image rotation

MARKET WATCH 13 JUNE, 2018

NATIONAL

INTERNATIONAL

Refund drive: Mumbai customs disburses  2090 cr IGST to exporters in 10 days  

MUMBAI  Mumbai customs zone  today said it has disbursed Rs  2  090 crore of IGST refunds to  exporters in the first 10 days of  the special refund drive.  Central Board of Indirect  Tax and Customs (CBIC) is  observing an ‘export refund  fortnight’ from May 31 to June  14 to expedite the disposal of all  IGST export refunds.  “As far as Mumbai  customs zone is concerned  we  have disbursed IGST refunds of  Rs 6  467 crore  since the  inception of GST. Of this  we  were able to disburse Rs 1  181  crore in the refund drive  observed in March this year  ”  Mumbai’s chief commissioner of  customs  Rajiv Tandon  said  here.  In the current fortnight  the Mumbai zone has already  disbursed Rs 2  090 crore in the  first 10 days  chief commissioner  of customs (zone-II) Vivek Johri  said.  For the Mumbai zone  roughly Rs 1  400 crore worth of  IGST refund is left  according to  him. “We want to have a zero  pendency across all section as far  as IGST refund is concerned  ”  Tandon added.  IGST refunds are  sanctioned based on electronic  validation of data declared in the  shipping bill with that declared  in the GST returns as well as the  internal consistency of data  submitted in these documents.

Source: Tecoya Trend

Back to top

RBI study: ‘Rs 1 58 500-crore debt of 129 textile telecom and construction firms at risk’

The study is based on the performance of the private (non-financial) corporate sector during 2016-17 based on the earnings results of 3 007 listed non-government non-financial companies (NGNF). The RBI study has said Rs 72 400 crore debt of five telecom companies is at risk. From the textile segment 54 vulnerable companies carry Rs 45 700 crore debt at risk. www.citiindia.com 5 CITI-NEWS LETTER As much as Rs 158 500 crore debt of 129 vulnerable companies in textile telecom and construction sectors is at risk says a Reserve Bank of India study. The RBI study has said Rs 72 400 crore debt of five telecom companies is at risk. From the textile segment 54 vulnerable companies carry Rs 45 700 crore debt at risk. In the construction sector Rs 40 400 crore debt of 25 vulnerable companies is at risk the RBI study has said. The study is based on the performance of the private (non-financial) corporate sector during 2016-17 based on the earnings results of 3 007 listed non-government non-financial companies (NGNF). “Among companies with a leverage ratio of more than 200 per cent and an ICR (interest coverage ratio) of less than 1 (including companies with negative net worth) the textiles and the telecommunication corporates appeared fragile and debt at risk rose significantly in 2016-17 in these industries : it said. “The share of debt held by the ‘vulnerable’ construction companies also remained elevated. A stark contrast was observed in the performance of heavily indebted companies (i.e. those with debt equity ratios more than 200 per cent and debt to total assets ratio greater than 50 per cent in 2015-16) in the manufacturing vis-a-vis the rest of the sample. “Although the indebted manufacturing companies reduced their debt levels in 2016-17 they performed poorly in terms of fixed assets investment (capex) debt serviceability (ICR) and profitability (return on assets) it said. On the other hand there was an increase in debt levels of indebted infrastructure companies resulting in worsening of debt serviceability and profitability. “The issuance of new debt for the infrastructure companies is mainly determined by the internal rate of return (IRR) of the projects undertaken. Listed manufacturing companies tilted their investments towards financial assets and away from fixed assets in view of the persistently low capacity utilisation (CU) and the overall deleveraging witnessed in this sector” the RBI study said. The NGNF listed manufacturing companies are classified into three categories of CU (high medium low) and two categories of debt serviceability in the base year 2014-15. “Distressed companies liquidated their investment in both fixed and financial assets in 2016-17 among them companies with higher CU preferred to liquidate fixed assets whereas companies with low CU liquidated financial assets the study said. According to the study low capacity utilisation in the manufacturing sector led to significant deleveraging as well as lowers investments in fixed assets with companies preferring investments in financial and liquid assets. “Deleveraging undertaken by highly indebted manufacturing companies should translate into better risk profile of this www.citiindia.com 6 CITI-NEWS LETTER sector in the coming years however preference of investment channels other than fixed assets by the healthy corporates probably hints at transaction cost motive and subdued credit demand in the economy ” it said.

Source: The Indian Express

Back to top

IIP rises by 4.9% in April retail inflation inches up to 4.87% in May

Industrial output expanded by 4.9 per cent in April this year, spurred by higher growth in manufacturing and mining sectors. The industrial growth, measured on the Index of Industrial Production (IIP), was 3.2 per cent in April last year. In March this year, industrial production had grown at 4.4 per cent. As per the data released by the Central Statistics Office (CSO), the manufacturing sector, which constitutes more than 77 per cent of the index, recorded a growth of 5.2 per cent in April, up from 2.9 per cent in the year ago month. The mining sector too expanded by 5.1 per cent, up from 3 per cent in April 2017. The growth in power generation, however, slipped to 2.1 per cent in April this year, from 5.4 per cent in the year-ago month. Meanwhile, retail inflation inched up to 4.87 in May on increase in prices of certain items in the food basket, as per government data. Based on the Consumer Price Index (CPI), the inflation was at 4.58 per cent in the preceding month April.

In May last year, it was 2.18 per cent. As per the data of the Central Statistics Office (CSO), food inflation rose to 3.10 per cent last month, as against 2.8 per cent in April. The price data is collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. The data is received through web portals, maintained by the National Informatics Centre.

Source: Business Standard

Back to top

AI Clusters to Come Up In Maharashtra To Create 230 Million New Jobs For India By 2025

As part of his current visit to Dubai Canada and the United States Maharashtra Chief Minister Devendra Fadnavis is hosting a series of meetings in Quebec with the intent on promoting artificial intelligence and other emerging technologies. CM Fadnavis met Vice Premier of Quebec Dominique Anglade and they agreed to a collaboration between Maharashtra and Quebec to increase increments in AI and aerospace. Two of the key meetings that CM Fadnavis attended were with IVADO and AI Next. The former signed a collaboration agreement with the Department of IT Maharashtra for setting up an AI accelerator in the state. They also signed a Letter of Intent to become part of the World Organization on AI (Artificial Intelligence – Quebec expertise). Additionally AI Next has signed an agreement with the Government of Maharashtra’s Department of information Technology to set up a joint AI accelerator to promote 50 start-up AI units in Maharashtra. It has also been agreed that IVADO and Applied AI Research Institute focused on social good in Mumbai which was launched in February will work together to set up AI clusters in Maharashtra in conjunction with IIT Mumbai. Speaking at a panel discussion on the topic CM Fadnavis said “There is a great deal of uncertainty around AI. However as representatives of the people if we begin to embrace it it will give a great deal of confidence to the citizens and enable us to demystify the technology. With effective use of AI we hope to bring basic services to the doorsteps of the people be able to save lives through improved health care as also create about 230 million jobs in the country by 2025 under WEF Industry 4.0.” Under the CM Fadnavis’ leadership Maharashtra has invested in several areas of AI already. Maharashtra was the first state in India to come out with a comprehensive cloud policy that has enabled the entire government to take steps to shift its operations the cloud and take advantage of the capabilities of cloud computing. Providing a boost to this direction the government has come out with the first Fintech policy in India that includes incentives to startups Mumbai fintech sandbox finTech registry etc. Additionally the IT department of the state government has also embarked on use of blockchain in some key areas such as land registry healthcare transport etc. Fadnavis announced that AI was to be deployed to bring about improvement in fields of governance and welfare such as: 1. Agriculture: to provide farmers with information on (a) what to sow to maximise their profit (not just yield) (b) when to sow it (c) when to fertilise irrigate and harvest it 2. Health: Assist hospitals in the diagnosis of common cancers (e.g. mouth or throat cancers) from images and blood samples using Electronic Health Records (EHRs) of a large population assist ASHA workers to provide pre-diagnosis in remote villages for simple diseases and generate recommendations for escalations to doctors for more complex diseases 3.

Source: Prajakta Hebbar Analytics India

Back to top

CM to meet members of garment workers’ forum union on June 18

To keep up the pre-poll promise of addressing the long-pending issues plaguing garment workers Chief Minister H.D. Kumaraswamy on Tuesday promised a permanent solution to their problems. He has convened a meeting of garment and textile manufacturers’ association and the workers’ union on June 18. At a meeting on Tuesday with representatives of garment and textile unions Mr. Kumaraswamy assured them that their demands including that of minimum wages would be discussed with the manufactures’ union. “A final decision on the issue will be taken at the June 18 meeting with mutual consent” he clarified. “The government will ensure that the talks are fruitful and it will be a win-win situation for both workers and manufacturers” he added.

Source: The Hindu

Back to top

India and South Africa Bilateral Ties: New Opportunities in Trade and Investment

India and South Africa share a rich cultural and varied economic history with bilateral relations going back to the 1860s. Although strained for a long time due to South Africa’s apartheid government India re-established trade and business ties in 1993 after the country ended its institutionalized racial segregation. 2018 marks 25 years of India and South Africa re-establishing their economic and diplomatic relations. To commemorate the occasion the first India-South Africa Business Summit 2018 took place April 29-30 in Johannesburg – seen as a run up to the 10th BRICS Summit also to be held in South Africa later in July. At the India-South Africa Business Summit discussion centered on opportunities available for investment across a diverse range of sectors including automobile healthcare pharmaceuticals agro-processing and startups. MoUs were signed between the national investment promotion agencies ‘Invest India’ and ‘Invest SA’ to promote bilateral trade and scale up business engagement. Push to increase bilateral trade India is South Africa’s sixth largest trading partner in Asia growing steadily from US$4.7 billion (Rs 318 billion) in 2007 to close to US$10 billion (Rs 605 billion) at present. Total trade reached a peak of US$15 billion (Rs 1 trillion) in 2012 – before the global economic slowdown and domestic political factors put a brake on the rapid expansion. Here South Africa’s active involvement in multilateral organizations such as the India-Brazil-South Africa Dialogue Forum (IBSA) the New Asia-Africa Strategic Partnership (NAASP) the Indian Ocean Rim Association for Regional Co-operation (IORARC) and the annual BRICS Summits has helped in the partial recovery in bilateral trade. Both countries are now working to boost trade volumes over the next five years to reach US$20 billion (Rs 1.3 trillion). Bilateral focus on macroeconomic goals a recent joint study by the Confederation of Indian Industries and Price Waterhouse Cooper confirms that Indian companies have cumulatively invested over US$4 billion (Rs 260 billion) and created more than 18 000 jobs in South Africa. At present there are over 130 Indian companies set up in South Africa. Several Indian companies also collaborate with Africa-based foundations such as the FirstRand Foundation and sponsor India-Africa exchange programs for skill development. Mostly based in the information technology (IT) sector the programs aim to improve the employability of African graduates by providing international work experience and training. 29 South African companies have invested in India accounting for US$790 million (Rs 53 billion) largely in the banking financial services and insurance (BFSI) sector. With a view to encourage investments the two countries signed a Double Taxation Avoidance Agreement (DTAA) in 1998. Last year South Africa’s Phelan Energy Group – chiefly responsible for lowering Indian solar tariffs with aggressive bids – won the contract to build a 50-megawatt solar project in the Indian state of Rajasthan. Opportunities for investors South Africa dropped to rank 82 in the 2017 World Bank Ease of Doing Business index from a high rank of 39 in 2013 largely due to limited electricity access and skill deficit in the labor market. However implementation of legal and regulatory frameworks to mitigate these issues is fast improving. Steady infrastructure development also allows for easy global access. With a view to encourage manufacturing investment the South Africa government has designated Special Economic Zones that offer incentives such as lower corporate taxes various tax relief criteria for construction and employees and decreased value added tax to investors. In South Africa foreign investors should look at mature sectors such as automotive components textiles clothing and footwear which have benefited from government and private investments of over US$900 million. Key untapped sectors include health nutrition and wellness. In India biotechnology – a key strength of South African manufacturers – remains an attractive investment area the sector now permits 100 percent FDI through the automatic route. Similarly the travel and tourism industry in the age of hyper local online commerce information and communication technology as well as the renewable energy and agri-processing sectors offer immediate investment prospects for South African firms looking to enter the Indian market. Indian pharmaceuticals mitigate welfare challenges in Africa several challenging welfare conditions in South Africa have been mitigated through investments by Indian firms. Cipla a leading Indian pharmaceutical company initiated the movement to provide anti-retroviral drugs (ARV) – drug therapy for HIV – at US$1 (Rs 68) per day making this medication affordable for the millions affected in South Africa. Ranbaxy another Indian pharmaceutical firm recently established a second manufacturing facility investing US$30 million in South Africa to make basic analgesics anti-histamines vitamins and other over-the-counter medication. Indian companies actively participate in and encourage corporate social responsibility undertakings in education up-skilling and women empowerment – promoting their business operations alongside local community development.

Source: Rohini Singh India Briefing

Back to top

CAI hikes cotton crop estimate for 2017-18 season to 365L bales

The CAI has estimated domestic consumption for the season at 324 lakh bales while the exports for the season are estimated by the CAI at 70 lakh bales. The Cotton Association of India has estimated production for the ongoing 2017-18 season at 365 lakh bales which is higher by 5 lakh bales from its previous estimate released in May. The Cotton Association of India (CAI) has estimated production for the ongoing 2017-18 season at 365 lakh bales which is higher by 5 lakh bales from its previous estimate released in May. This includes 3 lakh bales (of 170 kg each) in Gujarat, 1 lakh bales in Karnataka, 50,000 bales in Andhra Pradesh and 25,000 bales each in Madhya Pradesh and Tamil Nadu. However, a low carryover stock of cotton at the end of 2017-18 crop year (beginning October 1, 2017) has been estimated at 16 lakh bales. A very low closing cotton stock at the end of the season has become a matter of worry for us, CAI president Atul Ganatra told FE, declining to divulge into details. The total cotton supply up to May 31, 2018 has been projected at 378.50 lakh bales which consists of the opening stock of 30 lakh bales at the beginning of the season on October 1, 2017, the arrival of 340 lakh bales up to May 31, 2018 and imports which the Committee has estimated at 8.50 lakh bales up to May-end. According to Ganatra, the estimated rise in production figures is mainly due to the realisation of higher yields, particularly in Gujarat. The Statistic Committee of the CAI held its meeting in Mumbai, which was also attended by over 30 representative from various upcountry associations, MNCs, ginners, exporters, importers, textile mills, among others, to review the current cotton scenario. Further, the Committee has estimated cotton consumption for 8 months — from October, 2017 to May, 2018 — at 216 lakh bales at an average of 27 lakh bales per month while the export shipment till May 31, 2018 has been estimated at 62 lakh bales. The stock at the end of May, 2018 is estimated at 100.50 lakh bales, including 58 lakh bales with textile mills, while the remaining 42.50 lakh bales are estimated to be held with Cotton Corporation of India (CCI) and others (MNCs, traders, ginners, etc). The projected yearly balance sheet for the 2017-18 season, drawn by the CAI, has estimated total cotton supply till the end of season, September 30, 2018, at 410 lakh bales of 170 kg each, including the opening stock of 30 lakh bales at the beginning of the season. The CAI has estimated domestic consumption for the season at 324 lakh bales while the exports for the season are estimated by the CAI at 70 lakh bales. “We can end the season with exports of 70 lakh bales,” Ganatra said earlier, adding that higher international prices would drive up shipments. The country has exported 62 lakh bales so far in the marketing year that started on October 1, he added. According to Alli Rani,CMD, CCI so far 320 lakh bales have arrived in the market and the season is likely to go on for another 30 days. Arrivals have slackened to 0.5 lakh bales a day and therefore prices are up. According to cotton ginners, market sentiment is up because of speculation that demand from China is going up because the country’s buffer stock has reduced. China earlier had a buffer stock for one and half years and this has now reduced to a year’s stock which is why they could be turning to India for cotton, market experts said. It may be noted that the crop size of 365 lakh bales of 170 kgs. each is equal to 388 lakh running bales of 160 kgs. each and the estimated arrival of 340 lakh bales 170 kgs. each upto 31st May, 2018 is equal to 362 lakh running bales of 160 kgs. each. Around 93 % of the total crop for the season has already arrived in the market upto 31st May, 2018.

Source: The Financial Express

Back to top

Global Textile Raw Material Price 2018-06-12

Item

Price

Unit

Fluctuation

Date

PSF

1374.30

USD/Ton

-0.11%

6/12/2018

VSF

2311.32

USD/Ton

0.34%

6/12/2018

ASF

3076.55

USD/Ton

0%

6/12/2018

Polyester POY

1392.26

USD/Ton

-0.17%

6/12/2018

Nylon FDY

3638.76

USD/Ton

0.43%

6/12/2018

40D Spandex

5465.95

USD/Ton

0%

6/12/2018

Nylon POY

5903.23

USD/Ton

0%

6/12/2018

Acrylic Top 3D

1671.02

USD/Ton

0%

6/12/2018

Polyester FDY

3256.14

USD/Ton

0%

6/12/2018

Nylon DTY

3201.49

USD/Ton

0%

6/12/2018

Viscose Long Filament

1647.59

USD/Ton

0%

6/12/2018

Polyester DTY

3724.65

USD/Ton

0%

6/12/2018

10S OE Cotton Yarn

2284.77

USD/Ton

0%

6/12/2018

32S Cotton Carded Yarn

3795.71

USD/Ton

0%

6/12/2018

40S Cotton Combed Yarn

4274.37

USD/Ton

0%

6/12/2018

30S Spun Rayon Yarn

3076.55

USD/Ton

0%

6/12/2018

32S Polyester Yarn

2241.04

USD/Ton

-0.35%

6/12/2018

45S T/C Yarn

3092.17

USD/Ton

0%

6/12/2018

40S Rayon Yarn

3232.72

USD/Ton

0%

6/12/2018

T/R Yarn 65/35 32S

2732.98

USD/Ton

0.57%

6/12/2018

45S Polyester Yarn

2342.55

USD/Ton

0%

6/12/2018

T/C Yarn 65/35 32S

2623.66

USD/Ton

0%

6/12/2018

10S Denim Fabric

1.46

USD/Meter

0%

6/12/2018

32S Twill Fabric

0.90

USD/Meter

0%

6/12/2018

40S Combed Poplin

1.26

USD/Meter

0%

6/12/2018

30S Rayon Fabric

0.72

USD/Meter

0.22%

6/12/2018

45S T/C Fabric

0.74

USD/Meter

0%

6/12/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15617 USD dtd. 12/6/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Indonesia making preparations to join TPP

Indonesia is studying the revised Trans-Pacific Partnership agreement reached by 11 nations after the U.S. exited with a view to joining the trade pact Jusuf Kalla the country's vice president said on Tuesday. Those comments mark a turnaround in policy for the Southeast Asian nation which had previously said that the trade pact had lost its allure without the U.S.'s participation. Speaking to the Nikkei Asian Review on the sidelines of the Future of Asia conference hosted by Nikkei Kalla said that Indonesia "is now studying the conditions the possibility" of joining the trade agreement. "Of course if TPP is free of tax and Indonesia still pays tax then it is not easy for Indonesian goods to compete in the market " he said. "That is why our intention is to join" after the pact comes into force he said. The vice president had said in an interview with Nikkei last year that "without the U.S. [in the TPP] we feel that the benefits on the trade front for Indonesia aren't that big and we have lost interest” but he now is of the opinion that regardless of whether the world's biggest economy returns or not Indonesia could join. Kalla said he hoped that the studies currently being conducted by his government in the existing TPP agreement would conclude within "six months to a year” after which Indonesia will make a final decision. The studies will focus on how the country's competitiveness will be affected if it joins the pact. Twelve nations that border the Pacific Ocean initially joined the TPP in February 2016 but the U.S. pulled out of the deal last year after Donald Trump following through on his campaign pledge took office as president. The 11 remaining countries agreed to an amended version of the deal now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP in Vietnam last November signing it in Santiago Chile this past March. The new TPP takes effect once six of its members ratify the deal. Indonesia in early April drew up a road map dubbed "Making Indonesia 4.0 " for upgrading five manufacturing sectors in the hope of making the country one of the world's 10 largest economies. The industries comprise food and beverage textile and garment automotive chemical and electronics -- sectors which face fierce competition from Indonesia's neighboring countries. Joining the TPP would at least level the playing field for Indonesia against its rivals. Indonesia is also involved in another mega trade deal the Regional Comprehensive Economic Partnership or RCEP. In February it hosted the 21st round of talks in the city of Yogyakarta with Indonesia's trade minister Enggartiasto Lukita saying at the time that the partnership was the country's priority. But with RCEP negotiations dragging on -- initial plans were for the talks to conclude last year  Kalla hinted that Indonesia will now put a priority on joining the TPP. "[It] has faster operation” he said.

Source: Shotaro Tani Nikkie

Back to top

Bangladesh: Consumers oppose Titas’ 75pc gas price hike proposal

Titas Gas Company`s proposal to raise an average 75 percent gas price faced tremendous opposition from different consumer groups at the public hearing of the Bangladesh Energy Regulatory Commissionon yesterday reports UNB. The consumer groups said if the gas price is raised it will bring multiple negative impact on the public life as it will lead to rise in transport cost electricity tariff and price of other consumer goods as well. BERC Chairman Monwar Islam presided over the public hearing at the TCB Auditorium while others members of the watchdog body were present on the occasion. In the 75 percent average hike the largest gas distribution company proposed to raise 206 percent price for power plants as it proposed Tk 10 per cubic meter (CM) for power plants in place of exiting price of Tk 3.16. The gas price for fertiliser factories were proposed to hike the highest 372 percent where it sought the price to be Tk 12.80 per CM against the existing rate of Tk 2.71 per CM. The captive power plants' gas price was proposed to be Tk 16 per CM against Tk 9.62 while industries gas price was proposed at Tk 15 per CM against the existing Tk 7.76 per CM and CNG gas price was proposed to be Tk 40 per CM against existing rate of Tk 32. However no price hike was proposed for the gas used by household and commercial consumers. A technical evaluation committee of the BERC analysed the Titas Gas proposal but did not give any recommendations to raise the gas price. Instead it put forwarded a number of recommendations to bring structural change in the mechanism of fixing the gas price. Installation of gas meter fixing gas price based on actual consumption and incentives for regular payment of bills by consumers are among the recommendations. Advisor to Consumers Association of Bangladesh (CAB) Prof M Shamsul Alam said Titas Gas has over Tk 2000 crore surplus fund in its hand which it lends to different organisations. So there is no justification to raise its gas price he said adding that the company realises bills for 88 cubic meter (CM) use of gas from a household consumer while such use is about 20 CM. Titas officials illegally provide connections to huge consumers by taking bribes he alleged saying that gas sector is facing same disaster like the country`s banking sector. Eminent energy expert Prof Nurul Islam said Titas Gas lacks transparency in fixing its gas price for different consumer group. Eminent geologist Prof Badrul Imam said an artificial gas crisis was created across the country by not doing any exploration works in last 9-10 years to give the benefit to a vested interest groups. "Now the country had to step in a planned trap to import LNG to meet the domestic requirements." He also observed that the government will gradually increase the gas import up to 4000 million cubic feet per day (mmcfd) which will ultimately make the country an imported LNG-dependent country. He said in every stage of import of 1000 mmcfd the Titas Gas has come to BERC to raise gas price. "This is absolutely a wrong policy to be dependent on imported gas instead of exploring local gas." Eminent architecture and consumer right groups leader Mobasher Hossain alleged that unscrupulous officials at Titas are forcing consumers to bribe them to get gas connection illegally. Director of Bangladesh Textile Mills Association Shahed Alam said if gas price is raised textile sector will lose competitiveness in the international market as it will raise their production cost by 40 US cents per kg of spinning thread. Finance Controller of Power Development Board (PDB) Mizanur Rahman said any rise in gas price substantially affects the cost of electricity generation and compel them to raise the power tariff. Chief Coordinator of Gonosanghoti Andolon Zonayed Saki said the government is deliberately pursuing a wrong policy of import-oriented gas use.

Source: The Independent

Back to top

Bangladesh exporters demand re-fixing corporate tax at 10%

 

The recent Bangladesh budget has proposed raising the corporate tax rate on manufacturers and exporters of readymade garments (RMG) to 15 per cent from 12 per cent. If any such taxpayer is a public limited company, then the rate will be 12.5 per cent. Any factory holding green building certification will enjoy tax rate of 12 per cent, according to the budget proposals. A 5 per cent value-added tax (VAT) on branded garment outlets has also been proposed instead of 4 per cent. Besides, a 5 percent VAT will also be applicable on sale of non-branded garments in the local market. The Exporters Association of Bangladesh (EAB) has, however, demanded reduction in the proposed corporate tax for the RMG industry by 5 per cent and to fix it at 10 per cent. It also wants the government to cut the tax at source at 0.25 per cent instead of the existing 0.70 per cent for at least five years, according to Bangladesh media reports. The EAB said in a statement that the proposed tax at source of 1.0 per cent for the RMG industries, instead of the existing 0.70 per cent, to be made effective from July 1 this year would make the usual operations of the export-oriented RMG industries stagnant and thus reduce the capacity of the industries. The Fashion Entrepreneurs Association of Bangladesh (FEAB) has opposed the proposal to increase VAT on the apparel items of local brands in the proposed budget as the step would pose a serious threat to the local apparel industry that engages marginalised people. FEAB said local buyers would turn off in the face of increased VAT rate and imported apparel products would occupy the market.

Source: Fibre2Fashion

http://www.globaltextiles.com/info/detail/001-24192/Bangladesh-exporters-demand-re-fixing-corporate-tax-at-10.html

Back to top

Natural Fiber Extravaganza in Lebanon from July 13

 

The Natural Fiber Extravaganza will begin in Lebanon from July 13. The 3-day programme will host an array of events including hands-on-workshops and seminars on designing, producing and selling of alpaca related products and services. The exhibition by Alpaca Owners Association (AOA) is the world’s largest alpaca association with over 5,000 members. This will be the inaugural year for the Natural Fiber Extravaganza. The seminar will cover various topics including the approach to using alpaca fibre harvest to help generate revenue, digital marketing etc. The workshop will shed light on using the natural fibre for spinning, drop spindling, sorting, grading and weaving among others.

The event will also host AOA Fiber Artist Marketplace which will be great exposure for the fibre business. In addition to the opportunity to network with other fibre artists, the participants will have the chance to share and learn new ideas that may positively impact their business.

Source:Fibre2Fashion

http://www.globaltextiles.com/info/detail/001-24190/Natural-Fiber-Extravaganza-in-Lebanon-from-July-13.html

Back to top

Kenya: Breakthrough for textile industry as BT cotton enters the market  

The country’s textile industry is headed for a big boost after Genetically Modified cotton planting began locally. A journey of more than 15 years of developing the BT cotton reached the last stage yesterday as the National Performance Trials for the crop began in Kisumu County. Horticultural Research Institute Director Charles Waturu presided over the first-ever open field planting of four varieties of seeds ahead of the launch of commercial planting later in the year.  The research was done in collaboration with the Kenya Agricultural and Livestock Research Organisation (Kalro).  According to Dr Waturu  the planting came barely a year since the National Environment Management Authority approved the environment assessment of the crop for commercial use.  Next season The commercial planting of the crop will be open to farmers in the next planting season with western Kenya set to pioneer it.  Waturu yesterday said an Indian seed company was set to deliver seeds enough for more than 260 hectares of field which are targeted by the Government for the first phase of planting.  Kenya developed a policy on Genetically Modified Organism in 2006. This was followed by the passing of the Biosafety law  which allowed for research on the same in 2009.  Comprehensive regulations to provide guidance on implementation of the law followed in 2011. After successful confined field trials of BT cotton planting by the researchers in 2010  the focus turned to the rush to acquire open release certification of the crop.  Waturu yesterday termed the planting of the seeds as a breakthrough in the textile industry especially at a time when the Government has listed industrialisation among its Big Four development agenda.  “Kenya produces 20  000 bales of cotton every year against a demand of 140  000  meaning we have to import the deficit. But with BT cotton  which is high yielding and has high quality  we can produce up to 260  000 bales  ” he said.  A bale of cotton weighs 184kg.  BT cotton is a genetically modified cotton seed developed with a gene called BT toxic. These are strains of the bacterium bacillus thuringiensis. The toxin contains proteins that are harmful to bollworms which have been proved to be the main pest affecting cotton balls.  “This toxic is not harmful to human beings and its traces have been used to develop numerous pesticides used to control pests in cabbages and sukuma wiki” said Waturu.  He said once the trials were complete in the next six months the Ministry of Agriculture would launch a seed distribution exercise targeting farmers  especially those from traditional cotton growing areas in western and eastern parts of the country.  “We project that if well managed  farmers will be able to get up to five tonnes of cotton from one acre. This is a big boost and we want to move fast to ensure that we regain our cotton growing glory” he said.  According to Waturu pests and diseases were the main reasons why cotton growing in the country was abandoned and BT cotton is expected to be the solution.  He said the new crop would be viable for irrigation and take up to six months to mature.  Not viable Waturu however noted that the crop would not be viable for inter-cropping especially with maize since the latter had been established to be a host for the dreaded pest.  He said the recruitment of farmers was set to begin soon in collaboration with the host county governments especially since agriculture was a devolved function.  “There are also elaborate plans by the national government to revamp dead ginneries and build new ones so that once harvesting begins there will be no issue with the markets  ” he added.

Source: The Standard Digital

Back to top

Subscribe to SRTEPC mailing list

Exchange Rates