NEW DELHI: India is devising alternative schemes to promote manufacturing in the light of the recent threat to its export promotion programmes at the World Trade Organisation (WTO). The government is mulling new schemes linked to job creation and manufacturing clusters, especially in the case of textiles and apparel where India has to phase out subsidies by the end of this year. Being broader in focus and not just restricted to exports, these would not run afoul of WTO. At a meeting last week, the government deliberated the idea of expanding the Rebate of State Levies (RoSL) scheme for textile and garments. It will seek to refund those taxes that remain unrebated under the goods and services tax (GST) regime such as electricity duty and duties paid on petroleum. “RoSL can be used to offset embedded taxes which are currently not being reimbursed in GST,” said an official aware of the details. Under RoSL, garment exporters get refunds from the Centre against all levies paid at the state level. This can now be expanded to include taxes that are still embedded. The official added that production clusters can also qualify for concessions such as those on electricity. Similarly, ideas linked to employment generation such as tax concessions on provident fund contributions and exemptions to new employees (check) can also be eligible for sops without violating global trade norms. The textile ministry has recommended linking employment generation subsidies to the wage bill as the criteria for the subsidy. The commerce department has said that the Advance Authorisation Scheme, which allows duty-free import of inputs used in manufacturing export products, is WTO compliant but called for a strong verification system to avoid excess subsidy. Under the special and differential provisions in the WTO’s Agreement on Subsidies and Countervailing Measures, developing countries with a per-capita, annual gross national income (GNI) below $1,000 at the 1990 exchange rate are allowed to provide export incentives to any sector that has a share below 3.25% in global exports. Since India acquired export competitiveness in textiles by crossing the 3.25% threshold in 2010, the deadline for ending direct subsidies to textile companies is December 2018, which the government worries will hurt the sector. Under existing WTO rules, a country can no longer offer export subsidies if its per-capita GNI has crossed $1,000 for three years in a row. In 2017, WTO notified that India’s GNI was $1,051in 2013, $1,100 in 2014 and $1,178 in 2015. The government is also considering schemes to support compliance, sustainability and quality certification as they conform with WTO norms.
Source: The Economic Times
Waste cotton traders in the State have sought removal of market cess on the product.
R. Senthil, co-ordinator of the waste cotton traders’ association, said raw cotton attacts 1 % cess in the State and waste cotton also attracts 1 % market cess. After the implementation of Goods and Services Tax (GST) most of the States that were collecting the cess have removed the tax levied on cotton or waste cotton. However, Tamil Nadu contintues to collect it. Waste cotton does not go to the markets and is moved from the textile mills to industries that use the cotton for different purposes such as making mattress, carpets, and yarn. Under GST, cotton attracts 5 % duty. Hence, there is no need for another cess, he said. About 10,000 traders handle five lakh to eight lakh kg of waste cotton a month in the State.
Source: The Hindu
New Delhi : Khadi, the great Indian fabric, is all set to be showcased in South Africa at an event to pay tribute to Mahatma Gandhi and Nelson Mandela later this month. The event to present the fabric will be choreographed by a South African fashion designer on April 30 during the concluding session of the two-day India-South Africa Business Summit as 'The Tribute to Mahatma and Madiba' program for which Khadi and Village Industries Commission (KVIC) has got its first overseas order of 175 gift boxes containing silk scarves. Exhilarated on getting first overseas order worth Rs 2 lakh for the KVIC, its Chairman V K Saxena said that Khadi reaching South Africa means that world is moving in the direction of economic freedom. "The monetary value of this order might not be very big, but it is a big morale gain for KVIC as it has caught the attention of the world famous fashion designer Gavin Rajah and the organizers as well. "When Gandhiji reached South Africa, a war against apartheid and British rule was started. Now, much on the expectations of Prime Minister Narendra Modi, Khadi is all set to bring economic freedom as the Ahimsa Silk would showcase its piousness and economic feasibility in the land of Madiba (Nelson Mandela), he said. A press note released by the KVIC said that it had received a letter from the High Commissioner for India to provide different Khadi fabric, including silk and muslin in both embroidered and printed forms, for the summit. According to this letter, the summit, with a tag line 'united by legacy, unified for prosperity' seeks to showcase New India in South Africa, with the intent to double two-way bilateral trade and investment within a five year period. "This follows the vision set out by PM Narendra Modi and former South African President Jacob Juma, in the course of PM?s visit to South Africa in 2016", the letter said. The KVIC had immediately dispatched more than double length of the desired fabric, which was delivered to them on March 24, 2018, the press note said, adding Rajah was so satisfied with the quality of fabric that the organizers later ordered to supply 175 Khadi gift boxes containing silk fabric worth approximately Rs 2 lakh. PTI AG RKS AG TIR TIR
Source: India Today
Petroleum and Naural Gas Minister Dharmendra Pradhan today stressed on bringing petroleum products under the GST to provide relief to common people from spurt in fuel prices following surging global crude oil rates. Both the central and state governments have started making up their mind in this regard, he said. Petroleum products are out of GST ambit which was rolled out in July last year. "The prices of petroleum products are all time high in past four years in international market due to some disturbances in Syria and US's threats to impose fresh sanctions on Iran," Pradhan told reporters here. "Government of India is concerned over it...petroleum products have to be brought under the purview of the Goods and Services Tax (GST) but since this is the first year of the implementation of GST, so states are concerned and hesitant about their income," the minister said while responding to a query in this regard. The minister, who was accompanied by Bihar Deputy Chief Minister Sushil Kumar Modi, state Labour Resources Minister Vijay Kumar Sinha and Bihar BJP vice-president Devesh Kumar, was talking to reporters here at party office after launching the second phase of extended Ujjwala yojana at Baheri block in Darbhanga district.
Source: Press Reader
More than 85 per cent automated teller machines (ATMs) started dispensing cash across the country on Friday and deposits in banks increased, leading to an improved cash flow situation, a senior finance ministry official said. “Over 85 per cent ATMs were functional on Friday. Cash deposit back to the system also improved. So, no net reduction in cash position of currency chests,” the finance ministry official said. The share of functional ATMs will hover over 85 per cent for sometime now, another finance ministry official said. The situation has improved from Monday when about 60 per cent ATMs across India were dispensing cash, which went up to around 82 per cent on Thursday. Low deposit of currency in banks and the high rate of cash withdrawal had worried the government that was seen as one of the reasons that led to a cash crunch in ATMs in states, particularly, Bihar, Telangana, Andhra Pradesh, Madhya Pradesh and Gujarat, among others. In Bihar, around 75 per cent ATMs of State Bank of India (SBI) were working on Friday morning, against 61 per cent operational ATMs in the state on Thursday, the official said. Over 30 per cent of the ATMs belong to SBI in Bihar — the highest among all other banks. The RBI had supplied an additional Rs 10 billion to its regional office in Bihar on Thursday for distribution within the state and in Jharkhand in a bid to ease the situation. The state-level bankers’ committee of Telangana, which held a meeting on Thursday attended by all banks and RBI officials, demanded more cash supply in the state though cash withdrawal has shown a decline there. Currency shortage still persists in the system, a banker told Press Trust of India on condition of anonymity. “With allowance of free-of-charge withdrawals from our PoS (Point of Sale) terminals across India, the bank has given an additional option to customers to withdraw cash. We hope the short supply of currency at ATMs will be normalised soon,” an SBI official said. An official of a private sector bank said cash shortage was present in the system, but the bank had requested the RBI for more supplies. Punjab National Bank said cash supply to its ATMs had reached normalcy.
Source: Business Standard
The first liquefied natural gas (LNG) cargo from Russian energy major Gazprom will land in India in May, following an agreement in January with India’s state-owned gas supplier and developer GAIL India to bring down prices based on a new formula. The latter is also planning to bring at least 80 cargoes of US LNG in the current financial year. “We expect the first set of LNG cargoes from Gazprom to come in the first half of May. We have re-negotiated the prices with them on the basis of a fresh formula,” said an official aware of the development. The contract for a long-term deal mandates that GAIL (India) will purchase about 2.5 million tonnes (mt) of LNG from Gazprom per annum. This comes a few weeks after India’s first LNG cargo from the US landed at the Dhabol regasification terminal in Maharashtra. GAIL has already signed a $32-billion deal with the Dominion Energy Cove Point project in Maryland and the Cheniere Energy's Sabine Pass project in Louisiana for a supply for 20 years. “The plan is to bring 80 more cargoes in the current financial year, to the tune of around 5 mt,” he said. Asia gets about 70 per cent of global LNG shipments every year, with India being the fastest-growing market. GAIL is in talks with new fertiliser plants for the supply of imported LNG and also trying to market it to anchor customers such as refineries, power plants and petrochemical units near its planned and existing pipelines. GAIL India has entered into long-term contracts with global companies to bring LNG from various markets, expecting a rise in demand from the power sector. But, contrary to its expectations, the number of takers for LNG has declined over the years owing to cheaper power from sources like solar energy. As a result, about 25,000 MW of installed gas-based power plants are stranded. Cheniere Energy had entered into a sale and purchase agreement (SPA) with GAIL in December 2011 to sell about 3.5 mt of LNG per year to the latter.“With both these LNGs coming into our fold, we are set to become one of the largest suppliers in the world,” the official said. As part of the strategic energy partnership between President Donald Trump and Prime Minister Narendra Modi last year, both India and the US have agreed to co-operate in oil and gas, power, renewable energy, and coal.
Source: Business Standard
In 6 years, cocoon production in J&K rises by 36%. Once on verge of extinction, Kashmir’s historic silk is making silent comeback in the state with cocoon production recording an increase of 36 percent during last 6 years. Kashmir has been historically famous for the best quality silk production and its trade world over in the farm of raw textile, clothes and carpets. A draft report of Jammu and Kashmir Industries Corporation (JKI) reveals that cocoon production has increased by 35 percent from 810 metric tonnes in 2010-11 to 1,105 MT in 2015-16. With increase in production, the number of people associated with the trade is also gradually increasing. In 2010-11, 75,000 persons were associated silk trade in J&K, which has now increased to 3.5 lakh persons. Further people associated with sericulture farming have gone up from 22,700 to 31,882, claims the report. The report mentions that number of villages dealing with sericulture too have increased to 2838 from 2450. The reason for the growth attributed by the report is increase in price of the raw material. In 2010, average price of a kilogram of cocoon was Rs 300 which have increased to Rs 750 a kg in 2017. “In the year 2015-16 there were about 7 lakh mulberry trees in the state out of which 53 percent (370,000) are in Jammu Division and 47 percent in Kashmir Division. There are 2,800 villages and 33,000 households which generating income of Rs 20.26 crore through the sericulture farming annually. It creates 5 lakh man days of work with 3 lakh on-farm and 50,000 off-farms. “Cocoons are sold by rearers to reelers in the district auction centres, the reeling which was earlier carried out in two filatures - Government Silk Filatures, Rambagh, Srinagar and Government Silk Factory, Jammu. As both having shutdown, at present reeling is completely done by private businesses. Out of the total production only 30 percent of the cocoon are purchased by local private reelers while the rest is supplied outside the state, the report mentions. However, the raw silk is not to be produced according to the potential of cocoon production in the state as less than 30 percent of cocoon crop is consumed within the state. The number of mulberry trees and rearers as well as quantum of seed production and distribution had started declining which stood in the way of progress of silk industry and ultimately led to dismal state of production of 18 tons of raw silk in 1990-91, in sharp contrast to the production of 113 tons of raw silk during pre-independence period. It adds that understanding the importance of silk industry in the state, tremendous efforts have been made by the Sericulture Department with the collaboration of Central Silk Board, from time to time for the upliftment of the industry. Silkworm rearers are motivated towards sericulture by providing them many facilities. It is because of this, that cocoon production once again showed a positive trend, says the report.
Source: Greater Kashmir
London : The issue of retrospective taxation in India, and labour mobility in the UK were among the issues raised by Indian and British chief executives during a round table discussion with the two Prime Ministers during the bilateral that took place earlier this week. These issues, alongside recommendations on ways in which the countries could jointly enhance data protection, and collaborate on technology and innovation were discussed at the UK-India CEOs forum, attended by Narendra Modi and Theresa May, as part of a programme aimed at helping the countries resolve outstanding barriers to trade and investment, as well as look at opportunities and broader ways in which the two economies could take a leadership role in wider international challenges, through recommendations from top business leaders in the two countries. The forum, which involved around 30 CEOs from India and the UK, took place on Wednesday, on the bilateral leg of Modi’s visit to London for the Commonwealth Heads of Government Meeting. “This was the fourth CEO forum and was the one with the best dynamics and most positivity,” said Kevin McCole, Chief Operation Officer at the UK India Business Council, which convenes the forum. Following discussions between the CEOs, the results of the discussions were presented to the two Prime Ministers, and a letter summarising the discussions and recommendations will also be sent to both leaders. The CEOs were headed by Sir Gerry Grimstone, Chairman of Standard Life Aberdeen, and Ajay Piramal, Chairman of Piramal Enterprises. Other participating companies included Vodafone, Diageo, BAE Systems, GSK, Reckitt Benckiser, JCB, BP, Bharti, HAL and Bharat Forge. “Businesses felt that the retrospective tax issue cast a cloud over investor confidence and there were repeated requests to look at the issue and that in both cases in existence the arbitration processes should be allowed to proceed,” McCole said of one of the issues raised by the UK side.
Tech sector workers
Indian business leaders also raised the issue of mobility for those in professional services in the UK, including around costs and the need of technology sector workers to pay National Insurance contributions, despite being in the country for short periods. “These were the nitty gritty issues that impact the cost of business and can really make a difference,” he said. “Visas for Indians has been a recurring theme of the forum so it was good to learn that Indian get [tier 2] work visas than the rest of the world, which was positively received, though Indian businesses would, of course, like to see more movement on that.” He said while concerns around student visas remained, there was optimism about a rise in the number of Indian students coming to the UK in 2017, and a pilot programme that enabled international students at some institutions to stay for longer periods after completing their degree. “These are things the CEOs have been pushing.”
Joint principles
“Both sides took the points on board and welcomed the recommendations.” CEOs also pointed to the potential for joint principles on data privacy and data management standards and storage. “If the two countries could collaborate on world leading principles this is something the rest of the world could follow,” he said. There were also discussions around the strengthening of IP protection enforcement in India. “IP protection has to be strong and the enforcement has to catch up with the laws, which are very strong.” Other issues discussed included opportunities for tech collaboration, including the creation of a virtual incubator for UK-Indian start-ups and links up between universities, advanced manufacturing, autonomous and electric vehicles, and the life sciences. “The meeting was particularly positive partly because some of the previous recommendations have been adopted by governments,” he said pointing to the UK-India tech partnership that was announced during the trip, and efforts to build connections between the start-up ecosystems in the two countries. The next forum is set to take place in six months-time.
Trade review
With Britain signalling renewed interest in a stronger bilateral trade relationship with India following Brexit, a joint trade review was initiated by the two governments to examine post-Brexit opportunities, while Modi said during his current visit that he stood ready to negotiate a free trade agreement with Britain, once it exits the EU.
Source: Business Line
Bloomberg: China accused the U.S. of throwing its weight around in the trade arena, saying it advocates principles of fairness but isn’t living up to them. In a further escalation of rhetoric over trade , foreign ministry spokeswoman Hua Chunying responded Friday to reports the U.S. Treasury Department is considering using an emergency law to curb Chinese investments in sensitive technologies. "The U.S. is thinking and acting like a bully -- only it can have high tech and others cannot. With regard to the high tech restrictions, they are citing the reason of national security, but their motivation is protectionism. Is the U.S. really that fragile?" Hua said at the ministry’s daily briefing. The U.S. government is reviewing the possible use of a law known as the International Emergency Economic Powers Act, said Heath Tarbert, an assistant secretary in the agency’s international affairs office. Under the 1977 law, President Donald Trump could declare a national emergency in response to an “unusual and extraordinary threat,” allowing him to block transactions and seize assets. Hua said the U.S. was being inconsistent. On the one hand, the Trump administration is asking China to open its markets while at the same time it creates obstacles for China. She said the U.S. actions go against the principles it espouses of equality, fairness and reciprocity. Trump is pushing his administration to crack down on what he considers unfair trade practices by China. He has threatened tariffs on as much as $150 billion in Chinese imports in response to intellectual property theft and forced technology transfer. Beijing has retaliated by proposing tariffs on $50 billion of American goods, and pledging further action if necessary.
Source: Financial Express
Washington : The US, India, and Japan intend to work together on high-standard projects in Indo-Pacific "that make economic sense", a top diplomat of the Trump Administration has said. This approach was opposed to the "predatory" economic behaviour of China thats creating burden on countries in the region, Principal Deputy Assistant Secretary for South and Central Asian Affairs Alice Wells said. "We intend to work together and with partner nations in support of high-standard projects that make economic sense, that genuinely benefit the recipient countries, and that can attract private capital so as to lift nations up rather than weigh them down in unsustainable debt," she told PTI. Wells, who has been heading the South and Central Asia Bureau of the State Department since June 26, 2017 in the absence of a full-fledged Assistant Secretary of State, recently returned from New Delhi where she participated in a trilateral dialogue involving the US, India, and Japan. Initiated by Japan, and supported by the US and India, the three countries are working on projects that can provide an alternative to what the former Secretary of State, Rex Tillerson described as the "predatory" economics of China, Wells said. "As then-Secretary Tillerson noted, countries should not have to take on unsustainable debt in order to build the sorts of crucial infrastructure they need to develop their economies," she said, while refraining from naming the projects that the three countries are working together on for the region. The top US official said that the three countries shared the commitment to the principles of sustainable growth, transparency, the rule of law, and a legal and regulatory environment. "The Indo-Pacific strategy recognises that there are both substantial challenges and opportunities in the region and that our partners and allies in the region share our vital interest in upholding the rules-based order," she said. The recent US-India-Japan Trilateral Dialogue was a good example of this approach, Wells said. "We addressed efforts to enhance cooperation on regional connectivity and infrastructure, and discussed maritime issues as well as serious security threats such as the DPRK and non-proliferation," Wells said in response to a question. The US and India are working bilaterally, and in cooperation with other like-minded partners like Japan and Australia, to advance their shared vision for the Indo-Pacific, she said. "India is one of our lead security partners in the Indo-Pacific region and a Major Defense Partner?a status unique to India," Wells said. "We will continue to work toward stronger strategic ties and a more integrated defence trade relationship that will enhance Indias leadership role in the Indo-Pacific region," she said. Wells said the US bilateral defence cooperation with India had grown "significantly" in recent years. "The defence sales to India have grown from virtually zero to over USD 15 billion in the last decade," she said, adding that the Trump Administration was committed to working with India to offer the best platforms and technologies available.
Source: Indian Today
WASHINGTON: The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said. The implementation of the Goods and Services Tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director, told PTI. The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse. "There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank. "India's reforms have been bearing fruits and we see that in growth performance. (India's) growth last year was 6.7 per cent. We're now projecting 7.4 this fiscal year and 7.8 the following (year). That's a very healthy acceleration and it really means for a country that is huge, adds up to an awful lot of economic activity. "India's goal is to have sustained growth and to have a growth that boosts the living standards very broadly across the population. The reforms that have been carried out so far have had benefits and make a very good case for carrying forward with further reforms," Lipton said. A country of India's size has to be very careful to keep public finances under control because any interruption of economic activity that comes from fiscal difficulties would be a setback, he said. Strengthening the foundation of fiscal finances with the GST is one reform that stands out, Lipton said. Asked if these reforms have been inclusive enough, Lipton said the eco-system being built around digital ID technology offers a big help in this regard. The problem of inclusion in India is particularly a difficult one given the size of the country and the remoteness of much of the population as well as the complexity of some very overburdened urban areas, he said. "There's been progress, but I think that this is a challenge that has not been not solved yet and may not be solved for a while. But what makes sense is to carry on. "I hope that in India's case, new technologies, some of which are already being applied can help overcome remoteness and can promote inclusivity, whether it's retina ID numbers system and the architecture of finance and commerce that's going to be built around that or some of the new fintech innovations that allow people to do commerce or banking, whether it's savings and earning on their savings or borrowing may be useful for the creation and building businesses through new technologies," Lipto. The Indian government is effectively looking at how technologies can lead to better efficiency and less waste and corruption in government interactions with the people, whether it's in spending and benefits or the collection of taxes, the senior IMF official said. "So, I think in a big country, technology can be a way to leapfrog the more old-fashioned ways in building connectivity that leads to inclusion in the country," he said. Asked about the Aadhaar Card technology, Lipton said it is relatively new and seems to have many advantages. "It surely has huge promises and could help overcome remoteness and promote inclusion," he said. There certainly are possible drawbacks, he noted. "From the beginning it's been clear that issues of privacy and data security are going to arise when you use a technology like this. And it'll be the societies' job to figure out the do's and don'ts of that," he said. "I hope it (India's progress) will show in poverty reduction statistics and eventually in a measurement of metrics of inclusion."I've said there's more to be done. There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs (non- performing assets)," he said. The important job is not just to recapitalise, but to change the governance and change the competitiveness so that banks serve as a positive force, allocating credit well and being a driving force in the economy, he said. Asked about IMF Managing Director Christine Lagarde's remarks that she does not expect any major economic reforms in an election year, Lipton said: "It's always a difficult to make policy during election years."We certainly hope that there can continue to be a progress, but it's really the judgement of the politicians, the government about what can be done when"."If policies are managed well and reforms are supportive of inclusive growth, India's economy could become a powerhouse economy. It is already, I think the 10th largest, but with the population and the growth rate there's more potential. "The challenges of getting from here to there are very substantial. India needs a process of growth and development. And development means both economic and social development and more inclusion. We do think the gender gap in involving women, in the economy in a way that their full potential can contribute to India's economic growth is very important objective," Lipton added.
Source: Economic Times
Cotton trading turned a bit puny all week, as the May futures contract moved closer to expiry and the July contract prepared to become the spot month. Open interest in the May contract has quietly dissipated. Thus, any expected fireworks on the May contract have been all but abated, and the expiry will be silent. Delivery notices can be issued at the conclusion of trading on April 23. However, the July contract remains supported by the bullish on-call sales report, as the on call-sales to on call-purchases ratio is 9.4 to 1. Yet, in and of itself, that is not powerful enough to move prices higher. Some additional supply demand factor will need to be uncovered if the triple top is to be breached. While I do not feel old crop can climb to 90 cents, it is possible that new crop could challenge that lofty perch. Exports continue to provide favorable support to the market. Another way to phrase that is world demand for cotton continues to increase. (The most recent weekly export sales and shipments report can be viewed online.) Demand for cotton continues to increase despite the two largest sports leisurewear manufacturers – Adidas and Nike – continue to preach polyester despite the sustainability problems of using a gasoline derivative fiber. Universities and schools continue to pour the gasoline derivative fiber over their student athletes in a simple attempt to chase a dollar bill. This continues despite the increasing level of scientific research that points to personal health problems, as well as the documented and rapidly-increasing pollution being created in lakes, fields, streams, rivers, oceans, food animals and humans. We began this discussion two years ago and ruffled feathers, as the polyester leisurewear money was just too easy to forego by so many. We have been silent on this subject for some time. But now, the research intensity is global, and acid-based polyester pollution has even caused some governments to require that polyester garments carry a health warning label. The triple top formation sitting on the top of the July contract will most likely hinder any price advance above 86 cents. Look for July to spend the remainder of its life trading between 80 and 86 cents. First notice day for July contract is June 25, leaving 44 more trading sessions before the July delivery phase begins. Therefore, the potential is high for the remaining trading days of the 2017 cotton crop to pass quietly. However, there remains an outside possibility that the 90 cent level can be breached. The new crop (2018 production) December contract held above 78 cents, moved higher and then established a new life of contract high at 79.34 cents. As we have repeated numerous times, Mother Nature and her willingness to drop water on the Southwest plains (Texas, Oklahoma and Kansas) will dictate the direction of price movement, as well as the strength of any such movement. The threat of weekend rains in West Texas kept December under minimal pressure all week, but the expected rain event appears weak. Additionally, Texas District 1-S, a major production region, is rapidly becoming a region of exceptional drought. Essentially the major production areas in the three states are either suffering from exceptional or extreme drought, meaning more than just a good one inch rain will be needed. Without several timely rains, the December contract will breach the 80 cent level. While the moisture situation facing the Southwest is always a critical issue for price direction, it is even more so this year. I stand to be corrected, but the Southwest will account for a greater share of U.S. plantings in 2018 than in any prior year. Too, nearly all of the increased U.S. plantings will be in the Southwest. Improved moisture events will pressure prices lower. Additionally, world textile mills are demanding more high quality cotton. And, if the drought even somewhat plays out in Texas, then the potential for micronaire problems will be enhanced, and the availability of high quality will be even more limited – thus, pushing New York futures higher. Too, world ending stocks for 2018-19 are expected to decline. This will cause ending stocks to ease lower for the fourth consecutive year. Look for the market to keep 2018 crop prices in the mid-70s to mid-80s. Remember, however, as we have said time and time again – if you like the price enough to plant, then like the price enough to sell some. We have suggested pricing as much as 35% of your expected production at 78 cents or better. So, if you were wrong, then maybe you can sell the remainder above 85 cents.
Source: Cotton Grower
Uganda is yet to take full advantage of the Africa Growth and Opportunity Act (AGOA) benefits, US ambassador to the nation Deborah Malac recently said. Blaming absence of an AGOA strategy as a key bottleneck, Malac said Uganda is yet to overcome that even under AGOA’s second phase renewed three years ago. Talks are under way to better the situation, she said. Some experts, however, feel there is a need to close the trade imbalance between both the countries despite AGOA, according to a report in an Ugandan English-language daily. AGOA allows over 6,000 products to be exported to the United States. Uganda is one of 38 African countries eligible for tariff-free and quota-free access to the US market. A 2015 study by Kampala-based Economic Policy Research Centre (EPRC) blamed the lack of competitiveness and an unsupportive domestic environment for Uganda’s failure to take advantage of AGOA. Uganda’s production is characterised by use of basic technologies, little control over production conditions, high costs of electricity, high cost of finance and infrastructural deficiencies, the study noted. Even after the government set up the Export-Led Growth Strategy Unit (ELGSU) to expedite export-related issues, a number of challenges continue to haunt the initiative, the study added.
Source: Fibre2Fashion
MULTAN : Agriculture spokesman said on Friday that the cotton crop witnessed surge in per acre yield this year, with production reaching 20.48 maunds per acre compared to 20 maunds recorded in 2016-17, showing a 2.4pc increase this year (2017-18). According to Crop Reporting Service reports, cotton was sown on an area measuring 5.073m acres in 2017-18 which was 13.10 per cent above the 2016-17 figure of 4.486m acres in Punjab. Punjab produced 8,078,000 or over 8m bales in 2017-18 compared to 6,978,000 or over 6.9m bales in 2016-17, showing 15.70pc increase.
Source: The Nation
Better Buying and the Ethical Trading Initiative (ETI), a leading alliance of companies, trade unions, and NGOs that promotes respect for workers’ rights, have joined hands to promote responsible buying practices within garment industry supply chains. Better Buying is a unique system for suppliers to communicate with their buyers about purchasing practices. Over an 18-month period, the partnership will invite Bangladeshi suppliers to anonymously evaluate their buyers using the Better Buying online rating platform. The Better Buying platform gives buyers anonymised ratings from suppliers on seven key aspects of purchasing practices; planning and forecasting, design and development, cost and cost negotiation, sourcing and order placement, payment and terms, management of the purchasing process, and CSR harmonisation. According to ETI’s apparel and textiles lead, Martin Buttle, joint ETI and International Labour Organisation (ILO) research shows that purchasing practices can negatively impact wages and working conditions in global supply chains. ETI believes Better Buying scores and analysis will therefore serve as an independent method of determining strengths and weaknesses within brands’ procurement cycles. Martin Buttle said, “We are seeing increasing debate about the impact of buying practices on the ability of suppliers to maintain good labour standards. International retailers and brands can therefore only gain from this initiative, in terms of underpinning sustainable business for all, building their reputation and improving conditions for workers.” Clothing company, Bonmarché started engaging with Better Buying in the fourth quarter of 2017 by providing Better Buying with a list of strategic suppliers together with a letter inviting its suppliers to evaluate the company’s performance. The results from all suppliers that rated were then aggregated. The anonymised findings were analysed by the Better Buying team and provided to Bonmarché earlier this month. Better Buying and ETI expect the information and analysis that will result from the supplier ratings to help companies understand which purchasing practices are working well and which may benefit from focused efforts to improve. Marsha Dickson and Doug Cahn, Better Buying co-founders said, “By using Better Buying, brands will be able to identify how their buyers, product developers, and others responsible for bringing product to market can improve their day-to-day business activities, thus helping their suppliers uphold better labour standards.”
Source: Fibre2Fashion
Agency (ITA), have announced that Italian machinery firms are set to participate in FESPA 2018, which will be held from May 15 to 18, 2018, in Berlin, Germany. The expo is the largest international wide format event, encompassing screen, digital, and textile print. The Italian companies exhibiting in the ACIMIT / ITA area are Arioli Group, Beta Machinery, Carù, Mcs, Monti-Mac, and Unitech. ACIMIT president Alessandro Zucchi said, “The event marks the very first time ACIMIT promotes a collective effort at the world’s foremost print exhibition. There’s no doubt that today’s digital transformation is one of the major development trends in production processes for the textile industry. Although digital print has not as yet totally replaced traditional print processes, everyone is expecting a strong growth trend for this production technology.” Flexibility in production processes, reduction of time to market, great creativity in terms of possible patterns and colours, and a low environmental and economic impact are the primary attributes targeted by textile print manufacturers that have invested in digital technology. Zucchi said, “Italy, particularly the industrial district of Como, has played an essential role in innovative digital transformations. Many of the world’s major print manufacturers are Italian, and digital textile print technology has developed in our country. Right alongside the most renowned print machinery brand names, we find functional digital print production process machinery, such as pre and post treatment machinery.” At the upcoming FESPA global print expo, visitors will be able to assess Italian technology on display, once again a major player in textile production processes.
Source: Fibre2Fashion