NEW DELHI : Minister Mr. Suresh Prabhu has given his approval for creation of Directorate General of Trade Remedies (DGTR) in Department of Commerce consequent upon amendment carried out by Government of India to the Government of India (Allocation of Business) Rules 1961 on May 7 2018 in this regard. DGTR will be the apex National Authority for administering all trade remedial measures including antidumping countervailing duties and safeguard measures. The DGTR will bring Directorate General of Anti-dumping and Allied duties (DGAD) Directorate General of Safeguards (DGS) and Safeguards (QR) functions of DGFT into its fold by merging them into one single national entity. It will also provide trade defence support to our domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries. In the last three years India initiated more than 130 anti-dumping/countervailing duty/safeguard cases to deal with the rising incidences of unfair trade practices and to provide a level playing field to the domestic industry. DGTR has been approved with a sanctioned strength of 112 posts drawn from Directorate General of Anti-dumping and Allied duties of Department of Commerce and Directorate General of Safeguards of CBEC. DGTR will be a multi service organization drawing upon the skill-set of various officers from the field of International Trade Customs Revenue Finance Economics Costing and Law. The creation of DGTR will also result in savings of 49 posts to the Government on account of merging DGAD and DGS. This has been in tune with the goal of the Prime Minister to have “Minimum Government Maximum Governance”. Mr. Suresh Prabhu Commerce and Industry Minister has expressed satisfaction over creation of DGTR an issue pending since 1997 and has termed it to be manifestation of vision of Prime Minister to provide a level playing field to our domestic industry.
Source: Tecoya Trend
India’s apparel exports in April 2018 were to the tune of $1.34 billion, registering a decline of 22.76 per cent against exports of $1.74 billion in the corresponding month of last year, as per the latest trade data. In rupee terms, exports for the month of April 2018 stood at ₹8,859.67 crore against ₹11,272.24 crore in April 2017, down 21.4 per cent. “The exports are in a negative territory since October due to a declining trend in the global apparel industry. The high base effect has been due to the release of rebate of state levies (RoSL) amount during April 2017 but the continued backlog in GST and RoSL is affecting the sentiments. We would like the government to address the issue at the earliest to reverse the trend of stagnating exports,” said HKL Magu, chairman, Apparel Export Promotion Council (AEPC). In fiscal 2017-18 that ended on March 31, India’s apparel exports fetched $16.71 billion, a decline of 3.83 per cent compared to exports of $17.38 billion in the previous financial year. (RKS)
Source: Fibre2Fashion
Gurugram : Apparel exports are in a negative territory since October 2017 due to a declining trend in the global apparel Industry, said HKL Magu, Chairman, Apparel Export Promotion Council (AEPC). Also the high base effect has been due to the release of Rebate of State Levies (RoSL) amount during April 2017 but the continued backlog in GST and RoSL is affecting the sentiments. Under the RoSL, the Centre gives garment exporters refunds against all the levies they shell out at the state level. Magu referred to the decline in India’s apparel exports which showed a plunge of 22.76 % for the month of April 2018 as against the corresponding month of April 2017, as per the latest trade data. In April 2018, the Indian RMG exports were to the tune of USD 1.34 billion (approximately) as against the corresponding month of April 2017, when the exports was USD 1.74 billion (approximately). In rupee terms export for the Month of April 2018 was Rs. 8859.67 Crore as against Rs. 11272.24 Crore in April 2017, showing a decline of 21.40%.India’s apparel production has also shown a decline of 18.6% in the month of March, 2018 and a decline of 11% for the period April-March, 2017-18 as per the latest IIP figures. This is the 11th straight monthly decline in apparel production. Talking about the decline in exports, Magu said, “The export figures for apparels for the month of April 2018 has shown a decline of 22.76 % and the apparel manufacturing is also in the negative territory.” The apparel production has registered a decline for the 11th straight month in March. Last year (2017-18) the Industry witnessed a strong growth but now the exports are in a negative territory since October due to a declining trend in the global apparel Industry. The high base effect has been due to the release of RoSL amount during April 2017 but the continued backlog in GST and RoSL is affecting the sentiments. “We would like the government to address the issue at the earliest to reverse the trend of stagnating exports,” the AEPC Chairman added. While India’s Readymade Garment (RMG) export to World in the period April-March of 2017-18 was to the tune of USD 16.71 billion (approximately) which has decreased by 3.83 % compared to the same period of previous financial year. During April-March 2016-17, India’s apparel exports were to the tune of USD 17.38 billion (approximately). AEPC has been engaging with the policy makers for an early resolution of the issues.
Source: Knn India
NEW DELHI : Minister of State for Labour and Employment (Independent Charge) Mr. Santosh Kumar Gangwar said here today that the government was working on a policy to improve the working and living conditions of the 40 crore labour force in the unorganized sector. The policy which will incorporate the suggestions of state labour ministers will emphasis on the health and social security of workers to optimize their contribution to the national economy. Addressing the 84th Annual General Meeting of the All India Organisation of Employers (AIOE) an affiliate of FICCI Mr. Gangwar said that harmonious industrial relations and social security for workers were the cornerstones for sustainable economic growth. In their context the Minister said that the Code on Wages was being deliberated upon by the Standing Committee of Parliament and is expected to submit its report soon. Mr. Gangwar also presented the AIOE National Award for Outstanding Industrial Relations (2016-17) to Pricol Ltd. Coimbatore. The first runner-up award was given to Harrisons Malayalam ltd. Kochi and the second runner-up to ITC Paper Boards and Speciality Paper Division Bhadrachalam. Ms. Dagmar Walter Director ILO DWT for South Asia and Country Office for India said that ILO’s India Decent Work Programme was currently being finalized. The programme will set out the agenda for quality jobs with practices that lead to a greener world. She said that for developing skills to meet the requirements of future jobs in India there was a need to impart and imbibe a culture of adaptability and empathy. She laid emphasis on prior-learning and a clear focus on cognitive and problem-solving skills. Mr. Gaurav Swarup President AIOE pointed out that reforms in the Industrial Disputes Act 1947 need immediate attention. This can be done through bringing in an industrial relations code which does away with the need for prior permission of the government for rationalisation measures and introducing a provision for strike notice. Also contract labour legislation the most contentious issue today needs a re-look. He said that employment generation which should have been spurred by these changes is not gaining desired momentum. This is demonstrated by the fact that only 2 million jobs were generated in 2017 as against more than 11 million people joining the labour market. Furthermore while the service sector is the main driver of economy in terms of its contribution to GDP the existing labour laws are framed only to take care of the manufacturing sector. Besides rigidity of the statutory framework and lack of skills impede the generation of service sector employment. Mr. Rohit Relan President-Elect AIOE said that the rigid labour laws in India have moved investors to neighbouring countries. The time had come to give them a positive message. He assured the government that employers would do their best to ensure that an environment of growth and social harmony is created in the country.
Source : Tecoya Trend
Ms. Seema Srivastava, Executive Director, India ITME Society receiving the award. The India International Textile Machinery Exhibition Society (India ITME Society), has been acknowledged and awarded by Economic Times and Indian Exhibition Industry Association, as one of India’s Top 10 exhibition organisers. It has also been ranked as India’s first runner up in Top B2B Exhibition. This is the third award for the society this year. With an enviable growth of 54 per cent from 2012 onwards, India ITME Society is continuing its growth trajectory to reach the top slot. Today, the events by India ITME Society are globally acknowledged by not only the textile and textile engineering industry, but has also become the landmark event and pride for India. A non-profit organisation, India ITME Society strives hard to provide quality service to the exhibitors in generating business, bringing together investors and entrepreneurs, mobilising joint ventures, facilitating one to one interaction between the officials and the industry, and disseminating knowledge to the academician, thus touching lives and prosperity in all aspects for the industry and business. The society offers two key B2B exhibitions GTTES 2019 which will be held from January 18 to 20, 2019, and ITME 2020 & Online Networking Portal, IIN Zone, creating maximum opportunities for exhibitors and the textile industry. (GK)
Source: Fibre2Fashion
Special Economic Zones (SEZs) in India have not been as successful as their counterparts in many other countries. Several Asian economies, particularly China, Korea, Malaysia, and Singapore, have greatly benefitted from these zones. Examples of shining Asian SEZs are not limited to the well-known ones like Shenzhen in China, Incheon in Korea, East Coast Economic Region in Malaysia, or Bintan and Batamin in Indonesia, developed closely with Singapore. Other less-known, but nonetheless well-performing prominent SEZs from Asia include Subic Bay Metropolitan Authority in Philippines, Payam in Iran, Jebel Ali in UAE, and, closer to India, Chittagong in Bangladesh. India’s coastal neighbours—Bangladesh, Pakistan, Sri Lanka and Myanmar—are actively working on SEZs for making them key elements of their industrial development strategies. India, of course, does not need to necessarily emulate what its neighbours are doing. But, it must ponder why the country that built Asia’s first SEZ—at Kandla in Gujarat, more than five decades ago—has not been able to use its SEZs as well as several other countries in Asia have. India’s success in pushing ahead on labour-intensive and export-oriented industrialisation could have been much more had it been able to have a handful of robust SEZs. As evidence suggests, these zones have not only generated exports, but have had positive spillover effects for the rest of the economy by abetting activities connected to themselves, like urban and retail developments. The subdued performance of SEZs in India cannot be due to their limited number. Apart from the 18 zones developed by the central and state governments before the SEZ Act of 2005, more than 200 such zones have come up since. India has more zones than most other SEZ active countries. But why haven’t these zones been able to match their Asian peers? Most of India’s new generation SEZs came up not for exporting, but for avoiding taxes. Large fiscal sops, in the form of a bunch of reliefs from central and state taxes, lured developers into building SEZs. The rush commenced after the SEZ Act of 2005, and the announcement of SEZ rules in early 2006. Fiscal sops have been parts of SEZ developments almost everywhere in the world. In India, however, the sops were unleashed onto an industrial landscape where businesses were seeking relief from a large gamut of indirect and direct taxes. SEZs were a panacea for avoiding taxes for a good number of years at a time when Indian tax systems had begun weeding out exemptions. The best example of the tax avoidance ‘pull’ of SEZs is the large number of IT zones that have come up in India. Many of these simply relocated from Software or Electronic Hardware Technology Parks for continuing to enjoy tax exemptions. For many SEZ developers, exports and employment were secondary to avoiding taxes. This is, of course, not to argue that tax exemptions are unnecessary for SEZs. These zones need to be fiscally incentivised for encouraging exports. But, in the Indian economy, selective incentives, like those for SEZ developers and producers, can quickly turn perverse, as they did for many zone builders. At the same time, SEZs became ‘villains’ for a system desperately trying to shore up its revenues. Revenue foregone at a time when progressive fiscal disciplining had begun in the economy for improving public finances hardly made SEZs adorable for central and state economic managers. It’s hardly surprising that advocates of fiscal discipline became the strongest critics of SEZs. Tax administrators didn’t lose opportunities of getting back at them. The biggest example is the Nokia SEZ at Sriperumbudur, that shut down following tax disputes with both the Centre and the state government. But, the lacklustre performance of SEZs is not due to their being looked at as ‘tax havens’. They could still have delivered the goods, particularly the manufacturing SEZs, which, unlike IT zones, did not have relocation as a proximate cause for rushing into SEZs. Most manufacturing SEZs in India have performed below par due to their poor linkages with the rest of the economy. Weak connections of coastal SEZs with their hinterlands inhibited these zones from utilising their full potential. The few SEZs that have done well, such as the Sri City in Andhra, have benefitted from strong multi-modal connections they have with the hinterland. These connections are essential for lowering logistics costs and increasing export competitiveness. The Asian evidence on SEZs points to the great importance of supporting connectivity. It is inconceivable for these zones to take off as isolated islands of excellence just on the basis of fiscal sops. Lack of adequate connectivity ensured that India’s SEZ rush, in the middle of the last decade, was met with scant success. However, SEZs can still recover and perform. The current policy of integrating existing coastal SEZs into the overarching plan of coastal development under ‘Sagarmala’ can lead to a turnaround for SEZs. Sagarmala’s focus on back-end connectivity with the hinterland is what many of these zones desperately need. If units in SEZs are provided comfort from the nagging GST issues that exporters are encountering, manufacturing SEZs can make a comeback.
Source: Financial Express
Belying fears about surging crude prices, the rupee managed to hold its ground against the US currency for the second-straight day, gaining by 10 paise to end at 67.70 a dollar. The Indian currency proved surprisingly resilient despite a sharp surge in global crude prices which alarmingly touched a high of USD 80 a barrel on supply squeeze. Suspected heavy currency market liquidity intervention by the Reserve Bank of India predominantly helped the rupee to stay afloat amid bullish overseas sentiment. The home unit, which is the worst performing Asian market currency, seems to be on the verge of recovery after plunging to a fresh 16-month low of 68.15 on Wednesday, a forex dealer said. Worsening domestic macros against the grim backdrop of boiling crude prices and impending Fed rate hike fears along with dollar strength has been the key dominating force in forex markets in recent weeks. On the energy front, crude prices shot up to hit USD 80 a barrel for the first time since November 2014 on growing worries of a sharp drop in Iranian oil exports in the coming months due to renewed US sanctions, reducing supply in an already tightening market. The Brent crude futures, an international benchmark, was trading higher at USD 79.97 a barrel after briefly hitting USD 80 in early Asian trade. In the meantime, the dollar was hovering near its highest levels in five months against a basket of other major currencies as rising US government bond yields continued to underpin demand for the currency. Local equities, however, continued to witness massive unwinding as nervous investors took money off the table amid political wrangling in Karnataka and hardening crude oil prices. Extending its recovery momentum, the rupee resumed higher at 67.72 from overnight close of 67.80 at the Interbank Foreign Exchange (Forex) market on sustained dollar selling by banks and exporters. Gaining a foothold in the face of easing dollar pressure, the rupee touched an intra-day high of 67.58 in mid morning deals, but eventually pared early strong gains to end at 67.70, showing a gain of 10 paise, or 0.14 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 67.7156 and for the euro at 79.8909. Meanwhile, the yield on the benchmark 10-year government bond maturing in 2028 softened to 7.88 per cent. The dollar index, which measures the greenback's value against a basket of six major currencies, was higher at 93.38. In the cross currency trade, the rupee strengthened against the pound sterling to settle at 91.31 per pound from 91.41 and firmed up against the euro to end at 79.79 from 79.85 earlier. It also hardened against the Japanese Yen to close at 61.21 per 100 yens as compared to 61.55. Elsewhere, the common currency, euro remained stressed against the greenback on speculation that Italy's possible new coalition government would be looking to write off a sizeable chunk of Italian public debt, bringing forth the worst of market fears. In forward market today, premium for dollar drifted further owing to consistent receiving from exporters. The benchmark six-month forward premium payable in September eased to 93.25-95.25 paise from 95-96.50 paise and the far-forward February 2019 contract moved down to 227-229 paise from 229-230 paise previously.
Source: Financial Express
As many as 5,000 buyers are expected at the third edition of Garment Show of India (GSI) beginning June 17 in New Delhi. Creating a comprehensive platform, the sourcing show will connect the entire manufacturing and supply chain by bringing together the best manufacturers of apparel products and serious buyers for all type of garments from across India. With more than 100 exhibitors from 15 countries likely to attend the B2B exhibition focused on transforming North India into an effective sourcing base for all type of garments which are trendy, high in quality and innovative as well, GSI press release said. The three-day exhibition will bridge the gap between buyers and sellers; by bringing together manufacturers/brands that can offer quality, fashion and competitive prices to match the requirements of retailers, retail chains, e-commerce companies and distributors. Leading retail chains like Pothy’s, Chennai Silk, RMKV, Shoppers Stop, Lifestyle, Landmark Group, Bazar India, Reliance Trends, Amazon, Snapdeal, Myntra, Westside and many more will visit the exhibition. More than 10,000 visitors are expected to visit the 2018 show from far and near, from places like Delhi, NCR, Meerut, Aligarh, Kanpur, Jaipur, Ludhiana, Lucknow, Bihar, Gorakhpur, Haridwar, Saharanpur, Mumbai, Kolkata, Panipat, Hyderabad, Trichy, Madurai, Chennai and Bangalore to Surat and Ahmedabad, etc. This will include manufacturers, brands, retailers, wholesalers, distributors, agents, e-commerce companies and retail chains homing onto the activewear/intimate/sports/yoga/fitness segments from all over India. (RR)
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1408.00 |
USD/Ton |
0% |
5/17/2018 |
|
VSF |
2204.16 |
USD/Ton |
0% |
5/17/2018 |
|
ASF |
3043.47 |
USD/Ton |
0% |
5/17/2018 |
|
Polyester POY |
1457.42 |
USD/Ton |
0% |
5/17/2018 |
|
Nylon FDY |
3372.92 |
USD/Ton |
0% |
5/17/2018 |
|
40D Spandex |
5569.24 |
USD/Ton |
0% |
5/17/2018 |
|
Nylon POY |
5930.06 |
USD/Ton |
0% |
5/17/2018 |
|
Acrylic Top 3D |
1717.84 |
USD/Ton |
0% |
5/17/2018 |
|
Polyester FDY |
3090.54 |
USD/Ton |
0% |
5/17/2018 |
|
Nylon DTY |
3137.60 |
USD/Ton |
0% |
5/17/2018 |
|
Viscose Long Filament |
1741.37 |
USD/Ton |
0% |
5/17/2018 |
|
Polyester DTY |
3576.86 |
USD/Ton |
0% |
5/17/2018 |
|
30S Spun Rayon Yarn |
2949.34 |
USD/Ton |
0% |
5/17/2018 |
|
32S Polyester Yarn |
2201.03 |
USD/Ton |
0% |
5/17/2018 |
|
45S T/C Yarn |
2996.41 |
USD/Ton |
0% |
5/17/2018 |
|
40S Rayon Yarn |
3121.91 |
USD/Ton |
0% |
5/17/2018 |
|
T/R Yarn 65/35 32S |
2682.65 |
USD/Ton |
0% |
5/17/2018 |
|
45S Polyester Yarn |
2337.51 |
USD/Ton |
0% |
5/17/2018 |
|
T/C Yarn 65/35 32S |
2541.46 |
USD/Ton |
0% |
5/17/2018 |
|
10S Denim Fabric |
1.46 |
USD/Meter |
0% |
5/17/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
5/17/2018 |
|
40S Combed Poplin |
1.25 |
USD/Meter |
0% |
5/17/2018 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
5/17/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
5/17/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15688 USD dtd. 17/5/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Federal Finance Minister Miftah Ismail in his budget wind-up speech announced that a 24 billion rupee export package will be announced in the remaining two weeks of the tenure of the Abbasi-led administration. According to him, "we have decided on a new export package to further boost exports which had been on the downside during the last few years and are now showing some subsequent to measures taken by the incumbent government as well as depreciation of the exchange rate." A few clarifications are in order. First, the export package announced during the first week of October 2017, two months after Shahid Khaqan Abbasi took oath as the country's prime minister and had appointed Miftah Ismail as his advisor on Finance to replace Ishaq Dar as the key decision-maker after the latter's departure from the country, was an extension of the 180 billion rupee export promotion package announced by Nawaz Sharif in January 2017 which envisaged reduced customs duty/sales tax on cotton, man-made fibres and textile machinery as well as revised duty drawbacks on a range of textile-related exports, including garments, processed fabrics, yarn and grey fabric, as well as sports and leather goods and footwear. The Abbasi-led administration tweaked the earlier package by agreeing to extend 50 percent of the package to the eligible exporters without the condition that only those exporters who increase their exports by 10 percent may benefit while the remaining 50 percent to be provided if exporters achieve the 10 percent increment. The 40 billion rupee package was to be partially funded through higher duties on imports. The two export promotion packages also envisaged clearing of exporters refunds which, according to exporters, are in excess of 200 billion rupees today. Second, the claim that export growth has picked up in recent months is accurate though what is not highlighted is the fact that the trade balance has continued to deteriorate with a consequent widening of the current account balance that, in turn, is placing an inordinate pressure on the country's foreign exchange reserves - reserves that have reached a critical level as they are insufficient to meet three months of imports. Trade balance during 2012-13 was a negative 15 billion dollars which escalated to negative 16.5 billion dollars in 2013-14, negative 17.2 billion dollars in 2014-15, negative 19.2 billion dollars in 2015-16 and negative 26.5 billion dollars last year. This year's data reveals that the trend has further worsened and data released by the Pakistan Bureau of Statistics reveals that while in July-April 2016-17, the trade deficit was a negative 26.4 billion dollars the comparable figure for the current year is a negative 30 billion dollars. The one area of continuing difference between the Sharif administration and the Abbasi-led administration is in the treatment of the exchange rate - the former intervened in the market to keep the rupee stable thereby meeting one of the directives of the seriously misinformed Nawaz Sharif that a strong currency is good for the economy (though in reality it undermines exports and makes imports more attractive) and which also led former Finance Minister Ishaq Dar to understate the interest and repayment of external loans as and when due. However, by December 2017 when the International Monetary Fund (IMF) mission was in the country to prepare the first post-programme report the Abbasi administration was prevailed upon to allow the rupee to depreciate (by 10 percent) in an effort to promote exports. This measure was too little too late and the government was then prevailed upon to further depreciate the rupee though that too was too little, accounting for a widening of the trade deficit. From January 2017 till to-date, exporters have consistently urged the government to implement the package in letter and spirit but to no avail. The question is if the January and October 2017 package could not be implemented then how can the much smaller 24 billion rupee promised package be implemented (after Abbasi and Ismail lose their jobs on the 31 of May this year) given that money has not been earmarked for this package in the budget which is reliant on even more unrealistic sources of revenue than envisaged during Dar's tenure (including reliance to the tune of 230 billion rupees on self-financing by corporations/authorities that are reliant on the budget in excess of 1 trillion rupees). To conclude, the budget and the export package are not likely to be implemented given the sheer massive scale of benefits extended to all major groups in the country while setting the expenditure priorities - benefits that cannot possibly be funded given the accompanying massive tax relief measures. And with the growing perception in PML-N ranks that the party is unlikely to win the next elections this aspect of the budget leads one to the extremely disturbing deduction that the budget presented by the Abbasi-led administration is a deliberate attempt to make it extremely difficult for the next government to manage the economy without a wholesale revision of the budgetary measures.
Source: Business Recorder
Local textile manufacturing companies are appealing to the government for tax exemptions on their products as an incentive to help revive the industry. According to them, this will help them compete with the influx of cheap textile products from China and other parts of the world.
Friday wear
Even though the national Friday wear has received a lot of public support, Joy business can report, most of these Friday wears are made of cheap foreign textiles. The national Friday wear was introduced in 2004 by ex-president Kuffour, to promote made in Ghana textiles. Despite gaining momentum, the textile manufacturing companies say, about 70 percent of what is currently worn on Fridays is nothing close to Ghanaian. "I am wearing this because in solidarity with the Friday wear’’. Michael Osei confessed. Another local consumer, Josephine Marfo said she was wearing Friday attire because the government gave a directive to wear it on Friday.
Others attributed their choice to cost.
”High target is nice, have bold colours and most importantly cheaper than GTP and other local brands,” according to Madam Rejoice Mensah. “GTP colours are not nice at all, Hollandaise is even worse, Davi Mary told JoyBusiness”.
Central business district
A check at the central business district also revealed a high demand for cheap foreign textiles compared to local brands. This was confirmed by a trader, Jane Annan. “When they come and I mention the prices, they tell me the local brands are too expensive. 85 cedis for GTP but as soon as I tell them high target is GHc45, quickly buy it.” “You can buy three pieces of a High target for the price of one GTP,” another trader said. According to the textile manufacturing companies, about 70 percent of textiles on the Ghanaian market is cheap imported products mostly from Togo and China. The remaining 30 percent is shared among three local textile companies – Ghana Textile Printing (GTP), Akosombo Textiles Ltd (ATL) and Printex. The three local textile companies currently produce about 30 million yards of fabrics even though it has the capacity to do about 60 million annually, this is according to the marketing director of GTP, Stephen Badu. He said GTP for instance now produces between 16 and 20 million yards of fabric annually even though it has the capacity to do twice the amount. Mr Badu insists the only way the sector can progress is when they are exempted from paying taxes. “If add you all the taxes we pay on our products, it’s about 30% and most of these cheap textiles don’t even pay the right tax on their goods, so I can assure you that if these taxes are taken off our products, we can compete fairly on the market,” he said. He added that, when the tax stamp is introduced, it would curtail the situation.
Pirating of local designs
Another worrying situation is that the foreign manufacturers are also copying local designs. Mr Badu said, “It is always important to check for the authenticity of our GTP products on the market because sometimes even though you see GTP stamps on these textiles some are actually inferior. So make sure you scratch to reveal a serial number on the sticker on the fabric. Text it to a short code and check if it’s fake or genuine,” he said.
Textile traders accusemanufacturers
But some textile traders are rather accusing manufacturers within the local print industry of being responsible for the influx of counterfeited prints on the Ghanaian market. They claim the local industry has failed to produce prints of lower grades for the ordinary Ghanaian pushing them to prefer cheap imported products from other parts of the world. Elizabeth Tamma who has been selling clothes for over 50 years said the local manufacturing industry should bear the blame for their woes. “I started this business since 1972 and at first, ATL use to supply us in grades. We had low, middle and high grades for every consumer. But over time they stopped producing the lower grades so we were left with no choice than to go for cheaper grades abroad”. She also insisted, the claim that the foreign brands were stealing local designs is unfounded. “In all honesty, when we bring in the cheap textiles from China, we rather take them to the local manufacturer to produce the same design and that has been the norm so it’s not true they are stealing their designs”. Madam Elizabeth alleged. Apart from the Friday wear initiative, the local textile sector is yet to enjoy any major government intervention. Even though the Friday wear has come to stay, the taste for counterfeited products are on high demand and it appears if the situation remains same, not only will local manufacturers face stiffer competition on the market but also lose their exclusive designs to pirated brands.
Source: mujoyonline.com
LONDON: Oil prices hit $80 a barrel on Thursday for the first time since November 2014 on concerns that Iranian exports could fall because of renewed U.S. sanctions, reducing supply in an already tightening market. Brent crude futures reached an intraday high of $80.18 a barrel before receding to $79.67 at 1326 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 41 cents at $71.90 after also hitting their highest since November 2014, at $72.30 a barrel. U.S. President Donald Trump's decision this month to withdraw from an international nuclear deal with Iran and revive sanctions that could limit crude exports from OPEC's third-largest producer has boosted oil prices. France's Total on Wednesday warned that it might abandon a multibillion-dollar gas project in Iran if it could not secure a waiver from U.S. sanctions, casting further doubt on European-led efforts to salvage the nuclear deal.
VENEZUELA DROP
A rapid decline in Venezuela's crude production has further roiled markets in recent months. "The geopolitical noise and escalation fears are here to stay," said Norbert Rücker, head of macro and commodity research at Swiss bank Julius Baer. "Supply concerns are top of mind after the United States left the Iran nuclear deal." Global inventories of crude oil and refined products dropped sharply in recent months owing to robust demand and OPEC-led production cuts. Oil stocks were expected to drop further as the peak summer driving season nears, offsetting increases in U.S. shale output, Bernstein analysts said. Several banks have in recent days raised their oil price forecasts, citing tighter supplies and strong demand. Further supporting prices, Shell on Thursday said it was halting crude exports from a major Nigerian pipeline.
EVERYTHING BULLISH?
On the flip-side, however, high oil prices could hit consumption, the International Energy Agency warned on Wednesday as it lowered its global oil demand growth forecast for 2018 to 1.4 million barrels per day (bpd) from 1.5 million bpd. The IEA said global oil demand would average 99.2 million bpd in 2018, although U.S. bank Goldman Sachs said consumption would cross 100 million bpd "this summer".Leading production increases is the United States, where crude output <C-OUT-T-EIA> has soared by 27 percent in the last two years to a record 10.72 million bpd, putting it within reach of top producer Russia's 11 million bpd.
Source : Financial Express
LONDON (Reuters) - New rules coming into force from 2020 to curb pollution produced by the world’s ships are worrying everyone from OPEC oil producers to bunker fuel sellers and shipping companies. The regulations will slash emissions of sulfur, which is blamed for causing respiratory diseases and is a component of acid rain that damages vegetation and wildlife. But the energy and shipping industries are ill-prepared, say analysts, with refiners likely to struggle to meet higher demand for cleaner fuel and few ships fitted with equipment to reduce sulfur emissions. This raises the risk of a chaotic shift when the new rules are implemented, alongside more volatility in the oil market. “The reality is that the industry has already passed the date beyond the smooth transition,” Neil Atkinson, head of the oil industry and market division at the International Energy Agency (IEA), said in April.
WHAT ARE THE NEW RULES?
The rules, drawn up by the U.N. International Maritime Organization (IMO), will ban ships using fuel with a sulfur content higher than 0.5 percent, compared to 3.5 percent now, unless a vessel has equipment to clean up its sulfur emissions. Any vessels failing to comply will face fines, could find their insurance stops being valid and might be declared “unseaworthy” which would bar them from sailing.
HOW WILL IT AFFECT THE FUEL OIL MARKET?
The global shipping fleet now consumes about 4 million barrels per day (bpd) of high sulfur fuel oil, but about 3 million bpd of that demand will “disappear overnight”, according to the average market forecast calculated by Norway’s SEB Bank. Most demand is expected to shift to marine gasoil, a lower sulfur distillate fuel. Morgan Stanley predicts this will generate at least 1.5 million bpd in extra demand for distillate in the next three years, pushing up total distillate demand growth for the period to 3.2 million bpd. That, in turn, will drive up prices. Gasoil now trades at a premium of about $250 a ton to fuel oil, but the forward curve forecasts this will balloon to $380 per ton by early 2020. Thomson Reuters Research estimates fuel accounts for about half a ship’s daily operating cost. Based on average fuel consumption of 20 to 80 tonnes a day (MT/day), a ship using cleaner fuel faces extra daily expenses of about $6,000 to $20,000. For example, a VLCC, one of the biggest oil tankers at sea, will pay 25 percent more for its fuel, or an extra $500,000 on top of normal bill of $2 million, for a typical 25-day voyage from the Middle East to Japan.
WILL “SCRUBBERS” HELP THE SHIPPING INDUSTRY?
Shipowners can install kit called a “scrubber” that strips out sulfur emissions and allowing them to use the dirtier fuel oil. Some ships already have them. Global trading firm Trafigura has ordered scrubbers for its fleet of 32 ships. But the equipment alone can cost $1 million to $6 million, according to manufacturer Wartsila, putting it out of reach of many operators. By 2020, about 2,000 ships could have scrubbers, according to Wartsila, SEB Bank and industry analyst AlphaTanker. But AlphaTankers’ Andrew Wilson called this a “drop in the ocean”, given there are about 90,000 vessels in the global fleet, of which about 60,000 ply international routes. Based on the limited number of manufacturers and time constraints on facilities to install scrubbers, AlphaTanker estimates no more than 500 ships could be fitted each year. Wartsila puts the figure closer to 300. So it would take more than 100 years to fit the global fleet.
WILL EVERYONE FOLLOW THE RULES?
Many vessels may try to dodge the new rules, unable to afford the cost of scrubbers and reluctant to pay the premium for cleaner fuel. But how much of the industry will cheat is open to debate, with estimates ranging from 10 to 40 percent. The IMO says it will ban ships that do not have scrubbers from carrying any fuel oil, making it easier to catch cheaters. Oil major BP expects 10 percent of ships could cheat, while consultancy Wood Mackenzie expects a figure of about 30 percent when the rules launch in 2020. Consultant Citac says industry polls indicate cheating could be in a range of 25 to 40 percent.
CAN REFINERS MEET NEW DEMAND?
The global refining industry needs to process an extra 2.5 million bpd of crude to make distillates for cleaner fuel, says Robert Herman, refining executive at Phillips 66. Some refiners have invested in cutting sulfur in their output, but fitting hydrocracker or coker unit so that a refinery produces more distillates with lower sulfur content while reducing fuel oil output can cost about $1 billion, analysts say. Small refineries, unable to afford the upgrade, may find they are churning out fuel oil without finding buyers. A KBC consultancy survey showed 40 percent of Middle Eastern and European refineries are not prepared. European plants, which tend to be less complex than those in other regions, produce more fuel oil and may face the biggest challenge. Morgan Stanley says refineries of Spain’s Repsol (REP.MC), Turkey’s Tupras, India’s Reliance (RELI.NS) and U.S. independent Valero (VLO.N) are among the best prepared because they already produce high middle distillate and low high-sulfur fuel oil.
WHAT WILL HAPPEN TO THE CRUDE MARKET?
The simplest way for refineries to produce fuel with less sulfur is to buy and process crude that contains less sulfur, a shift that could change demand for different oil grades and lead to greater oil market volatility. For example, processing Iraq’s Basra Heavy grade with high sulfur content produces as much as 50 percent fuel oil, while using light, sweet North Sea crude with less sulfur produces about 12 percent fuel oil. “There will be a bidding war for sweet crude,” said Stephen George, chief economist with KBC Advanced Technologies. This could hike the price of sweeter crudes, including several grades used to make dated Brent, the benchmark for three quarters of the world’s oil. Meanwhile, the cost of refining “sour” crudes with more sulfur, such as those from Venezuela, Mexico and Ecuador, “could be more than its value,” he said.
WHO WILL PAY THE PRICE?
Energy firms and shippers may face a squeeze on margins. But, ultimately, extra costs are likely to fall on consumers of everything from household appliances to gasoline that are shipped around the world. Roughly 90 percent of world trade is by sea. Wood Mackenzie estimates that global shipping fuel costs are likely to rise by a quarter, or $24 billion, in 2020. Others estimate extra costs for container shipping alone will be $35 billion to $40 billion. In addition, a surge in distillate demand by shippers could push up prices of other products, such as jet fuel and diesel. “It’s going to make moving anything more expensive,” said AlphaTanker’s Wilson.
Source: Financial Express
The U.S. textile industry has asked the Trump administration to place tariffs on certain textile and apparel products made by China that may infringe on U.S. companies’ intellectual-property rights. At a May 17 hearing at the U.S. Trade Representative’s offices in Washington, D.C., Auggie Tantillo, president and chief executive of the National Council of Textile Organizations, said the U.S. textile industry “strongly supports the Trump administration’s case to sanction China’s rampant intellectual-property–rights theft.” Hearings took place over three days to get feedback on President Trump’s plan to levy $50 billion in tariffs on China for unfair trade practices under Section 301 of the 1974 Trade Act. “China’s domination of global textile markets has clearly been aided by its rampant theft of U.S. textile intellectual property. From the violation of patents on high-performance fibers, yarns and fabrics to the infringement of copyrighted designs on textile home furnishings, China has gained pricing advantages through blatantly illegal activities,” Tantillo said. “Putting [Section] 301 tariffs on Chinese textile and apparel exports would send a long-overdue signal that these predatory actions will no longer be tolerated.” Tantillo told the story of a U.S. manufacturer and holder of various patents on fabrics that have highly complex constructions. They are so sophisticated, he said, they are used in the U.S. military’s “Generation III Extended Cold Weather Clothing System.” One patent covers a composite fabric that is designed to rapidly remove moisture from the skin. It has an outer-layer fabric made of highly absorbent materials and a second inner layer fabric formed with both vertical and horizontal channels, constructed from yarns with a plurality of fibers. “Despite being solely responsible for these inventions and holding the patents for these products, the U.S. manufacturer finds itself competing against its own fabrics in activewear markets at home and abroad,” he said. “The company has identified garments imported by numerous major U.S. brands that violate their patents. In each of these instances, the infringing fabric was made in China.” He noted that a U.S. company produces an advanced textile structure for the telecommunications sector that they have made in China for sale in Asian markets. The company obtained numerous patents, including invention patents and utility models in China. Despite those protections, several Chinese companies have knocked off this product in several provinces, Tantillo said. However, the U.S. textile industry does not want any tariffs placed on imported textile machinery because virtually no textile machinery is made in the United States anymore.
Source: Apparel News
FAISALABAD - The Pakistan Textile Exporters Association (PTEA) has stressed for continuation of the duty drawback on taxes (DDT) for further three years to boost the value added textile exports and boost the economy. The DDT incentive has positively impacted as textile exports recorded a 7.7 percent growth year-on-year to US$ 9.99 billion in the first nine months of 2017-18, said PTEA Chairman Shaiq Jawed. He said that as a result of growth-led initiatives of the government, the country's exports surged by 13.1% to in July-March 2017-18 as compared to the same period of the last year. The main driver of growth was the value-added textile sector as exports of ready-made garments went up 12.56% during the period in value and 12.85% in quantity while those of knitwear edged up 14.12% in value and 3.52% in quantity during these nine months. Exports of bed wear went up 4.99% in value and 3.16% in quantity whereas exports of made-up articles, excluding towels, increased by 7%. He termed the positive growth in exports as a welcome sign for an economy struggling to contain falling foreign exchange reserves. However, he underlined the need for continuity of DDT scheme allowed under the PM package. Production of exportable surplus is the need of the hour, he said and added that revival of US$ 4 billion closed production capacity is really a big a challenge. Only an enabling environment can attract prospective investors to undertake new investment initiatives by the textile industry, he asserted. He urged the government to continue DDT scheme for further three years. This will generate approx 10% annual growth in value added textile exports and would add US$ 1.5 billion in each year, he said. The PTEA chairman urged the government for immediate payment of stuck-up liquidity in refund regime to get maximum industrial growth and significant increase in exports as cash flow crunch is negatively impacting the export-oriented textile industry. Giving details, he said that 30 billion rupees of textile exporters are held in sales tax regular refund regime whereas 10 billion rupees are held on account of custom rebate and 15 billion rupees are held under income tax credit. Similarly, incentives allowed under textile policy 2009-14 are also unpaid as Rs20 billion are outstanding under TUF schemes, he said. However, he added, Rs10 billion under mark-up support and Rs3 billion are stuck up under DLTL scheme. Furthermore, an amount of Rs21 billion is also unpaid against duty drawback of taxes under Prime Minister Trade enhancement initiative, he noted. Vice Chairman Ammar Saeed termed value added textile sector as the backbone of the economy with great potential for earning foreign exchange. He urged the government for immediate release of blocked refunds to enable the textile exporters to retain their hard earned export markets at this time of tough competition. The government, at several times, set deadlines of liquidating the long outstanding refunds of the textile industry but still huge amounts are outstanding and delay in release of funds had triggered serious liquidity crunch for cash starved textile exporters, he said. This is having adverse impact on the employment and the economy of the country as textile industry is unable to tap its potential in accordance with capacity, he said. Regional competing countries are rapidly multiplying their exports just because of the edge they have on the cost of doing business. Pragmatic policies in consultation with stakeholders need to be formulated to reduce the cost of business by fixing rates of inputs in line with competing countries in the global market to create a level playing field, he suggested. He said finance is imperative to run the wheels of industry and without it, no one could even think to run industry. The government should set its priorities right and accord preferential treatment to boost the exports and generate industrial activities, he demanded.
Source: The Nation
The Confederation of Garment Exporters of the Philippines, a Manila-based private association comprised of companies involved that nation’s garment trade, has hired D.C.-based lobbying firm Sorini, Samet & Associates to advocate a bilateral free trade agreement between the US and the Philippines. The retainer comes as the two countries continue exploratory talks regarding a possible United States-Philippines Trade and Investment Framework Agreement. Leaders from both countries initially raised the possibility of a bilateral free trade agreement last year, when President Trump visited Manila to meet with strong-arm Philippines President Rodrigo Duterte. Trump has said he’s interested in exploring the matter with U.S. officials in the coming months, with the U.S. Office of the Press Secretary issuing a statement that said “The United States welcomes the Philippines’ interest in a bilateral free trade agreement and both sides agreed to discuss the matter further.” CONGEP has hired SS&A to conduct outreach to U.S. officials and relevant private sector organizations for the purpose of building the groundwork and assessing the possibility for a free trade agreement between the U.S. and the Philippines and to support of efforts of the Philippine Department of Trade and Industry to do the same. SS&A co-founder Andrew Samet, a one-time advisor to former New York Senator Daniel Moynihan, was Labor Undersecretary for international activities in the Clinton Administration, where he dealt with global trade matters. Co-founder Ron Sorini held positions in the Commerce Dept.and was appointed by President George HW Bush as chief negotiator at the Office of the US Trade Representative before being named senior VP-international development and government relations at Fruit of the Loom. The four-week pact runs from May to June and brings SS&A $8,000. SS&A in 2014 represented CONGEP in a bid to encourage Congress to pass free trade zones that would promote development in areas of the Philippines devastated by Typhoon Haiyan.
Source: PR News
The Garment Manufacturers Association in Cambodia yesterday issued a statement asking for the Labour Ministry to reconsider its intent to amend article 89 concerning worker protection and severance pay. The statement came as a response to a statement by Labour Minister Ith Samheng, who said that companies are required to pay a maximum of six months’ worth of compensation, based on employee seniority, should the factory close. The statement from GMAC said that the association acknowledged the distress caused by the closure of several garment factories across the country, but noted that the amendment could hurt employers. “We understand that the government is amending article 89 to protect workers, depending on how long they have been working at the company,” it said. “While it’s good for employees, the need to make companies pay it all at once will create a new degree of financial burden for the employer and possibly other human resource management challenges.” “We would like to express our concern and ask the government to please carefully consider the issue,” the statement added. “We strongly suggest that employers pay the compensation in phases.” GMAC said that amending article 89 could have more far-reaching ramifications than just the financial burden, arguing that it could spark an influx of resignations in order to collect the maximum severance amount. GMAC has asked the Labour Ministry to reconsider amendments. KT/Chor Sokunthea. Mr Samheng said last week that in order to help workers whose employers flee, the ministry is prepared to amend labour laws related to their benefits. “Any amendment to the labour law won’t add any pressure to anyone at any side,” he said, adding that the ministry will amend some articles in order to create an opportunity for employers to pay their workers. In March, Prime Minister Hun Sen ordered all stakeholders to find a solution to the problem of employers who abandon their factories without paying workers. “I ordered relevant officials to solve this problem. The problem is that factory owners owe salaries, along with seniority bonuses and other benefits too,” he said. “We have many ways to solve it. For example, factory owners pay a seniority bonus once per year to workers. So we can change that to having factories pay every two or three months instead.” Mr Samheng also said the ministry will take action to prevent owners from fleeing. “The ministry is preparing regulations that will require all enterprises to pre-deposit money with the National Social Security Fund, so that if factories close unexpectedly, NSSF will have the ability to pay workers,” he said.
Source: Khmer Times
The Raw Material Research and Development Council (RMRDC) has listed some measures to revive the ailing textile sector. The council said there is need to strengthen the competitiveness of the cotton value chain through enhanced capacities of stakeholders, develop and improve market infrastructure. Others are the provision of additional support for cotton value chain development in terms of provision of jute bags to prevent polypropylene contamination, improvement and upgrading of ginneries extension services/training of farmers and farmers’ empowerment. Its Director-General (DG), Dr. Hussaini Dikko Ibrahim, who made this known in Katsina State, said other imperatives for the sustainable development of the sector include patronage of made-in-Nigeria wears, and foreign exchange restrictions from Central Bank of Nigeria (CBN). The DG also said there was the need to improve the investment climate and the fiscal regime, while also removing tax on equipment and inputs as well as application of industry wide tax holiday. Others, he said, are incentives to fast track the development of the sector across the entire value chain capacity building and skills development trade strategy, export promotion and provision of input funds as obtained in Burkina Faso. As part of efforts to revive the sector, the RMRDC boss announced the release of over 20 tonnes of certified cotton seeds as well as 1.5 tonnes of foundation seeds to cotton farmers in the country for the farming season. The seeds, which were sourced from the Institute of Agricultural Research, Zaria and Dangote Ginneries, Kankara, Katsina State, were released to the farmers under the auspices of the National Cotton Association of Nigeria in Katsina State. The DG said the gesture was to further the Council’s efforts at promoting the development of improved raw materials for industrial utilisation in the country. “Concerned by the declining performance of the Cotton, Textiles and Garment (CTG) sector, the Raw Materials Research and Development Council (RMRDC) is motivated to continue boosting cotton production, so that the idle ginneries starved of seed cotton to gin can come back to operation,” he said. Ibrahim, whose speech was delivered by a director in the Council, Dr. Abimbola A. Ogunwusi, said it was disheartening to know that out of the 54 ginneries in Nigeria, only 22 were functioning, and at very low capacity. He noted that apart from provision of raw materials for use in the sector, the Council also supports Research and Development (R&D) in research institutes, mostly for the development of new and improved varieties of cotton, dyes, colourants and development of processing equipment and machinery. “Recently, the Council conducted impact assessment, which revealed that the yield of cotton cultivation is still very low. This challenge prompted the Council to collaborate with Dangote Ginneries, which has the capability for the production of certified cotton seeds that can yield up to 2700Kg per hectare,’’ Ibrahim added. He listed the challenges of the Cotton, Textile and Garment (CTG) sector to include wrong investment patterns, massive dumping/importation/smuggling of all kinds of second hand textiles, and purchase and utilisation of obsolete machinery. Others are importation of machinery, fibres, raw materials and other auxiliary requirements and zero monitoring of the industry by successive administrations. The representative of Dangote Ginning Company canvassed the need to identify and punish adulterators of cotton seed. The representative of the Institute for Agricultural Research, Ahmadu Bello University, Zaria, while commending RMRDC for being at the vanguard of cotton revitalisation, reminded the stakeholders that cotton production could only be boosted if the end users, i.e. the textile industries, were brought in place. Katsina State Agric Commissioner, represented by Alhaji Umar Nasri, assured RMRDC that the state would collaborate with relevant stakeholders for the development of the cotton value chain in the country. The Minister of State for Industry, Trade and Investment, Hajia Aisha Abubakar, said the ministry was committed to the Presidential Committee on Cotton, Textile and Garment sector towards ensuring that the textile and garment industries are in full operation. RMRDC board member Prof. Sani M. Gumel assured that the administration would ensure that closed textile firms become operational, the ginneries functioning and farmers happy because of ready competitive market for their produce. Receiving the seeds, Mr. Samuel Oloruntoba, the representative of the national president of the cotton farmers, urged farmers to judiciously make use of the seeds presented to them. He thanked the RMRDC and other stakeholders for their determination to revive the cotton sector.
Source: The Nation
Last year Dolly Rani was working as a helper at a ready-made garments factory in Jiranibazaar of Savar when the advent of a machine made her useless. “I used to cut thread,” says Rani. She worked in the finishing section, and was one of the women who stood at the assembly line snipping away the loose ends of threads from finished products for hours on end. When the management invested in thread-trimming machines, the number of people needed to do this job dropped drastically. The machine was faster—with one swipe, the hand-held vacuum-like nozzle could trim loose ends quicker than Dolly Rani’s scissors and tired hands could. When she lost her job last year, the middle-aged woman was at a loss. “I have two sons in school and my husband does not do any work. I moved to Savar 11 years ago from my village in Bogura because I was the sole earning member of the family,” she says. “I know of at least four sweater factories that laid off workers in the last few months because they got (electronic) jacquard machines to do the knitting,” says Abu Shama Aminul Islam, the organising secretary of labour rights organisation Bangladesh Garments Sramik Samhati. “Each of these machines do the work of eight labourers. One factory got rid of 50 of its workers, for example.” He adds that there is actually no real analysis of how many workers lose jobs because of infrastructural changes in the factory. Luckily, Dolly Rani recently found a job in another factory as a helper in the washing section but she had to endure her wages being cut by a third—she had spent a decade at her last job and was getting up to Tk 9,000 per month having to start from the bottom again means she only gets Tk 6,000 now. But at least she found a job. Thousands like her did not. A recent study by the Center for Policy Dialogue found that 8.5 lakh exited the industrial sector from 2013-17. The study titled “Role of Women in Bangladesh's Middle-Income Journey” explores how women are faring in the workplace. There is more. Another ongoing study by CPD found that the proportion of women doing garments work dropped from 64 percent in 2015 to 60.8 percent, due to automation of the factories. “There are two reasons why this happened,” says Professor Selim Raihan of the Department of Economics at the University of Dhaka, “one being automation, while the other is the closure of factories that did not meet international standards for doing business.” “The usual life-span of a female garments worker in a factory is between 18 years of age until her middle ages. By then if they are not skilled enough to be promoted, they shed away to take care of family while younger workers treplace them,” adds Professor Raihan. “The problem however is that new women are not entering the workplace.” He also points out that our RMG industry is dependent on producing clothes which are technologically less complex. “Clothes with variation in design or textures are usually sourced from Cambodia and Vietnam, which have now taken the place of China.” As the factories advance their technology, the cheap labour of the unskilled female garments worker becomes less and less competitive. The women wither away and out of the picture, but the factories keep running, as robust as ever. “Most women have not gone beyond eighth grade, whereas most men have done up to high school,” says Rubana Huq, Managing Director of Mohammadi Group. Huq had earlier told Business Standard that her factories removed 500 jobs following automation. “For every jacquard machines in sweater (factories), there are four jobs lost,” she adds. “Unfortunately with limited educational exposure, they can at best become supervisors. This is not a position that requires skills of a rocket scientist. So it's easy to train them and on-job training enables them to volunteer for a supervisory role and accordingly the authorities select them and promote them to their next tier.” Mohammadi Group's factories, along with others, also participate in a pre-collegiate programme at the Asian University for Women, where each year, a handful of RMG workers are helped to get back to university. Sabina Yeasmin is one such student in the programme. This former worker of Simba Textiles is now pursuing higher studies and perhaps knows best what kinds of skills training women would need to play more decisive roles. “I finished my HSC and so joined as a junior needlewoman. My job was to decide which machines need what needles, and keep stock of our inventory,” says Sabina. Because of her educational qualification she held a higher position than assembly line workers. “If women who have at least finished school are taken at entry, it becomes easier to move up the ranks. There are often women who have not even finished fifth grade,” says Sabina. What she meant is that production positions in garments factories are not dependant on education levels—but having a minimum education from the get-go would ensure that the workers can stick around as the factories themselves change. “Women are rarely promoted to become supervisors,” says Sabina, “and while educational qualifications have a lot to do with it, the demands of the job are also another reason why they never become supervisors.” “A supervisor might have to stay till 10pm at night to sign off on the production. Most women are still the primary caregivers of their families and can rarely take on that role,” she says. “Supervisors also have to ensure that unrealistic production demands are met by driving the workers to produce over their limits, so women are less likely to take, or be given, those roles.” Essentially what Sabina is saying is that whole systems need to change to make sure the growth of the RMG industry is inclusive of its women. CPD mentioned in an ongoing study that only about 0.5 percent of managers in RMG enterprises are female. On the other hand, the admission list of Bangladesh University of Textile Engineering had around 330 women only out of the total 1525 students admitted. Meanwhile, between 2013 till now the government closed down 39 factories in a national initiative to enforce safety standards in workplaces. On the other hand, the standards set by the global safety implementation bodies The Bangladesh Accord for Fire and Building Safety, and Alliance for Bangladesh Worker Safety could not be met by a total of 372 factories. What this means is that these factories can no longer do business with brands which are signatories of the Accord and Alliance. “Stringent compliance requirements have forced factories to either scale up or close,” says Rubana Huq. There is no data available on whether the factories blacklisted by Accord and Alliance have closed down or are working as informal subcontracting factories. The CPD study, however, points out that there are more people than ever in informal employment. In 2002-03, the number of people not holding registered formal jobs was at 80 percent—for 2015-2016 it was 95 percent, followed by 92 percent the next year. It seems that that this is the beginning of the end, for the unskilled women whose cheap labour had become our greatest asset. Their labour took the RMG industry to the pinnacle of success, but as the scenario becomes more complex, and the contenders more in number, how do we make sure the women are not the ones being thrown out?
Source: The Daily Star
FRANKFURT AM MAIN, Germany — The prospects for exhibitors and visitors at Techtextil 2019 are good: some twelve months before the start of the leading international trade fair for technical textiles and nonwovens (14 to 17 May 2019), the number of registrations is already significantly higher than the figure for a comparable stage in the run-up to the last show. “Every two years, Techtextil in Frankfurt becomes the focal point of all the pioneering thinkers, manufacturers and users in the field of high-tech textile products. Our trade mark is the sheer variety of textile solutions that find uses way beyond sector boundaries. The outstanding figures for registrations underscores the value that the international community places on Techtextil,” says Olaf Schmidt, Vice President Textiles and Textile Technologies at Messe Frankfurt. Currently, exhibitors from 44 different countries have opted to take part in Techtextil. Twelve countries have already registered joint / national stands: Belgium, China, Czech Republic, France, Great Britain, Italy, Portugal, South Korea, Switzerland, Taiwan, Turkey and USA. The manufacturers represent the entire spectrum of technical textiles and nonwovens. There is particularly strong representation in fields relating to fibre-based products for industry, architecture and construction, apparel, vehicles and transport, medicine, sport and hazard protection. Exhibitors already include, amongst others, AG Cilander, Freudenberg, Hyosung, Ibena Textilwerke, Kordsa, Lenzing, Olbo & Mehler Tex, Porcher, Peppermint Holding, PHP Fibres, Sandler, Sattler Pro-Tex, Schoeller, Sioen and Tenowo. Visitors will also be offered a broad product range in the field of textile machinery, where all international market leaders such as Dilo, Groz-Beckert, Huntsman, Karl Mayer, Lindauer Dornier, Monforts and Trützschler, will be present. Additionally, the joint stands organised by the professional associations ACIMIT (Italy) and the BTMA (Great Britain), will again be showcasing an extensive spectrum of technologies, processes and accessories. Held in parallel to Techtextil, Texprocess, the leading trade fair for the processing of technical textiles and apparel fabrics, will provide in-depth insights into all stages of textile processing. Texprocess, too, continues to grow and also reports outstanding registration figures. Techtextil 2017 was visited by 33,670 trade visitors from 104 countries. In addition, at least another 7,091 such visitors came across from the concurrently held Texprocess.
Changed Exhibition Centre Layout
Because of the building work being undertaken at Messe Frankfurt’s Trade Fair and Exhibition Centre, there will be a slight change to the exhibition layout of Techtextil and Texprocess. Related to this is the fact that there will, for the first time, be a shared hall that includes Techtextil exhibitors with a focus on functional apparel fabrics and exhibitors at Texprocess involved in fabric treatment and finishing. This hall will also house the ‘Digital Textile Micro Factory’, which will showcase a completely integrated and networked production line for apparel, as well as – for the first time – for technical textiles in other applications, too. In this hall, then, visitors will have an insight into the entire production process, from material to finished product. It is still possible to register for Techtextil and Texprocess.
Source: Messe Frankfurt
EU action to restrict 33 carcinogenic, mutagenic or reprotoxic (CMR) substances is a welcome move, but much work remains to protect consumers against harmful chemicals in textiles, says European consumer group Beuc. In a public statement, Beuc says it is pleased that member states have endorsed the European Commission's proposal to ban the use of the chemicals in clothing, textiles and footwear. However, Monique Goyens, the organisation's director general says that, while it is "glad that the EU is taking the bull by the horns, and that some harmful substances will disappear from the clothes we wear and the bedsheets we sleep in ... the EU missed an opportunity to protect consumers better." The statement says more needs to be done to protect consumers against other harmful chemicals in textiles, such as endocrine disruptors or allergens. It also expresses disappointment with the "limited scope" of the restriction. The Commission initially considered 286 substances, which were narrowed down to 33. In addition, Beuc says, it should have reduced thresholds further, such as for formaldehyde, "a chemical that is presumed to cause cancer". Unfortunately, says Ms Goyens, the restriction, while a good start, will still allow some toxic substances at unacceptable levels, in baby and infant clothes for instance.
EU ecolabel
In the meantime, Ms Goyens recommends consumers seek out ecolabelled products. "The best way to protect consumers is to adopt specific legislation for textiles that would address all the chemicals that may harm health. Until then, ecolabelled products remain the safest alternative for consumers – a standard that industry should put more weight behind," she says. The label, she says, already restricts the use of all chemicals that may cause cancer, change DNA, or harm reproductive health as well as some allergens and endocrine disruptors. In March, ahead of the member state vote, eight European trade associations released a joint position paper, saying that the Commission's proposal is a "sensible, pragmatic set of restrictions".The restriction will apply 24 months after publication in the EU Official Journal. This will follow its scrutiny by the European Parliament and Council. Once in force, clothing and related articles, textiles and footwear containing the listed substances – whether produced within the EU or imported - are not allowed on the EU market.
Source: Chemical Watch
LONDON, United Kingdom — At Zara’s new flagship store in London, shoppers can swipe garments along a floor-to-ceiling mirror to see a hologram-style image of what they’d look like as part of a full outfit. iPad-wielding assistants help customers order their sizes online, so they can pick them up from the store later. Automated collection points let shoppers swing by for purchases they’ve already made from home. “Customers don’t differentiate between ordering online or in a store,” spokesman Jesus Echevarria Hernandez said. “You need to facilitate that as best as you can.” The store, which opened Thursday, shows how retailers are increasingly blending online and bricks-and-mortar shopping in a bid to keep up with the might of Amazon. Inditex, the Spanish company that owns Zara, calls it an example of the technologies it will implement around the world. Online shopping has been a bright spot for Inditex, with e-commerce sales increasing 41 percent last year while overall growth slowed. The company has so far outpaced other apparel retailers, such as Hennes & Mauritz and Marks & Spencer Group, that were slower to invest in online operations and are scrambling to catch up. Amazon is moving the other way, building out its physical retail presence. Not only has it acquired grocer Whole Foods Market Inc., it has opened Amazon Go convenience stores, which use artificial intelligence and video cameras in lieu of checkouts, in several U.S. cities. Walmart, meanwhile, has installed pickup “towers,” which let shoppers retrieve online orders, in hundreds of locations.
Self-Service Checkouts
At the new, 4,500 square-meter (48,000 square-feet) Zara in London’s Stratford section, shoppers can collect orders or buy clothes without talking to anyone. Self-service checkouts on both floors let customers pay with their mobile phones or credit cards. The order collection points, which can store as many as 2,400 parcels between them at a given time, are fully automated. After the customer swipes a receipt on a sensor at the front, a robotic arm behind the scenes retrieves the appropriate box and deposits it in to a hatch for to be retrieved. Every garment is fitted with a radio-frequency identification tag. The technology lets Zara check a store’s inventory in two hours, a process that used to take about three days, Hernandez said. The location, a Westfield shopping center, still draws hordes of shoppers despite the broader malaise in the U.K. retail industry. It was chosen as a testing ground for the new technology because it was already a destination of choice for Zara’s click-and-collect customers. Online shopping accounts for 22 percent of non-food retail sales in the U.K., according to the British Retail Consortium. That shift has accelerated, meaning Zara and many other retailers are faced with a stark choice: use your stores more creatively or close them. “We still want customers to interact with our physical stores,” Hernandez said.
Source: The Business of Fashion
