MUMBAI : Mr. Narain Aggarwal Chairman SRTEPC has welcomed the GST Council’s decision on refund of credit on account of accumulated duty structure on fabrics. It may be noted here that in the MMF textile segment which is highly fragmented and decentralized individual units are specialized in particular field of textiles spinning or yarn preparatory or weaving or processing or value addition and instead of carrying out the entire textile value chain they are doing part of the job only. Job work at every stage of value addition is common in the textile manufacturing process. In the MMF textile segment also most of the exporters do rely on job work for getting their textile products manufactured. Therefore due to the accumulated ITC which remain unrebated the increasing financial burden and liquidity crunch on the exporters as well as domestic manufacturers was substantial. Thus this step of allowing refund of accumulated ITC on fabrics will benefit more than 5 lakh weavers and knitters in the country. This will be a big boost to the MMF segment in particular Mr. Aggarwal pointed out. SRTEPC Chairman met Finance Minister Minister of Textiles Secretary (Textiles) Officers of the Department of Revenue GST Commissioner etc. in this regard besides other issues with supporting data justifying that it will be of immense help to the weavers and knitters. He further stated that this would also help the domestic fabrics manufacturers compete well in the international market.Mr. Aggarwal lauded the government on behalf of the Man-made Fibre Textile segment of the country for such a great relief i.e. full refund of accumulated ITC on fabrics as it will also improve competitiveness of the Indian textile exports globally.
Source: Tecoya Trend
The GST Council’s decision to allow refund of accumulated input tax credit (ITC) at the fabric stage could reduce fabric prices by 3-4% and ultimately help consumers, apart from improving competitiveness in the export market, senior industry executives said on Monday. The GST Council’s decision to allow refund of accumulated input tax credit (ITC) at the fabric stage could reduce fabric prices by 3-4% and ultimately help consumers, apart from improving competitiveness in the export market, senior industry executives said on Monday. The fabric segment often operates on a single-digit margin, so the relief is meaningful in the sense the move will enable it to pass on the benefits and generate higher sales, they added. The average accumulation of credit (not allowed earlier) on this account for a powerloom in the last one year was around Rs 7,000, according to an industry estimate. The refund, however, will be allowed only with the prospective effect on the purchases made after the notification is issued, according to the GST Council decision. Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said: “It was the need of the hour as fabric sector is already facing a lot of difficulties while competing with its counterparts in international market.” Jain said while bringing all the textile goods under the GST net, the GST Council had put the entire cotton textile value chain under the 5% GST slab. But in the case of synthetics, the fibres were brought under the 18% GST slab, yarn under 12% and fabric under 5%.While the accumulated input tax credit (ITCs) refunds were allowed on all output materials, only fabric was not allowed to take the refund of accumulated ITC. This caused inverted duty problem on fabric to the tune of 4% and seriously affected the global competitiveness of the power loom and hand loom sectors. The yarn sector was also forced to reduce the price to share the burden on the fabric. The fabric sector plays an important role and also generates a sizeable employment opportunities —40 jobs on an investment of Rs 1 crore — which is more than any segment of the textile value chain. Jain further said that the rates cut on Chenille and other fabrics under heading 5801 and handloom dari to 5% from 12% is a big win for the textile manufacturers who were reeling under immense pressure. It would further boost employment in the powerloom sector, as about 40,000 textile workers have lost their jobs in last one year. A Sakthivel, past president of Tirupur Exporters’ Association (the largest knitwear cluster of India), said: “The GST Council’s decision will surely help the sector to revive strongly and become competitive globally. Especially, the MSME sector will largely get benefited. The entire textile sector today feels proud as the move is the path-breaking reform which will be silverline in the history of the sector.” Jain said that allowing quarterly filing of return for the small taxpayers having turnover below Rs 5 crore as an optional facility will ease out pressure on small businessmen/merchants and is expected to give big relief to about 93% of the over 10 million registered GST payers, from the complex procedures of filing monthly returns. P Nataraj, chairman of Southern India Mills’ Association (SIMA) said, the decision in this regard would create a level playing field for the independent weaving units, powerloom units and handloom sector to remain competitive not only in the domestic market but also in the global market.
Source: Business Standard
The Goods and Services Tax (GST) Council at its 28th meeting held under the chairmanship of Union minister for railways, coal, finance and corporate affairs Piyush Goyal has recommended for allowing refund of input tax credit (ITC) to fabrics. The refund of accumulated ITC shall be with prospective effect on purchases made after notification is issued. “Fabrics attract GST at the rate of 5 per cent subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued,” the ministry of finance said in its post-Council meeting statement. Welcoming the Council’s decision Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said, “It was the need of the hour as fabric sector is already facing a lot of difficulties while competing with its counterparts in international market. CITI has been consistently requesting to the government to give relief to the fabric segment as for the overall growth of the textile sector, fabric sector plays an important role and it also generates sizeable employment opportunities—40 jobs on ₹1 crore investment—which is more than any segment of the textile value chain. Hence, decision to allow refund of accumulated ITC at fabric stage due to inverted duty structure is a big relief to the textile sector.” The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has also termed the Council’s decision as one of a great relief to the textile industry in general and fabrics manufacturers in particular. “In the MMF textile segment which is highly fragmented and decentralised, individual units are specialised in particular field of textiles spinning or yarn preparatory or weaving or processing or value addition and instead of carrying out the entire textile value chain they are doing part of the job only,” said SRTEPC chairman Narain Aggarwal. “Since most of the exporters in the MMF textile segment rely on job work for getting their textile products manufactured, the accumulated ITC, which remain unrebated, was increasing financial burden, and liquidity crunch on the exporters as well as domestic manufacturers was substantial. Therefore, this step of allowing refund of accumulated ITC on fabrics will benefit more than 5 lakh weavers and knitters in the country. This will be a big boost to the MMF segment in particular,” he added.
Source: Fibre2Fashion
Garment exports have contracted for nine months in a row through June but a relief by way of raising the compensation level to exporters for both central and state levies is unlikely to come by. Garment exports have contracted for nine months in a row through June but a relief by way of raising the compensation level to exporters for both central and state levies is unlikely to come by. Sources told FE the revenue department is unwilling to raise compensation under two key schemes — duty drawback and remission of state levies (RoSL) — from the current 3.7% (of freight-on-board value of exports) for cotton garments, even though exporters demand it to be raised to around 11% to stay competitive. Although the textile ministry hasn’t recommended any specific level of compensation, it has been supportive of exporters’ cause. For its part, the revenue department feels since the goods and services tax (GST) subsumed a number of central and even state levies, including sales tax and VAT, the duty drawback and RoSL rates were trimmed. Being a multi-point tax on value addition that militates against cascading of taxes, the GST itself offsets a large part of the tax content on export goods, the revenue department reckons. Since input tax credits can be obtained, what needs to be offset under the policy of zero rating of exports is, therefore, simply the tax on the final value added, it feels. However, exporters argue that there are many levies outside GST that are embedded in the export prices, and so the demand for higher duty drawbacks and RoSL rates. “The current rates of support adequately offset any levies that both the central and state governments impose on garment exporters. Effectively, these exporters are getting what they used to get before GST era, if the taxes that are subsumed by the GST are taken into account,” said an official source. However, if exporters can cite concrete evidence to suggest the existence of embedded taxes even under the GST regime, the revenue department will examine that, said the source. Just before the GST was introduced from July 2017, the compensation for exporters of cotton garments stood at 11% (duty drawback at 7.7% and RoSL at 3.3%). As such, a committee under GK Pillai, former home and commerce secretary, is working out the GST duty drawback rates and is expected to submit its report soon. This report is expected to form the basis of the duty drawback and other such compensation to offset central and state levies in the coming months. The RoSL, under which garment exporters get refunds from the Centre against all the levies they pay at the states’ level, was a key scheme in the Rs 6,000-crore garments package announced by the government in 2016 to create 1 crore more jobs, Rs 78,000 crore in additional investments and $30 billion more exports over a three-year period. The contraction in exports have already stoked fears of job losses and compounds problems of policymakers who are contemplating how best to compensate the textile and garments sector adequately once subsidies to promote such exports are phased out (by as early as December 2018, according to some analysts) to avoid disputes at the World Trade Organisation (WTO). Apparel exports dropped almost 4% in 2017-18 when the country’s overall goods exports jumped nearly 10%. According to HKL Magu, chairman, Apparel Export Promotion Council (AEPC), the cut in the duty drawback and RoSL in the GST regime, capital blockage due to slow GST refunds initially and uncertainties on the future of export subsidies have affected the deeply-fragmented garment industry. Of late, though, the government has expedited the process of clearing refunds, which will release blocked capital in the sector, especially of MSMEs that have been hit by a liquidity crunch. As such, garment exporters say they have been handicapped by the duty disadvantage against key competitors like Bangladesh and Vietnam to our key markets — the EU and the US — and high logistics costs. For instance, while Bangladesh ships out garments to the EU at zero duty, Indian companies are forced to cough up 9.6%. India’s logistics costs account for as much as 15-16% of the consignment value, against 10% in many countries. Of course, under the Merchandise Exports from India Scheme, garments and made-ups exporters get duty exemption scrips, freely transferable for cash, worth 4% of their total exports (raised from 2% in October 2017). But this supports still seems inadequate.
Source: Financial Express
Textile industry sources are confident that the initiatives taken by the Textiles Minister, Smriti Zubin Irani, would transform India as a global manufacturing hub for textiles. Thanking the minister for her efforts in pursuing with the GST Council in getting the approval for GST refund for input tax credit, A Sakthivel, Southern Region Chairman of FIEO, said this would go a long way in reviving the sector and making the MSMEs globally competitive. Sakthivel also hailed the GST Council as well for input tax credit refund.
Source: The Hindu Business Line
The Bill replaced the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, which was approved by President Ram Nath Kovind last month. A total of Rs 4 lakh crore worth of stressed assets are currently undergoing resolution under the IBC. The government on Monday moved amendments to the bankruptcy law that empower homebuyers to be recognised as financial creditors, lower the minimum voting threshold for Committee of Creditors (CoC) to approve a resolution plan and provide a special dispensation for promoters of micro, small and medium enterprises (MSMEs) to bid for their own companies. Finance Minister Piyush Goyal introduced the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018, in the Lok Sabha, amid objections by Opposition parties alleging that changes in the voting percentages were being done to benefit “one industry”. The Bill replaced the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, which was approved by President Ram Nath Kovind last month. A total of Rs 4 lakh crore worth of stressed assets are currently undergoing resolution under the IBC. In a relief to the homebuyers, who earlier did not have any say in the resolution process of real estate companies, the Bill provides that “any amount raised from an allottee under a real estate project shall deemed to be an amount having the commercial effect of a borrowing.” This means that homebuyers will be treated at par with the financial creditors for companies undergoing resolution under the bankruptcy law. The Bill also proposes to reduce the minimum voting threshold required to approve a resolution plan by the Committee of Creditors to 66 per cent, down from 75 per cent for “important decision” — a provision opposed by BJD member Bhartruhari Mahtab. For “routine decisions”, the minimum voting threshold has been reduced to 51 per cent from 75 per cent. Mahtab raised objection to this key change in the law, arguing this benefits one industry and promotes crony capitalism. Citing the resolution process of textile firm Alok Industries, Mahtab said two major companies had jointly submitted before the CoC to acquire the company. However, the CoC of Alok Industries could not approve the resolution plan as it got over 70 per cent vote, as against the required 75 per cent, Mahtab said. “The Ordinance brought by the government lowers the minimum vote requirement for passing the resolution to 66 per cent from 75 per cent in the original Act. This is nothing but a fixed match… It is a clear case of crony capitalism and loot of public money,” Mahtab said. He said banks are taking a haircut of 84 per cent in resolution of Alok Industries case. Banks last month approved the resolution plan of Reliance Industries Ltd in partnership with JM Financial ARC taking over Alok Industries. “Alok Industries is a glaring example. Should the law be bent like this? Should we be the party to this law, this loot? It stinks. This is a clear case of crony capitalism and loot of public money. It is bad in law. Anything that is against public good is bad in law,” Mahtab said. Congress and TMC MPs supported the BJD MP who concluded by saying he would hope that “good sense would prevail upon the Finance Minister” Responding to Mahtab, Piyush Goyal said the allegations were “baseless.” According to Goyal, the IBC was initially introduced when the banking sector was going through a serious crisis because of indiscriminate lending by banks between 2008 and 2014. The debt recovery laws prevailing at that time were weak and hence loan recoveries could not be made from big industrialists. Bhushan Steel, Electrosteel Steels, Monnet Ispat and Alok Industries are among the key resolution plans approved under the bankruptcy law from the first set of 12 large default cases identified by the Reserve Bank of India for resolution. As per the changes proposed in the Bill, defaulting promoters of MSMEs will be exempted from certain restrictions imposed by Section 29A of the IBC, enabling them to bid for their own companies. This exemption, however, will not be available to wilful defaulters, who will be barred from bidding for their own companies. Section 29A bars a number of entities from bidding for companies being put out for resolution including — wilful defaulters, un-discharged insolvent, persons banned from trading in securities market, and an account classified as NPA for more than one year and failing to pay overdue amount before submission of the bids. Unlike in the case of large companies, it’s bit difficult to attract resolution applicants in the case of MSMEs. So a relaxation is being made to ensure that small companies are not headed towards liquidation because of the limitations imposed by the law on existing promoters. With regard to initiation of the corporate insolvency resolution process (CIRP) by corporate debtors, the Bill provides that such an application can be filed only after a special resolution is approved by three-fourth of the shareholders of the corporate debtor. The changes also lay down a strict procedure for withdrawal of a case by an applicant after admission under the Code. Such withdrawal would be permissible only with the approval of the CoC with 90 per cent of the voting share.
Source: The Indian Express
The GST Council’s latest decisions will help clear implementation issues. The GST Council’s decision to reduce rates on 15 items from 28 per cent to 18 per cent makes economic sense, and therefore should not be put down to electoral considerations alone. The outgoing Chief Economic Advisor, Arvind Subramanian, for one, has held the view that the highest rate slab of 28 per cent should be done away with. In November last year, the GST Council decided to move 177 items out of the 28 per cent category. Last week’s decision to lower rates on items of middle class consumption such as white goods, paints and varnishes, etc., would leave only 35 items in the 28 per cent bracket. These include ACs, auto parts, cement, aerated drinks and demerit goods. While the reduced rates are likely to lift consumer sentiments by lowering prices as the poll season draws near, it will also discourage tax evasion. A further rationalisation of rates is called for to this end, however, the Council should take the States on board. Opposition-ruled States such as Punjab and Kerala have said that they were not adequately consulted in last week’s meet. This is an unfortunate development. Decisions on GST so far have been marked by a remarkable faith — in contrast to the acrimony in the political space — in the federal consultative processes that have been put in place. Discord over the workings of the Council can harm the implementation of GST. The Council seems to have hit upon the right way to reintroduce invoice matching, which was abandoned after the GST Network collapsed last year, unable to deal with the data uploads. Now, the buyer, rather than the portal itself, will validate the seller’s invoice by ‘locking’ it. Amending a wrong entry has also become easier, as a separate form will be made available for this purpose. The tax would be paid on the basis of the amended entry. This will come as a big relief for assessees who were forced to run from pillar to post trying to rectify an incorrect entry. While the new invoice matching norm will presumably take a few months to take effect, the GSTN cannot afford to fail yet again. Whether it can take the load of an entire country uploading invoices as the deadline draws near is a moot issue. The Council needs to address issues such as locked up funds in IGST and the teething concerns in the e-way bill. It has rightly decided to focus on the concerns of small industries (and hopefully small, individual entrepreneurs) in its August meet. It is important to bring them into the tax net without punishing consequences. A simple but crucial reform is to ensure that GST forms can be filled in all Indian languages, and not just English. At a broader level, a buyer’s input tax credit should not be held up if his vendor has not paid his taxes. But, by and large, the GST process has gone past its initial glitches.
Source: The Hindu Business Line
Textile industry sources are confident that the initiatives taken by Textiles Minister Smriti Irani will help make India a global manufacturing hub for textiles. Thanking the Minister for her efforts in getting approval for GST refund of Input Tax Credit, A Sakthivel, Southern Region Chairman of FIEO, said this would go a long way in reviving the sector and making the MSMEs globally competitive. Sakthivel hailed the GST Council as well for allowing the ITC refund to the textiles sector.
Source: The Hindu
FICCI welcomes the recent multi-faceted measures taken by the government to address the problems of the textile industry. Increase in import duty on 76 textile items from 10% to 20% and GST reduction on carpets and handicraft items have given a big relief to domestic textile, carpet and handicraft manufacturers, said Mr. Shishir Jaipuria, Chairman, FICCI Textile Committee. Mr. Shishir Jaipuria added, "It is heartening to see the multifaceted steps taken by the Government in last few days for addressing problems of various segments of textiles and handicraft industry. We thank Prime Minister Mr. Narendra Modi, Finance Minister Mr. Piyush Goel and Textiles Minister Ms. Smriti Irani for the much-needed timely support for the industry." Mr. Jaipuria stated that garment & carpet industry was under immense pressure after implementation of GST. After GST, substantial drop in import duty was observed which has encouraged cheaper imports. It is also worth noting that total imports of textiles and garments increased in 2017-18 (USD 7 billion) by 16% in comparison to 2016-17 (USD 6 billion). Total import of garment alone increased by 30% in 2017-18 in comparison to 2016-17. Mr. Jaipuria further said that imports from Bangladesh is an area of concern for the industry. Due to full exemption of basic custom duty from Bangladesh and also due to lack of regional cumulation clause under the treaty, third countries' raw material and fabrics are getting benefitted indirectly. Imports from Bangladesh has increased by 44% in 2017-18 in comparison to 2016-17. It is suggested that Government may consider imposition of regional cumulation clause in Rules of Origin on the countries that have FTAs with India to safeguard garment industry further as cheaper fabric of third countries enter India through these countries. Mr. Jaipuria also felt the need to increase the import duty on MMF spun yarn as import of MMF yarn-based fabric also increased sharply after GST implementation. FICCI is hopeful that Government will take further steps to address unresolved issue.
Source: Business Standard
Shares of consumer discretionary companies rallied on Monday after the government’s decision to slash Goods and Services Tax (GST) rates on a wide range of items cheered investors. The stocks of footwear firms such as Relaxo Footwears and Bata India surged to their record highs. The stock of Procter & Gamble also hit a fresh lifetime high of Rs 10,505.70 on BSE. Liberty Shoes rallied the most with a 10.4% gain, followed by Bata India, up 6.7%. Bajaj Electricals and V-Guard Industries also surged 5.9% and 5.3%, respectively. Market participants pointed out that the latest rate cut in GST would provide material boost to the earnings of companies in this space as it will help to boost consumption demand. While the taxable ceiling for footwear was raised to Rs 1,000 from Rs 500 under the 5% slab, GST on paints, refrigerators, washing machines, vacuum cleaners, water heaters and small TVs was reduced to 18% from 28%. Better-than-expected numbers posted by Bata India in the first quarter of FY19 also boosted investor sentiment. The footwear major reported a net profit of Rs 82.6 crore, beating the Bloomberg consensus estimate of Rs 72.5 crore for the three months to June 2018. Ambit Capital, which has a sell rating on the stock, observed the revenue growth of Bata India was led by End of Season Sale (EoSS). “The gross margin expanded by 50 bps y-o-y to 53.3% due to lower net sales value on account of GST and deflation in cost of goods sold given GST-led benefits,” added the brokerage. The Ebitda of Bata India grew 38% year-on-year to Rs 131.8 crore largely due to GST-led input tax credit benefits on expenses such as rent and other expenses, the brokerage said. Shares of cigarette producers Godfrey Phillips and ITC also rose as the GST Council kept the cess on cigarettes unchanged. While the stock of Godfrey Phillips rallied 8% — its biggest single-day percentage gain in 2018 — ITC gained 3.8% to close at Rs 283.85 on BSE. The gains in the stock of ITC also propelled the benchmark Sensex to close at a fresh-lifetime high of 36,718.60. The cigarette major contributed 40% of the index gain of 222.23 points on Monday. The BSE Consumer Durable Index rose 1.3% –its biggest single day gain in three weeks– to end at 20,232.58. After the revised rates, only 35 items will be left in the 28% bracket, from 226 goods as on July 1 last year.
Source: Financial Express
Tirupur Exporters' Association has appealed for immediate intervention to settle the lorry strike as it has started to impact the movement of goods adversely, the association president, Raja M Shanmugham, has said. “Exporting units in Tirupur are unable to transport the finished garments for shipment either through the sea ports of Tuticorin, Chennai or Kochi or airports such as Chennai, Bengaluru and Kochi.''"Buyers do not tolerate supply delay and this is a very season-conscious, design-driven business. And we are competing with countries like Bangladesh, Cambodia, Myanmar, Sri Lanka, Pakistan and Vietnam, who are in an advantageous position, while we are struggling to sustain in business here.'' "Stoppage of vehicle movement from the garment unit to outside job working units like knitting, dyeing, compacting,printing, embroidery, checking, ironing and packing would affect production and these job working units will not be in a position to provide work to the employees,'' Shanmugham said and appealed to the Lorry Owners’ Association to exempt the transport of export goods as also movement of goods.
Source: The Hindu BusinessLine
Mumbai: The growing conflict between the two largest economies of the world, the US and China, has stirred a debate on its impact on India, Asia’s third largest economy. Some believe any escalation in a trade-cum-currency conflict will be universally harmful for all economies, and particularly so for emerging economies such as India. Others are more hopeful about India being able to strike a deal with the Donald Trump-led US administration to corner a share of the market that China currently enjoys. While these are still early days yet, and much depends on how trade negotiations between India and the US pan out, an analysis of trade flows suggests that it would be difficult for India to fill the large void which a Chinese withdrawal from US markets would create. To begin with, India’s exports to the US are a small fraction of Chinese exports to the same destination. Even including services, India’s trade surplus of around $30 billion at the end of 2016 was one-tenth of China’s. And more than a fifth of India’s trade surplus with the US is on account of services (such as software exports). In China’s case, it runs a services trade deficit of $38 billion with the US. And it runs a massive $300 billion surplus overall (in goods and services) with the US, largely driven by manufacturing exports. To be sure, the large gap between China and India is also an opportunity for the world’s sixth largest economy. This is particularly true of labour-intensive products such as clothes, footwear and leather products, where India enjoys an advantage, at least in theory, because of surplus labour and low wages. However, India’s record over the past few decades does not inspire much confidence. Since India’s liberalization more than a quarter century ago, India’s share in global exports of textile and footwear has declined even as smaller economies such as Bangladesh and Vietnam have seen their market-share rise sharply. To be sure, the large gap between China and India is also an opportunity for the world’s sixth largest economy. This is particularly true of labour-intensive products such as clothes, footwear and leather products, where India enjoys an advantage, at least in theory, because of surplus labour and low wages. However, India’s record over the past few decades does not inspire much confidence. Since India’s liberalization more than a quarter century ago, India’s share in global exports of textile and footwear has declined even as smaller economies such as Bangladesh and Vietnam have seen their market-share rise sharply. Thus, Bangladesh’s high revealed comparative advantage in garments simply reflects the growing share of the garment industry in its overall export basket. While an escalation of the trade conflict between China and the US may open up a window of opportunity for India, it is unlikely to reap big gains unless it is able to improve its competitiveness. This would require tough reforms and investments in infrastructure that can make life easier for India’s exporters. The chances of such reforms taking place ahead of general elections in the country next year are quite slim. The upshot: don’t expect big gains in Indian exports to the US just yet. This is the first of a two-part data journalism series on India’s trade prospects in a protectionist world. The second part will examine the likely impact of the rupee’s weakness on India’s export performance.
Source: Live Mint
The Single Window Clearance Committee headed by the Deputy Commissioner of Chamrajanagara district has approved 94 projects with total investment of ₹162 crore. KJ George, Karnataka’s Large and Medium Industries Minister, said the new projects are expected to give a fillip to the development of the district and boost employment opportunities there. The minister, who also holds charge of the Sugar, Information Technology and Biotechnology, and Science and Technology portfolios, visited the industrial estate being established on 1,460 acres by the Karnataka Industrial Area Development Board. Pointing out that the State government was keen on developing the Chamarajanagara district as it was one of the most backward, the Minister said the Gundlupet and Yellandur taluks in the district have been classified under the most backward zone while Chamarajanagara and Kollegal taluks come under the very backward taluks. Basic infrastructure facilities such as roads, underground drainage connections are already in place. Streetlights are being installed and a 66/11 kva power sub-station is being set up. Water supply from river Kabini from the jackwell site near Nanjangud is being arranged,” he said, and added that all infrastructure facilities are likely to be completed in the next six months.Sutlej Textiles George, said the State government would provide all assistance to Sutlej Textiles and Industries Ltd, one of the largest textile manufacturing company, for its upcoming unit in the industrial estate being established in Badanaguppe and Kallambahalli villages of Chamarajanagara. The minister said that Sutlej Textiles will manufacture sportswear in the 46 acres of land allotted to it. The company is expected to provide employment opportunities to 1,800 persons, the Minister said, and promised all assistance from the State government for its early commissioning. “The new unit will be set up with an investment of ₹786 crore, and is one of the many new units coming up in the district, a direct result of the Karnataka government’s development policies,” George added.
Source: The Hindu Business Line
The British high commission today explored the possibilities of enhancing business ties between his country and Rajasthan. In a meeting with Industries Minister Rajpal Singh Shekhawat, British Deputy High Commissioner GeoffWain expressed his wish to enhance the trade ties and said that the high commission would play a role of bridge between British companies willing to invest and the state government. A detailed discussion on possibilities of investment in areas like food processing, petrochemical, polyester yarn, textile, technology transfer, handicrafts and jewellery among others was held in the meeting here, according to a state government release. Wain informed that a team of trade experts would visit the state next month with some concrete proposals for investment. Shekhawat said the state has emerged as a preferred destination for investment where international companies like JCB and others are working.
Source: Business Standard
Commerce Secretary Rita Teotia got the loudest applause at the Delhi Dialogue last week for her firm assertion that free trade agreements (FTA) India has signed up are not popular within the country, including the ambitious 15-nation Regional Comprehensive Economic Partnership (RCEP). Addressing an audience of Indian business chambers like Ficci, external affairs specialists and delegates from some of the Asean think tanks, she said, “FTAs have to show they add to jobs. They have to allow our businessmen to do business with countries we have signed those with.” Her assertion makes clear that FTAs not only do not enjoy political support in India, the sixth largest world economy, but with only 1.65 per cent share of global exports, as per WTO data, they are also in the sunset mode. The seven FTAs are not seen as necessary for India’s expectations to double the size of her economy by 2025. The government has plans to raise Indian exports from the current $302.8 billion (2017-18) to $1 trillion in the same period, but hopes to do so without sewing up new trade deals with partners. The secretary’s outburst came within days after a media report that both India and European Union are likely to formally announce the end of talks to sign the FTA. India has not denied the report. Experts agree the FTAs India had signed on were based on creating political alliances and are seen as of little importance to push Indian foreign trade. So, politicians across the aisle treat trade treaties more as an albatross than electoral dividends. The suspicion is shared by the bureaucracy, too, as the generous support for the secretary’s position among the audience demonstrated. Indian FTAs are rudderless, said Amitendu Palit, Senior Research Fellow and Research Lead (Trade and Economic Policy) at the Institute of South Asian Studies, Singapore. “The priorities also get muddled due to lack of convergences between commercial and foreign policy objectives. In most countries, FTA talks commence only after extensive consultations between foreign and trade ministries. In countries like Australia and Canada, these departments have merged as Department of Foreign Affairs and Trade. Such an approach appears to be missing in India”. Agreeing with him, former IFS officer Ashok Sajjanhar said India’s FTAs with Bhutan, Afghanistan or even Sri Lanka were more for diplomatic reasons. “But even with the India-Asean FTA (signed in 2010) which had an economic logic, the political benefits are not made clear.” He said during his stint at the commerce ministry, an import of top end sarees from Bangladesh became a political hot potato as representations against the imports poured in from West Bengal. The imports had to be scuttled. At a larger scale, this angst continues. This month, India has announced a set of retaliatory tariffs on US goods. It has notified the WTO about its intention to impose tariffs on US imports worth approximately $240 million. The USA is India’s largest trading partner. “India is not one of the topmost exporters of steel and aluminum to the US and, therefore, would not have been hit as hard by these tariffs as larger exporters like Brazil, Korea and Japan would have been. Incidentally, none of these countries have resorted to retaliatory tariffs,” notes Palit. However, the commerce secretary said the concern on FTAs and the tariffs on US goods should not be linked though both reflect India’s increasingly clear demonstration of going solo in trade issues. Former commerce secretary Rajiv Kher and now distinguished fellow, RIS, during whose term India was close to sewing up an FTA with Australia, agrees it would politically have been difficult to sell the benefits. “FTAs work best when there is a complementarity, and in this case we would have suffered.” Kher did not offer any remarks on why New Delhi had engaged Canberra for the aborted trade talks, in the first place. Though Sajjanhar says it was the commerce ministry that primarily pushed the FTAs, once the political high noon was over, the eventual negotiations ensured a shallow FTA. The India-Singapore CECA was signed in 2005 on for India to escape the repeated stock market meltdowns due to perceived flow of hot money from Mauritius. Once that scare passed, the treaty lurched. India has exported just $10.2 billion to the island in 2017-18 and imported goods worth $7.5 billion. While the commerce ministry feels there is enough room to add to India’s trade with countries, there is no reason to rush to sew up preferential trade agreements. Teotia said, “Once we signed on the India-Asean FTA in 2010, the pressure has built on us to be more ambitious in RCEP. The ambition is too high on goods and low on services”. She added that India will remain engaged with the negotiations, though.
Source: Business Standard
The Indian rupee continues to remain range-bound. The currency has been stuck in a sideways range between 68.25 and 69.10 over the last three weeks. Within this range, the rupee fell to a new all-time low of 69.12 on Friday. Though the rupee recovered sharply from this low, it failed to sustain at higher levels. The currency reversed lower again after making a high of 68.66 on Monday and has closed at 68.86, down 0.6 per cent for the week. The reversal over the last few weeks every time the rupee falls below 69 gives an indication that the RBI could be intervening and preventing the currency from a further sharp fall. This increases the concern that if the rupee declines decisively below 69 in the coming days on the back of any external factors, then the subsequent fall could be very sharp and swift.
US dollar mixed
The US dollar index came off sharply after making a high of 95.65 on Thursday last week, givingsome relief to the rupee. The dollar index is currently at 94.45, and is likely to test its key resistance level of 93.9. A bounce from this support can take the index higher to 95 and 95.5 levels again. A range-bound move between 93.9 and 95.6 is likely in such a scenario, and a breakout on either side of 93.9 or 95.6 will decide the next move. If the dollar index breaks below 93.9, it can fall to 93 or 92.8 in the short term. On the other hand, a rise past 95.6 can take the index higher to 96.25 initially. A further break above 96.25 will increase the likelihood of the index targeting 97.35 and 98 thereafter. Such a rally in the index will increase the pressure on the rupee, and can drag the currency to 70 or even lower levels in the coming weeks.
Rupee outlook
The sideways consolidation between 68.25 and 69.10 can continue in the near term. However, the bias remains bearish. The indicators on the charts are also giving negative signals. The 21-week moving average has crossed well below the 55-, 100-, and the 200-week moving averages. Also, the 55-week moving average has just crossed the 200-week moving average, and is on the verge of moving below the 100-week moving average. This is a negative signal, indicating that the strength in the rupee could be limited. This reduces the possibility of the rupee strengthening above 68.25 in the coming days. Also, even if the rupee manages to breach 68.25, the next strong resistance in the 67.9-68 region is likely to cap the upside. As such, the rupee is likely to fall to new lows, breaking decisively below 69.10 in the coming days. A fresh trigger can drag it sharply below 69.10. Such a break will pile up additional pressure on the currency, and will take it lower to 69.5 and 70 levels in the short term. It will also pave the way for the medium-term targets of 71 and 72 levels in the coming months.
Source: Business Line
NEW DELHI: Iran was the second-biggest oil supplier to Indian state refiners between April and June, oil minister Dharmendra Pradhan said on Monday. Iran replaced Saudi Arabia as companies took advantage of steeper discounts offered by Tehran. India, Iran’s top oil client after China, shipped in 5.67 million tonnes or about 457,000 barrels per day (bpd) of oil from the country in the first three months of this fiscal year, Pradhan told lawmakers in a written reply. He did not provide comparable numbers from the year-ago period. Data compiled by Reuters shows that India imported about 3.46 million tonnes, or about 279,000 bpd, from Iran between April and June last year. State refiners, accounting for about 60 per cent of India’s 5 million bpd refining capacity, had curbed imports from Iran last year in protest against Tehran’s move to grant development rights for the giant Farzad B gas field to other parties. The refiners - Indian Oil Corp, Chennai Petroleum Corp, Bharat Petroleum and its unit Bharat Oman Refineries Ltd, Hindustan Petroleum and Mangalore Refinery and Petrochemicals - shipped in 9.8 million tonnes of Iranian oil in 2017/18, about a quarter less than a year ago, Pradhan’s reply showed. For this fiscal year, the refiners had decided to almost double imports from Iran, which offered almost free shipping and extended credit period on oil sales. Iraq continued to be the top oil supplier to India in the April-June period. India shipped in 7.27 million tonnes of oil from Iraq, while shipments from Saudi Arabia totalled 5.22 million tonnes, making it the third largest supplier, Pradhan’s statement showed. India and other major buyers of Iranian oil are under pressure to cut imports from the country+ after Washington in May withdrew from a 2005 nuclear deal with Tehran and decided to reimpose sanctions on the OPEC member. The first set of sanctions will take effect on August 6 and the rest, notably in the petroleum sector, following a 180-day “wind-down period” ending on November 4. “Indian refineries import crude oil from diverse sources including Iran, depending on technical and commercial considerations,” Pradhan said, without elaborating if the refiners would cut imports from Tehran. India’s overall oil imports from Iran in June declined by about 16 per cent + from May as refiners started weaning their plants off crude from Iran to avoid US sanctions.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1291.07 |
USD/Ton |
0.11% |
7/23/2018 |
|
VSF |
2149.33 |
USD/Ton |
0% |
7/23/2018 |
|
ASF |
3072.58 |
USD/Ton |
0% |
7/23/2018 |
|
Polyester POY |
1425.50 |
USD/Ton |
2.17% |
7/23/2018 |
|
Nylon FDY |
3441.88 |
USD/Ton |
0% |
7/23/2018 |
|
40D Spandex |
5170.20 |
USD/Ton |
0% |
7/23/2018 |
|
Nylon POY |
3102.12 |
USD/Ton |
0.24% |
7/23/2018 |
|
Acrylic Top 3D |
5576.43 |
USD/Ton |
0% |
7/23/2018 |
|
Polyester FDY |
3537.89 |
USD/Ton |
0% |
7/23/2018 |
|
Nylon DTY |
5576.43 |
USD/Ton |
247.93% |
7/23/2018 |
|
Viscose Long Filament |
3175.98 |
USD/Ton |
0% |
7/23/2018 |
|
Polyester DTY |
1639.69 |
USD/Ton |
1.37% |
7/23/2018 |
|
30S Spun Rayon Yarn |
2821.45 |
USD/Ton |
-0.52% |
7/23/2018 |
|
32S Polyester Yarn |
2082.85 |
USD/Ton |
0.14% |
7/23/2018 |
|
45S T/C Yarn |
2880.54 |
USD/Ton |
0% |
7/23/2018 |
|
40S Rayon Yarn |
2540.78 |
USD/Ton |
0% |
7/23/2018 |
|
T/R Yarn 65/35 32S |
2983.94 |
USD/Ton |
-0.98% |
7/23/2018 |
|
45S Polyester Yarn |
2452.15 |
USD/Ton |
0% |
7/23/2018 |
|
T/C Yarn 65/35 32S |
2215.80 |
USD/Ton |
0% |
7/23/2018 |
|
10S Denim Fabric |
1.38 |
USD/Meter |
0% |
7/23/2018 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
7/23/2018 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
7/23/2018 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
-0.22% |
7/23/2018 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
7/23/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14772 USD dtd. 23/7/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
China said on Monday the value of its currency is driven by market forces and that it has no intention to devalue the yuan to help exports, after Washington said it was monitoring the currency's weakness amid the escalating bilateral trade row. The Chinese Foreign Ministry also said that threats and intimidation on trade would never work on China, after U.S. President Donald Trump said he was ready to impose tariffs on all $500 billion of goods imported from the country. At a daily news briefing, ministry spokesman Geng Shuang was asked about comments on Friday by U.S. Treasury Secretary Steven Mnuchin, who told Reuters the yuan's weakness would be reviewed as part of the Treasury's semi-annual report on currency manipulation, which is due on October 15. Mnuchin's comments were the first since the early days of the Trump administration in 2017 that raised the prospect of designating China as a manipulator. Geng said the value of the yuan was subject to the forces of demand and supply, and that healthy economic performance offered support for its level. "China has no intention to use means like the competitive devaluation of its currency to stimulate exports," he said. While the ministry has no say in currency policy, it is the only government department which holds a daily news briefing that foreign reporters can attend. Neither the People's Bank of China nor the State Administration of Foreign Exchange responded to requests for comment on Mnuchin's remarks. China's yuan, battered by the trade brawl and strong dollar, has lost more than 7 percent against the greenback since the end of the first quarter. Around $505 billion of Chinese goods were imported to the United States in 2017, leading to a trade deficit of nearly $376 billion, U.S. government data shows. Chinese imports from the United States totalled $205 billion in the first five months of 2018, with the deficit reaching $152 billion. Earlier this month, the United States imposed tariffs on $34 billion of Chinese imports. China promptly levied taxes on the same value of U.S. products. "We advise the U.S side to remain calm and maintain a rational attitude," Geng said.
Source: Business Standard
Sri Lanka’s deficit in the trade account has been on a continuous expansion, but the pace at which it grew during the month of May decelerated after many months, as the country’s goods exports grew faster than its imports bill. The exports in May led by industrial goods grew by just shy of 10 percent to US$ 924 million from the same month in 2017, while the imports—driven mostly by fuel—grew by 7.7 percent to US$ 1.9 billion, digging a hole of US$ 933 million in the trade account compared to US$ 884 million deficit a year ago. Meanwhile, for the first five months of the year, Sri Lanka had a US$ 4.9 billion trade deficit by importing goods worth of US$ 9.6 billion, up 11.8 percent year-on-year (YoY) and exporting goods worth of US$ 4.7 billion, up just 6.7 percent YoY. May’s exports were mainly driven by industrial exports, led by textiles and garments—Sri Lanka’s largest export commodity. Earnings from textiles and agreement exports rose by 10.9 percent YoY to US$ 398.3 million while the first five months’ exports rose by 4.0 percent YoY to US $ 2.1 billion. Export earnings from petroleum products increased by as much as 70 percent YoY to US$ 46.1 million due to the, “combined effect of high exported volumes of bunker and aviation fuel together with increased export prices”, the Central Bank said in a statement. Earnings from food, beverages and tobacco exports also increased notably during the month of May owing to the increase in manufactured tobacco and coconut related products. Such exports grew by 26.2 percent YoY to US$ 38.5 million. Meanwhile, all categories of agricultural exports, barring spices and seafood, declined in May. The aggregate earnings from agriculture exports for the month stood at US$ 209.6 million, down 5.9 percent YoY. Spices and seafood exports increased from the combined impact of higher prices and volumes exported. According to the Central Bank, tea exports declined by 7.9 percent YoY to US$ 121.2 million in May, owing to the reduction in both volumes and prices. With regard to imports, the Central Bank singled out fuel and vehicle imports as key factors for the higher import bill in May. Gold imports have retreated after the imposition of heavy tax on imports in mid-April. Sri Lanka’s fuel bill for the month was US$ 348.9 million, up 61.8 percent YoY, of which refined petroleum and crude oil composed of US$ 233 million and US$ 116 million, respectively. The Central Bank cited both higher global oil prices and volumes imported as the reasons for the elevated oil bill. For the first five months, the total oil bill of the country was US$ 1.8 billion, up 23 percent YoY. The non-fuel imports have declined marginally, the Central Bank said, stressing the notable contribution made by fuel to the country’s imports bill. Meanwhile, in May, Sri Lankans expensed US$ 150 million for importation of vehicles, up 120 percent YoY, bringing the total amount spent on vehicle importation during the first five months to US$ 666 million, an 111 percent increase YoY. It is widely expected that the Central Bank would bring macro-prudential measures to arrest the toxic impact on external account and other sectors of the economy through excessive amounts of vehicle imports. As bank credit flows profusely into vehicle imports and other non-productive areas, the Central Bank recently said the relationship between growth in credit and economic growth is getting increasingly blurred in Sri Lanka. Meanwhile, the food and beverage imports have declined by 21.1 percent YoY to US $ 129 million in May, demonstrating the impact of higher cost of imports largely due to rupee depreciation against the US dollar. As of July 20, Sri Lanka’s rupee had depreciated 4.5 percent against the US dollar. Meanwhile, the expenditure on gold imports, which increased considerably since early 2016, declined notably to US$ 0.1 million. In May, last year, Sri Lanka has imported gold worth of US$ 36 million. Further, import expenditure on machinery and equipment and transport equipment also declined demonstrating a slowdown in construction and other economic activities in the country.
Source: Mirror Business
The ongoing trade war between the US and China will be beneficial for Bangladesh's garment sector as the American brands will place more work orders here to branch out their sourcing, according to a new survey. Respondents in the '2018 Fashion Industry Benchmark Study' expressed more interest in expanding sourcing from Bangladesh in the next two years as they actively seek China alternatives. Some 75 percent of the respondents said they will source from Bangladesh. It was 61 percent in 2017. Nearly half of respondents expect to somewhat increase sourcing from Bangladesh through 2020, up from 32 percent in 2017. Another 7 percent expect to strongly increase sourcing there, a record high since 2015. “The “Made in Bangladesh” label enjoys a prominent price advantage over many other Asian suppliers,” said the study conducted by Sheng Lu, associate professor of the department of fashion and apparel studies of the University of Delware, in collaboration with the United States Fashion Industries Association (USFIA). Like last year, respondents said Bangladesh offers the most competitive price, followed by Vietnam. Bangladesh was the fifth most preferred sourcing destination among American retailers due to price advantage, up from its previous position of seventh. However, respondents still regard “risk of compliance” as a notable weakness. The high level of media and public attention to the social responsibility problems remaining in the Bangladeshi garment industry, such as factory safety and treatment of workers, further adds to the complexity and sensitivity of the issue. Since compliance is so important to American fashion companies, concerns about the compliance risks involved in sourcing from Bangladesh could hold companies back from giving more orders to the country, the study found. The survey was conducted in the April-May period, when talks of a trade war by the Trump Administration were high. For the second year in a row, respondents say the protectionist trade policy agenda in the US is their number one concern -- up from a ranking for number 8 and 11 between 2014 and 2016. China remains the top supplier for most US fashion companies. However, China now accounts for only 11-30 percent of companies' total sourcing value or volume, compared with 30-50 percent in the past, according to the study. Consistent with the official US trade statistics, China (100 percent of the respondents) and Vietnam (96 percent) continue to be the two most utilised sourcing destinations, followed by Indonesia (79 percent), India (75 percent), Bangladesh (75 percent) and Cambodia (61 percent).
Source: The Star Business
Most textiles do not require high water and oil repellency, and use of per- and polyfluoroalkyl substances (PFAS) should be limited to applications for which technical performance is "unique and critical", according to the European Commission. For other applications, safer alternatives should be used, said the Commission’s Valentina Bertato. She was speaking at an event in June marking the completion of an EU project – analysing chemicals used to provide water and oil repellency in textiles. The project – MIDWOR-Life – launched in 2015 and is funded by the EU Life+ programme. It aims to reduce the environmental and health impacts of durable water and oil repellents (DWOR) by setting policy recommendations. These will aim to promote greater implementation of "less toxic and most effective" alternatives to fulfil obligations under REACH and for establishing future policies or voluntary schemes, at the European, regional and local level.
Oil repellency
The project concluded that although fluorine-free products can achieve comparable water repellency to fluorocarbons, only fluorinated compounds provide oil repellency. But fluorine-free products had a significantly reduced environmental footprint compared with conventional fluorinated technology. Stakeholders at the event, which included representatives from the authorities, industry and NGOs, discussed the need to define critical applications where oil repellency is essential, in order to include them as derogations within a possible restriction, to be proposed by Norway, on the short-chain fluorocarbon PFHxS. Ms Bertata gave the example of certain personal protective clothing for industrial workers. The event gathered 36 stakeholders in the field of substitution of per- and polyfluorinated substances (PFCs) in the textile industry. They came from 10 European countries. A risk assessment of occupational health, carried out for the project, showed that long-chain fluorocarbons present a moderate risk to workers, while short-chain fluorocarbons have a mitigated impact to workers’ safety and exposure is highly dependent on industrial settings. MIDWOR-Life project manager, Josep Casamada, told Chemical Watch after the event that the goal of reducing the environmental impact of textiles is possible if products are not "over-designed by using water repellency."
Textile industry view
At the event, Dunja Drmac, sustainability officer for the European textiles trade association Euratex, highlighted the need for the textiles industry to be informed about the alternatives to PFAS in order to avoid regrettable substitution and for regulatory bodies to be flexible in cases where no alternatives are available. Mauro Scalia, director of sustainable businesses for Euratex, told Chemical Watch that the project "tested and demonstrated the principle that ‘one size does not fit all’ which we firmly advocate".An alternative "may work in case A but is completely useless or counter productive in case B," he added. The project also "shed light on the importance of not just developing new alternatives but also tailored testing of alternatives – that is where SMEs need support," said Mr Scalia. The MIDWOR-Life project has published several technical papers on its website and also has an online tool to facilitate companies’ self-assessment of the environmental impact of different DWORs. In addition, a road map will be produced setting out next steps to increase the development and use of safer alternatives after the project ends in August.
Source: Chemical Watch
American agricultural exports to Southeast Asia have steadily climbed in most countries since 2016. Exports to Vietnam have been on the rise since 2008, but went down slightly last year. JAKARTA, Indonesia — Ted McKinney called a trade mission to Southeast Asia July 16-19 a success. The mission included buyer delegations from Malaysia and the Philippines who were interested in purchasing U.S. ag products. “We visited a textile manufacturer,” said McKinney, undersecretary for trade and foreign agricultural affairs at the U.S. Department of Agriculture. “They buy a lot of U.S. cotton. We saw the spindles and the fabric being made. We saw everything except the finished product. “We visited a small tempeh manufacturing company. All of the soybeans, as they require them, are U.S. soybeans. “When people have U.S. products, they know it is quality and safe. The volume we produce is important.” Around 250 business-to-business meetings were conducted during the trip, as well as government-to-government meetings. Southeast Asia is a major market for U.S. agricultural products, ranking as the third-largest regional market in 2017, according to the International Agricultural Trade Reports. American exports to Southeast Asia have grown quickly over the last decade, with sales of farm and food products totaling nearly $11.8 billion in 2017. This is a 68-percent increase since 2008.
Source: Agri News Publications
Money keeps flowing Apparel Far Eastern from Bermuda recently received an investment certificate to implement a $25 million garment project in VSIP II-A IZ in Binh Duong province. Also, in the locality, the Taiwanese Far Eastern company, which spent hundreds of million of dollars on a cloth and chemical fiber project in Bau Bang IZ, signed a contract on leasing more land to expand its investment. In Nam Dinh, Herberton from Singapore has kicked off a textile and garment project, Ramatex, with total investment capital of $80 million, expected to become operational the next year and generate 3,000 jobs. Meanwhile, Japanese Itochu has spent 5 billion yen ($47 million) to acquire 10 percent of Vinatex’s shares more, raising its ownership ratio in the Vietnam’s largest textile & garment group to 15 percent. According to Nguyen Thi Tuyet Mai, secretary general of the Vietnam Textile & Apparel Association (Vitas), Vietnam is one of the world’s leading destinations for investors in the textile & garment industry thanks to bilateral and multilateral agreements Vietnam has signed. The country has joined 16 FTAs, of which the two new-generation FTAs – CPTPP and EU-Vietnam FTA — are expected to facilitate the development of the industry. Local authorities cautious The registration of weaving and dyeing projects, according to experts, is good news because Vietnam still lacks a sufficient textile & garment production chain. Vietnam has many garment workshops, but few weaving and dyeing factories. However, local authorities tend to be more cautious with textile & garment projects, especially dyeing ones. Some localities have refused large projects capitalized at nearly $100 million because of pollution concerns. Deputy chair of Vitas Truong Van Cam confirmed that local authorities have become reluctant to receive textile & garment projects. TAL Group from Hong Kong, which plans to set up a $350 million textile & dyeing factory in Vinh Phuc province, still has not received the license, even though it got the nod from the Prime Minister and the Ministry of Natural Resources and the Environment (MONRE). Most recently, the Vinh Phuc provincial authorities for the fourth time sent a document to the Prime Minister asking to reject the project. Prior to that, Da Nang City also refused a textile & dyeing project registered by a Hong Kong investor with capital of $200 million. The decisions have been applauded by locals, who say that they will not exchange the environment for textile projects.
Source: Vietnam Net Bridge
Eco Spindles, a wholly-owned subsidiary of BPPL Holdings Ltd (BPPL), recently inaugurated Sri Lanka’s first ever polyester yarn plant at Horana Export Processing Zone with an investment of SLR 800 million. The unit, with spinning and texturing machinery from Europe, will manufacture polyester yarn from recycled polyethylene terephthalate (PET) bottle flakes. The plant is one of two plants in the world that create yarn directly from flakes circumventing the polymerization where flakes are first converted to chips and then to yarn, according to BPPL CEO and managing director Anush Amarasinghe. BPPL is also planning to invest SLR 1-1.5 billion in another yarn production plant at the same premises to expand production, a leading Sri Lankan newspaper quoted Amarasinghe as saying. Meanwhile, BPPL expects to double the used PET bottle collection to 400 tonnes per month within the next 12 months. He noted that 70 tonnes of recycled PET waste will be utilised for manufacturing synthetic yarn while around 150 tonnes of PET waste for the production of synthetic brush filaments. The new plant can produce 15 percent of the polyester yarn required by the local apparel industry and can also produce recycled yarn, which is considered a niche segment with a good growth potential. (DS)
Source: Fibre2Fashion
