it has unveiled plans to impose new tariffs on some $60 billion of Chinese imports over the "theft" of intellectual property. The United States ran a $375.2 billion deficit with China last year. (DS)

Source: Fibre2Fashion

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Pakistan : Ginneries get 11.571m cotton bales

MULTAN - Over 11.571 million bales of cotton have arrived at various ginneries till March across the country showing an increase of 7.88 percent as compared to 10.725 million bales of last season, said a fortnightly report on Tuesday. The report was released by Pakistan Cotton Ginners Association (PCGA) with cooperation of All Pakistan Textile Mills Association (APTMA) and Karachi Cotton Association (KCA). According to the report, in the major cotton producing province of Punjab, total cotton arrivals increased by 5.46 percent year-on-year to 73,17,73 bales. In Sindh province, cotton arrivals increased 12.31 percent to 4.253 million bales. Of which 1,10,84,233 million bales were sold, leaving an unsold stock of 4,86,963 bales with the ginners. The textile mills in Pakistan consumed 10.867 million bales, while surplus cotton was sold to exporters, according to the data. The report revealed that seed cotton (phutti) equivalent to over 1,15,71,196 bales of cotton have reached ginneries across Pakistan, showing an increase of 7.88 percent compared to corresponding period last year when ginneries received 1,07,25,737 bales. According to the report, ginneries in Punjab recorded arrival of 73,17,773 bales against the last year arrival of 69,38,626 bales showing an increase of merely 5.46 percent. Sindh ginneries recorded arrival of 42,53,423 bales while last year Sindh received 37,87.111 bales 12.31 percent more. Textile mills have bought 1,07,,790, bales while exporters bought 2,16,615 bales. Multan received 2,83,712 bales showing 3.72 percent decrease than last year, Lodhran 1,72,923 bales 10.35 percent showing decrease, Khanewal received 7,09,710 bales showing an increase of 22.22 percent, Muzaffargarh 3,77,489 bales with an increase of 15.55 percent, Dera Ghazi Khan 4,37,900 with an increase of 30.01 percent, Rajanpur got 4,48,597 bales with 34.59 percent increase and Layyah received 2,94,142 bales showing 9.25 percent increase, Mianwali 2,06,265 decrease of 21.97 percent, Bhakkar 85,097 (38.05 percent) Sargodha 7,293 (25.94 percent decrease), Rahimyar Khan 10,72,760 bales (6.35 percent decrease), Bahawalpur 10,24,814 an increase of 3.16 percent, and Bahawalnagar 10,26,864 bales, a decrease of 18.21 percent. In Sindh province: Hyderabad 2,52,389 bales 10.95 percent more than last year, Mirpur Khas (Thar) 2,21,367 bales 18.17 percent less, Sangarh ,13,83,017 bales 12.56 percent increase, Nawabshah 3,48,299 bales (5.92 percent increase), Naushero Feroze 3,75,311 bales (9.92 percent increase), Khairpur 3,37,518 (16.49 percent increase) Ghotki 3,85,265 (27.75 percent increase), Sukkur, 6,16,765 (16.56 percent increase), Dadu 69,182 (54.77 percent increase), Jamshoro 1,30,110 bales (17.85 percent more) ,Badeen 17,335 bales 35.86 percent less) and Balochistan 1,16,700 bales (an increase of 53.68 percent). Total 28 ginning factories are operational in the country. Of them 22 in Punjab and 6 in Sindh. Total 4,86,963 bales are lying in unsold stock.

Source: The Nation

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Egypt plans to increase cotton production to meet high export orders

After a catastrophic year for Egypt’s cotton industry in 2016, a demand for the Egyptian white gold has emerged in the global market. In the wake of a remarkable decrease witnessed in Egypt’s cotton industry in 2016, particularly in the export market, a strong return for Egyptian white gold is expected soon in the global market as the Ministry of Agriculture is seeking to increase the productivity of cotton. According to local media reports, the Egyptian Ministry of Agriculture has taken measures to support the national cotton sector by improving and increasing the productivity of long-staple and medium-length cotton. The ministry also seeks to increase the areas used for cotton cultivation to reach 216,000 feddans with the aim to provide large quantities for the increasing demand from foreign countries. Despite the increase in production, Egyptian cotton exporters have declared that the produced quantities are considered insufficient for the high foreign demand, unlike in recent years. The head of the Egyptian Cotton Exporters Association Nabil al-Sanrisi said recently in news outlet ‘Veto’ that the Egyptian government needs to make sure that cotton production in 2019 should reach at least 2 million quintals so that it can penetrate the world market. He expressed hope that the government will expand cotton cultivation next year to meet the world demand. He pointed out that 70% of Egypt’s cotton production this year was exported, noting that demand and production was low last year. The head of the Cotton Improvement Fund, Adel Abdul Azim, said in media statements that the gradual increase in space dedicated to the cultivation of cotton serves the Egyptian cotton industry, and contributes to marketing it better until it settles in world markets. He pointed out that by 2019 that cotton growing areas would increase to 400,000 feddans, while explaining that the fund is planning to plant 350,000 feddan next year, to meet the need for exports and the needs of local factories. Egyptian cotton exports amounted in 2016 to 462 million dollars according to ITC Trade data, of which exports to Turkey reached 135.8 million dollars, and to Italy about 97 million dollars. ITC Trade data shows that the value of exports of Egyptian cotton fell between 2012 and 2016 by 4%.

Source: Egypt Independent

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Cambodia : Truck ban not as painful as feared, shipper says

A truck is measured on Phnom Penh’s Chroy Changvar peninsula at a checkpoint looking for overloaded and illegally modified trucks on February 11. Since a crackdown on oversized and illegal trucks began on February 10, the government has checked nearly 100,000 vehicles, taking more than 1,000 off the road and finding 3,000 others in violation of various regulations, according to Transport Ministry spokesman Va Sim Sorya.The crackdown, like many new government policies, began following a speech from Prime Minister Hun Sen, during which the premier threatened to sack any provincial governors who allow oversized or overloaded trucks on roads on their provinces. It was followed by a letter addressed to the prime minister from the Garment Manufacturers Association in Cambodia (GMAC) that argued that a large number of trucks transporting garment goods were in violation of the ban and called for a grace period to dampen the effect. No such grace period was given, but the situation has improved for transporters, according to Sin Chanthy, president of the Cambodia Freight Forwarders Association. “During the first month of enforcement, we were concerned that it would impact our delivery timeframes” Chanthy said yesterday. “But now the situation is not bad or tense, and doesn’t impact much on the container trucks.” In its original letter, GMAC said the crackdown “posed a new threat to the garment, footwear, and travelling goods sectors, which are facing an increasingly competitive global market and shorter orders from buyers” and said the policy would affect businesses in a matter of days if it was not delayed. Representatives from GMAC could not be reached for comment yesterday, but according to Chanthy, fears that the crackdown would ensnare the container trucks widely used in the garment industry proved overblown.

Source: The Phnom Penh Post

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Kenya to Get $113.8M Infusion for New Garment Factory as Supply Chain Capabilities Expand

As sourcing in Africa ramps up in line with further developments in the supply chain there, investors from around the world are looking to spend their money for apparel production on the continent. Dubai-based United Aryan, which currently manufactures apparel for export in Ruaraka, Kenya, is one such investor. The company announced plans to construct a $113.8 million factory at the Olkaria geothermal fields in Naivasha, Kenya, which could employ up to 10,000 locals directly and 40,000 others indirectly, Business Daily Africa reported. “We have identified an ideal place at Olkaria geothermal fields in Naivasha where we intend to establish a 11.5 billion shilling ($113.8 million) factory for the production of quality garments,” Pankaj Bedi, United Aryan’s founder and chairman, said in an interview with Business Daily Africa. “We expect to start construction in the next two years and thereafter start operations as soon as the factory will be complete.” According to United Aryan, the factory will produce many types of garments, including fleece, knit tops, pajamas, robes, shirts and trousers. Inside the factory, 84 lines will have the capacity to produce and wash more than 100,000 units a day, and Bedi told Business Daily Africa that the factory will manufacture products to be sold in Kenya and other global markets, including Europe and the U.S. United Aryan’s textiles facility project comes on the heels of Kenya’s trade expansion goals. In December, the Center of International Private Enterprise (CIPE) and the Kenya National Chamber of Commerce and Industry (KNCCI) inked a partnership that would aid 2,000 Kenyan companies with international business opportunities. The agreement between the CIPE and KNCCI focuses on the chambers of commerce in Kenya’s Vihiga, Mombasa and Nairobi counties, which will receive market linkages and assistance to improve trade between the U.S. and Kenya. For the year through January, The U.S. imported $342.25 million worth of apparel from Kenya, a 2.5% increase from a year earlier. Other East African nations, including Ethiopia, have already garnered interest from major clothing companies like H&M and PVH Corp., and as the country continues to further its efforts to create a supply chain ecosystem where all key supplier types are present, more companies are paying closer attention.

Source: Sourcing Journal Online

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Rwanda insists on second-hand clothing ban, says it's up to U.S. to withdraw AGOA benefits

RWANDA : The Rwanda n government has said the United States has the right to withdraw benefits of Africa Growth and Opportunity Act ( AGOA), responding to the suspension of its eligibility for apparel exports. In a statement issued on Tuesday, Kigali signalled that it would not reverse restrictions on importation of used clothes and shoes, including those from the United States. “The notification by the United States on suspension of duty-free status for Rwandan apparel products under the African Growth and Opportunity Act ( AGOA) follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries,” read the statement. AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the discretion of the United States. While the decision was agreed by members of the East African community, Kenya, Tanzania and Uganda have since succumbed to pressure, choosing the economic benefits that accrue under AGOA. The AGOA trade program provides eligible sub-Saharan countries duty-free access to the United States on condition they meet certain statutory eligibility requirements, including eliminating barriers to U.S. trade and investment, among others. It was enacted in the US in 2000 to run to 2015 and renewed to 2025. “ AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the discretion of the United States,” the statement from the government said. Washington had said the suspension of the benefits, instead of termination of Rwanda’s status as an AGOA beneficiary, would allow for continued engagement with the aim of restoring market access and thereby bringing Rwanda into compliance with the AGOA eligibility requirements. In 2016, Rwanda increased the tariffs on imported used clothes from $0.20 to $2.50 per kilo with an intention of eventually phasing out the importation. The government argues that the move will boost its local manufacturing sector.

Source: Africa News

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