Indian economy is likely to regain its pace in the current fiscal and once again become the fastest growing emerging economy, a World Bank report said. The Global Economic Prospects report released by the World Bank on Tuesday projects that India will see its gross domestic product (GDP) grow at a rate of 7.3 per cent during the ongoing fiscal and at 7.5 per cent in the two succeeding ones. "Growth in India is projected to accelerate to 7.3 percent in FY2018/19 and 7.5 percent on average in 2019-20, reflecting robust private consumption and firming investment, broadly in line with January projections," the World Bank report said. In comparison, the rest of the South Asia region (SAR), excluding India, will post GDP growth of 5.6 per cent in for the current fiscal and the next one, moving up to 5.7 in 2020-21. "India's GDP growth bottomed out in the middle of 2017 after slowing for five consecutive quarters, and has since improved significantly, with momentum carrying over into 2018 on the back of a recovery in investment. Although investment growth was still moderately lower in 2017 than in 2016, high-frequency indicators suggest that it accelerated into 2018," World Bank said. The Indian economy has also moved past the disruptions caused by the implementation of Goods and Services Tax (GST) in mid-2017, World Bank observed in its report, adding that manufacturing output and industrial production have continued to firm since then. The report also forecasted that the recovering Indian economy will also help economic growth in South Asia region to accelerate to 6.9 per cent in 2018 from 6.6 per cent in 2017. Improving economic conditions in India will help uplift the quality of life too, World Bank said. "Per capita growth rates in the region are strong, and are expected to help bring down poverty in coming years, particularly in India," it said. However, structural weaknesses and macroeconomic vulnerabilities remain key challenges to be addressed by SAR governments. Talking about possible risks to the positive outook, World Bank said, "In a number of countries, a further deterioration in fiscal balances (e.g., India, Maldives, Pakistan, Sri Lanka), a continued build-up of debt, and widening current account deficits, present significant vulnerabilities to a tightening of domestic or external financing conditions." Adverse global conditions like an abrupt tightening of global financial conditions and escalating trade protectionism could also spell bad news for India and rest of the region even though the region is relatively less open to trade, World Bank cautioned. "Since South Asia is net oil importer, a higher-than-expected rise in oil prices might amplify macroeconomic vulnerabilities and weigh on economic activity," it added. Inflation has been increasing in the region recently, and is close to or above targets in some countries like India, World Bank said.
Source: Business Today
Several states notified formations of AARs according to section 96 of respective State GST Act at the beginning of this year. The Goods and Service Tax Council would likely amend the GST Act to make it mandatory for the Authority for Advance Rulings (AARs) in states to be manned by senior revenue officials. The idea is to avoid conflicting AAR rulings by its different benches and ensure orders based on sound legal principles. AARs, however, might continue to function without former judicial officers, unlike the previous excise and service tax AARs which were headed by retired Supreme Court judges along with two technical members, officials said. Several states notified formations of AARs according to section 96 of respective State GST Act at the beginning of this year. But many of the rulings so far have shown a revenue bias and have not been robust on legal grounds, experts say. One reason for the trend, it is felt, these benches are without retired judges at the helm. Further, the sources said, the GST Council may recommend setting up a central body that would adjudicate on conflicting ruling from AARs based in two different states. For instance, ruling on a petition filed by a solar engineering, procurement and construction (EPC) contractor, Maharashtra AAR said such contracts would come under works contract and attract 18% GST while Karnataka AAR ruled that a 5% GST would be applicable for such contracts. A centralised AAR would break the logjam in similar cases, the official said. An AAR is a quasi-judicial body, and its rulings brings certainty in determining tax liability, which is binding on the applicant as well as government authorities. Further, it helps in avoiding long drawn and expensive litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. Besides, the two member of these authorities include one official of central GST and another from state GST. Here too, the law doesn‘t mandate appointment of officials of commissioner rank or above and many ruling have been delivered by much junior officials. In earlier regimes, one of the members of the Authority had to be an officer of the Indian Revenue Service (customs and central Excise), who must qualify to be a member of the Central Board of Indirect Taxes and Customs. We may increase the designation threshold for the officials and only allow commissioner rank member in AAR. It‘s acknowledged in the government that some of the rulings are poor in terms of applicability of law, mainly because the members of the AARs are not experienced enough in indirect tax laws, a government official said on the condition of anonymity. Moreover, Gujarat HC last month admitted a petition and sent notices to central and state governments on setting up these quasi-judicial bodies without the express requirement of a judicial member. Experts have pointed to some ruling where members have relied on FAQs, which have no legal backing. Similarly, some other rulings have failed to take note of relevant documents including press releases from the tax department that already contain clarification on topics under consideration. Reins of an erstwhile authority was in hands of a high powered quasi-judicial body headed by a retired judge of the Supreme Court, pronouncing legally sound and fearless rulings. Whereas the new AAR formed under GST, is in the hands of untried and revenue biased tax officer pronouncing rulings contrary to international business practices, Rajat Mohan, partner, AMRG & Associates said.
Source: Financial Express
Exporters of Tirupur are apprehensive that the 25 basis points hike in the repo rate will have a detrimental impact on knitwear exports from this region. Knitwear exporting units have been under pressure since the implementation of GST. The repo rate increase will further impact our business, particularly as we operate on wafer-thin margins, said Raja M Shanmugham, President, Tirupur Exporters‘ Association. Orders are taken in advance and we are not in a position to revise the price. This will impact MSMEs, as there is stiff competition and we are already losing out to competing countries. Our interest rates are high when compared to the rates prevailing in the international market. The government had announced the Interest Equalisation Scheme and provided 3 per cent interest subvention to compensate the high rate. But this 3 per cent is inadequate, he said and appealed for a two percentage point increase in the Interest Equalisation Scheme (from 3 per cent to 5 per cent) with immediate effect to compensate the 25 bps hike in repo rate. Banks should take a lenient view while extending credit to the MSMEs, he added. It may be noted that knitwear exports from Tirupur slipped to ₹24,000 crore during the last fiscal against ₹26,000 crore in 2017-18.
Source: The Hindu Business Line
RBI governor Urjit Patel stood his ground and did not give in to government pressure to relax bad loan norms for corporates. However, he did make a concession to micro, small and medium enterprises (MSMEs) to help them transition to the formalised sector. In its policy on Wednesday, the RBI extended to all MSMEs a relief that was so far available only to small businesses that were registered for goods and services tax (GST). In February 2018, the RBI had allowed GST-registered MSMEs, having credit facilities of up to Rs 25 crore, up to 180 days (as against 90 days) to repay loans without being classified as non-performing assets. This was done with a view to ease the transition of MSMEs to the formalised sector after their registration under the GST and also keeping in mind that these are employment-generating sectors. The RBI said in its policy, Having regard to the input credit linkages and associated issues, it has now been decided to temporarily allow banks and NBFCs to classify their exposure, as per the 180 days past due criterion, to all MSMEs with aggregate credit facilities up to the above limit, including those not registered under GST. The proposal will not only help MSMEs and the businesses they support but they will also give some relief to banks that are overburdened with non-performing assets. Indian Overseas Bank MD & CEO R Subramaniakumar said, Recognising the MSME sector strain and extending the relief of 180 days for asset classification is a very positive and forward-looking step. Banks may have some relief as well. Since MSMEs are expected to reap gains of formalisation of the economy after being part of GST from January 1, 2019 onwards, they will again be aligned to the extant norm of 90 days past due date in a phased manner. For entities that do not get registered under GST by December 31, 2018, the asset classification in respect of dues payable from January 1, 2019 onwards shall immediately revert to the 90-day norm.
Source: Times News Network
New Delhi : The Centre has constituted a group of eminent persons headed by Bharat Forge’s Baba Kalyani to study the Special Economic Zones (SEZ) policy of the country and suggest measures to make it more relevant for exporters and compatible with World Trade Organisation (WTO) norms. The SEZ Act was passed in 2005 giving tax incentives to investors, but investments in the zone were subsequently brought under the ambit of Minimum Alternate Tax and Dividend Distribution Tax leading to a dwindling in flow of money into the SEZs. “The group will evaluate the SEZ policy, suggest measures to cater to the needs of exporters in the present economic scenario and make the SEZ policy WTO compatible, suggest course correction in SEZ policy, make comparative analysis of the SEZ scheme and dovetail the SEZ policy with other similar schemes,” an official release circulated by the Commerce Ministry stated. Some of the incentives offered under the SEZ policy have been challenged at the WTO by the US and may need to be replaced by other sops. The group is required to submit its recommendation in three months’ time, the release stated. Other members of the group include Ravindra Sannareddy from Sricity SEZ, Neel Raheja from K. Raheja Group, Arun Misra from Tata Steel SEZ, Anita Arjundas from Mahindra Life Space Developer, Ajay Pandey from GIFT City SEZ, Srikanth Badiga from Hyderabad Phoenix Developer, Principal Secretaries (Industries) of Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu & Karnataka and Commerce Department officials. There are 223 operational SEZs in the country and the total investments made in the zones so far is ₹18,878 crore.
Source: Fibre2fashion
Chief Minister HD Kumaraswamy instructed a Garment and Textile Manufacturers' delegation who visited him today, to provide all facilities and safety measures to garment and textile workers in the state. CM told the delegation that there are thousands of people, a majority of them women working in Bengaluru and nearby districts in garment and textile manufacturing sector. He instructed them to ensure the welfare of these workers and said adequate security should be provided for the workers who work in night shifts. The delegation sought all support from the government for the Garment and textile Manufacturing sector and said that the sector provides employment to thousands of women and trains them for employment. CM assured the delegation members that government will give all due support to the industry and told the delegation to ensure timely payment of due wages to the workers to their accounts. Government to set up a Committee to probe the issues faced by Taxi-Cab drivers Responding to the complaints against the app-based cab aggregators that they are giving a raw deal to the cab owner/drivers, Chief Minister H D Kumara Swamy today directed the Transport Commissioner and Principal Secretary of Transport Department to look into the matter immediately. A delegation from the Taxi drivers/ owners association met the CM today to discuss the problems faced by the drivers engaged by app-based cab service providers. The delegation members pointed told CM that many of the cab owners are struggling to stay in the industry as their income has seen a sharp fall with app- based service providers slashing the incentives and payouts. The further requested the government to intervene immediately pointing out that the operations by the app-based cab service providers have adversely affected the traditional taxi providers too. CM said that there are allegations that the app-based cab services pay less to the drivers and are engaged in profiteering, and this issue should be resolved at the earliest. CM directed concerned officials to form a committee to investigate the allegations, and to hold meetings with all stakeholders to address the issues.
Source: Bangalore Mirror
MUMBAI: Arvind, makers of Arrow and US Polo Association apparel in India, would invest Rs 1,500 crore in three years to increase its garment making capacity from fabric by six-fold to meet the rising demand for branded apparel and fashion garments, a senior executive told ET. Today, we convert only 10% of our fabrics into our garments… we are taking that to 60%,‘‘ said Kulin Lalbhai, executive director, Arvind. He also asserted that the new capacity will add between 30,000 and 40,000 jobs. The expansion is part of a mega global trend of selling garments directly to a brand as a full packaged solution rather than selling to an intermediary who converts and then sells to a brand. Now that fast fashion is taking over and supply chains need to become faster, creating what we call full-packaged solution, which is you‘re selling a garment directly to a brand that‘s the mega trend in the world,‘‘ said Lalbhai. India will build that last-mile more and more, and that‘s where Arvind is focused on.” The company will open large factories in Gujarat, Karnataka, Jharkhand and Andhra Pradesh which can employ 10,000 workers. The exercise is part of a target of doubling India‘s largest denim maker‘s textile turnover by 2022 from `6,000 crore at present. Denim constitutes around Rs 2,500 crore to the total turnover. The company will use cash flows to fund Arvind Fashions for many years to expand the fabric-to-garment conversion capacity. Now, with Arvind Fashions being separately listed, the Rs 1,500 crore of free cash flow that will get generated by Arvind will be invested in all of these exciting new areas in textiles, technical textiles, and emerging businesses,‘‘ said Lalbhai. After incubating fashion apparel brands and real estate from the cash flow of the textile business, the Ahmedabad-based company is restructuring its many businesses into four listed entities. The parent Arvind will comprise the Rs 6,000-crore textile business and some other incubation businesses such as water, digital, telecom, advanced materials and technical textiles, while the entire consumer business, which is called Arvind Fashions, will be a Rs 4000-crore business which will be independently listed. The third one is a small, exciting engineering business which is being spun off and christened Anup Engineering, and the fourth one is Arvind SmartSpaces, a listed real estate developer. Lalbhai said that any foreign investments in Indian online firms will improve the health of the sector and ensure the potential of the digital space. He was referring to the investment of global retail chain Walmart in India‘s largest online retailer Flipkart.
Source: Economic Times
MUMBAI : World Environment Day 2018 was special as India hosted global celebrations of the event. To commemorate the occasion Reliance Industries Ltd (RIL) launched a special T-shirt branded ‘The Earth Tee’ and designed by renowned fashion designer Anita Dongre under its unique programme ‘Fashion for Earth’. The idea is to nudge people to switch to fashion that not only enhances aesthetics but also help conserve the environment and our planet. During the launch of R|Elan at the IMG Reliance’s Lakme Fashion Week in January 2018 RIL collected postconsumer (used) PET bottles from the venue Jio Garden at the BKC. Those have since been processed recycled and converted into R|Elan GreenGold fabrics one of the greenest fabrics using which Anita Dongre has designed and created the elegant ‘The Earth Tee’. This limited edition ‘The Earth Tee’ has been presented to celebrities selected by IMG Reliance & Anita Dongre to join the ‘Fashion for Earth’ movement and spot ‘The Earth Tee’ initiatives. RIL a leader in sustainable business development is focusing on promoting the concept of Circular Economy. Earlier this year at the Lakmé Fashion Week incidentally - at the same time that R|Elan fabrics was launched with Anita Dongre as a design partner operations to achieve highest standards of excellence. The ‘Fashion for Earth’ is our endeavour to make people participate in our efforts to conserve environment and the planet. The Earth Tee designed by Anita Dongre depicts the new paradigm of environmentally responsible fashion. The initiative is launched to celebrate the initiation of this long-term relationship as we decided to jointly promote The Earth Tee with Anita Dongre and Lakmé Fashion Week as partners” a RIL spokesperson said. Reliance Industries the owner of brand R|Elan is one of the largest recycler of PET bottles in India recycling 2.2 billion PET bottles a year. The R|Elan Green Gold made from recycled PET substantially reduces the emission of greenhouse gases and cuts down on water usage as well. The fabric is made from pre-dyed fibres that don’t require much water. Whatever little water is required 90% of it is recycled. RIL is the only company in the world that has built a complete circle right from creation of PET Resin for bottles and collection of discarded bottles to converting them to Recron GreenGold ecofriendly polyester fibre which in turn is converted to R|Elan GreenGold fabric for the manufacture of high-fashion apparels.
Source: Tecoya Trend
Mumbai : In a relief to micro, small and medium enterprises affected by the roll-out of the Goods and Services Tax (GST), the Reserve Bank of India on Wednesday gave them a temporary breather, allowing them to delay their loan repayments by 180 days without being classified as non-performing. “Accordingly, eligible MSME accounts, which were standard as on August 31, 2017, shall continue to be classified as standard by banks and NBFCs if the payments due as on September 1, 2017, and falling due thereafter up to December 31, 2018, were paid not later than 180 days from their original due date,” said the RBI in its Statement on Developmental and Regulatory Policies, which was issued along with the second bi-monthly monetary policy statement. The facility would be available to all MSMEs with aggregate credit facilities of up to ₹25 crore, irrespective of whether they are registered under the GST or not. Banks and NBFCs have to typically classify a loan as a non-performing asset if the repayment has been delayed beyond 90 days. The RBI, in February, extended the temporary relief through banks and NBFCs to the MSMEs to help ease their transition to the formalised sector after their registration under the GST. The benefit will be phased out gradually, starting with those businesses that do not register under GST. “In view of the benefits from increasing formalisation of the economy for financial stability, the 180-day past due criterion, in respect of dues payable by GST-registered MSMEs from January 1, 2019, onwards shall be aligned to the extant norm of 90-day past due in a phased manner,” said the RBI. For entities that do not get registered under GST by December 31, 2018, the asset classification in respect of dues payable from January 1, 2019, onwards shall immediately revert to the 90-day norm, it added. The move was welcomed and seen as a big relief to small and medium firms that are just about getting their feet back on the ground after the twin disruptions from GST and demonetisation.
Source: Business Line
Just months after granting unprecedented autonomy to the Indian Institutes of Management through an Act of Parliament, the government is facing a conundrum. The power vested with the board of governors (BoG) to arbitrarily remove the IIM chairperson and director has kicked up concerns in the top echelons prompting the Human Resources Development (HRD) ministry to explore ways to clamp checks and balances to safeguard the stability of India’s premier educational institution. The government is worried that the BoG could go rogue like sporting federations like the BCCI. The ministry feels that leaving decisions such as removal of the IIM Chairperson entirely to the IIM Board, could leave his/her position weakened and this needs to be corrected, through the yet-to-be notified IIM Rules. A committee, headed by IIM Sirmaur chairman Ajay Sriram, which was tasked to formulate the IIM Rules, has submitted its report to the ministry. However, the latter has found several gaps in the report. The Prakash Javadekar-led ministry is now closely reviewing and fine-tuning the IIM Rules before final notification.
THE BOARD AND THE CHAIRPERSON
The IIM Act, 2017, which came into effect in February 2018, is silent on the procedure for the selection and removal of the IIM Chairperson. The IIM Act only states that a chairperson must be an eminent person ‘appointed by the BoG’. While there is a demand that a governmental say be brought in for the ‘selection’ of the IIM Chairperson, the ministry does not want to intervene as it could go against the spirit of the Act. However, the government feels the need to lay down greater safeguards as far as removal of the IIM Director and Chairperson by the BoG is concerned. Concerns have been raised that they may be removed if eve if even nine of the 15 members of the BoG push for the same as per simple majority norms. The government feels that the decision on a chairperson’s removal must be done through ‘consensus’ and the Board has to take a unanimous decision, rather than a majority decision. Since representatives of both the state and central government are also on the BoG, an insistence of a unanimous decision could help safeguard the chairperson’s position. Similarly, due process will have to be followed for the removal of the Director. The ‘pink slip’ instant removal will be guarded against through procedures.
THE IIM BOARD
The IIM Act prescribes a 15-member Board for IIMs with representations from the alumni, faculty, women, SC/STs and a representative from the central and state government. Since each IIM already has an active BoG, the key question now is how to fit the current IIM Boards according to to the stipulation of the Act. While one way is to simply dissolve all IIM Boards and reconstitute them in keeping with the Act, the other route is to re-work the existing BoGs to meet the rule book.
Source: The Economic Times
India will play critical role at the SCO beginning with the Summit this weekend as a balancing power between key member states Russia and China in the Eurasian landscape, which would enable it to expand its presence in landlocked Central Asia despite no direct land access to the region. India will be attending the Summit for the first time as a full-member. A fact which has missed attention is that the presence of Delhi -- with its strong ties with competing powers --enhances the acceptability of SCO across the globe. Simultaneously, SCO is the platform that India had wanted to expand its outreach to Central Asia, both through bilateral ventures as well as third country projects in collaboration with Moscow. The fact cannot be overstated that Afghan outreach will be furthered twill be furthered through SCO as well. India will not only benefit from SCO's anti-terror structures but also non-protectionist trade agenda and effective connectivity links in Eurasia. India, which was hampered by direct links to the region, is making steady progress to create connectivity links and was admitted few months to Agreement on the Establishment of an International Transport and Transit Corridor between Iran, Oman, Turkmenistan and Uzbekistan (Ashgabat Agreement). Delhi, on its part, will contribute to connectivity projects through Chabahar Port and INSTC and seek to penetrate Eurasian markets and access critical natural resources necessary to drive the economy. These connectivity projects could enable Delhi to link up with inter-regional connectivity initiatives in Central Asia besides Russian led projects without being party to BRI. The proposed FTA with Eurasian Economic Union will contribute to this process. While Beijing’s economic prowess and geographical contiguity has enabled it to make huge inroads in Eurasia, India sees itself as a stabiliser and security provider in the region. New Delhi’s growing financial clout also makes it an attractive economic power for many SCO member states and observers. India has substantial interest in securing reliable energy supplies through Central Asia. Besides oil and gas, India is eyeing imports of uranium from Uzbekistan while such supplies are arriving from Kazakhstan. The requirements of energy security also postulate a continuing positive relationship and energy bridge with Russia --the oldest player in the region and the country instrumental in pushing India’s SCO membership along with Uzbekistan. “India has been slowly coming up with its own Eurasi Eurasia. While New Delhi enters the Eurasian integration path, it also needs to factor in the changing political dynamics within Central Asia. The nature of the regional outlook is changing in favour of intra-regional cooperation. If this trend gathers force, it would not be always easy for China to overcome the broader set of issues that could come in the way of realising its BRI vision, points out P Stoban, India’s former envoy to Kyrgyzstan and an expert on Central Asia.
Source: The Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1385.55 |
USD/Ton |
0% |
6/6/2018 |
|
VSF |
2285.84 |
USD/Ton |
0.34% |
6/6/2018 |
|
ASF |
3073.79 |
USD/Ton |
0% |
6/6/2018 |
|
Polyester POY |
1387.89 |
USD/Ton |
-0.06% |
6/6/2018 |
|
Nylon FDY |
3557.48 |
USD/Ton |
0% |
6/6/2018 |
|
40D Spandex |
5461.05 |
USD/Ton |
-1.41% |
6/6/2018 |
|
Nylon POY |
3682.31 |
USD/Ton |
0% |
6/6/2018 |
|
Acrylic Top 3D |
5897.93 |
USD/Ton |
0% |
6/6/2018 |
|
Polyester FDY |
1669.52 |
USD/Ton |
0% |
6/6/2018 |
|
Nylon DTY |
3229.82 |
USD/Ton |
0.49% |
6/6/2018 |
|
Viscose Long Filament |
3198.62 |
USD/Ton |
0% |
6/6/2018 |
|
Polyester DTY |
1646.12 |
USD/Ton |
0% |
6/6/2018 |
|
30S Spun Rayon Yarn |
3026.98 |
USD/Ton |
0% |
6/6/2018 |
|
32S Polyester Yarn |
2246.83 |
USD/Ton |
0% |
6/6/2018 |
|
45S T/C Yarn |
3089.39 |
USD/Ton |
0.51% |
6/6/2018 |
|
40S Rayon Yarn |
2340.45 |
USD/Ton |
0% |
6/6/2018 |
|
T/R Yarn 65/35 32S |
2621.30 |
USD/Ton |
0.60% |
6/6/2018 |
|
45S Polyester Yarn |
3198.62 |
USD/Ton |
0.49% |
6/6/2018 |
|
T/C Yarn 65/35 32S |
2668.11 |
USD/Ton |
0% |
6/6/2018 |
|
10S Denim Fabric |
1.46 |
USD/Meter |
0% |
6/6/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
6/6/2018 |
|
40S Combed Poplin |
1.25 |
USD/Meter |
0% |
6/6/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
6/6/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
6/6/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15603 USD dtd06/06/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan has lost its textile export share from 2.2 to 1.7 percent in the world market over the last decade, Adviser to Textile Industry Shahid Sattar told The News. Pakistan‘s textile industry is currently facing the toughest periods in decades as despite being the 4th largest producer and 3rd largest consumer of cotton, country is facing deficit in cotton production since 2013 and relies heavily on imports of cotton to meet local demand. During ongoing season, he said, industry has failed to achieve the cotton production target of 14.1 million bales. The production has been estimated at 11.9 million bales against the domestic demand of approximately 15 million bales. As the cotton sowing season has ended on May 31 (started in April), only 50 to 55 percent of sowing target has been achieved so far. He said that cotton oriented textile industry is mainstay of economy of Islamic Republic of Pakistan. It contributes to 60 percent of countries‘ exports, 8.5 percent to total GDP and provides employment to 40 percent work force. Highlighting the agonies that the industry is facing since long he argued saying that an industry with such a great potential has been subjected to significant threats and challenges over past few years. The major challenges faced by the industry are unstable world prices, macroeconomic instability and high cost of doing business, inappropriate policy environment and anti-industry government attitude. In addition to economic issues, Pakistan‘s textile industry is also facing strong competition from the regional competitors (Vietnam, Bangladesh, India and China) as well as from the global competitors like American and European textile industries. Cotton production has declined in the past few years due to many reasons like ongoing water shortage, outdated technology, low quality seeds and fertilizers. Government‘s biased policies towards sugarcane, natural disasters, high cost of doing business and high prices of raw materials and competing crops etc. are responsible for the drop in cotton production. The policies to support sugar cane, Sattar said, has been short sighted and detrimental to the economy of Pakistan as investing in sugar cane crop actually lowers the overall wealth generation in the country, apart from the wastage of our scarce water resources as sugarcane is more water intensive than cotton. Moreover, cultivation of cotton can also contribute in the production of edible oils that is a significant import of Pakistan. Our government accepts that one million bales change in production of cotton translates into a 0.5 percent impact on GDP. He said that textile industry of Pakistan has been the worst hit by power cuts. In addition to energy crisis, a massive increase in gas, electricity and other fuels has forced the textile mills to close their units, especially in Punjab the industry is under severe pressure due to unsustainable gas pricing. Almost 200 textile mills have closed their operations and about one million workers lost their jobs. As a result low profitability and loss in textile industry, the machinery being used is obsolete and has not undertaken up-gradation. This has resulted in a vicious circle, outdated machinery, inefficient and expensive energy and expensive output. It would not be possible to remain competitive in export market unless up gradation in industry is undertaken. At present, farmers fear that because of severe water shortage the production of cotton may decline by 35-40 percent further compared to last year. Load shedding in cotton belt areas, shortage of water and severe heat waves are causing seed burns. To protect the sown seeds government will have to provide uninterrupted electricity in cotton belt areas to keep irrigational tube wells functional, if a half decent cotton crop is to be expected. Under these circumstances, imposition of 10 percent custom duty on imports of cotton is anti-industry and growth. In Pakistan cost of doing business is already extremely high as compared to regional countries so the import duty of 10 percent will affect the exports of textile industry and will make the industry uncompetitive in the global market. In January 2018, Pakistani government withdrew 4% custom duty and 5% sales tax to meet the shortfall of silver fiber and to promote value addition. This withdrawal of custom duty contributed positively in the growth of textile industry and as a result the exports of value-added textile products recorded a growth of 12.8 percent in the first five months of 2017-18. Previous year cotton growers, he said, received 3,100 rupees per mound and this year expected price is around 4,200 rupees per mound which means farmers will receive 35 percent higher remuneration as compared to previous year, therefore abolishing import duty will not jeopardise the livelihood of cotton producers. Cotton forms almost 70 percent of the total cost of textile final product and an increase of 10 percent in raw material prices will result in further closures of firms and millions of people may lose their jobs. An economy where cost of doing business is already high cannot absorb 10 percent increment in cost of raw material may result in to decline in the mainstay of our industrial sector. He stressed his arguments further saying: Our regional competitors have thrived under the zero tariff policy. Bangladesh, the regional competitor of Pakistan, in spite of being second largest exporter of readymade garments (RMG) after China, also relies on imports of cotton to meet its almost 99 percent domestic demand for cotton. Regardless of cotton deficit industry, Bangladesh textile industry is flourishing because of its duty free cotton imports. Even with increasing cotton import trend, 0.34 percent growth in RMG exports‘earnings and 10.21 growth rate in world exports was recorded in fiscal year 2016-17, with a duty free import policy. The third largest exporter of textile, Vietnam has also recorded a growth of 10.23 percent in previous year. With a custom duty of zero percent and value added tax of 5 percent, Vietnam‘s production capacity is expected to rise by 12-14 percent and export potential is also forecasted to grow by 15 percent during the period 2016-2020. And to compete with Bangladesh, Vietnam and other regional competitors like China and India, he suggested that the government of Pakistan should revise its current tariff policy. If the cost of doing business is not decreased and brought at par with other Asian countries, our products would not be able to compete in global markets both in price and quality. To promote textile industry and economy of Pakistan all the utility charges and levy of taxes should be brought down to the level of our competing nations," he said.
Source: The News
Owing to lower 2016-17 supply and the slow pace of the 2017-18 harvesting, cotton prices increased in the Brazilian market in May. Between April 30 and May 30, the Center for Advanced Studies on Applied Economics/Luiz de Queiroz College of Agriculture (CEPEA/ESALQ) cotton Index rose 12.3 per cent, closing at 3.7491 BRL ($1.0024) on May 30. During the month, growers, trading companies and/or traders only had a few batches to offer. Some of them seemed to be accomplishing contracts involving the 2016-17 crop, CEPEA said in its latest fortnightly report on the Brazilian cotton market. On the other hand, buyers showed interest in new acquisitions in the spot market, even for mixed quality batches. However, only some agents agreed to pay the prices asked by sellers. In general, processors were finding it difficult to pass on the price rises of raw material to by-products. So, some of them reduced the production pace and worked only with stocked cotton. Others opted for purchasing 100 per cent thread and/or mixed, lowering the needs for cotton. The May 21 truckers strike, due to rise in fuel prices, hindered transportation, resulting in reduced trade in the spot market. Meanwhile, data from the BBM (Brazilian Commodity Exchange) tabulated by CEPEA indicates that 75.1 per cent of the 2016-17 Brazilian crop (estimated at 1.529 million tons) had been traded until May 29. Of this total, 61.9 per cent was allocated to the Brazilian market, 27.5 per cent, to the international market, and 10.6 per cent to flex contracts (for exports, but with an option to sell in the domestic market). For the 2018-19 season, data shows that at least 46.9 per cent of the 2017-18 output (forecast at 1.942 million tons) has been traded. While 46.8 per cent of the sales were meant for the domestic market, 37.5 per cent were for exports, and the remaining 15.7 per cent to flex contracts. (RKS)
Source: Fibre2Fashion
Uster Technologies now covers fabric inspection as well as contamination control. The market for nonwoven products is forecast to continue its growth trend, through both rising world population and the development of innovative products. EDANA (the European Disposables and Nonwovens Association) also sees per capita consumption almost doubling to 1.62 kg in 2020, compared to 0.96 kg in 2009. Demand is especially strong in hygiene, personal care and medical applications but these end-uses are among the most challenging for producers, with rigorous quality standards typically specifying zero tolerance for defects larger than 1 mm. So, manufacturers aiming to capitalize on this attractive business potential will need to adopt prudent strategies for the removal of contamination and assuring the quality levels their customers require. Stapel WattepadsThis is the background to USTER’s expansion of its technology range, with reliable control of contamination before the raw material reaches the fabric-making processes and now with the ultimate safeguard of automated checking of the finished fabric at the final inspection stage. This is a comprehensive quality solution, ideal for spunlacing the process most widely used for medical and hygiene products but also effective for many other nonwovens manufacturing routes.
Quality managed, right from the start
Effective detection and elimination of natural and synthetic contamination is best achieved right at the start of manufacturing, when the fiber raw material is in loose stock form. For this, the USTER®JOSSI VISION SHIELD fiber cleaning system applies sophisticated sensors and latest-technology spectroscopes to pinpoint even the smallest particles of foreign matter in the cotton or man-made fiber raw material. All kind of synthetics and even the finest scraps of white polypropylene otherwise difficult to pick out are efficiently removed with the USTER®JOSSI VISION SHIELD. Customers in super-sensitive application use two or even three USTER®JOSSI VISION SHIELD units in a row, for total confidence that the last and most minute fragment of contamination will be detected and eliminated. Jede Verwendung der übergebenen Bilddaten ausserhalb des definierten Auftrags sowie Bearbeitungen, welche nicht rein technisch bedingt sind, bedürfen der vorgängigen Zustimmung des Autors. * Any use of the image data you have received which exceeds what has been defined in the order as well as any adaptations which are not strictly technical in nature require prior approval by the author.
USTER extends nonwovens coverage
Many common and troublesome defects in nonwovens production are unrelated to contamination problems, and can often be detected only at the final stage of fabric manufacture. These include overlap, undrawn filament and fiber bunching. Now, Uster Technologies is expanding the quality control options for the nonwovens industry with a two-stage approach: the USTER®JOSSI VISION SHIELD deals with contaminants at fiber opening, as mentioned. Additionally, defects of other types can be eradicated at the end of the production line, following USTER’s successful acquisition of EVS, as announced on April 25, 2018. The deal adds a range of fabric inspection solutions to USTER’s quality control systems. The EVS fabric inspection system is ideal for nonwoven applications, with its display of defect images showing type, size, and location in the fabric web. The system draws a real-time defect map covering the full width or one slit and real-time alarms are an important benefit to production staff. Software advantages include a video album to store and maintain quality records, and grading of inspected webs or slits according to predefined customer criteria. All reports can be exported to any computer in a common database format. The typical configuration of the fabric inspection solution includes two camera lines, with both transmitted and reflective illuminations to cover the whole range of defects. Each inspection line is equipped with multiple cameras and covers the entire width of the web. The ideal number of cameras depends on the required resolution level of the defects.
Keeping vision in the focus
Acquiring EVS and integrating the company’s products into the USTER range is a move following USTER’s strategic goals. USTER aims to offer the textile industry instruments and systems to manage and improve quality from fiber to fabric. EVS is a global leader in the field of automatic optical inspection in production and quality control of fabrics and webs, since 1992. Innovative systems improve product quality and increase production efficiency and quality for other applications as well as nonwovens in hundreds of installations worldwide. Nonwovens producers can see the complete offer of Uster Technologies at ANEX 2018 one of the largest nonwovens fabric exhibitions in Tokyo, Japan from June 6 to 8, 2018. The solution to eliminate defects at the beginning of the production line will be presented at the USTER booth 2041. The fabric defect inspection systems will be introduced at the booth 1806 representing EVS. In October at ITMA Asia + CITME 2018 in Shanghai, EVS will be part of the USTER boothfor the first time.
Source: Textile Focus
A number of textile dye and chemical companies have signed an open letter to the Stichting ZDHC Foundation, formed in 2014, discussing their concerns with the increasing complexity and resultant cost burdens for the textiles value chain, which are proving an obstacle to the overall goals of the elimination of hazardous chemistry from within the textiles supply chain. The companies Archroma, Colourtex, DyStar, Huntsman, Jay Chemical, Protex, Pulcra, Rudolf, and Tanatex addressed a list of principles and expectations to the ZDHC Foundation, which they acknowledge to be the most appropriate platform for the industry to progress towards a more harmonised approach. In the letter, the signatories say that a number of concerns need to be addressed before the companies can become Value Chain Affiliates of the ZDHC. If a common understanding regarding the list can be achieved, the companies propose to join the foundation on 1 September on a trial basis for a period of 12 months, followed by a progress review, made by ZDHC towards driving the necessary change and harmonisation of the industry towards the objective of zero discharge of hazardous chemicals , before committing to a long-term partnership. All agreed that the way forward would be to align behind one industry standard, based upon achievable limits resulting from best chemical manufacturing techniques, as this would accelerate implementation, and avoid complexity and confusion for textile mills and their suppliers. It would also be the most cost-effective approach for the textiles value chain, the letter says.
Commitment to sustainability
The signatories are textile dye and chemical companies that evidenced their support for, and investment in, sustainability advancement initiatives, both in the outerwear and fast-fashion sectors. These companies have, for many years, acted in a responsible manner towards the manufacturing of commercial technical grade textile dyes and chemicals. This has been possible because of the high importance placed upon manufacturing process innovation, product stewardship and quality management, the letter continues. This importance is evidenced by the degree of investment that the companies have made in resources to support and advance these functions within their respective organizations. In addition to this, the signatories include leading companies which have a proven track record in the replacement of hazardous chemistry from manufacturing processes with more benign substitutes, as a result of various research and development programs. The initiation of these is often as a result of the identification of potential future changes in the hazardous classification of substances. It is our intention to strongly support any initiative that aims to eliminate hazardous chemicals from within the textiles supply chain.
More recognition
When the Zero Discharge of Hazardous Chemicals (ZDHC) collaborative initiative started in 2011, as a result of external pressure placed upon the Brands by NGO‘s, a number of the group chemical companies were approached to become actively involved with ZDHC. The main purpose would be to technically advise and work with the ZDHC towards the setting up of a roadmap towards the elimination of hazardous chemicals the development of a universal standard for commercial textile dye and chemical formulations and the resultant communication and implementation within the textiles supply chain, the letter says. It is our intention to work towards a greater harmonisation of an industry standard and challenge the proliferation of standards and approaches which the industry is now facing which, through complexity, duplication, and misunderstanding, hinder the elimination of hazardous chemicals from within the supply chain. With the formation of a separate Stichting ZDHC Foundation in 2014, the funding of the collaboration changed to a multi-stakeholder approach as a number of external activities increased and additional resources were required. Previously the initiative‘s internal activities had been primarily organized and funded by the ZDHC member Brands (for whom the risk remains highest as they are held accountable by the NGO‘s). To that end, chemical companies have been approached to participate with monetary contributions for ZDHC Foundation. It is our intention that the ZDHC Foundation give more recognition to those industry players who continue to demonstrate competence and a serious commitment to the sustainability agenda, thus giving further motivation for the industry to improve.
Concerns
It is imperative that the ZDHC Gateway Chemical Module motivates textile dye and chemical suppliers to move products up the levels of the pyramid as well as for brands to understand and appreciate the true value of the more holistic approach of Level 3‘ partners Responsible Care, Product Stewardship Program, etc. Our expectation is that a mechanism is in place to ensure this continual improvement process, the letter says. The companies have also expressed a concern regarding additional financial burdens being placed on the industry by brands who seek to differentiate their offering on the basis of an additional modified individualised Manufacturing Restricted Substance List (MRSL). Our expectation is that safeguards are in place to prevent this risk of a proliferation of MRSL standards, the letter continues. The signatories also acknowledged that in order for the ZDHC to function efficiently, a mechanism must be in place to ensure that funds are available. One could argue that just as the brand has a prime duty to ensure that a consumer product does not present any risk to the public health, it is also the responsibility of the wet processor to ensure that the environment is not polluted during the manufacture of textiles. This principle of shared responsibility should also be represented within the ZDHC Foundation.
Source: Innovation in Textiles
Germany — When the German ESA astronaut Dr Alexander Gerst sets off on 6 June 2018 for his Horizons mission at the International Space Station ISS, numerous experiments will be waiting for him. The Spacetex2 project includes clothing physiology experiments which will, for the first time, investigate the interaction of the body, clothing and climate under zero gravity conditions with regard to wear comfort. The findings of Spacetex2 help to optimise clothing for astronauts (known as IVA intra- vehicular activity clothing, i.e., clothing worn within the ISS), also with regard to long- term missions, for example, for the planned manned flight to Mars in the 2030s. As per the mission goal Knowledge for Tomorrow , the project also provides important insights for the development of new functional textiles which can also be used on Earth under extreme climatic and physiological conditions. From the perspective of global warming and climate change, this aspect is becoming ever more important. Alexander Gerst has to sweat quite a lot in space in order to activate the cooling performance of the functional shirts, outlines Project Manager Dr Jan Beringer from Hohenstein. The fact that sweating under zero gravity is completely different from sweating on Earth was discovered in 2014 during the preceding Spacetex project and is a helpful framework condition for the experiments. Jan Beringer explains, Like on Earth, the human body emits heat when under strain and tries to cool itself down in this way. However, zero gravity changes heat exchange on the surface of the body there is no loss of heat due to convection when in space. During physical activity, heat thus builds up quicker than on earth. The result of this is that the core body temperature rapidly climbs to values that are too high to be healthy. Therefore, it is very important to optimise heat exchange through the evaporative cooling of sweat by clothing made of appropriate materials. For Alexander Gerst, sweaty experiments in the name of science are nothing new. During the Blue Dot mission back in 2014, his deployment to space provided valuable findings for the preceding Spacetex project which were included in the further development of the functional shirts now specifically manufactured for the ISS. Now it is the moment of truth the examination of three shirts in space, each with a different cooling performance. We are all very excited about the results, enthuses Jan Beringer. The project partners Hohenstein, Charité University Medical Department in Berlin, German Aerospace Centre (DLR) and the European Space Agency will not have to wait long for new findings: the experiments that are part of Spacetex2 are scheduled for June 2018. For Alexander Gerst this means that, in addition to his regular necessary training sessions on the ISS, he must also complete six special training sessions with the different functional shirts on the ergometer or the treadmill. Special sensors used in the MetabolicSpace experiment carried out in parallel by the Institute of Aerospace Engineering at the TU Dresden, which act as an analysis system for physical and metabolic functions, provide data on respiratory flow, heart frequency and oxygen saturation. In this way, the effect of different functional shirts on the body temperature, wear comfort and performance can be examined individually. The results will be available to the scientists shortly afterwards via data downlink to the Earth and can be included in subsequent research.
Source: Textile World Magazine
Low supply pushes up price in Brazilian cotton market
Owing to lower 2016-17 supply and the slow pace of the 2017-18 harvesting, cotton prices increased in the Brazilian market in May. Between April 30 and May 30, the Center for Advanced Studies on Applied Economics/Luiz de Queiroz College of Agriculture (CEPEA/ESALQ) cotton Index rose 12.3 per cent, closing at 3.7491 BRL ($1.0024) on May 30. During the month, growers, trading companies and/or traders only had a few batches to offer. Some of them seemed to be accomplishing contracts involving the 2016-17 crop, CEPEA said in its latest fortnightly report on the Brazilian cotton market. On the other hand, buyers showed interest in new acquisitions in the spot market, even for mixed quality batches. However, only some agents agreed to pay the prices asked by sellers. In general, processors were finding it difficult to pass on the price rises of raw material to by-products. So, some of them reduced the production pace and worked only with stocked cotton. Others opted for purchasing 100 per cent thread and/or mixed, lowering the needs for cotton. The May 21 truckers strike, due to rise in fuel prices, hindered transportation, resulting in reduced trade in the spot market. Meanwhile, data from the BBM (Brazilian Commodity Exchange) tabulated by CEPEA indicates that 75.1 per cent of the 2016-17 Brazilian crop (estimated at 1.529 million tons) had been traded until May 29. Of this total, 61.9 per cent was allocated to the Brazilian market, 27.5 per cent, to the international market, and 10.6 per cent to flex contracts (for exports, but with an option to sell in the domestic market). For the 2018-19 season, data shows that at least 46.9 per cent of the 2017-18 output (forecast at 1.942 million tons) has been traded. While 46.8 per cent of the sales were meant for the domestic market, 37.5 per cent were for exports, and the remaining 15.7 per cent to flex contracts.
Source: Fibre2Fashion
The turnover of Itema Group, the leading global provider of advanced weaving solutions, including best-in-class weaving machines, spare parts and integrated services, amounted to €80.5 million in the first quarter of fiscal 2018, rising by 15 per cent compared to same period last year. The turnover shows the group’s strong international presence. The company’s core business, manufacturing and marketing of best-in-class weaving machines, registered unprecedented sales results over the same period of 2017. For the reported period, there was an exceptional leap for Itema weaving machines which increasingly represent the preferred choice and continue to gather the appreciation of weavers in the main textile markets such as China, Turkey and India. "The excellent results achieved in this first part of 2018 are the result of two crucial strategic decisions taken by the group: our positioning as technological leader in the sector and our dedication to international growth. Since 2012, Itema succeeded in more than doubling the sales of its weaving machines collecting constantly increasing profits thanks to our tireless and steady commitment to continuous innovation which led us to develop breakthrough and smart weaving solutions, enabling our group to become the industry technological benchmark. Research and innovation (in which the group invests 3 per cent of its turnover every year) will continue to be our driver," Carlo Rogora, Itema Group CEO, said. The group also confirms its firm determination in strengthening its leadership and growing not only organically but also through targeted acquisitions, thus creating significant synergies along the respective supply chains to grow not only in the textile machinery sector, but also to expand into new, highly innovative industries. "With this precise objective in mind Itema also recently considered a listing on the stock market, with an IPO which passed all the tests for obtaining the admission to the Italian Stock Exchange but did not arrive at completion solely due to the - sudden - changes in the equity market conditions that held back investor momentum. Our decision is an objective assessment of what we see as best for Itema in this specific moment, particularly taking into account that our positive net financial position and our excellent market results enable us to continue autonomously along our growth path," Rogora added. "With our shareholders’ full-fledged support we will therefore proceed in building an even more solid and competitive group at a global level and in concentrating our extensive R&D efforts on offering better, smarter, faster solutions, increased performances, reduced consumption and enhanced user-friendliness," Rogora concluded.
Source: Fibre2Fashion
