The Southern India Mills‘ Association (SIMA) is hopeful of the Union Government reducing the hank yarn obligation for textile mills soon as demand for the yarn in hank form has reduced after implementation of the Goods and Services Tax. The Confederation of Indian Textile Industry (CITI) and SIMA submitted a memorandum to the Union Textile Minister Smriti Zubin Irani last month in this regard. The associations pointed out that under GST, hank and cone yarn attract uniform 5 % duty. Earlier, hank yarn attracted 0 % duty. Further, handlooms can take input credit of the duty paid on yarn. So, there is no incentive to use hank yarn. The Government can give the subsidy to the National Handloom Development Corporation directly for the hank yarn purchased and supplied to the weaving units. The number of handlooms in operation in 2002 was 31.37 lakh and in 2017 it is estimated to have reduced to 21.46 lakh. The proportionate obligation is almost 16 %. The obligatory quantity of yarn required is 929.04 million kg in 2002 and 1596.23 million kg in 2017. A study by the National Institute of Public Finance and Policy in 2008 showed that 38 % of hank yarn is diverted to the powerloom sector. So there is no need to continue with 40 % obligation. The associations had appealed to the Ministry to reduce it to 10 %.
Source: The Hindu
The Textiles Ministry has held discussions with state textile ministers on ways to boost the growth of handloom and handicraft sectors. "A meeting of state textiles ministers was held on 26th April here for taking comprehensive view on the schemes of Government of India for handloom and handicraft sectors," the Textiles Ministry said in a statement. Minister of Textiles Smriti Irani presided over the meeting with Minister of State for Textiles Ajay Tamta and Secretary Textiles Anant Kumar Singh. Irani appealed to the state ministers and representatives to play a pivotal role in decision making for the growth of the textiles sector, it said. Underlining the need for all-round development of weavers and artisans, the minister requested officials at the Centre and the states to ensure that the benefits of all schemes reach the beneficiaries. She emphasized on the need for educating weavers and artisans and their families by encouraging them to enrol with NIOS and IGNOU through initiatives taken by the ministry. State ministers of Arunachal Pradesh, Jharkhand, Madhya Pradesh, Telangana, Uttar Pradesh and Uttarakhand were present at the meeting.
Source: Business Standard
SRINAGAR: For taking comprehensive view on the schemes of government of India for handloom and handicraft sectors, a meeting of state textiles ministers was held on Friday in New Delhi. Minister of Textiles and Information & Broadcasting Smriti Zubin Irani presided over the meeting with Minister of State for Textiles Ajay Tamta and Secretary Textiles, Anant Kumar Singh. Secretary textiles highlighted the crucial role of state governments in identification of weavers and artisans and their active participation in implementation of the government of India schemes. A detailed presentation on schemes of government of India for development of handloom and handicraft sectors was made by the concerned development commissioners. Minister of textiles and information & broadcasting reiterated the belief in cooperative federalism and appealed state ministers and representatives to play a pivotal role in decision making for the growth of the textiles sector. Underlining the need for all-round development of weavers and artisans, the minister requested officials at the centre and the states to ensure that the benefits of all government of India schemes, like Ujjwala Yojana, Swachhta Abhiyan, reach the beneficiaries along with textiles ministry initiatives. She said, ―India Handloom Brand launched by the Prime Minister, Narendra Modi, is a bridge between weavers, manufacturers and consumers, ensuring increased earnings for weavers and quality products for consumers. The minister urged everyone present at the meeting to encourage stakeholders to register their products with India Handloom Brand‖. She also requested state ministers to set targets and regularly review activities at handloom and handicraft clusters‖. She emphasised the need for educating weavers and artisans and their families by encouraging them to enroll with NIOS and IGNOU through initiatives taken by the ministry of textiles. State ministers of Arunachal Pradesh, Jharkhand, Madhya Pradesh, Telangana, Uttar Pradesh and Uttarakhand were present at the meeting along with senior officials of the ministry of textiles and development commissioners for handloom and handicrafts.
Source: Kashmir Reader
Hit by recession, textile businessmen in Surat have urged union textile minister to review the situation in the aftermath of demonetization and the roll out of Goods and Services Tax (GST) and intervene to turn around the situation. They claim that the production of fabric has dropped from about four crore metre per day before demonetization to about 2.5 crore metre per day now, the number of working embroidery machines has fallen and the demand for new shops have also dropped. "Exports of garments have dropped drastically. Fabric traders are not getting payment on time. We want the ministry to review our situation as it will be about one year that GST has been rolled out and about one and a half year of demonetization and take corrective action,"said Champalal Bothara, general secretary of Federation of Surat Textile Traders Association (FOSTTA), which has appraised the minister about the situation arising out of demonetization and GST, terming the latest tax reform as a double whammy. "Just as we were coming out of the effects of demonetization, we were exposed to premature roll out of GST. Traders are facing shortage of working capital. Institutional loans are not available and private lending has also stopped after GST," said Bothara. FOSTTA claimed that sales of local textile traders have dropped by about 30-40% and the payment have been delayed. Falling earnings have resulted in traders shifting to low rent shops and demand for new shops has dropped. Those who had availed loans are finding difficult to honour their EMIs. In one of the notes, FOSTTA said that post demonetization, the number of embroidery machines has dropped by 1.25 lakh, 89,000 odd power looms have been sold at the price of scrap, exports are on a continuous decline and women working in embroidery are becoming jobless. "We have brought the business scenario to the notice of the minister. We are clueless as to what the ministry wants to do about the sector. If prompt corrective actions are not taken, the situation can deteriorate," said Bothara.
Source: Daily News & Analysis
Craft revivalist and textile conservationist Madhu Jain is trying to bring the focus back on lost fabrics. It was a journey that began more than 30 years ago. Despite leading a fairly low-key existence away from the Page 3s and cut-throat competition of the fashion world, Madhu Jain had been quietly working and earning for herself an enviable reputation as a craft revivalist and textile conservationist. And last year, coinciding with her landmark third decade in the fashion business, she unveiled a brand new fabric created by her — bamboo silk ikat. It‘s the first of its kind in the world. The birth of a new textile is always something special, so, I am glad that something that took me 15 long years to create is being cherished and will be part of my legacy,‖ says the 57-year-old who has worked relentlessly with artisans in Andhra Pradesh, Odisha and Tamil Nadu besides collaborating with BRAC in Bangladesh and has been instrumental in bringing the focus back on weaves such as Dhaka muslin that the country had lost after the Partition. ―This needed to be done — we couldn‘t have let these fabrics die. They needed to be resurrected, given a fresh lease of life and preserved for posterity,‖ she says, sitting in her tasteful home in Noida as a craftsperson who has come a visiting from Ahmedabad nods in agreement.
The beginning
With no formal background in fashion design, Jain knew she had to put in effort that was several notches higher. And there were moments, she confesses, when she felt dejected and ―really apprehensive about moving on‖ in this field. ―But my friends who had seen me design and wear my own creations to college were determined that I will not give up,‖ she smiles. And so her journey began. Honed by her mother‘s exquisite collection of saris and father‘s taste for all things fine, her aesthetic sensibilities zeroed in on handwoven textiles. ―I started work with ikat and was the first to show it on the ramp in 1989. It was a big hit,‖ she informs. Needless to say, the creators of this fabric, who were there at the event, were thrilled with the response. ―This was particularly great because many among them were almost giving it all up to take to some other profession,‖ says Jain who has since worked hard to revive fabrics such as nakshikantha, kalamkari, upadas and Dhaka muslin (in India), among others by giving them a contemporary touch.
A fabric is created
The bamboo story began more than 15 years ago when she, together with her partner, actor-model Milind Soman, who joined hands to create a new label, Projekt M, was asked to create bamboo textiles for the VIIth World Bamboo Congress to be hosted in Delhi in 2004. ―As we put our heads together, a new set of creations emerged with the use of bamboo fibre woven with chanderi, khadi and wool and we presented them before international delegates,‖ she says. However, she says that convincing the craftspeople and weavers was no mean task. It was only after she placed an order of more than a thousand metres that they started creating exactly what she wanted. Six years later, among the high-points of the Delhi Commonwealth Games in 2010 was the 115-feet high installation, Tree of Life, which Jain created with bamboo fibre and raw silk together with kalamkari craft. After she launched the bamboo silk with ikat last year, there‘s been no looking back. As we are the second largest producer of bamboo in the world, we need to make full use of it as it will help provide immense livelihood options for its growers. Being biodegradable, it has so many advantages. Also, it does not leave any carbon footprint, is soft on skin, easy on the pocket and is sure to be the fabric of the future,‖ says the designer who is constantly working to create new patterns and designs by taking inspiration from similar genres originating in Thailand, Uzbekistan and Indonesia.
Handspinning hope
Through her work, and seeing a growing interest in handspun fabrics among the city folk, she hopes that the younger generation of weavers who are mulling over moving to other more lucrative streams to earn their livelihood will continue to do the work that‘s been part of their families for generations. ―The government needs to chip in its bit too — and just as the way countries like Bhutan, Bangladesh, Sri Lanka and Pakistan take pride in their own heritage, ensure that our countrymen do too,‖ she adds.
Source: The Tribune
As per the state government's primary survey, the pink bollworm and other pests last year affected cotton crop on 34 lakh hectares of land as against the total cultivation on 43 lakh hectares. Under fire from the opposition over delay in financial aid to farmers for crops damaged by pests, the Maharashtra government is set to release Rs 1,100 crore for cultivators in the next few days, an official said. Bijay Kumar, the principal secretary, agriculture, said today that a sum of Rs 1,100 crore will be released in the coming week to provide relief to the affected farmers. The details will be announced soon as April 30 and May 1 are government holidays and banks would not be functioning on those days, he said. "The state government has prepared a detailed list of the beneficiary farmers and their bank accounts. The money will be disbursed into their accounts only," a senior official from the state relief and rehabilitation department said. As per the state government's primary survey, the pink bollworm and other pests last year affected cotton crop on 34 lakh hectares of land as against the total cultivation on 43 lakh hectares. Many of the areas in eastern parts of Vidarbha were affected by other pests which damaged the rice and other kharif crops. This prompted the government to increase its coverage of compensation. Subsequently, on March 17, the state government made changes into its compensation policy and submitted a proposal of Rs 3,373 crore to the Centre, and is awaiting response. "The state government, however, decided to go ahead and disburse its share in the financial assistance to farmers, instead of waiting for the Centre to release its contribution. The state is going to disburse Rs 1,100 crore to farmers," the relief and rehabilitation department official said.The funds will be given to district collectors who will further transfer the amount into the accounts of farmers, he said. The beneficiary farmers' land records, cultivation crop entries on revenue document and bank accounts will be verified before the transfer of funds, the official added.
Source: Moneycontrol
Erstwhile ―Look East Policy promised dream of free exchange of locally available goods and movement of people along the international border for both Manipur (India) and Myanmar. However, dreams of formal trade in non agriculture goods and infrastructural developments were left unfulfilled. The recent Act East Policy‖ is expected to yield in spectacular change in the minds of people. This article exclusively deals with impact of it on local traders. Look East policy during 1990s allowed only a few items under exchangeable items which are mainly agro-product only. Items out of this agro product also, are not permitted to trade under formal trade. But people living in both sides have diverse choices which were not collected and included among the permitted list. However, people living in both sides along the international border have similar culture, tradition and food items. They are found to be interdependent on the various items available on both sides. Only political boundary makes it difficult to their movement and commodities legally. In order to acquire their needs, they will import the out listed items informally. This is the main drawback of those government agencies to decide on list without proper understanding and consultancy with the local people. One of the most interesting points in that agreement is that both sides should not export and import those commodities originated from a third country apart from India and Myanmar. For India, those commodities are very sensitive to production in Indian side. Myanmar, according to India‘s policy makers is seen a country through where commodities from industrialized east Asian countries like south Korea, Japan, China and Thailand had been found to transit. These goods are mostly cloths and textile, electronic goods, commonly used day to day goods, etc. Such goods are produced in Indian side also and Indian policy makers keep them under sensitive list which are restricted heavily on their import. Such goods are made in those countries after analyzing the per capita income and demand structures of a developing country like India. These goods are dumping goods in their nature of prices and hence, India needs to check the import of such goods. However, people in NER whose Per Capita GDP is low, have strong desire to acquire them because they could not buy relatively costlier Indian made goods. My published paper on ―Dumping Potential and Intensity: A Case Study of Indo-Myanmar Border Trade‖ shows dumping potentials of these goods. Now they have two options ahead of them – either they should not consume the country made goods due to lack of income or they consume the foreign goods by importing them informally. India has produced commodities which ranges from agro based to highly sophisticated engineering goods and capital goods. However, the government policies permit to export those goods only through major ports. Exports of those goods are strictly restricted in such border trade. Some of such goods are highly demanded in Myanmar also. In real those goods should be allowed to their export to Myanmar. But these goods are available in Manipur which is the main gate of Indo- Myanmar Border Trade. Owing to heavy demand from the Burmese people, traders in Manipur feel to export it by hook or crook. Hence, traders from Manipur get them legally in the name of their use and export it informally out of legal rules. The losers in such informal trade are central and state governments since they avoid of revenue which can be collected by levying in the form of import tariff. Gainers are informal traders, transporters and government servicemen who suppose to vigil on this informal trade. Local traders are highly beneficial from trade since they need not register to DGFT (Director General of Foreign Trade) for their export and import. With small amount of capital they can export and import paying a little greasing money (penalty) to smoothen trade flows. Such avoidance of official procedures persuades local traders whereas it dissuades official traders. Recently, central government has transformed erstwhile Look East Policy into Act East Policy with eye on better infrastructure along wider scope for formal trade. However, vision of formal trade remains ambiguous since it is considered that official traders who are engaging at national ports may have dissatisfaction with government policy on this policy. A wide range of India-ASEAN bilateral trade takes place at these ports. Shifting of export/import direction through border trade may hamper the volume at these ports since there is advantage of transport cost due to short root. State government will be benefitted from large revenue collection in the form of customs taxes. The big losers will be local traders since they have to register to DGFT for formal trade. Too much official procedures may dissuade them in their export and import. They may not be able to compete with mainland traders who specialise in both capital as well as expertise in trade. There might be condition where these traders dumped their capital into local market to wipe out local traders which may be followed with exclusive monopoly in export/import. Benefits in trade will take place when there is fitting of local traders in the supply chain between producers and final consumers. In order to reap maximum benefit, state government should constitute expert committee comprises scholars, beaurocrats and policy makers who can introspect for time being. The committee should frame policies which can avail and galvanise the local traders in obtaining the maximum benefit from this border trade. One of the policies, they may frame is such that in the supply chain between producer and consumers in the state, only local traders should be allowed. This may keep mainland traders at bay from local demand and supply chain. Government should construct special Economic Zones (SEZs) for the convenience of exporters and importers. At the same time, in order to remove xenophobic atmosphere which arises from the possible influx of non local people, government also should frame permit systems to check possible influx. These policies are not the last but least for border trade and government has to keep vigil for time being.
Source: Sangai Express
Gujarat government will create industrial sheds for apparel industry at 12 locations, said a top government official on Thursday. The government estimated a need for 6.5 million square feet to develop the apparel sector. These will be multi-storey sheds on plug and use model. The government is eyeing this sector has it has potential to generate jobs, especially in smaller cities and towns as well as for women. Gujarat government, alo-ng with Garment Manufacturers Association of India, recently sought Expression of Interest from industry players, willing to set up units to manufacture apparels. People from across the state and even from outside responded, on the basis of which it was estimated that the total space required is about 6.5 million square feet. "Sheds will come up at 12 locations. But most of the demand is from places such as Ankleshwar, Surat, Bhavnagar, Bardoli and Kathwada," said D Thara, vice-chairman and managing director of Gujarat Industrial Development Corporation (GIDC). These sheds will be multi-storey and on plug and use mode so that units have to just bring in their machines and start operations. These will be open for micro, small, medium and even large enterprises. Other places where the sector might grow are Vapi, Naroda, Han-salpur and Surendranagar. "Till now, we had sought the only Expression of Interests. Now we will seek real applications, that will give an idea of actual space need. Once this is done, the actual allotment will start," said Thara. "Apparel sector is non-hazardous. It is very conducive for women entrepreneurs and workforce. Setting up units on the outskirts of cities will be great for women," said Shailesh Patwari, president of GCCI.
EXPERT SPEAK
The apparel sector is non-polluting and needs relatively lower investment. It is conducive for women entrepreneurs, said GCCI president Shailesh Patwari.
Source: Daily News & Analysis
COIMBATORE: The Chief Minister of Puducherry, Mr. V Narayanasamy on Saturday invited industrialists from the western region of Tamil Nadu to invest in the Union territory. He was speaking here at the inaugural of the 'Indian Business Congress' awards function. Speaking on the occasion, he said, Karnataka is top among States in India which attracts 24 per cent foreign investment and Tamil Nadu received mere four per cent of total foreign investments that came into the country last year. However, Puducherry is expecting better contribution from local industrialists, particularly from western region of Tamil Nadu. He noted that the present Congress-led Puducherry government has taken all steps to ensure a peaceful environment for running industries."The Puducherry government has ensured better environment for industries with allocation of required lands. We are taking steps to improve traffic movement, besides ease of doing business through single windows clearance. We invite industrialists from the textile hubs including garment and textiles from the western districts,‖ said Mr. Narayanasamy. The Congress Chief Minister alleged that demonetisation and the GST have led to poor growth in GDP rate in the country and these issues must be overcome immediately. Amar Prasad Reddy, chairman of Entrepreneurs Council of India (ECI), and T N Vallinayakam, president of ECI were among those present on the occasion.
Source: Deccan Chronicle
An employees‘ trust of debt-ridden Alok Industries has dashed off letters to the chairmen of nearly 10 banks asking them to reconsider their decision to reject a resolution plan submitted by a consortium led by Reliance Industries. The trust is of the opinion that the resolution plan will ensure the livelihood of about 18,000 employees, while the lenders will receive much more‖ from the process. Nearly 30 per cent of the total lenders had rejected the resolution plan submitted by a consortium led by Reliance Industries Ltd (RIL). Subsequently, the Resolution Professional (RP) has referred the company for liquidation. The trust had earlier moved an interlocutory petition against the liquidation. On behalf of all employees, we would be extremely grateful if your bank could kindly provide its approval of the resolution plan in writing to the RP to enable him to process the matter further with NCLT,‖ the letter, dated April 27, written by the Alok Employees Benefit and Welfare Trust said. This would ensure that the livelihood of thousands of families is protected and also the lenders receive the settlement amount in excess of liquidation value upfront, the letter, a copy of which was reviewed by BusinessLine, added. The National Company Law Tribunal‘s (NCLT) Ahmedabad Bench will hear both the liquidation and trust‘s petitions on Wednesday (May 2). The letter was addressed to chairmen of Central Bank of India, Dena Bank, IDBI Bank and United Bank of India, among others. When contacted, a trust official confirmed the development, but declined to divulge further details. Silvassa-based textile manufacturer Alok Industries was among the 12 first large non-performing assets identified by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code (IBC) in June 2017. We understand that the resolution plan offered to the lenders a cash settlement of ₹5,050 crore, which is well above the liquidation value of ₹4,200 crore. This payment was to be made upfront and be available for the lenders for immediate deployment in further lending,‖ it said. The letter states that Alok currently employs 18,000 personnel (which at the peak was 30,000), generates revenue of ₹35,000 crore and supports 3,500 vendors. Therefore, if Alok is forced into liquidation, it will have a cascading effect…,‖ the letter said, adding that more than 70 per cent of the lenders, including lead bank SBI, which has the largest exposure, have concluded that resolution is a preferred outcome over liquidation. Earlier, on April 15, RIL said its resolution plan for Alok – jointly with JM Financial Asset Reconstruction Company – was rejected by the Committee of Creditors.
Source: The Hindu Business line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1404.24 |
USD/Ton |
-0.56% |
4/28/2018 |
|
VSF |
2193.14 |
USD/Ton |
0.72% |
4/28/2018 |
|
ASF |
2840.04 |
USD/Ton |
0% |
4/28/2018 |
|
Polyester POY |
1463.41 |
USD/Ton |
0.32% |
4/28/2018 |
|
Nylon FDY |
3439.60 |
USD/Ton |
-1.36% |
4/28/2018 |
|
40D Spandex |
5680.08 |
USD/Ton |
0% |
4/28/2018 |
|
Nylon POY |
3660.50 |
USD/Ton |
-0.85% |
4/28/2018 |
|
Acrylic Top 3D |
5964.08 |
USD/Ton |
0% |
4/28/2018 |
|
Polyester FDY |
1711.91 |
USD/Ton |
0% |
4/28/2018 |
|
Nylon DTY |
3202.93 |
USD/Ton |
-1.46% |
4/28/2018 |
|
Viscose Long Filament |
2966.26 |
USD/Ton |
0% |
4/28/2018 |
|
Polyester DTY |
1735.58 |
USD/Ton |
0% |
4/28/2018 |
|
30S Spun Rayon Yarn |
2982.04 |
USD/Ton |
-0.53% |
4/28/2018 |
|
32S Polyester Yarn |
2193.14 |
USD/Ton |
0% |
4/28/2018 |
|
45S T/C Yarn |
3013.60 |
USD/Ton |
0% |
4/28/2018 |
|
40S Rayon Yarn |
2335.14 |
USD/Ton |
0% |
4/28/2018 |
|
T/R Yarn 65/35 32S |
2556.04 |
USD/Ton |
0% |
4/28/2018 |
|
45S Polyester Yarn |
3139.82 |
USD/Ton |
-0.50% |
4/28/2018 |
|
T/C Yarn 65/35 32S |
2698.04 |
USD/Ton |
0% |
4/28/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
4/28/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
4/28/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
4/28/2018 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
-0.45% |
4/28/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
4/28/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15778 USD dtd. 28/4/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Stakeholders on Friday said the federal budget 2018-19 has not provided any incentives for the exporting sector, especially textiles. Textiles were kept among the five zero-rated sectors, but it should have been done through legislation,‖ Ijaz Khokhar, chief coordinator Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) said while commenting on the budget. We fear that, in case of a shortfall, sales tax will again be collected from the textile sector. Khokhar said they were not government employees so there was no good news for them in this budget. We are exporters and nothing was announced for exports. Only the previously announced Rs180 billion Prime Minister‘s package was mentioned again and again,‖ he said adding there was no direct relief for textile sector and exporters. He continued that the government has been boasting the benefits of China-Pakistan Economic Corridor (CPEC) for economy but textile exporters were not provided any direction. Khokhar said exporters had no idea when they would be given their previous refunds. He said concessions were provided to agriculture and fertiliser sector and an amount of Rs5 billion were announced for the government employees and pensioners. There was not even a hint of an exports strategy,‖ Khokhar said. He termed the measures announced for the general public as an election game. We don‘t see an increase in the exports. How does the government see it differently? he asked. Javed Bilwani, leader of Pakistan Apparel Sector, said there was nothing for the exports in the budget. They have once again handed out a lollipop of sales tax returns, which Ishaq Dar (the former finance minister) kept doing every year,‖ Bilwani said adding the sector was denied a much-needed tax relief, which is unfortunate. He said trade deficit had reached Rs35 billion, the highest in the 70-year history of the country. They should have done something for exports. They did not utter a word for an increase in the exports,‖ Bilwani said. He suggested that one percent export processing tax should either be reduced or abolished. He continued that there were funds of around Rs30 billion lying under Exports Development Fund (EDF), which were being collected at the rate of 0.25 percent. This collection should be suspended until this amount is utilised, Bilwani said. Naseem Usman, textile analyst and chairman Karachi Cotton Brokers Association, said packages for textile sector were hardly implemented. Amnesty was announced recently, but things get changed in the gazette notification, Usman said. He said if they implemented the budget and incentives in true spirit, it would greatly benefit some people. However, like other budgets, this one also seems white on the outside, but black on the inside, he said.
Source: The news
Instead of putting up trade barriers to protect select industries, the more competitive approach would be to learn from Asia’s recent past and invest strategically in key sectors. Wariness of a trade war between the United States and China has rattled investors worldwide. Hopes remain high that threats of imposing and retaliating with punitive tariffs will remain mere threats. But while proponents of free trade continue to insist that there can be no winner in an all-out trade war, they also are well aware that the current playing field is hardly even. The Trump administration‘s insistence on reciprocity in trade is certainly one that enjoys support from free-traders and protectionists alike. The problem, though, lies in placing far too much emphasis on reducing the trade deficit, and not giving enough attention to investing in future U.S. competitiveness. To be sure, the fact that the U.S. trade deficit worldwide rose by 12 percent in 2017 to $566 billion, with the deficit with China alone reaching record levels of over $375 billion, is alarming. But instead of putting up trade barriers to protect select industries, the more competitive approach would be to learn from Asia‘s recent past by investing strategically in key sectors that will strengthen America‘s economic foundation. That is certainly the approach China is taking with its Made in China 2025 plan, which identifies ten key sectors that it wants to bolster by 2025, including biotechnology, robotics, IT and aerospace. The core driver of the strategy is an acknowledgement that China no longer wants to compete in low-skill manufacturing industries. Moving up the value-added chain is especially pressing, as China is already losing to lower-cost countries, including Thailand and Vietnam, in sectors such as textiles and footwear manufacturing. Industrial policies are hardly unique to China or even to Asia. One of the most recent notable government-driven plans is Germany‘s Industry 4.0 plan. The initiative was adopted in 2013 to integrate technology and manufacturing to enhance efficiency and competitiveness, and was much touted by Chancellor Angela Merkel to help ensure that Germany remains a leading economic power. Japan‘s history of close relations between the government and the private sector, and of prioritizing resources to targeted areas, also remains a lesson in how public policy can bolster growth. Currently, the United States remains the undisputed global leader in technology and, more broadly, in the services sector. Indeed, it has a surplus of $262 billion in the service sector, thanks to its competitive edge in twenty-first-century industries such as telecommunications, information technology and financial services. But the question is whether it can remain so without proactive support from Washington, while other countries step up their own interventionist policies to challenge U.S. leadership in technology, innovation and the service sectors. Yet instead of taking measures to protect its lead in the industries of the future, Washington has traditionally been reluctant to take the initiative in pursuing industrial policies. Instead, the focus has been on taking protectionist measures, echoing the steps taken in the 1980s and 1990s against Japan, then seen as an economic hegemon, to salvage the manufacturing sector and reduce the trade deficit in goods, rather than to expand the surplus in services still further. According to Peter Navarro, director of the White House National Trade Council, the administration‘s strategy involves hefty tariffs on a far range of products, including solar panels and steel. The administration‘s attack against China has been even more targeted, as it looks to hit over 1,300 products with 25 percent tariffs. In addition to renegotiating existing trade deals, including the North America Free Trade Agreement and the U.S.-Korea Free Trade Agreement, such moves are expected to lead the way to narrow the trade gap and even eliminate the goods deficit within the next year or two. Clearly, though, the White House is also well aware of the economic threat that a longer-term Chinese economic strategy poses to the United States. From the list of Chinese items that would be hit by the administration‘s tariffs, ranging from telecommunications to IT equipment, it is clear that Washington wants to take a preemptive strike against China threatening to take over the United States as a global leader in key areas of future growth, even if China is not flooding U.S. markets with those products at the moment. But as China threatens to retaliate with its own tariffs against U.S. products should Washington advance its protectionist measures, the threat of trade wars and prospect of higher prices in both countries loom large. Rather than embarking on a race to raise ever-higher tariffs on a longer list of goods, what Washington must focus on is how to counterbalance the strategic growth plans being developed—not only by China, but also by other countries in Asia and beyond. Rather than heeding to the interests of specific industries, U.S. competitiveness could be bolstered by developing a comprehensive plan that tackles longer-term concerns about protecting intellectual property and blocking technology transfers. Making better use of regulations under the Committee on Foreign Investment in the United States (CFIUS) to protect sensitive U.S. industries is a step in the right direction, but such defensive action is hardly enough. The administration has clearly identified some of the challenges that lie ahead for the U.S. economy. It has also demonstrated that it is willing to take risks and take action on the diplomatic and economic fronts that other presidencies may otherwise have shied away from. The United States must take action through comprehensive public policies to preserve its standing as a leader in innovation and technology before it is too late. Shihoko Goto is the senior Northeast Asia associate for the Woodrow Wilson Center’s Asia Program.
Source: The National Interest
Textile stakeholders have been left disappointed with the recent budget unveiling, calling it insufficient and inadequate to address the sector’s woes. The major demands of the All Pakistan Textile Mills Association (APTMA) have remained a wish-list as the expected relief in rising cost of production and pending sales tax issues still remains elusive. Recall that major proposals by the body included addressing energy tariffs in particular. APTMA had called for decreasing the electricity tariffs from Rs11/kWh to Rs7/kWh, citing the Rs3.63/kWh tariff equalization surcharge as unjustified. But this was expected given the commitments provided by the government to the IMF given the limited fiscal space that is now available. Then there is the provision of expensive gas to Punjab at a rate of almost Rs1300/mmBTU that has resulted in a further increase in already much higher cost of production as compared to regional competitors. If textile exports are to be increased, the cost of doing business has to be rationalized to give textile exporters a level-playing field to compete for market share. On the other hand, the liquidity issue has also become a pressing one especially for small to medium sized manufacturers who are in many cases unable to process orders due to shortage of cash-flow. Industry sources claim more than Rs200 billion is stuck in pending sales tax refunds with companies still waiting for over two years to have these cleared. The government has claimed to have these processed in “phased manner over the next twelve months starting 1st July 2018”, according to the budget document. But textile stakeholders remain skeptical. The government has however announced moving towards zero rating of import materials for the export sector in order to try to reduce creation of new refund claims. Zero-rating of the textile sector has extended while enhancing cotton production and quality has also been focused upon. As far as allocations go though, the government has skipped out on the tech up-gradation fund for the textile sector. Miftah Ismail mentioned that the government is working on a new package to improve exports but it remains to be if the government even gets a mandate implement it. Besides the Rs180 billion PM textile incentive package would have been good enough too had it been implemented in a proper manner.
Source: Business Recorder
The textile industry was one of the booming sub-sectors of the Nigerian economy in the post independence years. Driven by locally grown cotton and with huge demand for clothing by a fast growing population, it provided direct and indirect employment to hundreds of thousands of Nigerians for several decades. In the golden era of Nigeria’s textile industry between 1985 and 1991, the sector recorded an annual growth of 67 per cent and as at 1991, it employed about 25 per cent workers in the country’s manufacturing sector. Some of the textile companies that enjoyed the boom then include Kaduna Textile Ltd (KTL), Arewa Textile Plc, United Nigerian Textile Plc, Supertex, Nortex Nigerian Ltd and Finetex Nigeria Ltd. Others were Gaskiya Textiles Mill, Kano Textile Ltd, Aba Textile, Zamfara Textile Ltd, Asaba Textile Ltd, African Textile Mill Plc, Tofa Textile and several others. In that period the functional textile companies numbered around 180, employing about a million people, it accounted for over 60 per cent of the textile industry capacity in West Africa, empowering millions of households across all the geopolitical zones of Nigeria. The story, however, changed in the early nineties when the sector took a massive dive into an industrial abyss. At a point during the crisis in the sector, from about 180 thriving textile companies, the number came down to almost zero, with textile giants such as United Nigerian Textile Company bowing to the pressure imposed by a hostile operating environment. According to the President of the National Union of Textile, Garments and Tailoring Workers of Nigeria (NUTGTWN), Comrade Oladele Hunsu, the textile industry in the 1980s was the second largest employer of labour after the Federal Government. “However, over the years, there was a steady decline in operations of the textiles firms and then an eventual collapse of the industry, which has led to loss of jobs, dearth of skilled manpower, low capacity utilization and drop in government revenue due to lack of excise duties, “he said. The dip in the fortunes of the industry, he said, was due to the influx of cheap textiles and fabrics into the country from all over the world and mainly from China and India. He added that the downturn in the sector was a result of the government’s lack of political will to ban imported textiles and poor monitoring of the country’s porous borders. “This will continue to impact negatively on the textile industry if not checked,” he said. Sunday Telegraph learnt that while the country imports over N300 billion worth of textiles and garments yearly, the government loses over N75 billion per year in unpaid duties due to massive smuggling. Comrade Hanusu said, unless the combination of huge infrastructural deficits and cheap imports from Asia is tackled the failure recorded by past attempts to revive the sector through fiscal policy and monetary interventions will befall the move by the Buhari administration to get the mills rolling again in the country’s cotton, textile and garment companies. But the expectations are very high amid fears that this would turn out to be another talk just to excite industry stakeholders and a horde of retrenched workers as well as prospective investor. Stakeholders expect this government to build on the N100 billion intervention fund thrown at the problem in 2009 when the Umaru Yar’Adua administration formally inaugurated the Cotton, Textile and Garment (CTG) Revival Fund currently managed by the Bank of Industry (BoI), through loans to textile companies. Meanwhile, BoI in 2013 said about N60 billion was disbursed to various beneficiaries under the intervention scheme and that resulted in the re-opening of United Nigeria Textiles Limited in Kaduna. The bank added that its intervention rescued over 8,070 lost jobs, even as the capacity utilisation of most beneficiaries also rose sharply from below 10 per cent to about 60 per cent.” According to Comrade Haunsu, in reality, this is a far cry from the 500,000 job placements the industry when mills were rolling before the dip in fortunes, especially with the lifting of the official cover on importation of textiles. The situation has, of course, never been the same again. The China Customs said the export value of that country’s textile and garment alone amounted to $206.5 billion in 2014. Comrade Hanusu said that a large portion of that money China is making is from Nigeria, which ironically before now was a major world cotton producer. He said that if the country can do the right things to attract the necessary investments into cotton farming and textile manufacturing, she could become a major producer and exporter of textiles in the world. “This is because one of the reasons the Nigerian textile industry collapsed was the cheap exports from China. Nigeria used to be the major supplier of (Ankara) good quality wax-resist textile. However, in the early 2000s, cheap imitations of these products were produced and exported from China to West Africa. Some would be slammed with Made-in-Nigeria labels and then sold in Nigeria,” he said. The Chinese rose by attacking the heart of the industry: the wax-print and African-print segment. According to experts at Business Journal, the Chinese in doing their business in Nigeria preferred to produce the good in their country and export to Nigeria. Many calls were made to China to build textile industries in Nigeria but the never; not even the ban of 2002 by the ex-President Olusegun Obasanjo could deter them. The Emir of Kano, Muhammadu Sanusi II, was among the many Nigerians that have called on China to build industries in Nigeria. “Our over-reliance on foreign products is hurting our economy and the only way to stop this trend is to tackle the problems in the manufacturing sector,” said the Emir, when he met with China’s Ambassador to Nigeria at his palace recently. However, the Director-General, Lagos Chamber of Commerce and industry, Mr. Muda Yusuf, has said that the problem with the Nigerian textile industry is high cost of production, smuggling, technology, and logistics. According to him, the global textile industry has moved on from where it used to be years ago “and we can no longer compete with bigger brands. We cannot continue to use obsolete technology and expect to compete effectively with the rest of the world. It has now become survival of the fittest. There is also no enforcement of fiscal policy to ensure protection of the industry. The whole country is flooded with substandard and even contraband textile materials. The exchange rate and even the interest rate are not helping matters,” he said. Meanwhile, there is a clamour that the industry wants government protection, not only through monetary donation, but also by making strong the currency in the face of rising Chinese competition. It is also being advised that in the face of scarcity of foreign exchange, Nigeria can no longer continue to engage in frivolous importation of foreign made goods including textiles.
Source: New Telegraph
Islamabad: Roubina Ather, Member, National Tariff, has said that Pakistan should not be over-concerned on the on-going global trade war mainly between China and the US, Pakistan is not so much integrated in the global value chain and international market. Ms Roubina was speaking at a special seminar on “Where does Pakistan stand in global trade war?’ organised here by Sustainable Development Policy Institute (SDPI). Ms Roubina said that protectionism is the real threat in any trade war which in turn shrinks the global trade volume. She said that if the trade war goes further, our textile sector and the apparel market may suffer in the long term. She asked Foreign Office to play its role to handle the existing geo-political situation and economic challenges. Dr Vaqar Ahmed, Joint Executive Director, SDPI, said that the on-going trade war between China and the US may cause a rise in the cost of production and raw material in developing countries which in turn could bring about inflation and threaten the global economic recovery. He said that as trade declines and output falls, it may result in lower wages and unemployment. For a developing country's diaspora working in US, this could have negative implications. Unfortunately, the trade wars are taking place at a time when global investors are also nervous regarding the post-Brexit UK and EU trade negotiations. In the short run, it is expected that trade between UK and its trading partners could decline, he added. Dr Vaqar said that the other advanced economies can also step up protectionism and start making foreign imports more expensive through tariffs, para-tariffs and non-tariff barriers. He said this will hurt the decade-long efforts of trying to revive a more liberal trade regime and save multilateralism. He said that Pakistan is an importer of iron, steel and aluminium from China and US, the trade war maybe a good omen if both economic giants end up having an abundant supply glut in turn brining global prices of metals down. He advised the public and private sector stakeholders to evaluate which commodities may face short term shortage due to hike in tariffs on Chinese goods and if some such goods can be supplied to the US by Pakistan.
Source: International News
Country remains the world’s biggest clothing exporter, but oversupply, high labour costs and rising protectionism have eroded its competitiveness. At the bustling Canton Fair in southern China, second-generation textile manufacturer Pan Jing has drastically marked down her prices. The sign at her booth says it all: “Stock very cheap, factory for sale. stock clearance.” It wasn‘t an easy decision for Pan‘s family to sell the 32-year-old cotton mill started by her father in 1986, a time when China was emerging as the global centre for textile and clothing production. For years, they have been making household cotton products – from pot holders and oven mitts to dishcloths and towels – and exporting them to the United States and Europe. More recently they tried to upgrade their product lines at the 40,000 sq m factory in the southern Guangxi region, adding recycled cotton shopping bags and pillows in the shape of emojis in a bid to bring in more customers. But rising labour costs and slow growth in overseas demand left Pan with no choice but to sell the business to a bigger textile manufacturer with a domestic focus, in the hope that new capital can keep it afloat. I don‘t see a future in continuing to sell these low-value goods,‖ said Pan, who has been attending the Guangzhou fair for over a decade. The trade fair, which runs until May 5, is the country‘s oldest and biggest export-oriented event. China‘s textile and apparel makers are going through a painful industrial restructuring. While the country is still the world‘s largest clothing exporter with enormous production capacity, oversupply at home, high labour costs, and rising global protectionism have all eroded its competitiveness. Analysts say Chinese textile and clothing manufacturers are at low risk from the looming trade war between China and the US. Pan‘s company brochures for the trade fair over the years reflect the changes in the industry. Six years ago, the tag line was ―To be proud of Made-in-China‖, while last year‘s was ―Low-carbon and environmentally friendly cyclical development‖. This year they just had a flier made to advertise the stock clearance. China‘s market share by value in the global textile and clothing industry fell from 38.6 per cent in 2015 to 35.8 per cent in 2016, with a downward trend in major apparel importing regions such as the US, European Union and Japan. Since 2014, exports of Chinese textiles and clothing have declined sharply from about US$236 billion in 2014 to US$206 billion in 2016, according to the World Trade Organisation. Chinese customs data showed exports of clothes and accessories fell by 0.4 per cent last year from 2016, while textiles exports saw annual growth of 4.5 per cent last year. Meanwhile, labour costs in China have been rising steadily. The minimum wage in the southern boomtown of Shenzhen is now about US$336 per month – more than double the rate in some Southeast Asian countries. Hit by the industry restructuring, some of the big clothing brands have struggled to make a profit and secure finance. Revenues have been sliding at Fuguiniao, a Hong Kong-listed menswear and shoe manufacturer based in Fujian province, since 2015. The company had a net loss of 10 million yuan (US$1.57 million) in the first half of last year, a bond default this year, and it has racked up debts of at least 3 billion yuan. Although analysts say Chinese textile and clothing makers are at low risk from the looming trade war between China and the US, given that they export so little to America compared to other sectors, US brands are starting to diversify their sourcing. A survey of 34 executives from leading US fashion companies last year found that, for the first time, fewer US brands were looking to China for products, even though the country remains the top sourcing destination for the industry worldwide. US fashion companies are not ‗putting all their eggs in one basket‘, and the most common sourcing model is shifting from China plus many‘ to China plus Vietnam plus many,‘‖ according to the US Fashion Industry Association, which conducted the survey. For many US brands, a third of their products now come from China, a third from Vietnam, and the rest is from other countries, the survey found. But Sheng Lu, assistant professor of fashion and apparel studies at the University of Delaware, said made in China‖ products were not losing their price competitiveness because of the overall supply chain efficiency. It is also important to recognise that China is playing an increasingly important role as a textile supplier for apparel exporting countries in Asia, Sheng said. According to Sheng‘s research, Bangladesh‘s textile imports from China, measured by value, rose from 39 per cent in 2005 to 47 per cent in 2015, and similar trends could be seen in Cambodia, Vietnam, Malaysia and other developing countries in Asia. A meaningful indicator to watch in the future is the value of made in China‖ goods within other Asian countries‘ clothing exports to the world,‖ he said.
Source: South China Morning post
Farmers have commended Government for improving cotton prices through introducing the auction system. Vice President Constantino Chiwenga recently indicated that the crop would soon be marketed through the auction system to ensure competitive prices.Zimbabwe Commercial Farmers Union (ZCFU) president Mr Wonder Chabikwa last week said Government‘s planned move was likely to bring competition that will positively impact on prices. The idea could have been influenced by the need by Government to bring competition in the buying of cotton, he said. We need the highest possible prices to enhance viability and eventually increased production. We are still to get the full details from Government. This idea was once introduced in the mid-90s and we hope this time it will come to fruition. Zimbabwe Farmers Union (ZFU) vice president Mr Berean Mukwende said there was need to ensure that farmers were duly paid for their produce. The auction system will likely see a number of merchants taking part in the purchasing of cotton, leading to the firming of prices, he said. The development will generate interest among farmers and boost production of the commodity. We are happy with the recent announcement by Vice President Chiwenga. This will see prices go up to viable levels. Farmers also called on Government to improve the payment system for cotton farmers during the forthcoming marketing season to reduce incidences of side-marketing. The bulk of the cotton produced this season was grown under the Presidential Input Support Scheme. Last season, farmers in the remote areas, especially in the eastern border-lying areas, ended up selling their cotton to buyers in Mozambique who had ready cash. Agricultural economist Mr Midway Bhunu said there was need to investigate reasons behind side-marketing of the crop last year to come up with lasting solutions. The common problem with contract farming is moral hazard between the agent and the principal, he said. At times contractors do not own up their contractual obligations, while farmers, on the other hand, do not understand the implications of a contract. Both sides should have dialogue and engagement so they come to an understanding. Cotton production had been on a downfall over the past years due to unviable market prices. Government had to intervene to fund cotton production to revive the cotton sector. This season, 400 000 cotton farmers benefited from the Presidential Inputs Support Scheme.
Source: The Herald
A Deputy Minister of Trade and Industry, Carlos Ahenkorah says government is doing everything in the interest of all parties to solve the issue of pirated textiles.He said the problem does not start from the market, therefore there is no need going to the market to seize pirated textiles as being demanded by the Textiles Workers Union. Speaking on GBC's Current Affairs Programme ‗Behind The News‘, Mr Ahenkorah said the Ministry is in talks with the GRA for all to get a tax stamp which he believes is the most effective way to check influx of pirated goods. Meanwhile, textile manufacturers and workers will today embark on a demonstration to press home their demand for government to expand the mandate of the Anti-Textile Piracy Taskforce to go to the market and seize all pirated textiles. Speaking on GBC's Current Affairs Programme ‗Behind The News,‘ the Spokesperson of the group, Emmanuel Schandorf said they have resorted to the demonstration because a number of meetings with the Ministry of Trade and Industry did not yield any concrete results. He said until all pirated textiles are seized, the group will continue with a series of actions. In a related development, the General Secretary of Textiles, Garments and Leather Workers Union, Abraham Koomson has appealed to government to put its act together to save the dying textiles industry. He said influx of textiles into the country is worrying, and must be checked.
Source: GBC
The UK‘s first app for the recycling of unwanted clothing has been launched today (18 April) as research claims 73 per cent of consumers no longer wear up to half of the items of clothing they own. According to the Waste and Resources Action Programme (WRAP), an estimated 300,000 tonnes of clothing ends up in landfill in the UK every year. The reGAIN app seeks to contribute to diverting clothing from landfill by organising collections of unwanted clothing in return for discount coupons for major retailers and lifestyle brands such as Superdry, Asics, boohoo and Expedia. The app was developed by Jack Ostrowski, founder of Yellow Octopus, which provides commercial sustainability solutions to the fashion industry and has worked with brands such as ASOS, John Lewis, Primark and all major UK supermarkets for the past 12 years. It aims to change people‘s behaviour and perceptions when it comes to clothing, encouraging reflection on the value of clothing and the destination of our unwanted garments. Commenting on the app, Ostrowski said: ―We are realists, not idealists. We know that we can‘t stop people from buying clothes, but we can incentivise them to change their habits and divert hundreds of tonnes of clothing from UK landfill. Our long-term goal is a world in which clothes never become waste. The reGAIN app turns commercial sustainability into action and provides a modern solution for fast fashion lovers by rewarding sustainable behaviour. Stopping clothes from going to landfill is the first step towards a circular economy. The UK has a particular problem with fast fashion, with research carried out by reGAIN finding that one in ten people throw their clothes away rather than give them to charity or recycle them, while 73 per cent of people admit to no longer wearing up to half of the items of clothing they own. reGAIN aims to address this issue by raising awareness of the importance of recycling clothing, and by providing a simple and rewarding way for people to recycle more. After downloading the app, users can ship their old clothes, shoes and accessories to reGAIN free of charge from over 20,000 drop-off points across the UK. In return, they will receive a discount coupon so they can shop for less. In order to keep the carbon footprint to a minimum, reGAIN app only accepts one drop per week per customer, with a minimum of 10 items in each shipment. Once the clothes reach reGAIN app, they are either reused and reworn, recycled, upcycled or used as combustibles for energy production. It certainly seems counterintuitive to try and incentivise more responsible clothing and textile use by offering people discounts on clothing from high street retailers, the home of fast fashion, when we should be trying to reduce the amount of clothing we use in the first place. What is even more questionable is the fact that reGAIN would send clothing to burn for energy production; while we certainly need to be diverting textiles from landfill, burning them is not a solution that should be considered for this waste stream. Despite this, the app has certainly stirred up some enthusiasm for textile recycling, with a survey carried out by reGAIN finding that the majority of respondents said they would use the reGAIN app to get their unwanted clothes reused and recycled. The survey also found that 67 per cent of people would recycle more if they were rewarded for doing so; 66 per cent would recycle more if it was free and easy to do so; and 56 per cent would recycle more if they knew how much environmental damage sending clothes to landfill causes. Ostrowski added: ―The reGAIN app provides consumers with a three-fold ‗Do Good‘ scheme: firstly, to do good for their living space through decluttering; secondly, to do good for their wallet, by receiving coupons and shopping for less; and thirdly, doing good for the planet, by diverting clothing from UK landfill. With 49 per cent of people we surveyed planning to do a spring clean of unwanted clothing this month, we hope many of them will consider using reGAIN app to prevent these items from becoming waste.‖ The launch of the app coincides with Fashion Revolution Week, which starts next week (23 April) and will see a series of events taking place around the world to prompt consumers to think about how their clothes are used and made. reGAIN has also taken inspiration from the Ellen MacArthur Foundation‘s Circular Fibres Initiative, which is working to advance a circular economy for textiles.
Source: Resource
