India’s exports for the month of March this year have contracted by 0.7% compared to a year ago. There is need for a fundamental shift in our export strategy. India’s revenue from exports of merchandise over the last four fiscal years was $310 billion, $262 billion, $275 billion and $302 billion, respectively. Thus over the four years from April 2014 till March 2018, the total growth was zero, or, rather, a tad negative. Even the ratio of exports to gross domestic product (GDP), at 11.6%, is at a 14-year low. This at a time when the world is experiencing synchronized income and consumption growth and our Asian peers are clocking decent export numbers. India’s exports for the month of March this year have contracted by 0.7% compared to a year ago. This slowdown in exports is across all sectors, led by the scandal-plagued gems and jewellery sector, whose exports fell sharply by 16.6% from a year ago. Garment exports too have suffered and have now fallen behind Bangladesh and Vietnam in absolute dollar terms. Vietnam’s garment exports grew by 10% last year and are expected to continue at that pace this year too. Most notably, the Vietnam Textile and Apparel Association (VTAS) has now tapped into newer markets like Russia and China, in addition to traditional markets like the US and European Union (EU). In a telling statement from the VTAS chairman, he said the heat of competition is from China, Bangladesh, Sri Lanka and even Myanmar. The country not mentioned in this list is India. What happened? Why is India lagging behind in ready-made garment exports? This is one sector where India has had a traditional advantage, and should have raced ahead, due to the low-cost space vacated by China. India is capable of investing in modern machinery and automation, as also in skilling its personnel, just like its competitors. But Bangladesh and Vietnam have now outpaced India even in absolute, not just relative, terms. Of course, a country like Bangladesh has greater labour flexibility, and allows three shifts even with women, who now dominate the garment sector in that country. It may be argued that Bangladesh has special duty-free access to the US and EU, accorded to low-income countries. Even then, however, it does not explain India’s lacklustre performance. The immediate proximate factors affecting the garment and footwear sectors are as follows. First are the lingering effects of demonetisation. Due to last year’s cash disruption, orders were lost, and these can’t be regained easily from competitor countries. There is a kind of hysteresis as lost orders and jobs are not fully reversible. Second is the delay in getting goods and services tax (GST) refunds, and the burden of the cost of locked capital. The delayed refund does not include the interest cost. We need to urgently zero-rate our exports (goo.gl/kf3XFD). Third is the overvalued exchange rate, which makes India’s exports relatively expensive. Fourth is the continuing unreliability of electricity and other infrastructure facilities. Small and medium enterprises need a common plug and play, seamless hard and soft infrastructure—whether it’s effluent treatment or inspection or logistics. But why dwell only on ready-made garments or footwear exports, or even on immediate proximate causes? There is need for a fundamental shift in our export strategy. In 2014, the trade policy announced by the Union commerce minister envisaged total exports worth $900 billion by 2020. That looks almost impossible, unless exports grow by 40% per annum from now on. Incidentally, even services exports show zero growth over the past four years. A 2010 paper of the commerce ministry outlining the strategy to double exports in three years is worth revisiting. Many of those ideas are still relevant. We need to move from merely focusing to becoming obsessed with rejuvenating our exports. For exports create jobs, bring in precious foreign exchange and validate our international competitiveness. The world market is the ultimate test of our strengths. No matter some bit of rising protectionism or an overvalued rupee, both of which are temporary, there is no reason why we shouldn’t be winning a larger market share of world trade. We left our export pessimism behind long ago. We now are entering a phase when China promises to import $24 trillion of goods and services in the next five years. It will hold the world’s first mega import expo (yes, import expo!) in November. China’s consumer market represents a huge opportunity, but India is largely absent. We only export primary materials like cotton, iron ore and copper to China. Indeed, one-fifth of our goods export is petrol and diesel, whose prices fluctuate with the price of crude. The decline in 2015 is partly explained by the steep fall in the price of crude. But we don’t need to just depend on commodity exports. The following principles may be useful. Firstly, focus on labour-intensive exports such as agriculture, textiles, footwear and tourism. Secondly, have a zero GST rate for all exports. Thirdly, shun product- and market-specific incentives (which run afoul of World Trade Organization rules), but focus on regional or cluster subsidies, which benefit all producers, small or large, domestic or export oriented. Fourthly, reduce and further reduce inspector raj. Fifth, actively and aggressively promote participation in global value chains. Do not insist on large value addition in India in your trade agreements. Insist instead on large-scale job creation. Lastly, be committed to open borders, notwithstanding the pressure to raise trade barriers. It is not by protection that domestic industry will become world leaders in competitiveness. And that’s an absolute prerequisite to winning in world markets. Ajit Ranade is an economist and a senior fellow at the Takshashila Institution, an independent centre for research and education in public policy.
Source: Livemint
NEW DELHI : Garments exporters are looking at the government for some succour to check the continuous decline in exports over the last few months. Exporters say the fall is mostly due to the liquidity crunch faced by units following the implementation of the Goods and Services Tax (GST) last year which worsened over the months due to inadequate steps taken by policy-makers to address the problems. “Apparel exporting units are woefully short of cash and many can’t take new orders. A sharp reduction in reimbursements under the duty drawback scheme and Remission of State Levies (RoSL) scheme after the implementation of GST has hit apparel exporters. “So has the 5 per cent GST that they are made to pay and which is not getting refunded properly,” pointed out A Sakthivel, a Tirupur-based garments exports who heads a number of export bodies. Because of the reduction in duty drawback rates and the RoSL rates, there has been a net decline of receipts by exporters up to 5.5 per cent of export value, despite the fact that the government had increased the reimbursement rate under the Merchandise Export Incentive Scheme scheme for garments by 2 per cent, pointed out Anil Peshawari from Meenu Creation in NOIDA. The decline in exports from India is taking place despite robust demand in the global market, points out HKL Magu, Chairman, Apparel Export Promotion Council (AEPC). “The global demand positions are good and the industry is keen to take up more orders but cost disadvantages are affecting India's relative position as a sourcing destination," Magu said.
Shipments decline
AEPC, in a statement earlier this week, pointed out that garments exports had entered a “recessionary zone’’ with shipments in March 2018 falling 17.78 per cent to $1.49 billion and an overall dip of 3.83 per cent to $16.71 billion in 2017-18. Exporters bodies, including the AEPC and the FIEO, have been approaching the government for relief in some form to help them tide over the problems being faced due to GST implementation.
“We are in touch with the Ministers of Textiles and Commerce. Both are sympathetic and understand our problems and hopefully some kind of a scheme to reimburse us of the disadvantage of 5 per cent that we are suffering will be announced soon,” Sakthivel said. He added that in the absence of a response from the government, things would only get worse for India and the competitors from countries such as Bangladesh, Vietnam and Cambodia will take away India’s business. India’s overall goods exports increased 9.78 per cent to $302.4 billion in April-March 2017-18, but declined 0.6 per cent to $29.11 billion in March 2018. The fall in exports has been much more in case of India’s apparel exports. The sector presently employs 12.9 million workers but due to the ongoing slide, several clusters have been impacted.
Source: Business Line
The government is contemplating setting up industrial health clinics to deal with sickness in the micro, small and medium enterprises (MSMEs) which are the backbone of the country's industrial architecture, sources said. These clinics are likely to be set up as part of the new industrial policy, which is expected to be announced soon. The new policy will replace the industrial policy of 1991 which was prepared in the backdrop of balance of payment crisis. As per the proposal, these industrial health clinics could be set up as an autonomous units to deal with sickness in the MSME sector, sources, who did not wish to be named, said. Such clinics raise funds through various sources including states, banks and capital markets to finance revival and rehabilitation of sick units. They also help sick units to collaborate with different organisations for information sharing and research. Commerce and Industry Minister Suresh Prabhu has said that the proposed industrial policy aims to promote emerging sectors and also modernising the existing industries, reducing regulatory hurdles and encourage adoption of frontier technologies such as robotics and artificial intelligence. 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.
Source: Financial Express
Commerce and industry minister Suresh Prabhu (2nd from left) at the launch of FIEO GlobalLinker in New Delhi. Courtesy: PIB/ministry of commerce and industry. A digital platform for exporters in the micro, small and medium enterprises (MSME) industry has been launched by Indian commerce and industry minister Suresh Prabhu. The interesting idea for such a platform was given by the Federation of Indian Export Organisations (FIEO). The FIEO GlobalLinker will help MSME exporters to digitise their businesses. “This initiative will help in expanding India’s multi-focused export strategy and also aid in connecting art and artisans to the market,” said Prabhu while launching the platform. The minister informed that at least 300 Geographical Indications will be registered very soon, which will give a major boost to exports. FIEO GlobalLinker is setup with a view to make the business growth of SMEs simpler, more profitable and enjoyable. It is a growing global network currently comprising over 140,000 SME firms, who are seeking business collaboration and growth opportunities through the use of their electronic business card and digital profiles created on the platform. FIEO GlobalLinker is available free of cost and it offers exporters a range of features and benefits. In terms of business opportunities, exporters will be able to find clients, suppliers and advisors using the search and review facilities. They will also be able to create a free e-commerce store for direct sales and improved chain management. Exporters can gain up-to-date business knowledge through business articles, industry news and common interest groups. The platform also provides services like company intranet, integrating e-mail, and a business calendar, which improve efficiencies. Further, the platform would also offer FIEO’s services like application for new registration cum membership certificate (RCMC), endorsement or renewal, participation in FIEO’s promotional programmes and alerts. (RKS)
Source: Fibre2Fashion
Magu said the reduction in the duty drawback and remission of state levies (RoSL) after the imposition of the goods and services tax (GST), capital blockage due to slow GST refunds and uncertainties on the future of export subsidies have affected the deeply-fragmented garment industry. Production in the labour-intensive garment sector contracted for a 10th straight month through February while exports dropped for six months in a row and in eight out of the past 12 months, official data showed. (Reuters) Production in the labour-intensive garment sector contracted for a 10th straight month through February while exports dropped for six months in a row and in eight out of the past 12 months, official data showed. The contraction stokes fears of job losses and compounds problems of policymakers who are contemplating how to compensate the textile and garments sector adequately once subsidies to promote such exports are phased out (by as early as December 2018, according to some analysts) to avoid disputes at the World Trade Organisation (WTO). Apparel exports dropped almost 4% in 2017-18 when the country’s overall goods exports jumped close to 10%, while garment production declined almost 10% during the April-February period of the last fiscal from a year before. HKL Magu, chairman, Apparel Export Promotion Council (AEPC), said: “Due to the slide, several garments clusters have been impacted. Though India is struggling in exports, countries like Bangladesh and Vietnam are showing consistent growth in the apparel exports.” Magu said the reduction in the duty drawback and remission of state levies (RoSL) after the imposition of the goods and services tax (GST), capital blockage due to slow GST refunds and uncertainties on the future of export subsidies have affected the deeply-fragmented garment industry. In their meetings with various government officials in recent months, exporters have said they are getting less than 4% under both duty drawback and RoSL schemes, which need to be raised to around 11% (of freight on board value of exports) to offset various levies, even excluding the taxes that are subsumed by GST. The government had said since the GST subsumed a number of state levies, including sales tax and VAT, the incentives were reduced. RoSL, under which garment exporters get refunds from the Centre against all the levies they pay at the state level, was a key scheme in the Rs 6,000-crore garments package announced by the government in 2016 to create 10 million jobs, Rs 78,000 crore of additional investments and $30 billion more in exports over a three-year period. The government had then said the textile and garment sector employed 31.9 million people. Most of those employed in garments factories are women. As such, garment exporters say they have been handicapped by the duty disadvantage against key competitors like Bangladesh and Vietnam to our biggest market — the US. Last month, the US dragged India to the WTO, alleging New Delhi had been offering illegal export subsidies worth around $7 billion a year that were harming American workers. But even before its latest move, the US had insisted that India’s stop subsidies for its textiles and garments sector, citing a WTO rule. According to the WTO’s Agreement on Subsidies and Countervailing Measures, when the share of a developing country — with per capita income below $1,000 a year — in global exports touches 3.25% in any product category for two straight years, thereby gaining “export competitiveness”, it has to phase out export subsidies for the items eight years from the second year of breach. The US had contended that India’s “textiles and clothing” exports first breached the threshold in 2005 and remained above the level in 2006. India had said and insists it had time at least until end-2018 as the multilateral trade body asked it to consider phasing out the subsidies only in 2010.
Source: Financial Express
Hyderabad: The State government on Tuesday floated two separate corporations – Telangana Handloom Development Corporation Limited (THDCL) and Telangana Powerloom and Textiles Development Corporation Limited (TPTDCL), to improve the socio-economic status of weavers and to facilitate the holistic development of power loom sector respectively. Both the corporations have been separately floated with a total share capital of Rs 5.1 crore each. Handlooms and Textiles director Shailaja Ramaiyer, Deputy Secretary for Industries P Kiran Kumar, and another official from Finance Department will be members of both the corporations. These corporations will be established with an initial capital of Rs 10 lakh each and the remaining Rs 5 crore each will be provided after the commencement of operations. According to the orders issued, the State government approved the proposal to establish the THDCL to develop handloom industry, provide sustainable livelihood to handloom weavers and also buy back all the products produced on handlooms in the State by playing the role of Master weaver through floating an exclusive Handloom Development Corporation. To ensure high-quality standards of products and time schedules for production, an in-house pre and post-loom processing facilities will be set up paving the way for the creation of an exquisite range of silk, cotton, linen and synthetic fabrics. The corporation will also market the handwoven fabrics under an exclusive brand, not only in India but also in the global market. It will also have an exclusive export division to cater exclusively to the requirements of global players. Similarly, the TPTDCL will promote, aid and facilitate holistic development, welfare and rehabilitation of the Powerloom sector, along with weavers, ancillary and indirect industries associated with the industry. The exclusive Powerloom Development Corporation has been established with an aim to create a necessary infrastructure which includes the establishment of pre and post-loom facilities for the powerloom industry. The corporation will also procure all government requirements of cloth to support the powerloom industry.
Source: TelanganaToday
GST, GoM, GST council A ministerial panel chaired by Bihar deputy chief minister Sushil Modi has worked out a new simplified model for goods and services tax (GST) return filing as per which input tax credit could be given on a provisional basis once the supplier uploads the sales invoice. A ministerial panel chaired by Bihar deputy chief minister Sushil Modi has worked out a new simplified model for goods and services tax (GST) return filing as per which input tax credit could be given on a provisional basis once the supplier uploads the sales invoice. However, the current system of filing the interim return GSTR-3B while paying the tax might continue till a new single-page return is endorsed by the GST Council. The GSTR-3B was to replaced with more comprehensive returns with details of inward and outward supplies post-June. The idea was to have system of invoice-matching without complexities. The group of ministers (GoM) on Tuesday met about 40 industry representatives and 15 tax tax experts to discuss simplification of the return filing process. Meanwhile, six more states — Bihar, Haryana, Jharkhand, Madhya Pradesh, Tripura and Uttarakhand — will launch the electronic way bill mechanism for intrastate movement of goods above a threshold value from April 20. This means that including the five states that had launched the system on Sunday (Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh) and Karnataka which had it running even earlier, 12 states will have the anti-evasion measure rolled out by April 20. The e-way bill system, which allows tracking of consignments with a value above Rs 50,000 beyond 10 km, was rolled out for interstate transport on April 1. While bulk of the GST assessee base of over 1 crore are yet to register for the e-way bill, the implementation of the system has been rather smooth so far. As many as 10.31 lakh e-way bills were generated on the portal on Monday, out of which 2.60 lakh were at the intrastate level. The e-way bill system is expected to plug revenue leakages of `10,000 crore in business-to-consumer transactions. After the crash in February, the GST Network system was augmented to generate 75 lakh e-way bill a day. Nine states have generated 82% of the total e-way bills so far. Gujarat topped the list of states for intrastate e-way bill generation, followed by Karnataka and Maharashtra. An earlier model of return filing proposed that input tax credit could be availed simply by uploading of invoices by the seller and subsequent confirmation by the recipient. Based on acceptance by the recipient, the credit could be finalised. Another model was simultaneous uploading of sales/purchase data wherein the buyer would be able to avail credit on filing of purchase details at the invoice level; the taxpayer had to match only data under the mismatch category. As against these, what is being planned now is a third fusion model, under which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTN portal. Also, system-based notices may be issued to taxpayers for non-payment of taxes even after availing credit and the credit could be reversed. “It’s good to see wider consultation with industry bodies and experts on the returns simplification process. Clearly, the government wants to implement the revised system after adequate due diligence this time. However, this process may take some time with possible changes in laws. It seems the new GST returns may only be introduced either in the last quarter or the next year,” said Pratik Jain, leader, indirect tax, PwC. Modi said there was unanimity in the GoM that businesses would have to file only one return every month, instead of GSTR-1, 2 and 3 as was conceived earlier. Also there was unanimity that there would be no system-based matching and the purchaser would have to verify the invoice uploaded by the seller. Modi said the model for simplified return filing that is being worked out would safeguard the interest of revenue to the exchequer, and avoid inconvenience to taxpayers. “Till then, it’s likely that the current summary return (GSTR 3B) on a monthly basis will continue,” said Jain.
Source: Financial Express
Both Monsanto and Hyderabad-based Nuziveedu Seeds had filed cross-appeals against the High Court’s single-judge order in March last year that ruled that Monsanto’s termination of its sub-licence agreement for genetically modified hybrid cotton seeds with Nuziveedu Seeds was illegal and arbitrary. The agriculture ministry will decide next week whether there is a need to scrap the trait fee charged by American agricultural biotechnology giant Monsanto after going through last week’s Delhi High Court order that invalidated the firm’s relevant patents, a top official said. The agriculture ministry will decide next week whether there is a need to scrap the trait fee charged by American agricultural biotechnology giant Monsanto after going through last week’s Delhi High Court order that invalidated the firm’s relevant patents, a top official said. “We are the regulatory authority on cotton seed prices and will go by law as far as judgement is concerned. I will be able to comment after reading the order,” agriculture secretary S K Pattanayak told reporters. Stressing that the court order has come on a dispute between two parties and the government was not part of that, he said “if there is any direction to the government, we will abide by it.” The Delhi High Court on March 11 had disallowed a plea by Monsanto to enforce its patent for its genetically modified (Bt) cotton seed varieties ‘Bollgard’ and the widely used ‘Bollgard II’ in India. A bench of justices S Ravindra Bhat and Yogesh Khanna allowed Monsanto to apply for registration of these seed varieties under the Plant Varieties Act (PVA) within next three months. A registration under the PVA would still entitle the firm to charge trait fee. But the question is whether the fee could be abrogated in the interim period. Both Monsanto and Hyderabad-based Nuziveedu Seeds had filed cross-appeals against the High Court’s single-judge order in March last year that ruled that Monsanto’s termination of its sub-licence agreement for genetically modified hybrid cotton seeds with Nuziveedu Seeds was illegal and arbitrary. The single judge had also directed restoration of the sub-licence agreements with the Indian seed manufacturer to use Monsanto’s Bollgard and Bollgard II trademarks as per the GM Technology Licensing Agreement found in the Licensing and Formats for GM Technology Agreement Guidelines, 2016. Two years ago, the government had imposed price controls on the widely-used Bollgard II variety of Bt cotton seeds and slashed the trait value payable to Monsanto. Last month, the government further reduced the seed’s maximum retail price (MRP) in the retail market and the trait value further. The MRP for the Bt cotton seeds in the 2018-19 kharif season has been fixed at Rs 740 for a 450-gm packet, down 7.5% from earlier, while trait value was cut by a steeper 20% to Rs 39 per packet. Currently, nearly 90% of India’s cotton area of 12.26 million hectares (in the 2017-18 season) is under Bt cover. Domestic cotton output has risen manifold since farmers started using Bt seeds, from 8.6 million bales in 2002-03 to 33.9 million bales in 2017-18.
Source: Financial Express
The rupee extended its losing run for the second straight day, falling by another 15 paise to end at a near 7-month low of 65.64 against the US dollar amid persistent capital outflows and a fresh ripple of geopolitical tensions. Headwinds in the form of consistent widening in the trade deficit accompanied by portfolio outflows amid unsupportive global factors kept overall sentiment highly bearish. Country's trade deficit hit $13.69 billion in March, climbing from $11.98 billion in February. This is the weakest close for the Indian currency since September 27, 2017 when it had ended at 65.72. Despite a positive start to trade, it fell victim to panic reaction to touch a fresh intra-day low of 65.70 a dollar. Consistent capital outflows from domestic equities against the grim backdrop of the ongoing geopolitical tensions between the US and Russia over Syria strikes further dampened the trading mood. Also, participants remained cautious about possibility that the adverse US trade and monetary policy will have a substantial impact on the Indian economy against the grim backdrop of a global trade war and a faster-than-expected tightening of US monetary policy. Renewed spike in global crude prices on growing worries over supply disruptions especially in the Middle East and falling output as a result of political and economic crisis in Venezuela too largely weighed on the trading front. Brent crude, an international benchmark, was trading marginally higher at $71.41 a barrel in early Asian trade. The US Treasury Department added India to its watch list of countries with potentially questionable foreign exchange policies, joining China and four others, adding some nervousness and volatility, a forex trader said. The rupee has been the worst-performing Asian currency this year after strengthening over 6 per cent in 2017. It has already lost nearly 2.77 per cent of value against the US dollar and trading at multi-month lows after making a strong starts to the year. In the meantime, the greenback staged a spirited comeback after a short-lived downtrend pressure ahead of key US macro releases even as the market's focus shifted back to US trade policy. On the other hand, riding on the improving mood in markets, local equities racked up their ninth straight gains - the longest winning streak in over three years - after the Met department's normal monsoon forecast further lifted investor sentiments. The rupee opened modestly higher at 65.44 per dollar from Monday's close of 65.49 at the inter-bank foreign exchange (forex) market on bouts of dollar selling. It gained further ground to hit a high of 65.41 in mid-morning deals before quickly reversing the recovery trend. Reeling under immense dollar pressure, the home currency accelerated its downside to print day's low of 65.70 towards the tail-end trade before ending at 65.64, showing a loss of 15 paise, or 0.23 per cent.
Overnight, the rupee had fallen by 29 paise.
The RBI, meanwhile, fixed the reference rate for the dollar at 65.6124 and for the euro at 81.3200. The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 89.29. In the meantime, China reported first-quarter 2018 GDP growth of 6.8 per cent, topping expectations.In the cross-currency trade, the rupee lost further ground against the pound sterling to finish at 94.09 from 93.68 on Monday. The local unit also dropped further against the euro at 81.22. The rupee settled against the Japanese currency at 61.33 per 100 yens. Elsewhere, the pound sterling retreated from new 2018 high against the US dollar as traders responded to a mixed labour market report, which showed wage packets growing slower than was expected in February, while the unemployment rate fell to a new 42 year low amid expectations of interest rate hike in May. The euro also fell back sharply after briefly testing fresh day's high after the survey in Germany and the euro area came in below expectations for the month of April. In forward market on Tuesday, premium for dollar witnessed a steady trend due to lack of market moving factors. Both the benchmark six-month forward premium payable in August and the far-forward February 2019 contract also ended unchanged at 94.50-96.50 paise and 215-217 paise, respectively.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1396.89 |
USD/Ton |
0.57% |
4/17/2018 |
|
VSF |
2284.38 |
USD/Ton |
-0.55% |
4/17/2018 |
|
ASF |
2865.42 |
USD/Ton |
2.86% |
4/17/2018 |
|
Polyester POY |
1455.00 |
USD/Ton |
0.94% |
4/17/2018 |
|
Nylon FDY |
3597.69 |
USD/Ton |
0% |
4/17/2018 |
|
40D Spandex |
5890.03 |
USD/Ton |
0% |
4/17/2018 |
|
Nylon POY |
2992.77 |
USD/Ton |
0% |
4/17/2018 |
|
Acrylic Top 3D |
1735.17 |
USD/Ton |
0.46% |
4/17/2018 |
|
Polyester FDY |
3804.64 |
USD/Ton |
-0.42% |
4/17/2018 |
|
Nylon DTY |
6017.38 |
USD/Ton |
0% |
4/17/2018 |
|
Viscose Long Filament |
1711.29 |
USD/Ton |
0.94% |
4/17/2018 |
|
Polyester DTY |
3374.83 |
USD/Ton |
0% |
4/17/2018 |
|
10S OE Cotton Yarn |
2295.52 |
USD/Ton |
0% |
4/17/2018 |
|
32S Cotton Carded Yarn |
3678.88 |
USD/Ton |
0% |
4/17/2018 |
|
40S Cotton Combed Yarn |
4210.58 |
USD/Ton |
0% |
4/17/2018 |
|
30S Spun Rayon Yarn |
3056.45 |
USD/Ton |
0% |
4/17/2018 |
|
32S Polyester Yarn |
2168.17 |
USD/Ton |
0% |
4/17/2018 |
|
45S T/C Yarn |
3040.53 |
USD/Ton |
0% |
4/17/2018 |
|
40S Rayon Yarn |
2340.09 |
USD/Ton |
0% |
4/17/2018 |
|
T/R Yarn 65/35 32S |
2562.96 |
USD/Ton |
0% |
4/17/2018 |
|
45S Polyester Yarn |
3199.72 |
USD/Ton |
0% |
4/17/2018 |
|
T/C Yarn 65/35 32S |
2722.15 |
USD/Ton |
0% |
4/17/2018 |
|
10S Denim Fabric |
1.48 |
USD/Meter |
0% |
4/17/2018 |
|
32S Twill Fabric |
0.91 |
USD/Meter |
0% |
4/17/2018 |
|
40S Combed Poplin |
1.27 |
USD/Meter |
0% |
4/17/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
4/17/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
4/17/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15919 USD dtd. 17/4/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
ISLAMABAD: The Textile Division has proposed to extend the Prime Minister’s Rs180 billion package to the next fiscal year 2018-19. Sources revealed that the Textile Division, in its budget proposals 2018-19 recommended extending of PM package to another year. The government had announced the package in the first month of 2017. The package has been divided into two parts. The first one was from January 16, 2017 to 30 June 2017, and the second one was from 1 July 2017 to end of the current fiscal year. Most of the portions in the export package were related to the textile sector. Sources told that the government has so far paid around Rs20 billion against the claims of Rs41 billion in both phases. The government will soon pay Rs13 billion under the phase 1 of PM export package, sources added. The Textile Ministry recommended to reduce the tariff rationalisation surcharge to 50 per cent, moreover, RMLG prices may be brought to Rs700/mmbtu from Rs1000/mmbtu. Presently, the tariff rationalisation surcharge is Rs3.10/KwH and it will cost Rs26 billion per year. If the government reduces the RMLG prices than it would approximately cost Rs18.5 billion per year. The ministry further proposed to pay immediately the sales tax liability and custom duty drawback refunds of Rs35.5 billion and Rs7.5 billion respectability. Zero rating of sales tax is not available on packing material, thereof, the exporters have started importing packing material under temporary importation schemes, it is therefore proposed that zero rating of packing material may be extended to export oriented sectors. Sources said that if the government announces zero rating on packing material, the FBR is of the view that tax collection might be reduced to Rs10.5 billion annually. It is further proposed that Federal Board of Revenue (FBR) should register the power loom units so the power loom sector will be given zero rating on electricity. The pending liabilities of the textile policy 2014-19 to the tune of Rs3,6618 may immediately be paid, sources added. A delegation of APTMA has met with the Prime Minister today (Tuesday) and handed over their proposals to him. They also requested the PM to allow relief on electricity and RLNG prices.
Source: Pakistan Today
Despite talks of a US-China ‘trade war’, the highest US tariffs are on imports from many other Asian countries, including Bangladesh, most of whose imports to the United States last year were subject to tariffs equivalent to 15.2 per cent of the total value of that country’s shipments. This is the highest such average rate among 232 countries and territories. This was disclosed recently by US fact tank Pew Research Centre that analysed data from the US International Trade Commission (ITC). Import duties on China are by no means the highest ones the US charges, the research centre said in a press release. Other countries with similar profiles are Cambodia (duties equal to 14.1 per cent of the total value of imports from there), Sri Lanka (11.9 per cent), Pakistan (8.9 per cent) and Vietnam (7.2 per cent). By contrast, the duties on Chinese imports totalled $13.5 billion last year, or 2.7 per cent of their total value, the analysis found. The United States generally taxes highly clothing and other related products. Bangladesh exported about $5.7 billion worth of goods to the United States last year, 95 per cent of which were apparel, footwear, headgear and related goods. The average US tariff rates on its other major trading partners are much lower than those on China. Mexico and Canada, the second- and third-highest sources of US imports, had average duties last year of just 0.12 per cent and 0.08 per cent of the value of their imports respectively. The average rates for Japan and Germany are both less than 2 per cent; South Korea, with which the United States also has a free trade agreement, had duties equal to just 0.25 per cent on its $70.5 billion in total exports to the United States. In general, US tariffs are lower today relative to the total value of imports than they were two decades ago, primarily because more imported goods are fully exempted from duties, the press release added. (DS)
Source: Fibre2Fashion
Archroma, is one of the global leaders in color and specialty chemicals, and Montega S.r.l., Italy, (Montega) has decades of rich experience in developing the most recent fashion trends with its high standard chemical treatments, announced a collaboration aimed at supporting the fast-growing garment and apparel industry in Pakistan, mainly in the denim segment. Their joint efforts will focus on fostering excellence in the finishing of textile garments. For garments and fabrics, Montega offers solutions in finishing effects, enzymatic products, bio-polishing, bio-finishing and specialty products for indigo dyes, proteinaceous fibers such as wool and silk, and garment washing and/ laundry. All applications are geared toward environmental sustainability. The company reported “We, at Archroma offers a wide range of brand and textile specialty chemicals that caters to the local industry in Pakistan for both its internal and export markets. The company’s expert team provides innovative solutions to its customers, tailored to their individual requirements”. Now, Archroma will represent Montega in marketing their products in Pakistan. Their partnership between the two firms will provide a unique synergy of combined expertise, reliability and commitment to environmental sustainability, especially toward the reduction of water usage and the emission of greenhouse gases during textile finishing processes. Mujtaba Rahim, CEO of Archroma Pakistan, commented that “We, at Archroma, believe in continuous improvement and challenging the status quo to make our industry sustainable. We have dedicated ourselves to bringing innovation in our product lines and to closely partnering with like-minded organizations to build industrial rapport. Through this initiative of joining hands with Montega, we will be able to share latest R&D developments with the textile industry in Pakistan, and help grow Pakistan’s contribution in the global textile arena.”
Source: Textile Today
Dr Kevin Nelson, TissueGen’s founder and CSO, will be presenting on the latest advancements in extrusion technology, which are enabling the next generation of drug delivery, at BIOMEDevice Boston, this week. Dr Nelson will discuss how the evolution of the medical device industry has brought drug delivery to the forefront of the market. More than ever before, drug delivery coupled with a medical device is improving patient care. The emergence of new extrusion methods that occur at or below body temperature are enabling drug-loading of a wider range of pharmaceutical and biological agents than ever before possible for use in biodegradable implantable devices for localised drug delivery within the body. The incorporation of these drug-loaded fibres into new or existing medical devices may result in faster healing, improved patient compliance and lower negative outcomes at lower cost for applications including spinal cord repair, nerve regeneration, tumour remediation and more. BIOMEDevice Boston, which takes place from 18-19 April at the Boston Convention & Exhibition Center, Boston, MA, connects visitors with more than 4,500 engineers and executives and more than 450 leading suppliers across New England's thriving medical technology industry. TissueGen, a developer of Elute fibre, enables controlled sustained delivery of sensitive pharmaceuticals and biologics from biodegradable fibres for advanced drug delivery, nerve regeneration and tissue engineering. TissueGen works with leading pharmaceutical, therapeutic and medical device companies to develop fibre and textile medical devices for use in drug delivery applications, such as small diameter vascular grafts and stents, tissue and nerve regeneration, orthopaedic devices and sutures.
Source: Innovation In Textiles
THE CANADIAN PRESS
This Feb. 22, 2016 photo shows blouses and purses on display at the Encore Plus consignment store in Boca Raton, Fla. From wedding dresses to summer apparel, consumers planning to add new items to their wardrobes are being warned to watch out for knock-off brand name merchandise that are increasingly tricking online shoppers.THE CANADIAN PRESS/AP/Kelli Kennedy
Kelli Kennedy / THE ASSOCIATED PRESS
VANCOUVER — From wedding dresses to summer apparel, consumers planning to add new items to their wardrobes are being warned to watch out for knock-off brand name merchandise that is increasingly tricking online shoppers. A consumer group and a counterfeit goods investigator both say it’s not only unaware consumers and brands that lose out when knock-offs are sold, but the profits often support other illegal activities. Jigme Love, co-owner of the Vancouver-based luxury consignment retailer Mine & Yours, said she’s seen the counterfeiting of brand name apparel transition from predominantly bags and accessories to dresses and other clothing. The company has destroyed a number of clothing items over the years that, upon closer inspection, turned out to be fakes, costing the store, she said. “We’re really strict but it’s not a perfect science,” she said. The store has become more cautious when buying clothes and increasingly relies on a third-party authenticator to verify garments, a process they previously used only for bags, Love said. There’s also been a shift from counterfeiting common high-end names like Michael Kors to more coveted haute couture lines like Chanel, she said. With wedding and prom season fast-approaching, Evan Kelly with the Better Business Bureau of Mainland B.C. is reminding consumers to do their homework before investing in a deal that seems too good to be true. “When it comes to brand name clothing, nothing is off limits,” he said. “We’ve seen fake Vera Wang dresses, fake just about anything.” Lorne Lipkus, a Toronto lawyer and member of the Canadian Anti-Counterfeiting Network, said everyone loses when knock-off brands are sold. An estimated $20 billion to $30 billion in counterfeit consumer goods are sold in Canada every year, he said. “The counterfeiters don’t pay taxes, so we are supporting an endeavour that is not contributing to this wonderful society that we have,” he said. While he’s seen production of counterfeit goods shut down by police over the years, he said 80 per cent of the global trade comes from China, and it’s largely controlled by organized crime or terrorism groups. Kelly said consumers should know the websites and companies they’re dealing with, check reviews, and always pay by credit card or PayPal which offer added security. Traditional brick-and-mortar stores continue to be the safer bet for shopping, he said. Increasingly, Lipkus said fake goods sold online aren’t just appearing on unique or resale websites but are sold through social media sites, including Facebook and Instagram. Three years ago, the anti-counterfeiting network only employed one part-time person to search out online sellers, Lipkus said. Today, they have three full-time investigators dedicated to the issue.
Love said shoppers looking for a designer second-hand wedding dress should ask for a copy of the receipt and then call the retailer to confirm the original purchase. “I’ve even seen fake receipts,” she said. Close inspection of the stitching of a garment, the fabric and the label can provide clues as to whether a product is the real deal, she added. Lipkus also encouraged shoppers who get scammed to contact the Canadian Anti-Fraud Centre, which can investigate and provide support to someone trying to get their money refunded by a credit card provider.
Source: The Province
Technology, if used correctly, can greatly improve the whole production cycle and the wellbeing of the workforce. The government of Bangladesh is moving ahead with a plan to establish 100 Special Economic Zones by 2030. Construction on some zones has already begun, including one in Mirsarai of Chittagong where 500 acres of land have been set aside as a dedicated zone for the garment industry after the signing of a Memorandum of Understanding (MoU) between Bangladesh Economic Zones Authority (BEZA) and BGMEA. This project is expected to attract both local and international investment and generate some 150,000 new jobs over the next two years. While these recent endeavours should be applauded as the new zones will come to represent the future for the Bangladeshi textile and garment manufacturing hub, it is time to consider what factors should be prioritised by the BEZA while constructing the zones and the agreements that will be made with the companies that invest in the sites after they are established. There are several fundamental elements that must be considered when the development of each zone commences. The zones, it goes without saying, need to have access to an uninterrupted supply of power and other utilities including gas and water, and construction of the sites needs to follow the highest possible international standards. Companies taking plots within the zones must abide by the highest ethical and environmental standards. In addition, one area that needs to be especially promoted and developed is that of technology for businesses within the economic zones. To cite a recent interview of Gerry McGovern, Design Director and Chief Creative Officer for Land Rover cars: “You need to embrace technology to elevate the desirability of the product, to make it safer, faster and more modernist.” This thought-process is one that needs to be embraced when setting up our next stream of economic zones. As a nation, we can no longer rely on the appeal of lower labour costs to attract and develop business. We need to embrace technology from top to toe in the garment cycle—from fabric development and concept design to cutting and sewing technology, adoption of technology-aided washing and finishing machinery, to purchasing and delivery systems, all of which will improve our efficiency and competitiveness in terms of price as well as the overall quality of product, and result in a reduction in lead-times to customers. Technology, if used correctly, can greatly improve the whole production cycle and the wellbeing of the workforce. What needs to be established is a strategy for the economic zones that promotes the use of technology and encourages companies to invest in the necessary technical infrastructure to ensure that this next phase of development is fit for purpose in the years to come. This will require careful consideration and, possibly, on a case-by-case basis, as different manufacturing companies will require different forms of technological support. It may also be necessary to offer incentives to secure the necessary investment in technology. Furthermore, there should be guidelines to ensure the necessary training and development of the workforce—to both appreciate and become skilled in the use of technology—and also to ensure that appropriate technological aids are in place. Companies that agree to take plots within the economic zones should be asked to utilise an agreed level of technological sophistication and guarantee the appropriate training and development of the relevant workers. BEZA and all other interested parties would do well to consider the adoption of an approach similar to that adopted by the Indian government. At the beginning of 2016, the Indian government developed a system called Technology Upgradation Fund Scheme (TUFS). This scheme was established to promote ease of doing business within the country, and with the specified aims of generating employment within the textile and garment manufacturing industries as well as promoting exports made in India with “zero effect and zero defect”. In short, the scheme was established to facilitate the augmentation of investment, productivity, quality, employment and exports, together with import substitution for the textile and garment industries. Through the scheme, textile (spinning, dyeing and weaving) companies and garment manufacturers can apply for a Capital Investment Subsidy (CIS) for investments made in machinery and technology to meet the benchmark laid out in the scheme. Technological upgradation has been defined in the TUFS as “the induction of state-of-the-art, or near state-of-the-art” technology by the textile and garment industries, and the levels of performance that the machinery and technology must attain are reviewed and updated on an annual basis. By adopting this approach, the Indian government ensures that investors are committed to the introduction of the highest grade of machinery and technology that are available and are also willing to accept the overall challenge of the upgrading of their finished product, with the added benefit of having the possibility to diversify into other textile or garment segments. The establishment of the new economic zones within Bangladesh is a great initiative. We need to now ensure that the developments run hand in hand with the technological advances to ensure a bright future for our industry. We need to show the world that we are preparing for the future market demands, have a fit-for-purpose business model, and are investing in an advanced garment industry that has foundations guaranteeing longevity, encouraging further investment from both local and international companies. Mostafiz Uddin is the Founder & CEO of Bangladesh Apparel Exchange (BAE) and Bangladesh Denim Expo, and the Managing Director of Denim Expert Limited.
Source: The Daily Star
Courtesy: Cotton and Wool Outlook, Economic Research Service, USDA World cotton consumption in 2017-18 is projected at 120.4 million bales, as per latest US Department of Agriculture (USDA) figures. This is 5 per cent or 5.6 million bales above 2016-17. In addition to rising cotton mill use, an expanding global economy and the slowdown in polyester production contributed to this year’s above-average growth. Despite the highest cotton consumption in a decade, 2017-18 world production is expected to exceed consumption for the first time in 3 years, the Economic Research Service of USDA said in its ‘Cotton and Wool Outlook’ monthly report. Prior to 2015-16, global cotton production had been above consumption for five consecutive seasons. China—the leading spinner of raw cotton—accounts for one-third of the global cotton mill use total. The countryis projected to use 40.0 million bales (up 2.5 million bales) of cotton in 2017-18. In addition, cotton yarn imports by China could include an additional 8 million bale-equivalents of raw fibre to support its growing textile and apparel industry, the report said. Small consumption gains in 2017-18 are seen for both India and Pakistan, where mill use is projected at 24.2 million bales and 10.4 million bales, respectively. Larger increases, however, are expected in Vietnam, Bangladesh, and Turkey. Cotton mill use in Bangladesh and Vietnam is projected at 7.3 million bales (+ 9 per cent) and 6.55 million bales (+ 21 per cent), respectively; investment in the fibre spinning industries of these countries has led to record use of cotton for the last several years. Meanwhile, mill use in Turkey is forecast at 7.1 million bales, 9 per cent above 2016-17 and the highest level there in over a decade. (RKS)
Source: Fibre2Fashion
The physical condition of 12 percent survivors of the Rana Plaza building collapse has still been worsening although five years have almost passed since the worst industrial incident. Of those who could manage to escape death on April 24 in 2013, some 70.5 percent are more or less stable while 17.5 percent have become completely stable following years of treatment, according to a new survey of the ActionAid Bangladesh. The NGO revealed the survey result at a seminar on “Advancing Decent Work Agenda: Departure from Rana Plaza” at the Brac Centre Inn in Dhaka yesterday. The survey was carried out on 200 out of 1,400 survivors. Some 22.5 percent of the survivors said they still live in trauma in comparison to 30.8 percent last year. Those reporting worsening conditions blamed headaches and hand, leg and back pains as some of the major problems. Some 51.3 percent stated to be engaged in jobs, including self-employment, while 48.7 percent said to have stopped working mainly because of physical and mental weaknesses. Some 21.6 percent have returned to work in the garment sector while as many as finding jobs as day labourers. “This is a significant change from the last survey when only 2 percent were working as day labourers,” the survey said. Monthly household income for 4.5 percent of the survivors is Tk 5,000 or less whereas the minimum wage in the garment sector is Tk 5,300. The income of 60.6 percent of workers ranges between Tk 5,001 and Tk 10,000 and it is more than Tk 10,000 for 34.8 percent, with the major expenditures being in food, house rent, children's education and treatment. Addressing the event, MM Akash, a professor of economics at the University of Dhaka, said even after the hurried amendment of the labour law, the compensation remains stuck at Tk 1 lakh although a committee of experts had suggested Tk 15 lakh. “However, the committee report is still pending as the High Court is yet to deliver the verdict on it since the factory owners' representative did not sign it,” he said. The post-collapse progress in the garment sector was driven by buyers, not factory owners, Akash said. “The compensation money at Tk 1 lakh is too low for the workers,” said Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies. He said the expert committee didn't comprise any union leader. Ahmed said government agencies blame each other following industrial incidents without solving the problem. He cited the Tampaco Foils fire in 2016, following which boiler inspectors blamed gas suppliers and vice versa, with none wanting to correctly identify the cause. “The government should reveal the amount of money received under different names after the Rana Plaza collapse in the name of providing compensation to the victims,” said Kamrun Nahar, general secretary of the Bangladesh Progressive Garment Workers' Federation. Anne-Laure Henry-Greard, officer-in-charge of the International Labour Organisation in Bangladesh, praised the safety progresses made in the garment sector. She suggested avoiding discrimination in trade union registration, establishing congenial industrial relations between owners and workers and being more compliant to maintain trade privilege to the European Union for better garment business.
Source: The Daily Star
ITM 2018, the most important textile technology show in the region, where domestic and foreign companies made business connections and realised sales worth millions of dollars this week, concluded in Istanbul, Turkey. The trade fair hosted companies that operate in various sub-sectors of the industry, ranging from weaving, to knitting, digital printing, dyeing and finishing. The show occupied an area of 120,000 square metres of the Tuyap Fair and Congress Center. The most successful edition of ITM so far hosted 1,050 exhibitors and representatives from 45 countries. According to organisers, the event welcomed record-breaking 50,000 visitors, compared to 49,000 visitors in 2016.Participating companies reported that they were very pleased with the large number of visitors and how the show was organised. Some said that they did not expect the fair to be so successful. According to exhibitors, a lot of textiles companies in Turkey, who made their way to ITM this week, were eager to invest into new equipment and learn about new technologies. The first and second day of the fair were very dynamic, recording a heavy visitor traffic, with many buyers enquiring about new technologies and innovations. Among companies operating in the knitting sector, occupying two halls of the exhibition centre, were Karl Mayer, Groz-Beckert, Pailung, Mayer & Cie, Orizio, Monarch, Terrot and LGL, Memminger-iro, and Lonati. In addition, a large number of Far Eastern companies joined the event to explore new markets and find new customers.
Groz- Beckert
Groz- Beckert, a leading supplier of industrial machine needles, showed its products and services covering knitting, weaving, carding and nonwovens. The company emphasised the interaction of needles and system parts in the field of knitted products. Transparent knitting and flat knitting machines provided visitors with unique information about the interaction of all components. Four acrylic glass machines were exhibited at the stand.
Karl Mayer
Karl Mayer, who has been operating successfully in the Turkish market for many years, exhibited warp knitting and warp preparation technologies. The recently developed HKS 3-M
In addition, examples of high-speed tricot, jacquard and Raschel machines, made from outerwear fabrics and shoe-faced fabrics, were exhibited. model, launched during the exhibition, has become a focus of attention. The machine's tulle curtain and embroidery ability got full marks from the companies.
Terrot
German circular knitting machine builder Terrot showed a number of new circular knitting machines, including a new addition to its fine rib and interlock family. High feeder jacquard transfer model for pitch fabrics UCC 572-T is a new highly productive (2,4 feeds per inch) model for knitting transfer structures for sportswear. The second machine that was shown during the event was I3P 196, an 8-lock technology for interlock and modified structures, equipped with up to 4 needle tracks in cylinder and 2 needle tracks in the cam box. The third machine exhibited at Terrot's booth was SL-4, a highly productive single jersey machine especially for outwear textiles with 3 or 1 feeder cam box, updated by Pilotelli.
Mayer & Cie
The Albstadt based circular knitting manufacturer Mayer & Cie. exhibited some circular knitting machines, including the Relanit 3.2 HS and D4 2.2 II machines, and OVJA 2.4 EM, a new addition to the MCT product range in the mattress ticking segment. Relanit 3.2 HS was one of the most popular models. This technology, which is 30 years old this year, is characterised by soft yarn processing and high productivity, reaching speeds of up to 50 rpm. D4 2.2 II provides the highest quality for ribs, locks and 8 locked structures. Using a specially developed conversion kit, D4 2.2 II produces a peculiar pile of quality. Applications include underwear, sports and leisurewear, as well as lining for shoes and decoration. OVJA 2.4 EM for fabric rolls up to 600 mm in diameter was displayed in an elevated frame. OVJA 2.4 EM is a new machine designed specifically for changing demands of the bed sheet market.
Pailung
Taiwan based Pai Lung Machinery Mill, said it successfully attracted significant numbers of visitors. The Korean company exhibited a few of the Knitel Series machines during the fair. Single jersey fleece jacquard machine has especially attracted visitors’ attention. The stand also exhibited The company’s flat knitting machines.
Shima Seiki
Japan’s Shima Seiki exhibited a wide range of its products, including proposals in Wholegarment knitting technology that offers an alternative to labour-intensive manufacturing in Turkey and other international markets.
On display were flagship MACH2XSWholegarment knitting machine with original SlideNeedle on four needle beds and spring loaded moveable sinkers with expanded patterning capability, the MACH2X machine in 18G for producing refined ultrafine gauge items, as well as the compact SWG091N2 for producing smaller Wholegarment items and accessories.
Rieter
Rieter took part in ITM 2018 with ring and compact yarn systems solutions. The company emphasised the importance of digitalisation in spinning facilities. Rieter ring and compact spinning systems have shown great interest in Turkey's market. The rotor spinning machine R 36 is preferred for the bending of the recovered fibres. The next step in Rieter's digitalisation is to use the maintenance solution UPtime, thus increasing productivity and reducing maintenance costs. The single spindle monitoring system in the market, SPIDERweb identifies batches and deviations early in the process on process, quality and production efficiency. It works successfully in more than 13,000 machines, installed at facilities of around 270 customers in 50 countries.
Has Makina
Turkish textile machine builder Has Makina exhibited its latest direct mother split yarn warping machine at the event. DSW machine developed by Has Makina the Mother Yarn Direct Splitting Warping Machine is suitable for polyester and nylon mother yarn. This machine can split mother yarn directly, then wind mono filament yarn into beams at stable speed and tension. Because the splitting and warping operations are performed in the same process, may be saved. The advantages of this machine are time, workshop space and material cost savings, as well as improved production efficiency. DSW uses nylon (240/12F) and polyester (240/12D and 300/10F). The speed is 500 m/min, daily capacity – 640 kg-960 kg/ day.
Source: Knitting Industry
