The country‘s textile industry is pleased at the news that the central government would, in a fortnight, release 60 per cent of the estimated Rs 25 billion of dues under the Refund on State Levies (ROSL), held by it since the goods and services tax (GST) was implemented last year. This is major relief for the textile industry. Exporters were facing a working capital squeeze due to blockage of such a large fund under ROSL. Also, exporters were paying interest to lenders on the blocked amounts. Textile exporters would now get relief from this double blow,‖ said Ujwal Lahoti, chairman, Cotton Textile Export Promotion Council. ROSL was a major issue facing the the entire industry for long. While the government‘s intention was clear in favour of releasing the fund, actual disbursal was an issue until now. With the government‘s fresh commitment for speedy release, textile exporters would get easy refund of state taxes. This would improve their liquidity,‖ said R K Dalmia, president, Century Textile and Industries. Lahoti added: ―Some policy measures like refund of embedded taxes (also recognised by the Economic Survey for 2017-18), extending the ROSL scheme which refunds state levies like value added tax and generation of captive power, mandi tax, duty on electricity, stamp duties on export documents, etc, and to expedite the refund of pending GST and IGST claims, and ROSL of exporters need to be considered on priority basis.‖
Source: Business Standard
The Indian finance and textile ministries have refused to allow the refund of input tax credit (ITC) to the power loom weaving sector. This was conveyed recently to Synthetic and Rayon Textile Export Promotion Council (SRTEPC) chairman Narain Agarwal by finance minister Piyush Goyal and textile minister Smriti Irani in separate meetings in New Delhi. Both the ministers categorically refused to allow ITC refund to the power loom weaving sector and stated that the accumulation of ITC in other segments, including textile processing, embroidery and yarn spinning, will be released soon, according to a report in a top Indian English-language newspaper. The rebate of taxes on fuel levied by state governments, which is about 0.66 per cent, will be examined for further consideration. The government has assured that it is studying the issue regarding the increase of effective duty on imports of cheap fabric, Agarwal added. (DS)
Source:Fibre2Fashion
According to members of the delegation, the South Gujarat Textile Processors Association (SGPTA) will meet Piyush Goyal and Hasmukh Adhia on June 5The demands to be put forward includes the difficulty in procuring input tax credit refunds following the implementation of GST. A delegation of the textile processing association of Gujarat and Maharashtra has decided to make representations before Union Finance Minister Piyush Goyal and Revenue secretary Hasmukh Adhia regarding Input Tax Credit accumulated since the day GST was implemented. The powerloom and textile trading segment and textile processors approached Navsari BJP MP C R Patil to mediate the representations. According to members of the delegation, the South Gujarat Textile Processors Association (SGPTA) will meet Goyal and Adhia on June 5, where issues related to the textile processing industry will be put forward. Maharashtra Textile Processing Association president Rajiv Jalan will also attend the meeting. The demands to be put forward includes the difficulty in procuring input tax credit refunds following the implementation of GST. The industry has contended that the form for securing tax credit, ITC 4, is difficult to understand. They have requested that the form be made simpler and have a reverse credit mechanism. SGTPA president Jitu Vakhariya said, ―Our input tax benefit has been pending since day one and it has accumulated into estimated hundreds of crores of rupees. The processing industry is facing cash crunch and if such amount is released then it would benefit the industry.‖
Source: The Indian Express
Sources said the countries that are part of the India-MERCOSUR PTA have been in discussions to increase the tariff lines in order to boost the trade volumes. India has asked the MERCOSUR countries to fast-track negotiations for the expansion of the India-MERCOSUR Preferential Trade Agreement (PTA), which is in line with Prime Minister Narendra Modi‘s strategy of expanding India‘s trade basket. Sources said the countries that are part of the India-MERCOSUR PTA have been in discussions to increase the tariff lines in order to boost the trade volumes. The expansion of the agreement will enhance trade relations between the countries involved, and the trade volume target is set at $30 billion in 2030. Talking to FE on condition of anonymity, a senior officer said: ―The commerce and industry minister Suresh Prabhu who is keen about expanding trade ties with the countries in the region has reached out personally to some of the leaders of the group requesting them to fast track the expansion talks.‖ Currently, Paraguay is holding the presidency of the MERCOSUR grouping. ―Both sides have agreed that there is an urgent need to significantly increase the number of tariff lines in the existing India-MERCOSUR PTA so that the agreement could cover a sizeable proportion of bilateral trade. However, due to differences amongst the members of the groupings, the expansion of the India-MERCOSUR PTA is getting delayed,‖ a senior officer said. Last year, as reported by FE, during a meeting in New Delhi, a list of 484 tariff lines was handed over to Brazil which was holding the presidency of the grouping at the time. They had offered the same number of lines to India. India is keen on fast tracking the process on the expansion of the PTA and negotiations on Margin of Preference (MoP) on the tariff lines to be offered by each side. All South American countries are linked to MERCOSUR (Brazil, Argentina, Paraguay and Uruguay), either as member state or associate member. Chile, Peru, Colombia, and Ecuador are associate members of MERCOSUR, in addition to Guyana and Suriname that acquired this status in July 2013. Both sides have already exchanged lists of items where each side is seeking greater market — India has exchanged a wish list of 4,836 tariff lines mentioning 8-digit HS codes with MERCOSUR in July 2016 and the MERCOSUR grouping has exchanged their wish list of 3,358 tariff lines.
Source: The Financial Express
NEW DELHI: As many as 16 projects, including setting up of a cold chain in Madhya Pradesh, were approved under by a commerce ministry scheme to develop infrastructure for promoting exports, a senior official said. Last year, the commerce ministry launched the Trade Infrastructure for Export Scheme (TIES) to create appropriate infrastructure for development and growth of exports through engagement of central or state agencies. Of the total scheme outlay of Rs 600 crore, Rs 80 crore was provided in 2017-18 and the same amount will be provided during the current fiscal also, the ministry official said. The scheme has been launched for three years to 2020. The approved projects include setting up of an integrated cargo terminal at Imphal international airport; establishment of trade promotion centre in Bhopal; solid waste management system at Noida SEZ; and construction of office cum laboratory complex of export inspection agency at Vishakhapatnam. The implementing agencies of these projects include Karnataka Fisheries Development Corporation Ltd; Visvesvaraya Trade Promotion Centre, Bengaluru; Cochin SEZ; Airport Authority of India, Coffee Board, Exports Inspection Council and Andhra Pradesh Med Tech Zone (AMTZ). Unlike Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme, which was funded by the Centre, the cost of projects under TIES are equally shared between the Centre and the states. The central and state agencies, including Export Promotion Councils, Commodities Boards, SEZ authorities and apex trade bodies are eligible for financial support under the scheme. The Central government funding will be in the form of grant-in-aid, normally not more than the equity being put in by the implementing agency or 50 per cent of the total equity in the project. The proposals of the implementing agencies for funding is being considered by an empowered committee, chaired by the commerce secretary. The scheme helps involve states in promoting export activities in the country. The commerce ministry is taking several steps to promote the country's The commerce ministry is taking several steps to promote the country's exports including improving export related infrastructure. In 2017-18, exports recorded a growth of about 10 per cent to USD 303 billion. Higher growth in outbound shipments helps create employment opportunities, earn foreign exchange and boost economic activities.
Source: Economic Times
New Delhi : India Ratings and Research has estimated that the combination of boiling crude and weak rupee may widen the current account deficit (CAD) by up to $31.20 billion. Similarly, a research report by YES Bank estimated CAD to go up to 2.6 per cent of GDP (gross domestic product). Interestingly, both the reports have different estimate of average oil prices. India Ratings’ estimate is $70 but YES Bank’s estimate is $75. Accordingly, Indian basket of International crude prices could be in the range of $68 to $73. According to India Ratings, “If crude prices remain elevated during FY19 (2018-19), it will result in the widening of trade deficit/current account deficit by $22.23 billion to $31.20 billion. In Ind-Ra’s base case scenario, Brent crude averaging $70/bbl in FY19 will translate into Indian crude oil basket averaging $68.00/bbl. If the rupee averages 66.6/USD in FY19, net addition to current account deficit would be $22.23 billion. However, if the Indian crude oil basket averages $72.86/bbl (this means Brent crude averaging $75/bbl) and rupee averages 68.0/USD, net addition to current account deficit would be $31.20 billion.” If India Ratings’ estimate came out true, then CAD for current fiscal is estimated to between $62-$71 billion. YES Bank, in its report, expects crude oil prices to average at $75/barrel in FY19. This is higher than the previous estimate of $65/barrel on the back of tighter supply conditions. Along-with weaker rupee, this is expected to take the current account deficit to 2.6 per cent of GDP as against the previous estimate of 1.9 per cent of GDP. CAD is excess of country's imports of goods and services over its exports. These reports have come at a time when crude prices have started coming down. After touching $80 a barrel, Brent crude dipped to $75.30 and is now hovering between $76 and $77. There is no clear cut opinion on prices to move in which direction, but it is believed that any significant geo-political development might push the prices up.
Who can provide relief to consumers?
Now, the big question is there any room available for reduction in retail prices of petrol and diesel. India Ratings says that states have more headroom to provide relief on domestic oil prices. The value-added tax imposed by the states is on ad valorem basis. Therefore, with a rise in oil prices, state governments garner higher revenue from the sale of same quantity of oil as opposed to the Central Government whose excise duty is fixed in terms of INR/litre. “A surge in crude oil prices, therefore, gives the state governments more headroom to rationalise the tax rate without compromising much on their fiscal arithmetic,” it said. Elaborating with an example of retail sales price of petrol in Delhi, India Ratings said that the central excise was Rs 21.50 and VAT was Rs 12.70 on April 1, 2016. Exactly a year later, there was no change in excise duty; still VAT went up to Rs 14.10 paise on account of higher crude prices. Similarly, on May 31, excise duty came down to Rs 19.50, but VAT again went up and touched Rs 16.70 again on account of higher crude prices. It means states have additional earning, over and above budget estimate, of Rs 2.57 per litre on petrol. This, as India Ratings believes, can be passed on to the consumer easily.
Source: Business Line
The Indian rupee extended its rally against the US dollar for the second consecutive week but turned volatile ahead of the Reserve Bank of India’s monetary policy meeting this week. Though the currency was threatening to fall below 68 in the initial part of the week, the pressure was short-lived. It made a low of 67.99 but reversed sharply higher from there and continued to trade strong for the rest of the week. The currency surged to a high of 66.85 on Monday, but failed to sustain those levels and closed at 67.11, up 0.5 per cent for the week. Volatility is guaranteed in the coming week as the much-awaited RBI’s monetary policy decision is due on Wednesday. The wide expectation in the market is that the RBI would keep the rates unchanged and wait to see the progress of the monsoon for further action in August. However, there are expectations in the market that the RBI might increase rates by 25 basis points this week. As such, the outcome of the RBI meeting will be key in setting the direction of move for the rupee.
FPI sell-off eases
Foreign portfolio investors (FPIs) remained net sellers of Indian debt for the seventh consecutive week. However, their pace of selling came down last week, which may give some breather for the rupee. FPIs sold $93.6 million in the debt segment last week. However, for the month of May, FPIs offloaded $2.9-billion worth Indian debt, the highest monthly outflow in this segment since November 2016. If the FPIs resume their selling spree in the coming weeks, it could halt the current upmove in the rupee and bring back the pressure on the currency.
Dollar reverses
The strong rally in the dollar index, which was in place since mid-April, halted last week. The index tested 95 levels and has reversed sharply lower in the past week. It is currently trading at 93.80. A key support is present near current levels at 93.60. If the index manages to sustain above this support, a range-bound move between 93.6 and 95 is possible for some time. But a break below 93.6 will increase the likelihood of the index falling further towards 92.8. Such a fall in the dollar index may help the rupee retain its strength.
Rupee outlook
The sudden and sharp pull-back move on Monday from the high of 66.85 is significant. The subsequent strong close below 67 indicates lack of fresh buyers to take the rupee decisively above 67. The price action in the coming days will need a close watch to decide whether it signals the end of the current upmove in the rupee. If the currency remains below 67, it will confirm that the corrective rally has ended. The level of 67.25 is a key support. A break below it can take the rupee lower to 67.6 in the short term. It will also keep the possibility high of the rupee falling again below 68 in the coming weeks. Key resistances for the currency are at 67 and 66.85. The rupee will gain strength only if it breaks above 66.85. Such a break can take the currency higher to 66.45 thereafter.
Source Business Line
New York – China may be up in the air, but some U.S. textiles exports are now facing retaliatory tariffs from Canada and the European Union. Last week, President Donald Trump announced that he was removing the exemptions from additional tariffs on steel and aluminum from EU member countries, Canada and Mexico. HFPA counsel Robert Leo reminded home textiles members in a June 1 letter that the EU has threatened additional tariffs on U.S. products including cotton bedlinen, various fabrics, cotton blankets and traveling rugs, and down or feather-filled bedding. Canada has also issued a list of threatened retaliatory tariffs on U.S. exports to go into effect on July 1, added Leo, a principal at Meeks, Sheppard, Leo & Pillsbury. That list includes the follow home textiles items (with Canadian HS numbers):
Regarding potential U.S. tariff s on Chinese imports, Leo noted: ―Textiles and textile products were not on the earlier list, and there is no indication that they will be on this ‗final‘ list. However, there have been plenty of surprises, so stay tuned.‖
The U.S. government is scheduled to publish its list on Chinese imports that will be subject to tariffs on June 15. Mexico announced it will also issue a list that includes several agricultural, steel and aluminum products, although there has been no mention of textile or home fashion products, wrote Leo. Canada is also proposing to respond to the Trump administration‘s imposition of tariffs on Canadian products by targeting U.S. mattresses sent to Canada, according to a report from HTT sister publication Furniture Today. In an alert, the International Sleep Products Assn. told its members Canada plans to retaliate by imposing its own countermeasures against imports of selected U.S. products equal to the value of Canadian goods affected by the U.S. tariffs. Included on the list of proposed retaliatory actions that Canada released is a 10% surtax on imports of U.S.-manufactured mattresses. We also have not seen mattresses mentioned in press reports concerning Mexico's planned response to the U.S. action,‖ it added.
Source: Home Textiles Today
NEW DELHI — Commerce and Industry Minister Suresh Prabhu attended anInformal Gathering of World Trade Organisation (WTO) Ministers in Paris on 31 May 2018.Twenty-Eight (28) member countries of the WTO and the Director General of the WTO attended the informal meeting. In his intervention the Minister observed that there were already a number of Ministerial mandates to guide work at the WTO andnegotiators have been working for years on many issues. He said that work should be resumed based on existing mandates Declarations and decisions expressing the belief that it would be counterproductive and harmful to the system to ignore the Ministerial mandates and all the work done so far and re-set the negotiations. He emphasised that political engagement in the process was critical for moving forward and drew attention to the informal gathering hosted in New Delhi in March this year. He mentioned that almost all the WTO is facing at present. This would mean maintaining and strengthening the basic principles of inclusiveness decision-making based on consensus and the centrality of development in the negotiations and processes. Stating that trade must contribute to development he said that governments in India and many other developing countries have to accord priority to addressing the challenges in the journey towards greater trade liberalisation and global integration. He cautioned that any endeavour at the WTO for reciprocal trade rules which ignored this reality would further deepen the divide and aggravate the disenchantment with globalisation. He said that special and differential treatment provisions for all developing countries without exception and LDCs are an integral part of the WTO Agreement and this principle must be protected in future agreements as well. Observing that the dispute settlement arm of the WTO was participants at the New Delhi meeting were of the view that greater engagement was the only way forward. The Minister cautioned that while some countries viewed plurilateral discussions as a stepping stone to multilateral agreements such initiatives could on the contrary weaken the multilateral trading system and undermine the inclusive institutional structure of the WTO. Suresh Prabhu pointed out that there is a Work Programme for E-commerce which provides a forum for discussion within the WTO. He said that India has been actively engaging in this even though it is premature to discuss binding multilateral rules for E-commerce. Observing that the WTO already has a full agenda he said that India has reservations about the introduction of new issues such as Investment Facilitation in the WTO lest fundamental issues in agriculture and development get neglected. Mr. Prabhu stressed the need to work together quickly to address the challenges which the the central pillar in providing security and predictability to the system he urged members to commence the selection process to fill the vacancies in the Appellate Body. On the recent cycle of unilateral trade measures and proposed counter measures the Minster said that actions and counter actions such as this could stop the fragile global economic recovery in its tracks with consequences for jobs GDP growth and development that would harm everyone and could also irrevocably damage the rules-based multilateral system built up with hard work over many years. Instead of using such actions to deal with any inadequacy or unfairness in the WTO provisions the best course of action would be deal with such issues within the WTO he said. In conclusion Suresh Prabhu expressed the view thatsuch informal engagementat the political level could go a long way in deepening a mutual understanding of issues and concerns and finding ways of moving forward.
Source: Tecoya Trend
GST, CBIC, supplier location, bank account The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the Goods and Services Tax (GST), the government clarified on Sunday. The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the Goods and Services Tax (GST), the government clarified on Sunday. In a 32-page frequently asked questions (FAQs) list on financial services sector issued by the central board of indirect taxes and customs (CBIC), it also said that free services provided to customers are not liable to GST, in what could give relief to banks, which had received notices asking why service tax was not levied on certain free services like up to a threshold number of ATM withdrawals, credit card facilities, among others, on the basis of account balances maintained. It has been clarified that free services provided to customers are not liable to GST, which has recently been subjected to a huge litigation under service tax regime, Pratik Jain, partner & leader, indirect tax, PwC, said. He added that similar detailed clarifications by other sectoral committees under GST would be welcome. Globally, financial services sector is considered as most complex from GST standpoint. The government also said that any additional interest charged for default in payment of installment in respect of any supply, which is subject to GST, would be included in the value of such supply and therefore would be liable to GST. This would also be applicable to delayed payment of credit card dues as the exemption from levy of GST on interest specifically excludes interest charged on outstanding credit card balances. “The services of loans, advances or deposits are exempt in so far as the consideration is represented by way of interest or discount. Any charges or amounts collected over and above the interest or discount would represent taxable consideration and hence liable to GST,” the CBIC said. Another controversial issue of GST liability on transactions related to securitisation, derivatives, future and forward contracts has been clarified to be exempt from GST. Only service charges or brokerage would be subject to GST. “Further, if some service charges, service fees, documentation fees, broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST,” the government said. However, on future contracts, the government qualified the exemption saying that if the future contracts have a delivery option and the settlement of contract takes place by way of actual delivery of underlying commodity/ currency then such forward contracts would be treated as normal supply of goods and liable to GST.
Source: Financial Express
Bishnupur, June 04 2018: Certificate Distribution Ceremony for the 80 hours Up-skilling training on Two Shaft Handloom Weaver under National Backward Classes Finance & Development Corporation (NBCFDC) Skill Development Training Programme for the year 2017-18 in collaboration with Textile Sector Skill Council (TSC) was held on 31st May, 2018 at Nachou Bazar Community Hall, Bishnupur. Under this scheme, Chanu Creations, Thangmeiband has provided skill development training to 100 OBC Candidates (weavers) in Bishnupur District at two centres (50 beneficiaries each centres) in Bishnupur Awang Leikai and Nachou Awang Leikai, training started from 4th December, 2017 to 17th December, 2017.After completion of the training, Chanu Creations has made ordered of Home Furnishings Items to ex trainees of these centres. Govindas Konthoujam, Hon'ble MLA Bishnupur A.C., Smt. Chirom Indira, Proprietor/CEO Chanu Creations (National Awardee 2015 in Design Development of Handloom Products, Nari Shakti Puraskar Awardee 2017, Vasundhara Hall of Fame Awardee 2018 & DMA All India Women Entrepreneurs Awardee 2018 in Super Achiever Category), Shri Nongmaithem Jadu Singh, Pradhan Nachou Gram Panchayat, Shri Chirom Sanjoy Singh, Director Chanu Creations and Shri Wahengbam Joyshankar Luwang, Project Manager Chanu Creations were grace the function as Chief Guest, President and Guest of Honours respectively. At the end of the function, Proprietor/CEO Chanu Creations Smt. Chirom Indira has issued cheques to head of each centres for their finished products. Chanu Creations has trained to more than 300 Scheduled Casts Candidates in Tripura & Assam under National Scheduled Castes Finance & Development Corporation (NSFDC) Skill Development Training Programme for the year 2017-18 in collaboration with Textile Sector Skill Council (TSC) . Chanu Creations also has trained to more than 8000 weavers in Manipur & Tripura under Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) as RPL Facilitator made by Textile Sector Skill Council (TSC) in the year 2016-17 . At present (2017-18), Chanu Creations is providing RPL-PMKVY to entire North Eastern States of India including Sikkim as PIA. The efforts of Chanu Creations and her dedication brings smile to thousand of weaver in the region.
Source: E-Pao
Grasim Industries Limited, a flagship company of USD 43 billion Aditya Birla Group has earned a Gold level Material Health Certificate from the Cradle to Cradle Products Innovation Institute for their product Birla Spunshades Viscose Staple Fibre. Grasim Industries assessed Birla Spunshades VSF against the criteria of the Material Health category in the Cradle to Cradle Certified™ Product Standard. Based on the superior results it has earned a Gold level Material Health Certificate from the Cradle to Cradle Products Innovation Institute. Headquartered in San Francisco, California USA, the Institute is a non-profit organization that administers the publicly available Cradle to Cradle Certified™ Product Standard which provides designers and manufacturers with criteria and requirements for continually improving what products are made of and how they are made. To achieve certification, materials and products must be assessed across five sustainability categories: material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness. A product receives an achievement level in each category — Basic, Bronze, Silver, Gold, or Platinum. The certificate is valid for 2 years, after which manufacturers must demonstrate their work to further better their products for recertification. Mr. Dilip Gaur, Managing Director, Grasim Industries said, ―We are the first VSF manufacturer to get this certification, a truly great achievement by the Grasim team. This is yet another milestone in our sustainability journey. It reaffirms that sustainability is at the core of our business strategy. At Grasim, continuously striving for manufacturing excellence and focussing on sustainable production is a never ending journey. Having been certified Gold our aspirations is to reach for Platinum‖Mr. Rajeev Gopal, Chief Marketing Officer, Pulp and Fibre Business, Grasim Industries remarked ―Material Health Certificate for Birla Spunshades from Cradle to Cradle Products Innovation Institute will enhance the goodwill that our brand enjoys among our customers.‖ "This certification confirms that viscose fibre is made for closed-loop systems with its natural origin & will enhance the confidence of the value chain players in delivering sustainable products," said Mr. Ajay Sardana, Chief Sustainability Officer of Grasim Industries. Birla Spunshades, a USDA Biobased certified product, is made with coloured spun-dyed viscose fiber and a technique that embeds the colour pigments into the fibre itself. The result is a colour that fully saturates the fibre. Fibres are designed for fastness properties and uniformity in colour in order to prevent garments from losing colour during washes. Spun-dyed viscose fibres are designed to eliminate conventional fabric dyeing and washing-off steps leading to huge water conservation. The Certificate can be accessed here. The Material Health Certificate issued by the Cradle to Cradle Products Innovation Institute uses the material health assessment methodology of the Cradle to Cradle Certified™ Product Standard to provide manufacturers with a trusted way to communicate their work towards chemically optimized products. To achieve a Material Health Certificate, a product must meet the same requirements at each level of the Material Health section of the Cradle to Cradle Certified™ Product Standard, plus a continuous improvement/optimization requirement. The Cradle to Cradle standard assesses product safety in context of people and the environment, as well as product design for material reuse. Based on the Cradle to Cradle ‗industrial design philosophy‘, its purpose is to eliminate waste and to encourage products to be developed for closed-loop systems.
Source: Tecoya Trend
AHMEDABAD: Soon, satellites launched by the Indian Space Research Organization (Isro) will be significantly lighter, as several metal parts will soon be replaced by composite textiles, manufactured by the Ahmedabad Textile Industry Research Association (ATIRA). Union minister of textiles, Smriti Irani, on Monday, inaugurated the Vacuum Assisted Resin Infusion Centre (VARIC), which will manufacture these spacecraft parts using carbon composites. R M Sankar, assistant director of ATIRA, said, ―VARIC has been established with a Union government grant of Rs 25 crore, to manufacture carbon composites. Carbon fabric is infused with polymer resin, to give high durability. These composites are light, have high heat resistance and durability and are suitable for space applications.‖ According to experts at ATIRA, replacing metal parts of satellites with composites will bring down weight significantly. This in turn helps cut launch costs. ―A satellite cost roughly Rs 500 crore. Of this, 80% is the cost of electronic components while 20% is structural expenses. We can help reduce the latter. Reducing every kilogram of satellite weight brings down the launch costs by Rs 10-15 lakh per unit,‖ said Dr T Gangopadhyay, deputy director (composites) at ATIRA. Irani said, ―ATIRA has been instrumental in furthering the Union ministry of textiles‘ vision to improving fabrics to create a better finished product and make India a global hub of technical textiles. Scientists at ATIRA have so far designed parts such as reflectors, the outer cover of the satellite, feed horn and camera structure. This has already been done for GSAT-VI, X and XI and Chandrayaan, said Sankar. Currently, Isro had provided a list of 26 satellite parts that can be made using carbon composites. We‘re exploring possibilities on how many are feasible,‖ he added. Irani also inaugurated the Materials and Product Innovation Centre (MAPIC), which has been established after a memorandum of understanding was inked between the National Institute of Design (NID) and ATIRA, to encourage collaborative multi-disciplinary R&D work at the national level.
Source: Times News Network
Competition laws should definitely be concerned where products or services are priced below their variable costs. Like particles behave unpredictably under zero gravity in physics in economics what works well in a closed economy may not work that effectively in an open economy and vice versa. The current controls over monopolies, anticompetitive practices, abuse of dominant positions and mergers exercised by the Competition Commission of India (CCI) seem inappropriate for an open economy. Somehow, from the days of Joan Robinson, whose work on imperfect competition is the basis of such market interventions, lesser prices are taken to mean better consumer welfare in our socialistic mindset. Indian telecom market, which has expanded solely based on cheap and cheaper prices, is an example of how non-remunerative prices can destroy consumer welfare and lead to shoddy services—you cannot even say ‗I love you‘ to your beloved on cellphones these days without 3-4 call drops in between! As it stands today, India is a considerably more open economy‘ and particularly more so since ASEAN FTA, trade agreements with South Korea and Japan from where virtually most goods are available at zero duty at cheaper import parity prices, and from China despite duties. Most manufactured goods can be freely imported—so how can anyone (or in collusion) control or manipulate prices and fix them beyond import parity prices? Conversely, if the Indian prices are lower despite nil-duty imports, it only signifies domestic industry being competitive—so what‘s the grouse anyway? Indian firms would be exporting in such cases. In an open economy, the comparative competitive landscape is not just Indian firms, but includes other relevant supplying regions, say China, ASEAN, Japan, Korea and some others, over which CCI has no control. Controlling only the domestic subset leads to loss of competitiveness. Bangladesh and Vietnam have taken a huge part of our share in textile trade (the prime reason for a bleak domestic employment scenario is textiles, potentially our largest employer) due to scale economies: average firm sizes in Bangladesh and Vietnam are 10-20 times that of India‘s. In some cases, a single machine or unit in China manufactures what the entire Indian industry manufactures or consumes. Scale is an essential component of efficiency and competitiveness and restrictions on them are self-destructive. Indian regulators have often gotten into the morals of pricing—the very antithesis of free markets. Indian agricultural produce markets are the most ‗perfect‘ competitive—many tiny producer-sellers and many individuals buying: the ideal of any Robinsonian economist. Yet from time to time, tomato and onion prices fluctuate like an ECG graph whose needle has come unhinged—much more violently than tractor prices, airline prices, white goods and electricals. Should CCI get into controlling onion and tomato prices and underlying market practices? These have more impact on the daily lives of more people on the brink than many manufactured goods. Does collusion work in India? Price is the main driver for most consumer decisions. It‘s not unusual to find a Mercedes buyer bargain for a free key chain. In markets where demand curves have high elasticity, there is limited scope of manipulating prices by firms: small hikes in prices will drive away lots of customers to alternative products. Competition legislations are relevant more for elastic demands. Collusive price hikes would lead to reduction in sales in price-sensitive markets. But who would volunteer to take these cuts, like Saudi Arabia does for OPEC? If demand is weak, most players would want to jostle with others and gain market share. If demand is inelastic and hefty price increases are possible with small cuts in production (few such examples in India: can washing machine manufacturers cut production by, say, 5% and achieve 25% price jumps?), will any player cut his volume and watch others make money at his expense? Preposterous. As economist William Baumol concluded over half a century ago, firms are more guided by sales maximisation and other such proxies than profit maximising in their behaviour. Collusion requires cooperation. Where sly and open evasion of every rule or tax laws are the norm, gentlemen agreements or voluntary self-controls in India are unthinkable. We are terribly competitive in our behaviour: otherwise you won‘t see such uncouth queue-jumping or impatient driving or ‗one for each day in year‘ number of national-level political parties. Giving up for greater good is just not in our bloodstream.
The right focus
Why be concerned with B2B transactions when both parties are informed, experienced and likely to behave rationally and not psychologically pressurised? Far more collusive behaviour is witnessed in B2C transactions, say, between a doctor (prescribing tests upon irrelevant tests, refusing an operation unless you pass the ‗show me the money‘ tests), drug firms and diagnostic labs, or between lawyers, a legal system completely under their thumb, and hapless clients. To focus on such B2C transactions would be far more welfare additive. CCI should focus more on beefing up enforcement and delivery of consumer protection laws. Competition laws should definitely be concerned where products or services are priced below their variable costs. A society not paying variable costs is wasting resources. Such cases in telecom, power and petroleum pose huge systemic risks to the financial system. In any case, why would an Ola or Uber recover less than variable costs unless it is to drive away competition and start exploiting when others have folded up. Such practices are a matter of larger concern, but don‘t seem to merit the attention of our CCI. Competition laws should not be concerned with products that can be imported at zero duties or are being imported in large quantities despite duties or products of discretionary expenditure. Why be concerned with scale or prices of consumer electronics, white goods or cars, except to ensure that contractual obligations are adhered to and people are not ‗cheated‘? Let the consumer choose to stay away. Competition laws should kick in only when firms reach one-half of ASEAN‘s biggest capacity. It can be applicable for lifesaving drugs or non-discretionary products. Others can be followed up based on surveillance or based on grievance from end-users. There are several areas where there are no market structures or performance of existing ones is poor. The commission should work out structures in those areas (for example, market structures for electronic waste, scrapped automobiles, vehicle parking, rural finance and insurance, public distribution system, etc). CCI, in our open economy context, seems more a status symbol pining to belong to economic fashion street. If Make-in-India refuses to get up, sub-scale will be one key reason and legislations like CCI will have a lot to answer for. India badly needs to consolidate and scale up for cost competitiveness.
Source: The Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1378.48 |
USD/Ton |
0.23% |
6/4/2018 |
|
VSF |
2266.31 |
USD/Ton |
0% |
6/4/2018 |
|
ASF |
3068.47 |
USD/Ton |
0% |
6/4/2018 |
|
Polyester POY |
1382.37 |
USD/Ton |
2.01% |
6/4/2018 |
|
Nylon FDY |
3520.18 |
USD/Ton |
0% |
6/4/2018 |
|
40D Spandex |
5529.48 |
USD/Ton |
0% |
6/4/2018 |
|
Nylon POY |
3675.94 |
USD/Ton |
0.43% |
6/4/2018 |
|
Acrylic Top 3D |
5887.73 |
USD/Ton |
0% |
6/4/2018 |
|
Polyester FDY |
1666.63 |
USD/Ton |
0% |
6/4/2018 |
|
Nylon DTY |
3208.66 |
USD/Ton |
0.49% |
6/4/2018 |
|
Viscose Long Filament |
3193.08 |
USD/Ton |
0% |
6/4/2018 |
|
Polyester DTY |
1643.27 |
USD/Ton |
0% |
6/4/2018 |
|
30S Spun Rayon Yarn |
3013.96 |
USD/Ton |
0.78% |
6/4/2018 |
|
32S Polyester Yarn |
2242.94 |
USD/Ton |
-0.14% |
6/4/2018 |
|
45S T/C Yarn |
3068.47 |
USD/Ton |
0.51% |
6/4/2018 |
|
40S Rayon Yarn |
2336.40 |
USD/Ton |
0% |
6/4/2018 |
|
T/R Yarn 65/35 32S |
2601.19 |
USD/Ton |
0.60% |
6/4/2018 |
|
45S Polyester Yarn |
3177.50 |
USD/Ton |
0.99% |
6/4/2018 |
|
T/C Yarn 65/35 32S |
2663.50 |
USD/Ton |
0% |
6/4/2018 |
|
10S Denim Fabric |
1.46 |
USD/Meter |
0.11% |
6/4/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0.17% |
6/4/2018 |
|
40S Combed Poplin |
1.25 |
USD/Meter |
0.12% |
6/4/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
6/4/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
6/4/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15576 USD dtd. 4/6/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
New Delhi : To get around the sanctions imposed on Iran by the US last month, India and the Islamic Republic are discussing a possible re-activation of the rupee-rial payment mechanism established six years ago to deal with the Western sanctions that were subsequently lifted in 2015. Iranian Foreign Minister Javad Zarif and his team, including Deputy Minister of Industry, Mine & Trade Mojtaba Khosrowtaj, who were in New Delhi last week, met senior officials in the Commerce Ministry, where the two sides discussed ways to increase bilateral trade and weighed the advantages of reviving the near-dormant rupee-rial payment mechanism operated through India’s UCO Bank, a government official told BusinessLine. “Iran seems to be open to the idea of reviving the UCO Bank account by pouring more money into it, but the important thing to be agreed upon is whether Iran would want to pool all the oil money into the account or a portion of it. These are the nitti-gritties that need to be ironed out,” the official said. Under the barter-like arrangement made in 2012, following the nuclear sanctions against Iran by a number of Western economies including the US, UK, France and Germany, about 45 per cent of the oil payments to Tehran was made in rupees through UCO Bank. The rupee received by Iran in its account in the UCO Bank was used by the country to make payments for imports of various products from India. “It encouraged India’s exporters to explore the Iranian market more thoroughly and find buyer for a diverse category of products as Iran was interested in buying more to use up its rupee balance,” the official explained. Since Iran agreed to a landmark nuclear deal with six world powers to limit its sensitive nuclear activities in 2015 and the sanctions were subsequently lifted in 2016, the amount in the rupee-rial account dwindled to lower than $300 million. However, with Trump abandoning the nuclear deal on May 8 this year on the grounds that it wanted more commitments from Iran, the US sanctions are back on Iran.
India’s stance
Minister for External Affairs, Sushma Swaraj, last week made it clear that India had no intentions of following the sanctions imposed on Iran by the US by stating that the country only followed sanctions imposed by the UN. Swaraj also met Zarif during his visit where the two discussed the possible impact of the US abandoning the nuclear deal. “Under the given circumstances, it would be of interest to both Iran and India to revive the rupee payment account. While Iran will not lose out on its market for oil if things get worse, India could benefit from an increase in exports to Iran,” the official said. A final decision on the matter, however, has to be taken at the highest level, he added. Iran is India’s third largest supplier of oil. India’s export to Iran in 2017-18 was at $3.37 billion while its imports were at $11.11 billion.
Source: Business Line
US President Donald Trump is headed for a showdown with America’s allies at a Group of Seven (G-7) summit this week in Quebec, as the European Union (EU) and Canada have threatened retaliatory measures unless he reverses course on new steel and aluminum levies. China, while open to talks to resolve the dispute, is warning it will withdraw commitments it made on trade if the president carries out a separate threat to impose tariffs on the Asian country. While China doesn’t want an escalation in trade tensions, it will defend its core interests, according to a commentary published Monday by the state-run Economic Daily. Trump changes his mind often enough that US allies and rivals alike hope he’ll do just that on tariffs in the next few days. An all-out trade war may become unavoidable if he doesn’t. “We still have a few days to avoid an escalation. We still have a few days to take the necessary steps to avoid a trade war between the EU and the US,” French Finance Minister Bruno Le Maire said after a meeting of G-7 finance ministers and central bank governors in Whistler, British Columbia. The White House appeared unfazed by threats from allies. Top economic adviser Larry Kudlow said Canadian Prime Minister Justin Trudeau was “overreacting” in response to the tariffs, and said the blame for any escalation lies with the US’ trading partners. He said Trump was simply responding to decades of trade abuse. “Don’t blame Trump,” Kudlow said on Fox News Sunday. “Blame China, blame Europe, blame NAFTA, blame those who don’t want reciprocal trading, tariff rates and protectionism.” Investors in Asia appeared little rattled by the talk of war, with stock markets in Japan, China, Australia and South Korea all up in trading on Monday. The metal tariffs imposed on the EU and Canada are the latest escalation by the US on the trade front that has roiled financial markets for months and prompted the International Monetary Fund to warn of a trade war that could undermine the broadest global upswing in years.
Unanimous condemnation
Finance chiefs from the group of wealthy nations emerged from three days of talks on Saturday “unanimous” in their condemnation of Trump’s decision to impose tariffs on steel and aluminum, promising to press ahead with retaliatory measures unless Trump steps back. It was a rare rebuke of a member nation by the group that foreshadows high drama when Trump meets leaders of the other six major industrialised nations Friday at a summit in the Quebec resort town of Charlevoix, near the border with Maine.
Stupid trade
Trump, for his part, spent time during his weekend retreat at Camp David tweeting that “stupid trade” could “no longer be tolerated. The president said the tariffs being charged against other countries would help to fund the US government, and repeated his refrain that the U.S. could not lose a trade war in a international climate where the rules were already stacked against American business. He specifically noted the size of the trade deficit with China as he defended his moves. “The US has been ripped off by other countries for years on Trade, time to get smart!” Trump tweeted on Saturday. While both the US and China reported some progress in discussions this weekend about how to reduce China’s $375 billion goods-trade surplus with the US, Trump’s revival last week of a plan to slap tariffs on $50 billion of Chinese imports has cast the talks into turmoil. “If the US rolls out trade measures including tariffs, all the agreements reached in the negotiations won’t take effect,” state-run Xinhua News Agency reported Sunday, citing a statement from the Chinese team that met with a US delegation led by Commerce Secretary Wilbur Ross. France’s Le Maire opened the door to negotiations over U.S. tariffs, but said the ball is in Trump’s court. “We want to avoid a trade war,” he said. “But everything is ready.” The warning came after an acrimonious three days of talks — with US Treasury Secretary Steven Mnuchin on the receiving end of much of the frustration — in which America’s allies protested against Trump’s decision to impose tariffs on steel and aluminum from the EU, Canada and Mexico.
Undermines confidence
The trade dispute triggered one of the biggest crises in the G-7 since the group’s formation by Canada, France, Italy, Germany, the UK, Japan and the US. In a rare rebuke of a member nation, G-7 finance chiefs said the US duties could “undermine open trade and confidence in the global economy.”
Tense G-7
“It has been a tense and tough G-7. I would say it has been far more a G-6 plus one than a G-7,” said Le Maire. The EU has threatened to retaliate with duties on everything from American motorcycles to bourbon. Canada and Mexico have also promised to levy their own tariffs on US goods. Before last week’s trade actions by the US, the EU and Canada had been granted temporary exemptions. Japan had already been subject to the tariffs, which the US said were necessary to protect its national security. At his closing press conference, Mnuchin said that he’s already conveyed the G-7 message to Trump, who he said “has been very clear in wanting to address trade issues.” Mnuchin rejected the notion the US is abandoning its traditional leadership role in the world economy, noting that America is driving global growth. While acknowledging the US tariffs are causing friction, he said the members of the group agree on many other issues.
Feel sorry
“Our objective is to make sure we have fair and balanced trade,” Mnuchin said in the Canadian ski resort town. “There was a comment out there that it was the G-6 plus one. It was not. It’s the G-7. We believe in the G-7.” Mnuchin faced so much criticism from his counterparts that Japanese Finance Minister Taro Aso said he almost “felt sorry” for the US finance chief. “He’s not directly in charge of the metal tariffs, so in that sense it was very tough for him,” Aso told reporters. “I felt sorry for him, but I guess it’s not the sort of issue I should sympathise with.”
Source: Business Standard
SYDNEY: The International Air Transport Association (IATA) today castigated India for taxing international tickets, as it asked governments to facilitate the growth of worldwide connectivity by avoiding creeping re-regulation, maintaining the integrity of global standards and addressing a capacity crisis. "We must take governments to task. It is unacceptable that global standards are being ignored by the very governments that created them," IATA's Director General and CEO Alexandre de Juniac said. Asserting that India was taxing international tickets in contravention of the resolutions of the UN body International Civil Aviation Organisation (ICAO), de Juniac said, "India helped develop ICAO resolutions prohibiting tax on international tickets." Yet it persists in taxing international travel," he said, apparently referring to the imposition of Goods and Services Tax (GST) and enhancement of its rates on international air tickets, especially business class. Juniac was presenting a report on the air transport industry at the opening session of the 74th IATA Annual General Meeting and World Air Transport Summit, which began here today. "On aviation's core mission to deliver safe, secure, accessible and sustainable connectivity, the state of our industry is strong and getting stronger. And with 'normal' levels of profitability we are spreading aviation's benefits even more widely. "But there are challenges. Smarter regulation needs to counter the trend of creeping re-regulation. Global standards must be maintained by the states that agreed (upon) them. And we need to find efficient solutions to the looming capacity crisis," he said. Alluding to the recent announcements by the Trump administration in the US on imposition of hefty tariffs on import of steel and other products, he warned that "the spectre of a trade war looms" which would hit the aviation industry a .. "The forces of protectionism are gathering strength. Sanctions, tariffs and geopolitical conflicts are the mainstay of daily news. The spectre of trade war looms. Debates on migration and immigration rage. And trust among nations is showing fragility," the IATA chief said. He said airlines flew over four billion passengers in 2017 while more than 60 million tonnes of cargo was delivered by air, accounting for a third of the value of goods traded globally. "Every day, goods, people, investment and ideas are connected by aviation. That directly supports 63 million jobs and improves the quality of life for all," de Juniac said. However, it is "a challenging industry to operate", he said, adding "high taxes, costly and ill-conceived regulation, infrastructure capacity constraints, market shifts and the demands of labour are the 'normal' repertoire." "Protectionism could derail successful international joint ventures. And fuel costs are expected to be up 25 per cent on 2017," he said.However, despite such a scenario, the aviation industry's financial foundation has "grown stronger", he said, projecting that the airlines would make nearly USD 40 billion this year as passenger demand is expected to grow 7 per cent and cargo by 4 per cent. "There are challenges. We will meet them head-on. How? By building the partnerships and understanding needed to further the reach and expand the benefits of the amazing industry... I will say it proudly again, we are the business of of freedom," de Juniac said.
Source: Economic Times
The US Home Fashion Products Association (HFPA) has rebutted the argument for tariffs on Chinese textiles imports. The National Council of Textile Organizations (NCTO) gave testimony to the Office of the US Trade Representative (USTR) in favour of such tariffs on May 17. The US Industrial Fabrics Institute (USIFI) and Narrow Fabrics Institute (NFI) also back the tariffs. As the shift of home textiles manufacturing to Asia was highly disruptive, several companies did not survive the transition, HFPA noted in its argument against the proposal. Levying a tariff on Chinese imports would deal a hard blow to the roughly 500 US-based home textiles companies in the business, it felt. “Increasing tariffs, whether on products from China or any other country, will lead to significantly higher prices, and inevitably, lower sales and fewer jobs in our industry. These proposed tariffs, if implemented, have the potential to put many of our companies out of business, and worse still, they will not help bring textile manufacturing back to this country,” the HFPA wrote. The HFPA rebuttal came in a letter sent recently to New York Senators Chuck Schumer and Kirsten Gillibrand, USTR, secretary of commerce Wilbur Ross, New York Congresswoman Carolyn Maloney, the chairman of the Ways and Means Committee, the chairman of the Finance Committee and President Donald Trump. At the recent USTR hearing, NCTO president and chief executive officer (CEO) Auggie Tantillo asserted that China’s domination of global textile markets has been aided by intellectual property theft. “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. Putting 301 tariffs on Chinese textile and apparel exports would send a long overdue signal that these predatory actions will no longer be tolerated,” Tantillo had said. In response, the HFPA noted that some US home textiles importers still operate substantial domestic ‘fill and finishing’ operations employing thousands of employees that would be financially hobbled by tariffs. (DS)
Source:Fibre2Fashion
Beijing, China is set to boost its imports of cotton by issuing additional import quotas to mills, said the China Cotton Association on Monday, a move seen by the market as another step towards meeting the demands of top exporter the US. The association, which lobbies the government on behalf of cotton farmers and processors, said the soon-to-be-released additional quotas were one of the measures the government was taking to help ease recent market volatility. China, once the world‘s top cotton importer, has seen imports shrink from more than 5-million tonnes in 2011-12 to about 1-million tonnes in 2017, due to efforts to reduce state stockpiles. After several years of auctions to lower state stocks and with demand recovering, the market has become concerned about supplies. China‘s domestic cotton futures have rallied nearly 18% since early April, fuelled in part by worries over crop damage from heavy rains, as well as by speculation.
American farm goods
Traders said China‘s move, however, was more likely related to pressure from the US for higher imports of American farm goods. "It‘s definitely related to trade talks," said a China-based trader with an international firm. The US and China have threatened tit-for-tat tariffs on goods worth up to $150bn each, as US President Donald Trump has pushed Beijing to open its economy further and address America‘s large trade deficit with China. China has agreed to significantly increase purchases of US goods and services, though talks at the weekend yielded no public statement on agreements. The US is China‘s top overseas supplier. It shipped about 500,000t to China in 2017, making cotton the third-most valuable US farm export, after soybeans and hides and skins. But China has restricted its imports since 2014, offering only the 894,000t in tariff-rate quotas it must allocate as part of its commitments to the World Trade Organisation. Additional quotas with sliding tariff rates issued before 2014 were halted to get rid of huge state stocks. Total imports in 2017 were 1.16-million tonnes. It wasn‘t clear when the new quota would be released or how much would be offered, though the international firm‘s trader said he expected at least 500,000t. That would help buyers bring in large consignments of US cotton sitting in China‘s bonded zones, he said, though it could also benefit purchases of fibre from growers such as India. "There‘s not too much US cotton available right now, but I don‘t think senior officials consider this," he said.
Speculation
Despite the move to boost imports, the China Cotton Association said supplies were "basically sufficient", and that "abnormal fluctuations in the market are influenced by speculation and other factors".China‘s cotton output in 2018 is expected to remain stable, with weather disasters about the same as in previous years, the association said. Bad weather came "relatively early" as well, reducing any impact on yield, it said. Its comments came after concerns about hailstorms and heavy rain in top producing region Xinjiang drove prices higher, even as some traders warned the weather would have a relatively small impact. It also said commercial inventories were about 2.87-million tonnes at end-April, about 1-million tonnes higher than the same time last year. And while cotton demand has been steadily rising this year, there is limited room for growth. It also said the state sales could be extended to end-September if market supplies were insufficient, and it urged the government to strengthen supervision of the futures market and prevent speculation from impacting the sector. The China National Cotton Reserves Corporation, which manages China‘s state cotton stockpiles, said earlier it would restrict purchasing at its daily auctions to textile manufacturers from Monday, according to a statement from the company.
Source: Businesslive
Imports of apparel and textile products to the European Union member countries, with a population exceeding 510 million, reached EUR 110.9 billion in 2017. Of these, EUR 92.6 billion were apparel products and EUR 18.3 billion were imports of textile products. The country where the EU imports from the most is China. Of the approximately EUR 110.9 billion imported in 2017, EUR 37 billion worth of products came from China, which is 33.3% of all of the EU‘s apparel and textile imports.
Import of clothing
According to the European Statistical Office (Eurostat), China‘s clothing exports to the European Union ranked first, at about 34%. The EU imported apparel worth EUR 31.4 billion from China in 2017. Bangladesh ranked second, with around EUR 15.8 billion (17%), Turkey ranked third, with EUR 10.8 billion (11.7%). India ranked fourth, with EUR 6.2 billion, while Pakistan came fifth, with EUR 4.4 billion. The share of EU clothing imports made in 10 countries is 89%. There are three countries exporting over EUR 10 billion worth of products to the EU. These are China, Bangladesh, and Turkey. The share of these three countries in total clothing exports to the EU is 62.6%.
Import of textile products
The textile products, including yarn, fibre, fabric, and home textile, imported by the European Union countries from all over the world in 2017 increased by 3%, compared to the previous year, and amounted to EUR 18.3 billion. Over EUR 1 billion worth of textiles were imported from four countries. The share of these four countries in imports constituted 61.3%. The most important textiles supplier of the European Union is China. In 2017, it exported textile products worth EUR 5.5 billion, followed by Turkey. According to Eurostat, the EU's imports of textile products from Turkey last year increased by 0.7%, compared to the previous year, and were valued at EUR 3.3 billion. The third largest textiles supplier of the EU is India. Approximately EUR 1.3 billion worth of textile products were imported in 2017. The fourth largest textiles supplier of the EU is South Korea, where textile imports of EUR 1 billion 58 million were imported in 2017.
Source: Knitting Industry
Players in the textiles value chain have come to a consensus on the mode of implementation of the newly instituted tax stamps for textiles in the country. This is to allow importers and retailers of textiles enough time to clear all old stocks of the product. At a stakeholder engagement in Accra, all parties agreed to join forces to nib the canker or problem of piracy in the sector in the bud. On April 27, workers of local textiles manufacturing companies comprising ATL, GTP, Printex and Volta Star staged a demonstration to drum home the need for authorities to urgently take pragmatic steps to deal with the issue of piracy confronting the sector. In view of this the Ministry of Trade and Industry had a tête-à-tête with representatives of labour unions of the textiles manufacturers where a five main thematic approach to solving the problem were agreed on. These include introduction of tax stamps, import restrictions and the extension of the mandate of the anti-piracy task-force to the markets. The meeting therefore is to reach a consensus and validate the mode of tackling the situation. The Trade Minister, Alan Kyeremanten said it is unfortunate that locally produced textiles have suffered major setbacks over the years. He was hopeful that stakeholders will work hard to ensure that all old stocks are cleared within the three months grace period given before the enforcement takes effect on September 1. General Secretary of the Industrial Workers Union, ICU, Solomon Kotei, said the future of these indigenous companies do not look promising, hence the need for an all hands on deck approach to deal with the issue. President of the Makola Cloth Sellers Association, Christiana Laryea said sensitisation is imperative to ensure the smooth implementation of the agreement.
Source: Ghana Broadcasting Corporation
Miami can quickly be written off as a town that's all hype and very little action. As local officials and business incubators attempt to brand the Magic City the next frontier for industries such as technology and fashion, critics argue this activity is nothing more than smoke. So who's right? Miami's emergence as a global city is relatively nascent, and unlike cities such as New York and Los Angeles, upstart Miami entrepreneurs often find that the landscape is primed for innovation and distinction. The possibility of becoming a big fish in a small pond is a real likelihood in the 305, but would that success be sustainable enough to translate to a larger market? What does it truly take for an industry in Miami to be considered booming? You might ask the organizers behind Miami Fashion Week (MIAFW), Miami Swim Week, or Apparel Textile Sourcing (ATS) whether they think Miami is poised to become a true fashion city. Though Swim Week has long attracted national and international designers and buyers, attention has remained on swimwear, and rarely do emerging ready-to-wear brands have a platform. In May, however, a flurry of activity swirled around fashion in Miami, which until last year was hardly a destination for designers and fashion buyers. The revival of Miami Fashion Week and the newly installed trade show Apparel Textile Sourcing drew swarms of national and international fashion-focused visitors to the city last month. With the arrival of new educational programs, trade shows, runway events, and a general buzz around the fashion startup community, it's entirely possible Miami could emerge as a destination for fashion incubation, particularly for local and Latin American designers. If an abundance of educational programs is any indication of an industry's promise, Miami can also count on these signals. Miami Dade College established its Fashion Institute in 2017. The same year, Italian fashion school Istituto Marangoni debuted in the Design District. Most notable, celebrity fashion designer Naeem Khan, who has long retained a residence in Miami, announced he would move his headquarters to Miami and establish a fashion program at Design and Architecture Senior High (DASH), one of the nation's more renowned art and design schools. Determining whether Miami has a shot at becoming a fashion capital requires understanding how that ecosystem works. In more established cities such as New York and Los Angeles, young designers leave college and find themselves in an environment in which opportunity to gain experience in an established company or design their own garments is amply available. If a designer goes the company route, he or she gains hands-on experience in running a fashion brand. If a designer chooses to start his or her own line, a wealth of resources are available, including luxury fabric stores, seamstresses, manufacturers, trade-show events, and opportunities to present designs. Because these designers are already seated in major cities, access to retail buyers, boutiques, and investors is far easier than for designers based in Miami.Simply put, Miami hasn't emerged as a fashion city because resources for production are scarce and gaining access to retail buyers located in New York and Los Angeles is substantially difficult. However, that might soon change if organizations such as ATS and MIAFW continue to invest in the region as a fashion up-and-comer, offering budding fashion graduates the infrastructure necessary to bring their brands to life.For Jason Prescott, the founder of ATS Miami, the decision to launch a U.S. version of its successful Canadian textile trade show in Miami was simple. "There's a fast-growing retail sector, and there's huge migration going to Florida right now," he says. "Combined with the fact that it's a gateway to Latin America, how do you go wrong? We wanted to put our footprint there and bring infrastructure to Miami."After announcing its launch in Miami, ATS sold out the trade show's booths and registered more than 3,000 attendees for the event. Most of the companies presenting their textiles and sourcing capabilities traveled from far-flung destinations such as Africa, China, and Pakistan, while buyers and designers on the floor were predominantly local or from Latin America.The last day of the event, the showroom floor was still abuzz with excitement as attendees reported they had made substantial connections with local and international designers. Aside from writing orders for new apparel merchandise, Bennett Fruchter, a senior vice president at Shanghai Shenda Americas, noted ATS provided opportunities for new designers interested in launching their own endeavors. "A lot of local designers have come to the show to see how they can source and fund their own projects," Fruchter says. "They want to understand how they can make product. They're looking for textiles and production."That's exactly why Liz Nieves, the founder of dance-wear brand Ilogear, decided to attend ATS Miami. Though she produces much of her line locally — she notes that manufacturing overseas would be much less expensive, but her business volume wouldn't meet the order minimums — Nieves thought the conference offered a ton of resources. "I found labels and tags for a much cheaper price. I also felt that by speaking with some of the companies, they were able to provide knowledge on things I will need as we scale and become larger as a brand," she says.Growth is a marked challenge for fashion companies based outside of major fashion capitals, and a new Miami-based startup is hoping to bridge that gap for emerging designers. The founders of StitchLab hope to connect designers with local wholesale buyers, influencers, and consumers on their path to scaling, with a particular focus on Latin American designers. As the daughter of retail boutique owners, cofounder Karina Rosendo grew up around fashion. When she met Andrea Chediak at work at Univision, they decided to launch a talent incubator for up-and-coming fashion entrepreneurs. "We focus on choosing companies that are committed to sustainable fashion," Chediak says, "and we work together to curate participating designers."Between an increase in educational programs, production and growth resources, Miami fashion entrepreneurs arguably have more support than ever. But what about sales? Theoretically, Miami Fashion Week was designed to fill this role by producing runway shows that attract buyers from major retail stores. Notably, MIAFW was listed on the Council of Fashion Designers of America's official calendar last year as a destination for resort-wear buyers. But MIAFW remains somewhat disconnected from the buying industry and more focused on creating content for Latin American audiences who want to feel like insiders in the Miami fashion scene. Nonetheless, creative director Lourdes Fernandez-Velasco says MIAFW understands that attracting buyers is an important component to their success. "We are working with a company that has been securing buyers for the show this year, which is new," Fernandez-Velasco says. "Buyers are an important facet, but they also need a reason to come down here. Saks Fifth Avenue is our fashion authority partner, and we're looking to grow buyer attendance in the years to come." It's clear Miami is creating its own fashion scene, but whether it will remain insulated is yet to be seen. Though emerging designers may flock to the city for education and business resources, what will allow a fashion business to blossom will ultimately depend upon its revenue. For now, it appears the buying industry needs to pay closer attention to Miami if it ever aims to call itself a true fashion city.
Source: Miami New Times
Retailers in the textile industry have threatened to beat agents of the joint textile taskforce if they invade the markets to seize their materials again. According to them, the real problem of textile piracy is from importers and at the various borders, therefore that should be their first point of call and not the markets. Speaking in an interview with the media at a stakeholders’ meeting organised by the Ministry of Trade and Industry (MoTI), President of the Cloth Sellers Association (CSA) at the Makola Market, Madam Christiana Laryea explained that they are not able to tell if a duty on a cloth has been paid or not, and cannot be blamed for that as a result. She added that it was the importers who bring in the cloth for them to also sell so why are they to be blamed for the happenings in the industry, and, therefore, issued a warning to the taskforce not to step into the markets again else they will team up and beat them. Madam Laryea also kicked against government’s 90-day ultimatum to clear current goods to make way for the new ones, which would be branded with the tax stamps. She said the period is too short and would be difficult for them to sell their goods within that time, and called on government to review that. Responding to their threats, chairman of the textiles piracy committee, Sumani Mahamadu said they report to the Ministry of Trade and Industry, so they will work according to what the ministry says. He, however, mentioned that his committee is working to review how the seized items would be disposed. Sector Minister, Alan Kyerematen told the media that the meeting was to discuss the way forward in bringing sanity into the textile industry and ensure that local textile producers survive in the market. He said effective September 1, there would be an import restriction, which, he added, would be managed by the government and the industry players themselves. He explained that the transition period of three months was to enable those engaged in the act to clear their stock, stressing that after the three months, any textile found on the market must have a tax stamp and should have entered the country through the import restricted channels that would be introduced. The Minister also announced that government would support local manufacturers financially, hoping that although that would not entirely address their challenges, it would significantly reduce the burden on them, and also engage the foreign manufacturers to establish their firms in Ghana to create employment for Ghanaians.
Source : Ghana Web
Bangladesh's DBL Group, a diversified business conglomerate with textile and apparel manufacturing facilities, plans to set up a processing unit fully dedicated to synthetics, according to company marketing head Shohidul Islam. The company will also focus on seamless knitting for intimates in the near future, he said in an interview with Fibre2Fashion. The company’s vertically-integrated production facility is strengthening its verticals with more varieties. In spinning, it has introduced mélange yarn and to support this line, it introduced fibre dyeing in its own facility, said Islam. The company sources cotton primarily from India, Pakistan, Sudan and the United States and yarn from India, China, Korea, Thailand and a few local spinners. Bangladesh’s $26-billion readymade garments sector aspires to reach $50 billion by 2021, he added.
Source : Fibre2fashion
