The National Stock Exchange of India Limited (NSE) today signed an MoU with the MSME and textiles department of West Bengal government for supporting and facilitating alternate sources of funding through equity among the small and medium sector enterprises. The Micro Small and Medium Enterprises (MSME) and Textiles department have taken the initiative to engage the NSE with all industry associations and chamber bodies, so that large number of SMEs in West Bengal can be encouraged to explore alternate sources of funding and help list them on emerge platform of NSE, a NSE statement said. This initiative by is just the beginning of journey towards the objective of getting 100 SMEs from West Bengal, listed on NSE Emerge platform by 2020, it said. NSE Emerge has a total of 168 SMEs, listed on the platform with total capital raise of Rs 2,597 crore. Currently, six companies from varied industries in the state are listed on NSE Emerge platform with total funds raised standing approximately at Rs 44 crore, it said. Also, approximately 15 new companies from West Bengal plan to get listed on NSE Emerge platform over the next one year, the statement said.
Source: Business Standard
The government may soon announce that integrated goods and services tax (IGST) will be imposed on ex-factory sales which happen in one state and the buying company is located in another state. Also, the next GST Council meeting, slated for September, may take up the issue of double taxation for goods imported on the basis of cost, insurance and freight (CIF). These issues were also raised by the industry with Finance Minister Piyush Goyal recently. Since GST is destination-based, tax is imposed in the state where the goods are bought. But, if a buyer, say in Gujarat, decides to buy goods from the seller's factory in Maharashtra, it becomes a complicated matter whether the tax will be imposed in Maharashtra or Gujarat. The government is likely to say that IGST will be imposed in such a situation, sources said. A clarification might come in place of supply rules under GST Acts, they added. Abhishek Jain, partner, EY, said that the issue has been under discussion for quite some time among legal and industry experts. "A clarity is required, so that tax positions are aligned across businesses," he said. The issue of double taxation was raised after an order by the Authority for Advance Rulings (AAR), Uttarakhand. The AAR had ruled that the importer will have to pay the IGST on CIF value and also on the ocean freight component. The issue before the AAR was whether the importer will have to pay the IGST on freight value, on the reverse charge mechanism (RCM), when the service provider and service recipient are outside India. Generally, the service provider has to submit the GST to the government, but under the RCM the buyer will have to do it. While generally this issue would affect cash flow situation of importing companies, the worst-affected would be those importing raw materials for the goods exempted under GST because they will not get input tax credit as well. Say those importing power equipment will not get the credit since power is exempted from GST. Under CIF, sellers assume responsibilities till goods are shipped to a particular destination or buyer, they are not responsible once the goods are shipped. In this case as well, the worst affected are importers of raw material for those goods which are exempted from GST. Jain said to avoid litigation and levying of a dual GST, under Customs and GST laws, authorities should consider issuing an exemption under either law to subside additional tax costs for the excluded and exempt sectors. Industrialists also raised the issue of GST on input services in case of inverted duty structure. The July 27 GST Council meeting has allowed input tax credit for goods where final goods has less GST rate than its inputs. The industry also demanded that credit be given on tax paid on services inputs in these items. However, the government rejected that demand.
Source: Business Standard
To create an innovation culture in the Indian textiles and clothing industry, the Confederation of Indian Textile Industry (CITI) has launched InnoTex 2018. Being orgainsed as a part of CITI’s Diamond Jubilee celebrations, the contest is for innovations since April 1, 2017. It is open for individuals or a team of individuals not exceeding four. The contest will invite entries on innovative ideas/concept that has been devised for best design, method, process, product and cost reduction in any area from ‘ginning to garment’, CITI said in a press release. “Innovation contests are very important for any industry, more particularly the textiles manufacturing sector, not only to improve the standard of the industry but also to enhance the overall competitiveness of the industry at an international level,” said CITI chairman Sanjay K Jain. He said that innovation is the need of the hour for any industry to grow and the contest “will help create innovation culture, which is sadly missing in the industry”. InnoTex will give boost to the ideas of innovators by enabling them to showcase their talent to the industry leaders and get instant recognition. The contest will also bridge the gap between innovators and the end-user industry and would further guide the researchers about the actual demand of the industry in these areas. CITI Young Entrepreneurs Group (YEG) under the chairmanship of Prashant Mohota has been entrusted with the task of organising InnoTex. YEG, which is an integral part of CITI has been formed for nurturing young minds/talent of the textiles and clothing Industry into dynamic leaders of tomorrow. “Companies/institutions cannot directly participate in InnoTex 2018, but can sponsor individuals or teams of innovators,” said Mohota. Winners will receive cash awards apart from getting recognition in front of the entire textile and clothing fraternity. A jury of distinguished experts and leaders of the textile industry will be soon formed. The jury will evaluate the work of the innovators and finally select the winners. The final round of the contest will be held on November 27-28 at Vigyan Bhawan, New Delhi, along with CITI Global Textiles Conclave 2018.
Source: Fibre2Fashion
At the heart of the dispute is the fact that input prices have quadrupled but the subsidy of 10 per cent on crop price has remained static for 20 years. There is a popular saying: people living in glasshouses should not throw stones at others. But at the World Trade Organisation (WTO), this adage has little meaning. For several years, India has been under pressure to reduce or limit its support to agriculture, keeping it within the confines of the de-minimis limit ascribed under what is called as the aggregate measure of support (AMS). While India is under tremendous pressure to reduce the minimum support price (MSP) it provides to farmers, the big boys of global trade — the US, the EU and Canada — continue to flout the norms with impunity. Most developing countries, including India, cannot provide subsidy exceeding 10 per cent of the total value of production of a crop. For the sake of illustration, let's take the value of wheat produced in the country at Rs 500 crore. In that case, the MSP given to farmers, which for some strange reason is counted as subsidy, cannot exceed 10 per cent of the total value. In other words, the MSP cannot exceed Rs 50 crore if the total value of wheat produced in the country is Rs 500 crore. The market support for procuring wheat and rice in the form of MSP falls in the category of product-specific support. The US Trade Representative, Robert Lighthizer, announced recently that it plans to drag India to the WTO for under-reporting its market support for wheat and rice, which appears to be over 60 and 70 per cent, respectively, as against the permissible limit of 10 per cent. The trade confrontation will further escalate when India's latest policy decision to provide 150 per cent higher price over the cost of production for 23 crops for which MSP is announced every year is also questioned at the WTO. At the heart of the controversy is the AMS entitlement under the WTO. The 10 per cent limit that was prescribed for developing countries was calculated keeping the average of 1986-88 global prices as the reference price. Since then, farm input prices have quadrupled, as a result of which the MSP has also risen accordingly. For India, MSP is a crucial policy instrument of the public policy helping small and marginal farmers. It has implications for the livelihood security for India's 600 million farmers. Interestingly, while developing countries have a limit of 10 per cent, for the developed countries the AMS is capped at 5 per cent. This falls under what in trade parlance is called the Amber Box, which is considered to be trade-distorting. As per a revised proposal made by China and India before the WTO, the two giants have explicitly stated that the rich counties enjoy 90 per cent of the global AMS entitlements amounting to nearly $160 billion. These subsidies are in addition to more than $200 billion farm subsidies that are provided under the Green Box, which cannot be questioned if it meets the criteria. Anyway, based on the domestic support notifications that the developed countries have been providing, it becomes crystal clear that the US, the EU and Canada have themselves been providing a whopping product-specific support. From the data presented, it is quite revelatory that while for some commodities/products, farmers in the developed countries are getting subsidies in excess of their value of production, in many cases the subsidies are twice the value of production. Take the case of rice. While India is being questioned for its 60 per cent subsidy support, the US provides 82 per cent; and the EU subsidises rice growers to the tune of 66 per cent. In certain years, more than 90 per cent of the total product-specific subsidies in the US were concentrated only for milk and sugar. In the EU, over 64 per cent support for certain years was confined to just two products — butter and wheat. In the US, some products for which support exceeds by 50 per cent are wool (215 per cent), mohair (141 per cent), rice (82 per cent), cotton (74 per cent), sugar (66 per cent), canola (61 per cent) and dry peas (57 per cent). In just seven out of the 20 years for which the data was compiled, more than 50 per cent of the product-specific support was confined to milk. In the case of the EU, some of the products with subsidies exceeding 50 per cent of the value of production are silkworms (167 per cent), tobacco (155 per cent), white sugar (120 per cent), cucumber (86 per cent), pears for processing (82 per cent), olive oil (76 per cent), butter (71 per cent), apples (68 per cent), skimmed milk powder (67 per cent), tomatoes for processing (61 per cent). In Canada, milk, sheep meat and corn have continuously benefited from a very high level of subsidy. In the case of tobacco, the amount of subsidy was three times the value of production. Isn't it time for the US, the EU and Canada to first do away with $160 billion of product-specific support in agriculture? Even if it has come late, the joint proposal by China and India will help remove trade distortions which have allowed developed countries all these years to flood developing countries with cheaper imports.
Source: The Tribune
The dollar sagged on Wednesday, as US President Donald Trump's comments on monetary policy continued to weigh on the greenback and markets awaited US-China trade talks and Federal Reserve minutes for directional cues. Noticeable gainers against the dollar included the euro, which rose roughly 0.8 per cent overnight, brushing a 12-day peak of $1.1601. It was little changed at $1.1572 in early Asian trade from its New York close. President Trump told Reuters in an interview on Monday that he was “not thrilled” at the Fed's rate hikes, sparking the dollar's latest downturn. “The euro was already regrouping from its recent rout and Trump's comments gave extra incentive for short positions to be covered in the market,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. The euro had stooped to a thirteen and a half month low of $1.1301 a week ago, hit by concerns that financial turmoil in Turkey could negatively affect European banks. The single currency has since rebounded as the United States and China agreed to hold low-level trade talks, calming market nerves and reducing demand for the safe-haven dollar. The US-China trade talks are due to begin later on Wednesday in Washington. “Market expectations may have exceeded the likely outcome from the trade talks, especially equities, which have gained significantly. The talks could end with little fanfare as they will not be conducted at a high level,” Ishikawa at IG Securities said. The benchmark S&P 500 touched a record high on Tuesday and equalled its longest-ever bull-market run, buoyed by strong earnings reports in the consumer sector and relative calm in the trade dispute between the United States and China. The dollar index against a basket of six major currencies was a shade lower at 95.211 after losing 0.7 per cent the previous day. It fell to 95.070 on Tuesday, its lowest since Aug. 9. The pound was steady at $1.2904 and in close reach of the two-week high of $1.2924 scaled the previous day.Sterling surged 0.8 per cent on Tuesday after Britain's chief Brexit negotiator, Dominic Raab, said the country is still confident it can reach an exit deal with the European Union in October. The Australian dollar dipped 0.1 per cent to $0.7326 after advancing 0.4 per cent overnight on the back of the dollar's broad weakness. Offshore Chinese yuan was a touch weaker at 6.832 per dollar after gaining 0.1 per cent the previous day. The dollar was down 0.25 per cent at 110.06 yen. It had weakened to 109.775 overnight, its lowest since late June.
Source: The Hindu Business Line
The Central government is likely to meet its fiscal deficit target on the back of robust economic growth, higher tax compliance and "zero" revenue loss in Goods and Services Tax (GST), a senior Finance Ministry official said on Tuesday. "There will be no shortfall in fiscal deficit target. We will meet the fiscal deficit target. Income tax collection is robust, first quarter results of the corporate world is absolutely delightful. I don't see any reason for any concern on fiscal deficit," the official said here. The 2018-19 fiscal deficit -- the difference between revenue and expenditure -- has been pegged at Rs 6.24 lakh crore, as compared to the revised estimates of Rs 5.94 lakh crore for the previous fiscal. On the GST, the official said: "I believe tax compliance and revenue buoyancy because of demand growth will almost result in 'zero' revenue loss despite the recent deductions in rates done to protect and promote sectors like textile, exports and handicrafts." The government has targeted a monthly revenue of Rs 1 lakh crore from the GST collection. The Finance Ministry had earlier announced that the revenue collection under GST crossed the Rs 95,000 crore-mark for the second month in a row and stood at Rs 96,483 crore for the month of June (collected in July). In a relief for common man, the GST Council in its meeting last month reduced tax rates on over 50 items including refrigerators, washing machines and small televisions, which would now be taxed at 18 per cent, down from the current 28 per cent. Further, the official said that state governments have shown reluctance to include petrol and diesel in the GST basket, as they predict the move to curtail their overall revenue streams. According to the official, the state governments are not willing to include petrol and diesel under the GST ambit as they would like to retain certain financial autonomy. Besides, the official said that some state governments also utilise the taxes generated from petroleum products for infrastructure development. The Central government is open to the idea of including the two main transport fuels in the GST basket as it will aid in bringing down prices and the overall inflation. Recently, the prices of the two key transport fuels have risen due to higher crude oil prices and the rupee depreciation. On August 14, the data on the Wholesale Price Index (WPI) furnished by the Commerce Ministry showed that price of high-speed diesel rose by 22.84 per cent on a Year-on-Year basis in July, petrol by 20.75 per cent and LPG by 31.68 per cent. On July 18, Petroleum and Natural Gas Minister Dharmendra Pradhan informed the Rajya Sabha that GST Council which includes Finance Ministers of all states would decide when petrol, diesel etc can be brought under its regime. Pradhan had pointed out that the petrol and diesel prices have been made market determined by the government effective from June 26, 2010 and October 19, 2014 respectively.
Source: Business Standard
Vice Chairman HP Handicraft and Handloom Corporation Sanjeev Katwal called on Development Commissioner Union Handicraft Ministry of Textiles Shri Shantmanu and urged for early approval and sanction of projects worth Rs. 2 crore submitted to the Ministry. He also discussed about preparing a project for making proper use of pine needles and training women and unemployed youth for utilising the needles for making toys and other items which would not only enhance their income but also help in preventing forest fires as most fire incidents take place due to pine needles.He said that the Chief Minister has also taken keen interest in this project in order to train and upgrade the skills of youth and craftsmen and added that the meeting was held today in order to expedite the projects sent to Government of India for approval. Shri Katwal informed that efforts were being made to set up bamboo industry at Dharampur Seoh in Mandi district and artisans and craftsmen were being trained to make bamboo items. He said that Union Government has released Rs. 1.05 crore and requested for speedy release of rest amount out of the total Rs. 2.10 crore for speedy implementation of project.Shri Gopal Sharma MD HP Handloom and Handicraft Corporation was also present in the meeting.
Source: 5 Dariya News
CHENNAI: In a bid to improve the livelihood of traditional handloom weavers, a Karur-based textile company is set to offer free Handloom Skills and Entrepreneurship Development training for youth, women, and SMEs in handloom production. Apart from this, the company, AD Textiles, will also help the beneficiaries avail subsidy-linked bank loans for buying handloom machines. It also aims to supply raw material and buy back the finished goods. Talking about the scheme, Senthil, managing director, AD Textiles, said, “The handloom sector is witnessing a renaissance as awareness about unique designs and finesse of handloom products is on the rise among consumers across the world. Personalised products and the cooling effect of the clothes are some of its advantages.” He further added that the market potential for handloom products has been on a steady rise. According to the Ministry of Textiles, the sector has the potential to scale up to a market size of about `4 lakh crore by 2024 from the estimated size of `1 lakh crore at present. On the occasion, AD Textiles also announced the launch of a new brand of clothing, Saral. They will manufacture dhotis, silk gowns, and kids wear. This will, in turn, boost the business of the weavers. The company is already manufacturing and exporting table linen, bed linen, kitchen linen, window treatments, and hand quilts mainly to North American and European countries.
Source: The Indian Express
GANDHINAGAR: More than 35 big-ticket projects, for which applications for clearances and incentives under the state’s industrial policy have been made, are expected to bring investments of around Rs 1 lakh crore to the state in the next two years, according to official records of the industry and mines department. Investment proposals worth about Rs 26,220 crore are from companies belonging to countries like Japan, China, Taiwan, South Korea and a handful European countries. Interestingly, of this, Chinese companies alone account for Rs 18,100 crore.The players at advanced stages of investing are mainly in the steel, auto, chemicals, petrochemicals, cement and textile sectors. The Indian players are in the chemicals, refinery petrochemicals and textile sectors while foreign companies are eyeing the steel, auto-ancillary and petrochemicals sectors. Indian Oil Corporation’s Rs 30,000 crore expansion plan is under way, according to the state government’s records. IOC announced its expansion plan for its Koyali refinery in Vadodara this March and proposes to complete it before April 2020. Few other investments larger than Rs 5,000 crore are at the execution stage. Two other big-ticket investments in petroleum sector — one by Rosneft of Russia (Rs 84,500 crore) and CPC Corporation of Taiwan (Rs 41,600 crore) — have been promised. Russian oil major Rosneft and its partners completed their acquisition of Essar Oil last year and are doubling the refining capacity of the Vadinar refinery near Jamnagar to 40 million tonnes per annum (MTPA). It will likely begin execution in one or two years. If these two big-ticket investment are included, the total investment coming to the state in the next two years crosses Rs 2 lakh crore. Manoj Das, principal secretary to the CM and industry and mines department, said, “We expect that investments worth more than Rs 1.5 lakh crore will materialize in two-three years. The CM reviews key projects worth more than Rs 500 crore on a regular basis and has helped remove bottlenecks and expedite execution. These projects will be operational in one or two years. We expect a major investment boost by 2022, as the bullet train, expressway, Dholera SIR, Mandal Bechraji SIR, DMIC, DFC projects will be operational and attracting large investments. The state is giving a major thrust to infrastructure development to boost investment potential.”
Source: Times News Network
Swedish furniture retail company IKEA has evinced interest in sourcing products from West Bengal, state Finance Minister Amit Mitra today said. The multinational retail chain recently opened its first store in India at Hyderabad. Mitra, addressing the concluding session of a two-day MSME conclave, said IKEA has decided to source Rs 2,000-crore worth bamboo and natural fibre from India. "West Bengal is a big producer of bamboo. People from IKEA came to meet me and had detailed discussions on their interest in the state," he said, without divulging details. The minister said the state government has set a target for creating one lakh entrepreneurs in the next two years. Talking of bank finance to MSMEs, Mitra said the aim is to provide loans worth Rs 80,000 crore to the segment in the next two years, adding, the government would explore the possibility of roping in state cooperative banks for this purpose. The target set for the current fiscal is Rs 50,000 crore, he said. The West Bengal government has earmarked 2,000 acres of land for setting up 30 MSME industrial parks across the state. During the conclave, entrepreneurs were able to clinch export orders worth Rs 113 crore, Mitra said. Several MoUs were signed for promotion and export of handicraft, leather, apparel, and gem and jewellery products of the state, he said. The government has also inked two MoUs with the NSE and the BSE to help MSMEs migrate to the IPO level.
Source: Business Standard
New Delhi: Mr. Rajendra Kumar Joshi, an Indian-Origin Swiss Scientist, who won many laurels for his contribution in pharmacy in Europe is now investing back in his own country in skilling Indian youth and making them job ready. He has already established one Skill Development University, a precision tool manufacturing industry and Dairy. In coming two years, RUJ Group is planning to invest 700 Crores in Dairy plant – RUFIL private limited, Modular furniture plant – RUJ Woodcraft private limited, Electrical solution provider – RUJ Elecon and RUJ Hospital. The literacy rate in India shows that youth literacy rate for ages 15-24 is 95.2% in 2015 whereas adult literacy rate is 80.1% in 2018. This clearly shows that literate people are not finding jobs. Dr. Rajendra Kumar Joshi is of opinion that Indian academic curriculum needs to be revolutionized to create job-ready graduates; hence, he is investing in skilling youth. While speaking, Dr. Rajendra Kumar Joshi, founder RUJ Group, he informed that, “There was a time when education was considered paramount for building a triumphant career but in today’s times contrarily empirical education has become cardinal as industrial produce are competing on global stage; hence, skill development is required for achieve individual’s career goals with ultimate goal of national economic sustainability and growth.” RUJ Group has invested about 500 Cr. in Bhartiya Skill Development University and about 300 Cr. in RS India with an aim to support employability, challenges, opportunities, gaps, demand, supply of the workforce and their development through vocational training and apprenticeship programs along with being a quality supplier for precision products at global platform. Moreover the group has plans to invest heavily in Rajasthan in coming years under its different upcoming initiatives like RUJ Woodcraft, RUJ Hospital etc. Bhartiya Skill Development University is enhancing the scope of skill development by not only providing skilling programs but also enterprise development by courses like B.Voc. in Entrepreneurship. Apart from this, most in-trend industry-synced courses such as B.Voc. in AI and machine learning and courses in various other latest trades are also on offer. Mr. Jayant Joshi, President Trustee, RUJ Group enumerates that, “Key Industries contributing to Rajasthan’s economy are Cement, tourism, IT and ITeS, ceramics, handicrafts, chemicals, textile, marble and steel; all of which require skilled workforce. We are trying fill the skill gap between these industries’ requirements and education system and equip students with hands-on training on world class machines to be confident to work in industrial habitat.”
Source: India Education Diary
Aditya Birla Group firm UltraTech has received an approval from Competition Commission for the acquisition of the cement business of Century Textiles and Industries. Aditya Birla Group firm UltraTech on Tuesday said it had received an approval from the fair trade regulator Competition Commission for the acquisition of the cement business of Century Textiles and Industries. The company said the CCI has given its approval for the share swap deal between the companies, Ultratech said in a regulatory filing. On May 20, UltraTech said it would acquire the cement business of BK Birla Group company Century Textiles and Industries through a share swap deal, a move which would further consolidate its position as market leader in the segment. “the Competition Commission of India (CCI) has by its letter dated August 21, 2018 informed the company that it has approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012,” Ultratech said. However, the copy of the CCI order is awaited, it added The board of directors of UltraTech Cement on May 20, 2018 approved a scheme of arrangement amongst Century Textiles and Industries and its respective shareholders and creditors, the Aditya Birla Group firm. The transaction would provide UltraTech an opportunity to further strengthen its presence in the east and central markets, extending its footprint in the western and southern markets. Century Textiles has three integrated cement units situated in Madhya Pradesh, Chhattisgarh and Maharashtra with a total capacity of 11.4 million tonnes per annum and a grinding unit in West Bengal of 2.0 mtpa.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1606.44 |
USD/Ton |
2.80% |
8/22/2018 |
|
VSF |
2092.75 |
USD/Ton |
0.07% |
8/22/2018 |
|
ASF |
3037.63 |
USD/Ton |
0% |
8/22/2018 |
|
Polyester POY |
1701.37 |
USD/Ton |
0.87% |
8/22/2018 |
|
Nylon FDY |
3402.73 |
USD/Ton |
0% |
8/22/2018 |
|
40D Spandex |
5038.38 |
USD/Ton |
0% |
8/22/2018 |
|
Nylon POY |
1891.22 |
USD/Ton |
0.78% |
8/22/2018 |
|
Acrylic Top 3D |
3534.17 |
USD/Ton |
0% |
8/22/2018 |
|
Polyester FDY |
5513.01 |
USD/Ton |
0% |
8/22/2018 |
|
Nylon DTY |
1913.12 |
USD/Ton |
0.38% |
8/22/2018 |
|
Viscose Long Filament |
3110.65 |
USD/Ton |
0% |
8/22/2018 |
|
Polyester DTY |
3212.88 |
USD/Ton |
0% |
8/22/2018 |
|
30S Spun Rayon Yarn |
2760.16 |
USD/Ton |
0% |
8/22/2018 |
|
32S Polyester Yarn |
2365.85 |
USD/Ton |
1.89% |
8/22/2018 |
|
45S T/C Yarn |
3008.42 |
USD/Ton |
0.49% |
8/22/2018 |
|
40S Rayon Yarn |
2482.68 |
USD/Ton |
0.59% |
8/22/2018 |
|
T/R Yarn 65/35 32S |
2555.70 |
USD/Ton |
0.57% |
8/22/2018 |
|
45S Polyester Yarn |
2920.80 |
USD/Ton |
0% |
8/22/2018 |
|
T/C Yarn 65/35 32S |
2541.10 |
USD/Ton |
0% |
8/22/2018 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
8/22/2018 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
8/22/2018 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
8/22/2018 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0.22% |
8/22/2018 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0.21% |
8/22/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14604 USD dtd. 22/8/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Vietnam has been considered an attractive destination for investors who are keen on the garment and textile sector, thanks to benefits brought about by the bilateral and multilateral free trade agreements (FTAs) that the country has signed and is about to sign. Looking back more than one year ago, many domestic garment firms were facing significant hardships as orders were being shifted to countries with low labour costs and tariffs, such as Cambodia, Myanmar, and Bangladesh. However, in just a short period of time, after investing in technology and adjusting costs and inappropriate policies, Vietnam regained investors’ confidence, with a lot of large orders now returning to the country. The Vietnam Textile and Apparel Association (VITAS) explained that Vietnam is well-known for its high quality of garment and textile products and quick delivery turnaround for sophisticated products. Therefore, partners have returned to Vietnam after discovering that product quality and delivery times were not always ensured in other countries. Recently, Japan’s Itochu Group spent 5 billion JPY (47 million USD) buying an additional 10 percent of shares in the Vietnam National Textile and Garment Group (VINATEX). The purchase raised Itochu’s stake in Vinatex to 15 percent, making it the second largest stakeholder behind the Ministry of Industry and Trade. In March, the southern province of Binh Duong granted an investment licence to a garment and textile project by Taiwan’s Apparel Far Eastern Co., worth 25 million USD. Singapore’s Herberton Ltd., also recently carried out the Nam Dinh Ramatex Textile and Garment Factory project worth 80 million USD in the northern province of Nam Dinh. The factory is expected to become operational next year with a capacity of 25,000 tonnes of fabric of various kinds and 15 million clothing items a year, creating jobs for around 3,000 labourers. According to Chief Representative of VITAS in Ho Chi Minh City Nguyen Thi Tuyet Mai, together with efforts to regain investors’ confidence, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other free trade agreements (FTAs) have attracted investors to Vietnam. Currently, Vietnam is involved in 16 bilateral and multilateral FTAs, including two next-generation ones, namely the CPTPP and the EU-Vietnam Free Trade Agreement (EVFTA). Once they become effective, more opportunities will be created for the garment and textile sector, Mai added. Vietnam is among the world’s five biggest garment-textile exporters and producers. The country’s garment-textile export turnover hit 16.5 billion USD in the first six months of 2018, up 16.49 percent year-on-year. Last year, the sector raked in 31.2 billion USD from exports, a year-on-year rise of 10.23 percent
Source: Vietnam News Agency
Britain will bid to become an "exporting superpower" after Brexit, Trade Secretary Liam Fox said on Tuesday as he unveiled the government's future export strategy. Britain will bid to become an "exporting superpower" after Brexit, Trade Secretary Liam Fox said on Tuesday as he unveiled the government's future export strategy. The country, which is set to leave the European Union in March next year, will aim to increase exports as a proportion of GDP by five percentage points over the long-term, he announced. Britain sold a record £620 billion ($795 billion, 690 billion euros) of goods and services overseas in 2017, accounting for 30 percent of GDP, boosted by the recent weakness in the value of the pound. The government and business groups believe it can raise this proportion to 35 percent. "UK businesses are superbly placed to capitalise on the rapid changes in the global economic environment and I believe the UK has the potential to be a 21st century exporting superpower," Fox told a business audience in London. "As we leave the EU, we must set our sights high and that is just what this export strategy will help us achieve." The plan comes amid growing anxiety about the impact of Britain leaving the bloc without the prospect of a future trade deal. This could hamper exports to the EU, Britain's largest market, if tariff-free trade ends post-Brexit. Opposition Liberal Democrat leader Vince Cable, a former business minister, called Tuesday's target unveiling "meaningless" in the current climate. "The government's own economic analysis shows that non-EU trade deals would not come close to making up for the loss of EU trade," he said. "Relying on a mirage of trade deals with parties outside the EU is at best a gamble, at worst fantastical." The government estimates that 400,000 British businesses could export but currently do not, while the CBI believes 10 percent of companies in every region of the country fit that category. The plan will encourage firms to export with an awareness campaign highlighting up to £50 billion worth of export finance and insurance support on offer. It will also aim to connect them to "overseas buyers, markets and each other" with more online information and international promotion of British companies. "This strategy is a first step -- a foundation -- for a new national drive to export," said Rona Fairhead, a junior trade minister. CBI Director-General Carolyn Fairbairn welcomed the plan. "The CBI has consistently called for a long-term approach to exports," she said. "Previous strategies have come and gone, but businesses have been let down by their execution." Britain's export market jumped 11 percent last year, helping to narrow its trade deficit. But exports fell and imports rose in the three months to June, widening the deficit by £4.7 billion, amid the Brexit uncertainty and global tensions over trade.
Source: Economic Times
Pakistan’s textile exports dropped 16.1% to $1.002 billion in July 2018 compared to shipments recorded in June, which stood at $1.194 billion. On a year-on-year basis, textile exports in July did not show any improvement. In fact, they fell half a per cent as exports were slightly better at $1.007 billion in July 2017. The market had been expecting better performance from textile exporters following 18% rupee depreciation in the past nine months, but exports dropped significantly on a month-on-month basis and nominally on a year-on-year basis. Textile exports roughly make up 60% of Pakistan’s total exports. All Pakistan Textile Mills Association (Aptma) Patron-in-Chief Gohar Ejaz said the government had recently halved tax rebates that stood at 4-7% and therefore things turned unviable for textile producers. Ejaz said Pakistan had only adjusted its exchange rate by letting the rupee weaken, but it won’t impact national exports. The rupee had been artificially stabilised at Rs105 per dollar for the past five years, he said. He pointed out that textile was a very competitive industry internationally and after 4-7% rebate the industry operated at 5% profitability and “if the government reduces the rebate, then operating the industry will be unviable.” He added that many of the textile players had started closing operations as it had become difficult to run their businesses due to stiff competition in the international market. However, according to Pak-Kuwait Investment Company AVP Research Adnan Sami Sheikh, textile exports tend to fall in July as exporters try to increase exports in the closing month of earlier fiscal year, which is June. He added that Pakistan’s textile production faced high input costs due to imports, which diluted the impact of rupee depreciation on the textile industry. “High quality raw material is imported by brands. Chemicals are imported while energy requirement is also generally fulfilled by consuming diesel which is also imported. So the impact of rupee devaluation is not convincingly passed on to the industry as people generally think,” he told The Express Tribune. However, he added that the impact of rupee depreciation could not be gauged during summer as it was an off-season for the industry. The impact may be assessed and hopefully the textile group will show better exports in winter when consumption increases in the west due to cold weather and Christmas. Sheikh said textile exports could be improved by improving localisation and quality of raw material as better brands import better quality cotton to meet their requirement. Pakistan’s annual requirement stands at 15 million bales of cotton, but it has recently been producing just 10 to 11 million bales.
Source: The Express Tribune
The Pakistan Business Council (PBC) has urged Finance Minister Asad Umar to unite the country behind a focused ‘Make in Pakistan’ drive in order to improve the economy. The PBC, an advocacy group formed to improve the general business environment of the country, has sent a 20-point recommendation letter to the finance minister while also extending its support for the challenging task of reviving Pakistan’s deteriorating economy. PBC CEO Ehsan Malik said advocating the ‘Make in Pakistan’ campaign would help create jobs, promote value-added exports, encourage import substitution and broaden the tax base. The PBC has also recommended the new government to use the limited window of positive sentiment and goodwill to implement fundamental reforms. The PBC has also advised Umar to go for a well-structured programme of the International Monetary Fund (IMF) over short-term measures to tie over the crisis. Otherwise, it said, bring much-needed discipline and rigour to economic management. “Concurrently strengthen governance, especially in the Ministry of Finance and the FBR (Federal Board of Revenue), to implement the reforms to revive industry to help break out of the recurrent cycles of crises. This is the 13th time in 28 years that we may have to resort to an externally dictated programme,” Malik wrote in his letter of recommendation. According to the letter, PBC believes that there is a need to establish the envisaged Council of Business Leaders (CBL) to build consensus. The CBL should lead a comprehensive review of government polices to remove conflicts. It should align, in particular the trade, fiscal, energy and agriculture polices to promote domestic industry, remove the anti-manufacturing and pro-import bias. “Anti-manufacturing and pro-import bias has made Pakistanis a nation of traders, happy to export jobs and import goods that can be made here,” Malik said. The council has further asked the finance minister to ensure regionally competitive energy tariffs for the industry to generate both employment and exports. PBC has also asked for revision of existing power agreements, privatisation of distribution companies, addressing transmission and distribution losses, consider off-grid renewable solutions and indigenise fuel to reduce imports. In order to encourage exports, the PBC has advised the government to zero-rate exports to avoid the need for refunds and also automate rebates. It also highlighted that there is a need to address technology and talent needs of the FBR in order to enable it to broaden the tax base. The PBC has also asked to unify the multiple federal, provincial and local taxes under one national tax authority. In order to discourage tax evaders, withholding taxes for non-filers should be increased to at least twice the tax on filers. Collections from non-filers should be used to increase both collection and widening of the tax base. Meanwhile, the PBC has pointed that there’s a need to renegotiate the Free Trade Agreement (FTA) with China. It added that the government should refrain from new agreements that undermine the local industry. “(The government should) focus FDI to export-generating industries, technology-oriented sectors and those for which the Pakistan’s private sector lacks capital and risk appetite, such as infrastructure and oil and gas exploration. Tailor concessions (should also be given) to promote joint ventures and public listing,” the PBC recommended. The PBC advised to address the distortion created by incentivising growth of sugarcane and wheat at the expense of cotton, which is required by the textile industry, and oil-seeds, deficiency of which forces the country to import $2 billion of vegetable oils annually. It also asked the government to accelerate the digitisation of Pakistan, especially of the government processes, to enhance ease of doing business and also make broadband more affordable by reducing the burden of taxes. The council has also asked the government to take state-owned enterprises out of the control of line ministries, professionalise their boards and managements, restructure and then privatise those that don’t make strategic sense to retain. The PBC has also urged the Pakistan government to make costs, benefits and financial flows associated with the CPEC fully transparent and ensure that concessions in SEZs do not undermine the existing industry.
Source: The Express Tribune
The third annual Apparel Textile Sourcing Canada (ATSC) show has opened its doors in Toronto with great fanfare and record attendance. The premier show for international apparel, textile, fashion, and fabric manufacturers is being held from August 20 to 22, 2018. Nearly 1,500 visitors on day one alone visited the vastly-expanded apparel and textile show. With more than 500 booths from 17 different countries highlighting the exhibit area, the show was opened by a range of high profile VIPs who endorsed Canada as a sought-after trade partner for countries around the world. For the first time, a Brand China exhibition, called Avenue ATS, was introduced at the show, highlighting the top, cutting-edge Chinese fashion brands trending in the country’s apparel sector. A new India Pavilion, which has brought an unprecedented 40 established, new and emerging businesses from India, presented the latest innovations in Indian apparel, textiles and accessories. A ‘Made in Ukraine’ showcase was also unveiled, displaying leading fashions from eight Ukrainian designers and manufacturers. Other new international showcases include trending displays from Bangladesh, Indonesia, Pakistan, and Vestex Guatamala and The Americas, according to a press release. Day one highlights included an overflowing crowd at a panel on China’s changing role as a front-runner in the global textile and apparel supply chain, moderated by Clay Hickson of Worldwide Responsible Accredited Production (WRAP) and featuring Cao Jiachang, Chinese Ambassador Lu Shayeand Wu Zhengping. The panel covered such topics as China’s commitment to free trade with Canada, incentives for Canadian brands to continue sourcing from China and future outlooks, advantages of further investment in sourcing, and the reality of Chinese reliability on quality control, infrastructure, and logistics. Other sessions featured at the show focused on the US trade war and its effects on Canadian and American retailers, brands, and businesses. Bob Kirke discussed strategies for Canadians looking to adjust to new realities of international trade and how to strengthen relationships with global markets, including China, which represents more than 40 per cent of Canadian apparel imports. Julia Hughes spoke about the actions her organisation is taking to stop new tariffs on apparel and footwear from China. Both reinforced that a full-blown trade war between the US and its key trading partners will disrupt the global supply chain and impact trading volumes, with far-reaching repercussions for the Canadian and US industry. Jeff Streader rounded the sessions by providing tips on succeeding in today’s digital world, including the impact of artificial intelligence and digital disruption on the global supply chain. The debut of the China Brand Show, which came to Canada for the first time as part of ATSC, adding categories such as accessories, giftware, home electronics, footwear, luggage, house wares, and general merchandise, also drew record crowds. Day two of ATSC featured an insider’s look at how Canadian designers can best enter the North American Market, a fashion digital influencer’s panel, insight into a new era for sourcing from Bangladesh, and latest innovations in GMO testing for cotton. A spectacular fashion show spotlighting established and up-and-coming Canadian and international designers is also being held.
Source: Fibre2Fashion
At the upcoming Origin Africa 2018 show in Nairobi, Kenya, ThreadSol, the pioneer in enterprise material management for sewn products’ industry, is set to present its range of innovative software solutions for the apparel manufacturers. In these times of ascending costs and descending profit margins, ThreadSol has a crucial role to play in the apparel industry, especially in Africa with the emergence of the industry, the company said. ThreadSol will participate in Origin Africa 2018 from 9th September to 11th September. The company’s presence at Origin Africa establishes its commitment to sustaining its efforts of introducing innovative garment tech solutions for the apparel industry. “Our presence at Origin Africa is a proof of our commitment to the apparel industry, especially the African apparel industry. The solutions we are offering at the expo demonstrates that we are continuously aiming to accomplish our customer’s requirements to aid them in overcoming the challenges of the industry and increase profitability by targeting the biggest expense in manufacturing- fabric”, says Anas Shakil, Senior Partner at ThreadSol. ThreadSol’s outlook is to introduce technologically driven products to drive African apparel manufacturing by boosting topline and bottom line for manufacturers and differentiate from the extremely competitive environment for breakthrough profits and improved customer service. With challenges like high electricity prices, limited access to finance, infrastructural obstacles, challenging logistics, and for non-EPZ companies, complex regulations, it is extremely crucial for apparel manufacturers in Kenya to realize the importance of cost saving and increasing their output. In addition, labor skill is another challenge. It is important to understand and implement automation which can provide more efficiency and high yield in the long run. ThreadSol solutions- intelloBuy and intelloCut together work with the notion to boost revenue and profits for apparel manufacturers. The solutions work for the buying floor and cutting floor respectively and ensure reduction in fabric expenses at the buying stage and cutting of extra garment pieces at the cutting stage. The overall benefit is automation of the buying and cutting process which ultimately saves hours of manpower in the facilities. These solutions have been adopted by the top manufacturers worldwide like MAS (Sri Lanka), Epic Group (Bangladesh), Raymond (India), PAN Brothers (Indonesia), HS Fashions (China), Sangwoo (Vietnam) etc. “We at ThreadSol bring up to 80% reduction in planning time to ensure that the manufacturing cost go down and hence the profits go up by 30-40%”, adds Anas Shakil. ThreadSol’s participation in Origin Africa is a step further to market its solutions to the potential manufacturers who can now invest in ThreadSol’s innovative solutions to reinvent their manufacturing efficiency and boost profit margins
Source: Newbusiness Ethiopia
