Surat: The country’s largest man-made fabric (MMF) industry continues to suffer from the dumping of imported MMF textiles from countries like Vietnam, China and Bangladesh. During April-July this year, the import of MMF textile has increased by almost 26 per cent in value terms at $869 million compared to $711 million in the previous year. According to the latest provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the import of MMF yarn, fabrics and made-up together have gone up by 27 per cent and import of made-up staple fibres increased by 19 per cent during April-July, 2018. The highest import growth was recorded in the remade garment (RMG) segment, which represented 47 per cent increase at $784 million during April-July, 2018 compared to $535 million in the same period in previous year. The MMF sector has been demanding to increase the basic customs duty (BCD) on the import of MMF textiles in order to provide level-playing field to the indigenous manufacturers. Talking to TOI, chairman of Synthetic and Rayon Export Promotion Council (SRTEPC) Narain Aggarwal said, “The substantial growth in imports of man-made staple fibres and MMF based textiles into India is not a good sign for the Indian MMF textile segment. Government needs to act on this surge in imports with remedial and protectionist measures before it is too late.” Aggarwal has suggested that the government should immediately consider increasing the effective rates of BCDs on MMF, MMF yarns and all the left over tariff lines of MMF knitted fabrics falling under chapter 60. The effective rates of BCD on man-made fibres and MMF yarns such as polyester, viscose and others need to be increased to 10% from the existing 5% and on nylon fibres and yarns the effective rates of BCD need to be increased to 15% from current 7.5%. “With increased effective rates, the MMF textile segment will be safeguarded and it will also be in support of the government’s ‘Make in India’ initiative,” Aggarwal added.
Source: The Times of India
Union Finance Minister Arun Jaitley on Thursday said India was expected to surpass Britain next year to become world’s fifth largest economy. “This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest [economy],” he said in New Delhi. Other economies in the world were growing at much lesser rate but India had the potential to be among the top three economies of the world in the next 10-20 years, he said. In an interview with The Hindu in July last ahead of Prime Minister Narendra Modi’s visit to the U.K., Jules Chappell, OBE, managing director, business at London & Partners, the Mayor of London’s economic development agency , said the Indian economy was growing very fast and Britain was making efforts to forge closer relations with India in very practical ways.
Source: The Hindu
The US market for textiles is vital to the health of local textile exporters. After a turbulent time in FY18, the market is gradually improving. Walmart Inc. and Target Corp., large retailers in the US, reported their best quarterly performances in recent years. This has created hope that measures taken by traditional retailers to combat industry changes (such as a consumer shift to online retail) are beginning to yield results. The US-based National Retail Federation (NRF) raised its retail sales forecast for the year, citing a strengthening economy. The trade association now expects 2018 retail sales to increase at a minimum of 4.5% over 2017 compared to the 3.8-4.4% range forecast earlier. “Higher wages, gains in disposable income, a strong job market and record-high household net worth have all set the stage for very robust growth in the nation’s consumer-driven economy,” said NRF in a statement. Validating the commentary, a senior executive at a local textile exporter said the industry is returning to growth trajectory after several quarters of weak sales. The domestic exporters have alluded to the recovery during the June quarter results. But conviction among investors was low as financial performance remained unimpressive. Earnings of most companies trailed estimates even as firms such as Indo Count Industries Ltd and Welspun India Ltd reported healthy volume growth. Motilal Oswal Securities Ltd, for instance, pegged its FY19 volume growth estimate for Indo Count Industries at around 5% compared to the management guidance of 7-11%. “We remain cautious on account of a slower-than-anticipated recovery,” it said. Perhaps the recovery needs more validation. US merchandise import data capturing the coming holiday season sales needs to show an increase. As market disruption took its toll, India’s share in total home textile exports to the US fell by a percentage point in the first five months of this year, shows data compiled by JM Financial Institutional Securities Ltd. According to an analyst with a domestic broking firm, the market share losses began to subside with cotton sheets gaining a foothold from June. The volume recovery should also translate into earnings. Despite healthy volume growth, Indo Count Industries and Welspun India’s earnings remained weak as reduction in export incentives, high cotton costs and low realizations impacted performance. The depreciating rupee may provide some relief. But as an analyst with a domestic broking firm pointed out, obtaining quality cotton at benchmark rates can be a challenge given the pest attacks and reduced crop acreage. Improving US retail sales have raised the prospects of a recovery in performance of home textile exporters. However, clarity on the pace of recovery and earnings improvement is what will determine if investors in these companies also benefit.
Source: Livemint
TIRUPUR: Knitwear industries in the hosiery hub of Tirupur have demand further simplification of the Goods and Services Tax (GST) filing and refund procedures, since the existing system is still a tedious one for small scale units. Speaking on the issues, general secretary of the South India collar shirts and Inner wear Small scale Manufacturers Association (SISMA), K S Babuji said, “even after repeated representations to the Centre on problems in adapting to the GST system, the knitwear industry is yet to get a solution. Following introduction of GST, industries have to submit three different forms for monthly procurement, sales and net tax. It is a tedious job for knitwear industries to fill the complicated forms and forces industrialists to undergo severe pressure every month.” He requested that the three forms be welded into a single and simplified procedure to file tax on time. He also said, “the central government should consider providing such forms in Tamil too. It would be helpful for small scale manufacturers to understand it easily and also to file such forms properly.” Similarly, garment manufacturers and exporters are still experiencing inordinate delay for getting GST refund due to complex procedures. M P Muthu Rathinam, president of the Tirupur Exporters and Manufacturers Association (TEAMA), said, “though the state government has made a series of efforts to get GST refund for beneficiaries, crediting the refund to the beneficiaries bank account is getting delayed.” Mr. Muthu Rathinam rued that refund procedures are taking more than 30 days and many exporters have not received refunds even after getting refund orders. He also said, “the Tax department officials in Coimbatore have simplified the procedure without form 49 and also by coordinating with the treasury directly. A similar procedure should be implemented for the garment exporters in Tirupur also, as a solution to the issue.”
Source : Deccan Chronicle
The Finance Ministry is considering an amendment in the law to raise penalties against companies that fail to pass on GST rate cuts to consumers. At present, the penalty for such an act is ₹10,000 or the amount of tax evaded, whichever is higher. “The proposal is to bring an amendment in the Finance Bill to raise the penalty from ₹10,000,” a senior government official told BusinessLine. Earlier this week, officials from various ministries including Finance and Law discussed the proposal. One of the key concerns behind this move is that companies often do not pass on the entire benefit of tax cuts. “Sometime companies claim that the cost of manufacturing has gone up, which is why they are not able to pass on the tax cuts. In this process they make hundreds of crores of rupees unlawfully, which is not acceptable,” the official said. There are also allegations that post rate reduction, companies sometimes lower prices selectively. For instance, they may cut the price of larger packs but not smaller ones, or cut the price of one brand but not the other. “These practices have to be stopped and the required deterrents have to be created,” the official sad.
Valid excuses
However, experts feel that though not all the arguments of the companies are valid, some could be. MS Mani, Partner at Deloitte India, said the steep tax rate cuts made recently will necessarily need to be passed on to customers in the form of lower prices. However, the increase in petroleum prices and the declining rupee are bound to impact the pricing decisions of businesses. After the introduction of the new indirect tax regime in July 2017, the GST Council has lowered the duties on 384 goods and 68 services, including the latest round of rate reduction on nearly 100 products and services last month. The government feels there is a need to ensure that consumers get the benefit of tax cuts not only now but in the future as well.
Inflation fears
Another official said that not passing on the benefits also contributes to inflation as well as inflationary expectations. Though the retail inflation is below 5 per cent at the moment, the inflationary expectation is high because of higher fuel prices and declining rupee. “Steps need to be taken to ensure that inflation is not due to reasons which can be controlled domestically,” the official said. At present, there is a National Anti-profiteering Authority to check whether the reduction in tax rates or benefit of input tax credit is being passed on to the consumers. Till date, 32 screening committees have been set up — 29 is States and three in Union Territories (Delhi, Puducherry and Chandigarh). It has passed orders in some cases while hearing is going on in over 130 cases.
Source: Business Line
MSMEs play a vital role in contributing to our economic growth, with these essential changes, they will prosper. With a contribution of as high as 45 per cent towards the country’s GDP, Micro, Small and Medium Enterprises (MSMEs) have a vital role to play in the Indian economy. The sector has faced many challenges both regarding the economies of scale, the lack of high-end technology and other benefits enjoyed by its larger counterparts. Earlier, at the 28th GST Council meeting, it was pointed out that close to 93% of the total taxpayers filing GST returns, have turnover below Rs 5 crores and their contribution to total GST revenue is less as compared to large companies. This gives scope for Government to look into means for reducing the compliance burden in this sector. This will, in turn, reduce the administration cost incurred and will provide a level-playing opportunity for MSMEs. The principal issues faced by the sector was adapting to the new regime of indirect tax, GST. The online submission of the GST returns has now been made simpler to suit the sector. To further reduce compliance efforts, quarterly SAHAJ and SUGAM returns have been proposed for those with turnover upto Rs 5 crores. Those with turnover upto Rs 1.5crores, will become eligible to opt for composition scheme, the earlier limit was Rs 1 crore. Adding to this, the Income Tax Act was amended in the last fiscal where steps were taken to ease the MSME sectors’ tax burdens; through a change in the threshold of Section 44AD. Businessmen with turnover up to Rs 2 crore could opt for presumptive taxation. Businesses with turnover in excess of Rs 2 crore are mandated to maintain detailed accounting records. Recently, amidst ample curiosity and anticipation, the 29th GST council on the 4th of August converged to address the issues and challenges surrounding the future of Micro, Small and Medium Enterprises. A special committee has been put in place to expedite the addressing of these concerns. With the setting up of this committee, further reforms in input tax credit claim, the limit for registrations, the reverse charge mechanism etc expected to take place. With these changes, there will be more employment opportunities. The MSME sector has been particularly affected by GST filing due to complexity and newness of the structure of the tax regime. These businesses which were not paying excise duty in the earlier regime are severely impacted. The committee is likely to take up whether such units must be exempted from CGST collection and deposit. This will further relax the load caused to them due to GST. Working capital issues have been one of the top issues. Availability of Input tax credit on time and in an unambiguous manner is very important for this sector as it will affect their working capital cycle. Since these businesses are small, free flow of ITC is critical to keep the working capital in rotation. Delay in filings or compliance by their own suppliers or delay in release of payments from their buyers, have severely impacted their day to day functioning. Delayed GST Refunds is something that has always been a cause of concern for this sector. The government has taken measures to ensure that the pending sanctions are cleared to unclog the working capital plugs that sector is currently witnessing. Ensuring timely refund is of critical importance as the heart of their survival lies in operating with an effective working capital. Another vital discussion was the suggestion for a one-time settlement scheme for legal and litigation issues pertaining to Central Excise and VAT. Implementing this will save resources for MSMEs by unlocking the disputed payments for the government. MSMEs play a vital role in contributing to our economic growth, with these essential changes, they will prosper.
Source: The Economic Times
New Delhi: As much as Rs 12,000 crore lying in Integrated GST or IGST pool has been apportioned between the Centre and states. The central government will get about Rs 6,000 crore and the remaining would be distributed among the states in proportion to their revenue collection in August, an official told. The apportionment would help improve the indirect tax position of both the Centre and states. This is the third time that the IGST funds have been divided between the Centre and states. As much as Rs 50,000 crore was settled between the Centre and states in June, and Rs 35,000 crore in February this year. "Funds accumulated in the IGST pool are gradually coming down. This shows that businesses are utilising the accumulated IGST to pay taxes. Also timely payment of taxes and filing of returns have helped in lowering the balance in IGST pool," the official said. A policy decision has been taken that when some substantial amount accrues to IGST pool it should be apportioned, so that funds do not lie idle with the Centre, the official said. Under GST, the tax levied on consumption of goods or rendering of service is split 50:50 between the Centre and the state. Such tax is known as Central-GST or CGST and State-GST or SGST. On inter-state movement of goods as well as imports, an Integrated-GST or IGST is levied, which accrues to the Centre. A cess is levied on top of these taxes on sin and luxury goods which make up for the compensation kitty used to make good of any revenue shortfall faced by states on implementation of GST. Ideally there should be 'nil' balance in the IGST pool since the amount should be used for payment of Central GST and State GST. As some businesses are ineligible to claim the benefits of input tax credit or ITC, the balance gets accumulated in the IGST pool. Post the amendments brought about in the GST law earlier this month, credit of IGST which includes IGST paid on the port (import of goods) would be first adjusted towards any kind of tax payable under the regime of IGST/CGST/SGST. "Thereby, this unallocated tax credit on account of IGST would be allocated towards center and state very easily. This would also reduce the hassles of going through GST council approval for adhoc distribution of the same," AMRG & Associates Partner Rajat Mohan said. Once the amendments are implemented, a major portion of unmarked IGST credits would be marked to a consumption state, thereby considerably reducing the necessity of ad hoc distribution of IGST revenues, he said. "This new mechanism would give higher expendable revenues for the states and centre in a transparent and efficient manner," Mohan said. GST collections rose to Rs 96,483 crore in July, from Rs 95,610 crore in June. Besides, Rs 94,016 crore was collected in May and Rs 1.03 lakh crore in April. Data for August would be released on September 1.
Source: Times of India
In a boost for the mega powerloom cluster in Bhiwandi, the textile department has initiated steps for the project. It has demanded 150 acres of land for it. Bhiwandi is known for its powerlooms and warehouses.(Praful Gangurde) If the government’s plan materialises, the crumbling and neglected infrastructure in Bhiwandi would be upgraded. In a boost for the mega powerloom cluster in Bhiwandi, the textile department has initiated steps for the project. It has demanded 150 acres of land for it. District information officer Aniruddha Ashtaputre said, “The textile department will need at least 150-acre land, with a good connectivity to the upcoming Mumbai Nagpur Samruddhi Corridor, Jawaharlal Nehru Port Trust and Delhi Mumbai Freight Corridor to boost business to be set up in the cluster.” The cluster, claimed the department, will ensure that the Bhiwandi looms do not have to depend on anyone for raw materials and to export finished goods. Apart from proving employment to locals, the logistic hub will also bring about planned development in Bhiwandi with better roads, education and transport facilities. The Comprehensive Powerloom Cluster Development Scheme was first proposed by the central government for Bhiwandi in November 2008. The detailed project report was approved in March 2009. However, the project could not be implemented due to several constraints under the Comprehensive Powerloom Cluster Development Scheme. The idea was refloated last year when textile minister Smriti Irani inaugurated the PowerTex India Schemes in 43 cities through video-conferencing in Bhiwandi. A meeting with the secretary of the state textile department, Atul Patane, district collector Rajesh Narvekar and other stakeholders was held recently to take the project ahead. The cluster will have a common facility centre, powerloom processing unit, yarn market, workshop spaces and skill development centres. Patane said the project should be implemented by making MIDC the special purpose vehicle. “The MIDC authorities will be responsible for coordinating between electricity board, pollution department, municipal corporation and revenue department among others. A special cell to encourage export of textiles from Bhiwandi will be formed under the district collector,” Ashtaputre added. Former MLA Rashid Tahir Momin said the government should solve the electricity problems. “The loom industry is dependent on power, but the supply is irregular. Many looms are losing business as the issue is continuing for years.”
Source: The Hindustan Times
Yarn rates, which were around Rs255 till January, have reached Rs400 per kilogram. The dealers said the “cartel” in yarn industry needs to be taken care of by the government else manufacturers would continue to suffer unnecessarily, losing orders from both domestic and overseas markets. While talking to The Tribune, Sanju Dhir, member Knit and Fab Industry, said many manufacturers in the city were losing orders because the prices of yarn had touched the roof. Within six months, the prices have almost doubled. “The buyers are not ready to listen to our arguments. They ask us to provide the product on earlier reasonable prices, which is impossible. We do realise that it will be difficult for a buyer to bear the sudden increase in prices, but we are helpless. Many of us are losing orders as buyers are not ready to listen to our genuine reason that yarn rates have increased,” Dhir said. Many hosiery manufacturers protested against the “cartel” of yarn dealers and owners. Under the banner of For Arm Welfare Organisation, they burnt the effigy of yarn dealers/ owners of yarn manufacturers. Varun Malhotra from the organisation said dealers and mill (yarn) owners were hand in glove with each other and targeting hosiery manufacturers. “The hosiery manufacturers will be forced to shut units, if the prices of yarn are not controlled. Hosiery manufacturers need to raise their voice against this monopoly of yarn dealers and manufacturers,” said Malhotra. The hosiery manufacturers are trying to meet Member of Parliament Ravneet Singh Bittu on this issue. President of Knit and Fab Industry Vipan Vinayak said orders were taken earlier and now, prices have been increased and it had become too difficult to execute the orders on previous rates. “If we do not execute, we will lose customers and labour will be dispersed. It is too difficult to call labour again for the execution of orders once they leave and if we continue, we will bear losses as buyers have given orders on previous yarn rates. We are in a dilemma,” said Vinayak.
Source: Tribune
The Gujarat government is mulling a policy on retail trade and held consultation, on Wednesday, with representatives of organised retail companies as well as traditional mom and pop stores. Representatives of traditional neighbourhood shops feel a need for a level playing field to compete with organised retail as well as e-commerce companies. "We had a meeting with representatives of the trade community and took their suggestions and feedback," Industries Commissioner Mamta Verma told DNA. Local representatives have been advocating formation of such a policy for a while. Representatives from Retailers Association of India (RAI), Gujarat Chamber of Commerce and Industry (GCCI), regional chambers, Vadodara-based Federation of Gujarat Industries (FGI) and a couple of other trade bodies were invited for the meeting. "We have, in the past, given our recommendations. We also gave some fresh suggestions. The government will think it over," said Jayendra Tanna, former vice-president of GCCI. Pratap Chandan, co-chairman of Mahajan Sankalan Samiti of GCCI said that traditional shopkeepers want a level playing field against players in organised retail and e-commerce firms, who have deep pockets, access to technology and best management practices. "There is no level playing field. Organised retailers have long business hours, can operate seven days a week and have access to institutional finance. On the other hand, Shops and Establishment Acts calls for severe compliance on the part of shopkeepers," said Chandan. He warned that if proper safeguards are not given to shopkeepers, it would be difficult for them to survive. He also suggested relaxation in a number of legal provisions applicable to neighbourhood shopkeepers.
Source: DNA
MUMBAI: The rupee’s slide past the 70 mark to the US dollar has prompted Indian importers to seek medium-term cover for overseas payment liabilities as fears grow that the local unit is unlikely to rebound in a hurry. Companies are buying monthly forward contracts instead of fortnightly deals to help negotiate short term volatility, traders said. “Hedging interest has increased among importers, who now expect the rupee depreciation against the dollar to continue,” said Anindya Banerjee, currency analyst at Kotak Securities. “The forward premium has also gone up in an early sign that demand for covers is rising.” The rupee touched a record low at 70.86 to the dollar on Thursday amid strong month end demand for the US currency in both onshore and offshore markets. It closed 0.20% lower at 70.74 versus 70.59 on Wednesday. The unit has already lost about 10% this calendar year, and counts among the worst performing emerging market currencies. The forwards premium has gone up by two-four paise in the past two-three days in one-, two-, and three-month maturities. It is likely to climb further if the rupee were to slide further. Fresh Companies now buying relatively longer-maturity currency forwards contracts are from sectors such as petroleum, electronics, coal, agri-products and shipping logistics, dealers said. “Importers are now rushing to buy two-three month forwards contracts unlike shorter maturity contracts a few weeks ago,” said Abhishek Goenka, CEO IFA Global, a Mumbai-based forex consulting firm. “Higher demand will drive the forwards premium higher.” Separately, rising crude oil prices have raised fresh concerns over India’s fiscal condition as the country meets three-fourths of its oil demand through overseas shipments. Brent crude rose more than half a percent to $77.62 a barrel on Thursday. The gauge has climbed nearly 10% in the past two weeks. “There is pressure on the rupee amid the general weakness in emerging market currencies,” said Bhaskar Panda, senior vicepresident, treasury advisory group, HDFC Bank. “Overseas exposure should be covered in such uncertain times.” According to Panda, the rupee may trade in the range of 70 to 71.50 in the next few weeks. The RBI is seen intervening in the market, but only intermittently. “The central bank is letting the rupee fall when currencies of other emerging markets are also declining,” said the treasury head at a foreign bank. “But when it is a one-off plunge, the central bank is coming to the rupee’s rescue.”
Source: Economic Times
The rupee on Thursday slipped to a yet another record low of 70.84 against the dollar in intra-day trade before staging a slight recovery to end the session at a fresh closing low of 70.73. While some of the weakness in the currency was attributed to dollar purchases by state-owned banks, dealers are somewhat perturbed at the fairly sharp fall in the currency over the last few days. For one, the dollar index — the Dollex — has not strengthened this week and was actually trading lower in the region of 94.52 on Thursday, down from 94.77 on Monday. Again, while foreign funds have been selling stocks, at $344 million across four sessions, the amount is not very large. In the bond market foreign investors remained net buyers for an amount of about $560 million till August 29. On Wednesday they bought bonds for a small amount. The rupee has now lost nearly 10% since January and is the third-worst performing currency in emerging markets. Forex expert Jamal Mecklai said it was possible the rupee could fall further and added companies would be advised to hedge their forex liabilities. “It’s becoming difficult to assess the situation,” Mecklai said. Meanwhile, the yield on the benchmark bond rose to 7.93%, 2 basis points (bps) over Wednesday’s close of 7.91%.Ananth Narayan, professor, SPJIMR, noted that the global oil and emerging market context was murky and the elections were coming up. “Our fiscal position will likely slip, and our banking system remains weak. As long as the rupee remains nervous, yields in the bond market will be under pressure to stay high as well,” Narayan said. With the rupee inching toward the 71 mark, currency experts said companies had started hedging any residual unhedged forex exposures. Analysts estimate that more than 50% of the foreign exchange liabilities of the companies in the BSE 500 universe have a natural hedge in the form of forex revenues. Narayan said the Reserve Bank of India (RBI) now appears to be open to further rupee weakening. “India’s current account deficit (CAD) is expected at over $70 billion in FY19, and we are having to borrow foreign currency to fund our rising oil, electronics and other imports. A weaker rupee should help address our real effective exchange rate overvaluation and improve our CAD over time. While the RBI has ample currency reserves and policy instruments — including higher interest rates — to stave off panic, uncertainties remain,” Narayan noted. Although economists highlighted that a calibrated depreciation was not too worrying, since it would help exporters compete efficiently, they concede it would make imports costlier and push up inflation. They expect the CAD to widen to around 2.7-2.8% of GDP in 2018-19 from 1.9% in 2017-18.The RBI said in its annual report on Wednesday that the CAD was expected to be largely financed by foreign direct investment flows.
Source : Financial Express
NEW DELHI: PM Modi on Thursday met his Bangladeshi counterpart Sheikh Hasina ahead of year-end elections in that country and decided to take ties to the next level. The two leaders met in Nepal capital Kathmandu, on the sidelines of the 4th Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) summit.“A fraternal relationship anchored in history, culture, language and shared values! In a warm bilateral meeting between PM @narendramodi and PM of Bangladesh Sheikh Hasina, both leaders took stock of the bilateral relationship,” external affairs ministry spokesperson Raveesh Kumar tweeted after the meeting. Hasina is seeking re-election for a fourth term as the prime minister of Bangladesh. Delhi and Dhaka have transformed partnership across sectors since the beginning of Hasina’s second term in 2008-end. Bangladesh PM’s press secretary Ihsanul Karim briefed reporters after the meeting. “They agreed to work together for the development of the fate of the people of the two countries,” said Ihsanul Karim. He said Hasina expressed her gratitude to India for its support to Bangladesh from its Liberation War to development activities. “We want to take this friendship to a newer height,” the prime minister was quoted as saying. Modi said both the countries want to help each other for their mutual benefits. The two prime ministers hoped that Bimstec nations will help each other achieve economic goals through enhanced cooperation.
Source: Economic Times
Ludhiana: The Yarn Fabric and Accessories Show (YFA) marked its beginning at Dana Mandi, Bahadurke Road, on Thursday, giving all hosiery manufacturers and people associated with the industry an opportunity to upgrade their knowledge under one roof. The expo is aimed at redefining the way fibre, yarn, fabric and apparel accessories are sourced and bring renowned suppliers from these four segments closer to buyers and also offer buyers a one-stop place to source all their requirements.Renowned and major textile companies such as Reliance Industries Limited, Indorama Synthetics India Limited, Aditya Birla Grasim (Liva), Oswal Woollen Mills Ltd, Vardhman Textiles Ltd, Garg Acrylics Ltd, Kudu Knit Fab, Perfect Filaments Ltd, Filatex India Limited, Bhilosa Industries Pvt. Ltd, RSWM Limited, Sanathan Textiles Pvt Ltd, Siyaram Silk Mills Ltd, JB Ecotex LLP, J Korin, Sutlej Textiles and Industries Ltd, Aditya Birla Raysil, Kautilya Industries Pvt Ltd, Arisudana Industries Limited, GTN Engineering India Limited, Perfect Filaments Ltd, Lenzing AG India, Alkey Synthetics Pvt Ltd, Jingletex Development Co Ltd from Taiwan among others exhibited at the Ludhiana’s first ever exhibition of fibres, yarns, fabrics and accessories with a support from various associations of the industry. Organisers Abhishek Sharma and Ankur Goel said being the first ever exhibition of its kind, the response on the first day was quite overwhelming with more than 500 visitors. They said the expo would provide an opportunity to yarn and fibre industry and boost technical as well as marketing upgrade of the industry to a great extent. They said: “Our aim is to bring producers of world class and multiple varieties of value added fibres, yarns, fabrics and also garment accessories closer to the end users in Ludhiana and its surrounding areas including Panipat, Amritsar, Chandigarh, Ambala and Jalandhar among other places through YFA 2018.”
Source: Tribune
The major focus area at the Global Textile Technology & Engineering Show (GTTES), organised by India ITME Society, is textile machinery and allied products, except spinning. The fair focuses more on the conventional textiles industry and lays emphasis on advancement in technological parameters to get higher productivity and lower operating costs. “Majority textile machinery manufacturers are upgrading their technology continuously. ITME Society through GTTES & ITME, provides them a platform, every two years, to showcase their products and an opportunity to interact with potential buyers,” Harishankar, chairman of India ITME Society, told Fibre2Fashion. The trade fair takes place once every four years and the next GTTES edition will be held in January 2019 in Mumbai. The organiser expects the fair to facilitate multiple growth in investments in the Indian textiles industry in line with that of the ministry of textiles. “Our focus would also be on follow-ups after the show to boost the industry,” he added. Speaking about the contribution of the India ITME society in the growth of the textile engineering sector, Harishankar stated, “Forty years back, when India ITME Society was conceptualised, the Indian textiles industry was heavily dependent on handloom and Europe for textile technology. Today, India has become the second largest textiles industry in the world and competing in production and quality in the global market. Availability of modern machinery has helped this journey from traditional to modern.” “Many machinery manufacturers have set up manufacturing units in India providing cost-competitive technology to the Indian textiles industry. India ITME Society, in the past 40 years, has facilitated these influencing factors in the textile & textile engineering industry. India ITME Society events have a significant role to play in this progress,” he concluded.
Source: Fibre2fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1663.80 |
USD/Ton |
1.34% |
8/30/2018 |
|
VSF |
2169.53 |
USD/Ton |
1.02% |
8/30/2018 |
|
ASF |
3049.07 |
USD/Ton |
0% |
8/30/2018 |
|
Polyester POY |
1792.80 |
USD/Ton |
3.64% |
8/30/2018 |
|
Nylon FDY |
3452.19 |
USD/Ton |
0.64% |
8/30/2018 |
|
40D Spandex |
5057.36 |
USD/Ton |
0% |
8/30/2018 |
|
Nylon POY |
3591.46 |
USD/Ton |
0.82% |
8/30/2018 |
|
Acrylic Top 3D |
5533.77 |
USD/Ton |
0% |
8/30/2018 |
|
Polyester FDY |
1993.62 |
USD/Ton |
2.64% |
8/30/2018 |
|
Nylon DTY |
3159.01 |
USD/Ton |
0.70% |
8/30/2018 |
|
Viscose Long Filament |
3224.98 |
USD/Ton |
0% |
8/30/2018 |
|
Polyester DTY |
1993.62 |
USD/Ton |
3.03% |
8/30/2018 |
|
30S Spun Rayon Yarn |
2821.86 |
USD/Ton |
1.32% |
8/30/2018 |
|
32S Polyester Yarn |
2404.08 |
USD/Ton |
0.92% |
8/30/2018 |
|
45S T/C Yarn |
3049.07 |
USD/Ton |
0% |
8/30/2018 |
|
40S Rayon Yarn |
2565.33 |
USD/Ton |
0.57% |
8/30/2018 |
|
T/R Yarn 65/35 32S |
2594.64 |
USD/Ton |
0% |
8/30/2018 |
|
45S Polyester Yarn |
2975.78 |
USD/Ton |
1% |
8/30/2018 |
|
T/C Yarn 65/35 32S |
2565.33 |
USD/Ton |
0.57% |
8/30/2018 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
8/30/2018 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
8/30/2018 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
8/30/2018 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0.44% |
8/30/2018 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0.21% |
8/30/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14659 USD dtd. 30/8/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile sector witnessed a session of immense gain in the stock market yesterday as investors rebalanced their portfolios in this sector after a good rally in the bank and power sectors. Of the 50 textile stocks, 39 soared, seven declined and four remained unchanged yesterday. According to LankaBangla Securities data, turnover in the textile sector soared 64.6 percent yesterday compared to the previous day. This sector's turnover was Tk 135 crore, which is 18.7 percent of the day's total turnover in the premier bourse. “As the bank and fuel sectors have already seen a rise in the previous days, investors are now investing in other big sectors like textile,” said Mohammed Rahmat Pasha, CEO of UCB Capital Management. He said there was no other reason for this sector to witness the increase. Since the total turnover in the market is almost the same, it means people are just rebalancing their portfolios. Of the major sectors, textile increased 1.92 percent, followed by ceramic 0.82 percent, fuel and power 0.42 percent and engineering 0.18 percent. However, the benchmark index of the Dhaka bourse, DSEX, declined 2.61 points or 0.04 percent to finish the day at 5,600.64. Turnover of Dhaka Stock Exchange (DSE) soared 14.05 percent to Tk 722.23 crore yesterday, with 20.83 crore shares and mutual fund units changing hands. Of the traded issues, 117 advanced, 165 declined and 51 closed unchanged. Khulna Power dominated the turnover chart with 54.26 lakh shares worth Tk 41.34 crore changing hands, followed by Saiham Textile, National Housing and Finance, IPDC Finance and United Power Generation. The textile sector dominated the gainers list yesterday. Tosrifa Industries was the day's best performer with a 10 percent gain followed by Prime Textile Spinning Mills, Peninsula Chittagong, Saiham Textile Mills and Regent Textile Mills. Saver Refractories was the worst loser, shedding 6.32 percent, followed by Shyampur Sugar Mills, Midas Financing, Provati Insurance and IPDC Finance. Chittagong stocks soared yesterday with the bourse's benchmark index, CSCX, increasing 3.40 points or 0.03 percent to finish the day at 1,443.10. Losers beat gainers as 101 advanced, 119 declined and 32 finished unchanged in the port city stock exchange.
Source: The Daily Star
The new US policies were helpful in some ways, but not in others, said the owner of Must Garment Corporation, which manufactures and supplies garments to brands in the US and EU. In the Middle East, there are no likely TPL extensions possible; hence, the duty-free status will go away in a lot of the countries that has impacted the firm in Bahrain and Oman. “Now we are moving to Jordan which has a more stable FTA. On the other hand, pulling out of TPP perhaps put the brakes on the possible duty-free status in Vietnam, which might assist us in the long term,” said Sanjeev Mahatani, Must Garment Corporation owner, while talking about new US policies in an interview with Fibre2Fashion. US is the biggest market of the company that supplies garments to major brands and retailers like JC Penney, Walmart, Macy's, Target, Ann Taylor and Amazon. Must Garment is looking at expanding in other markets like Japan and Europe. Talking about the company’s business, he said, “Our business continues to expand at a very stable annual rate of 15-20 per cent per year. We believe in building the business brick by brick and step by step, and we do not believe in sacrificing quality or management by over-extending ourselves. We do not manufacture any goods outside of our own facilities.” (KD)
Source: Fibre2Fashion
Industrial clothing designs software-maker, ThreadSol has confirmed plans to introduce its products to the Kenyan market. The firm’s Senior Partner Anas Shakil, who also serves as the Bangladesh Country Head said large-scale clothing products manufacturers could enjoy lower production costs as all processes were controlled via their cloud-based software for designing various products that will also be cut by the automated machines without the need for manpower. “Our solutions, intelloBuy and intelloCut, work for the buying of clothing materials and at the cutting floor respectively. This reduces unnecessary purchases of excess material and wastage witnessed at the cutting stage since all work done is precise,” he said. Mr Shakil spoke when he confirmed his firm’s participation in the upcoming regional exhibition dubbed Origin Africa 2018 to be held on September 9 to 11 in Nairobi that is supported by the International Federation of Textile Manufacturers. The move seeks to grow ThreadSol’s market for its solutions to Kenyan manufacturers mainly those operating within Export Processing Zones. Senior Partner Shakil said fierce competition among textile products makers and punitive trading environment require apparel firms to automate operations to ease on input costs as well as fastrack the manufacturing process. “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 automate their processes on the industrial floor,” he said. Mr Shakil said high labour costs coupled with unavailability of skilled industrial textile workers contributed to higher operational costs which could be mitigated by automation. ThreadSol’s solutions are currently in use by MAS Company (Sri Lanka), Epic Group (Bangladesh), Raymond (India), PAN Brothers (Indonesia), HS Fashions (China) and Sangwoo (Vietnam) among others.
Source: Business Daily
HANOI (Xinhua) -- Vietnam gained over 19.4 billion U.S. dollars from exporting garments and textiles in the first eight months of this year, up 14.9 percent on-year, the Vietnam Textile and Apparel Association said on Thursday. In the eight-month period, the value of Vietnamese garments and textiles, including T-shirts, jackets, dresses and fabrics exported to China, surged 43.1 percent, to ASEAN up 33.9 percent, to Japan 21.9 percent, to South Korea 17.7 percent, and to the United States 10.4 percent. Vietnam, which is among the world's five biggest exporters and producers of garments and textiles, may make garment and textile export turnovers of 35 billion U.S. dollars this year, 1 billion dollars higher than the target set for the year, partly due to the signing of new free trade agreements, the association predicted, adding that its turnovers were 31.2 billion U.S. dollars last year. However, Vietnam had to spend over 8.5 billion U.S. dollars importing cloth in the first eight months of this year, up 16.1 percent, the association said, noting that most of local cloth has yet to satisfy quality requirements of the country's key garment export markets.
Source: Xinhua
The renegotiated free-trade deal between the United States and Mexico has a new name and a new set of rules that will make it a little more difficult to manufacture apparel in Mexico. From what trade experts know, the changes for apparel in the new free-trade accord, now being called the United States–Mexico Trade Agreement unless Canada decides to continue negotiating, aren’t draconian. That is probably because the United States doesn’t have a trade deficit with Mexico when it comes to apparel and textiles under the current North American Free Trade Agreement. We export about $8 billion a year in apparel and textile products—mostly fabric and other raw materials—and import about $5 billion. But still, the full details of the accord haven’t been revealed and probably won’t be released for at least another month as Congress examines the terms of the renegotiated deal, announced Aug. 27. What is known about the trade agreement comes from a fact sheet previously distributed by the U.S. Trade Representative’s office, which said the U.S. government wanted to require that sewing thread, pocketing fabric, narrow elastic bands and coated fabric, when used in apparel and other finished products, come from the free-trade region to qualify for duty-free benefits. Under the previous NAFTA deal, those raw materials could come from any region in the world. One big question mark is whether trade-preference levels would be altered, allowing for some non-regional yarns and fabric to be used when producing garments within the free-trade area while still receiving duty-free status. In previous negotiations, U.S. representatives—with the backing of the U.S. textile industry—had proposed eliminating TPLs. In the U.S. Trade Representative’s fact sheet, it said the Trump administration did want to limit rules that allow for some use of non-NAFTA inputs in textile and apparel trade, but it didn’t go into specifics. “They [the U.S. trade negotiators] have been pretty silent on TPLs,” said Julie Hughes, the president of the U.S. Fashion Industry Association, a Washington, D.C., trade group representing apparel importers and retailers. “And that has been one of the major concerns for us. I have heard different things from different people who say there will only be minor changes.” But no one is sure about the future of TPLs. Tom Gould, senior director, customs and international trade, at the international law firm Sandler, Travis & Rosenberg, said the companies he works with doing production in Mexico plan to use the TPLs as long as possible until the specifics of a new trade deal are implemented. If they can’t use those TPLs—allowing a certain amount of fabric from countries such as China and South Korea for duty-free production—they will have to start using more regionally produced fabrics or move their production to other countries to keep their costs low. “Fortunately, my clients are not panicking because for a long time I have recommended that companies be agile and not put their eggs in one basket,” he said. But there are several apparel companies in Los Angeles, he said, that are doing 100 percent of their production in Mexico and should be concerned about changes under NAFTA 2.0.
The little things
For years, sewing thread and pocket linings under the Dominican Republic–Central America Free Trade Agreement have had to come from regional sources, but that was not the case under NAFTA. So, integrating those rules into the new free-trade agreement with Mexico shouldn’t be a huge problem as long as there is enough supply to go around. Daniel Barcenas, who previously worked in sourcing with Hudson jeans and Fortune Fashions and now runs his own consulting company called the Barcenas Sourcing Group, believes there will be an immediate gap between the amount of regional sewing thread available and the demand by factories. “American & Efird makes some thread in the United States, but it is not enough,” he said. American & Efird, the largest sewing-thread manufacturer in the United States, has five plants in North Carolina and one plant in Mexico. Les Miller, the chief executive officer at American & Efird, said that most Mexican apparel factories currently are using regional sewing thread because it streamlines the production process. When it comes time to export their products to the United States, it makes life easier and the importing process more efficient when you don’t have to explain where your non-regional sewing thread came from. “There is going to be little change as far as I know,” he said. Gail Strickler, the former assistant U.S. trade representative for textiles under the Obama administration and now president for global trade at Brookfield Associates in Washington, D.C., is more concerned about pocket linings. In the past, apparel factories have often used fabric scraps left over from production to make pocket linings. With the new regional requirement, apparel manufacturers will have to verify that those scraps come from regionally made fabric instead of Asian or Central American fabrics. “This regulation doesn’t allow you to use waste material. You will have to trace where it comes from,” Strickler said. “Pocket linings are a great place to recycle material.”
The timetable
The Trump administration is scheduled to submit the United States–Mexico Trade Agreement to Congress on Aug. 31 to give them 90 days to examine the agreement under something called the Trade Promotion Authority, which allows for expedited congressional consideration of trade agreements struck by the executive branch. “This is a chance for Congress to review the free-trade agreement and schedule briefings,” said Steve Lamar, executive vice president of the American Apparel & Footwear Association, who is on all of the congressional advisory committees that will start reviewing the trade pact 30 days after it is submitted to Congress. Once the advisory committee reviews take place, businesses and the public will have a better idea of what is actually in the free-trade agreement. The big question is whether Canada will wrap up negotiations in time to be part of the accord, which first went into effect in 1994 and opened up the borders for trade between Canada, Mexico and the United States. President Trump has threatened to keep Canada out of the pact if it doesn’t agree to some of the United States’ demands. But few people want to see Canada left out. Rick Helfenbein, president and chief executive of the AAFA—a trade group in Washington, D.C., that represents hundreds of apparel, footwear and sewn-products companies—said it is mandatory that Canada remain in the free-trade deal. “It is essential that the updated agreement remain trilateral,” he said.
Source: Apparel News
TOKYO, Japan —Teijin Frontier Co., Ltd., the Teijin Group’s fiber and products converting company, announced today that it has developed a new highly water-repellent fabric incorporating enhanced elastic properties. It plans to market the new product from the beginning of the 2019 spring/summer season. The new fabric is designed primarily for trousers and outer-clothing applications requiring medium thickness materials. Teijin Frontier is targeting annual sales of JPY one billion (USD nine million) by the fiscal year ending March 2021. Based on the company’s existing water repellent fabric, the new design incorporates a convex structure with horizontal surface tension which is smaller than waterdrops, allowing water to run off the surface smoothly. The fabric achieves a grade four out of five in water-repellent rating initially, and a grade three rating after being washed 20 times. It is able to stretch by 10%, and maintains water-repellency when stretched thanks to its flexible structure; conventional water-repellent fabrics are unable to achieve similar levels of stretchablility because of the high density of their yarn arrays. The demand for highly water-repellent apparel, including stretchable clothes such as trousers and outer-clothing applications, is growing in response to the increased frequency of heavy rain in Japan.
Source: Textile World
The Forum on China-Africa Cooperation (FOCAC) Summit to be held in Beijing next month will be “an important accelerator” to promote China-Africa cooperation, and China-Morocco ties in particular, the Chinese Ambassador to Morocco, Li Li, said in a recent interview. China and Africa are facing both opportunities and development challenges, Li told Xinhua. At the Beijing summit slated for Sept. 3-4, Chinese and African leaders will discuss ways to promote the development of China-Africa relations. “It will become a new starting point for China-Africa cooperation,” the ambassador said. He said the friendly relations between China and Morocco have grown. This year marks the 60th anniversary of the establishment of their diplomatic relations. In 2016, King Mohammed VI paid a state visit to China and the two nations established a strategic partnership. In 2017, during his visit to China, Moroccan Minister of Foreign Affairs and International Cooperation Nasser Bourita signed a memorandum of understanding to promote the Belt and Road Initiative. Morocco became the first Maghreb country to sign such a document. The initiative, proposed by China in 2013, aims to build a trade and infrastructure network that will connect Asia with Africa and Europe along the ancient Silk Road trade routes. Li said the initiative provides a good opportunity for developing China-Morocco ties, which are an important part of the broader cooperation between China and Arab countries. Morocco can play a unique role in the initiative’s construction and provide a platform for Chinese companies to integrate into the international production chain, he said. China has become Morocco’s third largest trading partner. Bilateral trade in 2017 totalled 3.8 billion U.S. dollars. Morocco’s investor-friendly economic environment, favorable geographical location, comfortable social culture and stable political ecology have attracted more and more Chinese companies to invest in the northern African country. Li said the potential for deepening economic and trade cooperation between China and Morocco is huge, at a time when Morocco’s automobile, aerospace, textile and other industries are entering a new stage of development. With the accelerated development of Moroccan industry, the trade structure between the two countries will undergo changes, Li added. Since Morocco’s visa-free policy for Chinese citizens was implemented in June 2016, the number of Chinese tourists to Morocco has risen rapidly. Nearly 120,000 Chinese tourists visited Morocco in 2017, which became a new source of revenue for the country, according to the Moroccan National Tourism Office’s bureau in China. In the first five months this year, the number of Chinese tourists visiting Morocco reached 100,000. Li said the rise in the number of Chinese tourists has not only brought foreign currency to Morocco to help its economy, but also promoted mutual understanding between the two peoples. “The cooperation between China and Morocco emphasizes mutual benefit and common development. I am full of confidence in the prospect of future China-Morocco cooperation,” the Chinese ambassador said.
Source: New Zimbabwe
Bangladesh’s readymade garment (RMG) industry received a tremendous response from international buyers at the three-day ‘Apparel Textile. Sourcing Canada’ event in Toronto recently. Over 500 manufacturers from 30 countries, including 17 from Bangladesh, participated in the exhibition. Buyers included Walmart, American Eagle, GAP, Hagar Canada and Tesco. The Bangladeshi firms included Lusine Fashion Ltd, Desh Garments Ltd, Needle Fashion Bangladesh Ltd, Meek Sweater Ltd, RP Fashion Ltd, SATCO Bangladesh, DK Group of Industries, Sahab Fashion Ltd and Habah Fashion Ltd, according to Bangla news agency report. Issues like compliance as per Accord and Alliance guidelines, infrastructure improvement, policy and procedures to engage in business in Bangladesh, tax benefits and low production cost, availability of experienced workforce, investment opportunities in Bangladesh and supply chain management for apparel buyer were highlighted at the exposition. (DS)
Source: Fibre2fashion
The participation of female workers in the country’s readymade garment industry has been decreasing in recent years with the share of women workforce in the sector coming down to 53.2 per cent in 2016, according to a study conducted by the Centre for Policy Dialogue. Experts said that it was alarming that women participation in RMG sector jobs was declining as it would ultimately hit the development of the country. Companies studied over two years since 2016 experienced a monthly employee turnover of 5.3 per cent with majority of the quitters being female workers, showed the study report released by the local think tank on Thursday.‘Worker composition has changed significantly over time with employers becoming increasingly interested in employing male workers,’ said CPD research director and also the lead author of the study Khondaker Golam Moazzem. According to the study, the falling trend in the number of female workers continued for a while as the share of female workers in the RMG sector stood at 53.2 per cent in 2016, down from 58.4 per cent in 2012. The CPD released the findings of the study titled ‘transformation in the RMG sector in post-Rana Plaza period’ at a daylong programme held at a hotel in the capital, Dhaka. The study, however, did not link up the falling number of female workers with the Rana Plaza building disaster in which more than 1,100 people, mostly garment workers, were killed in 2013. ‘The finding comes as a shock as female workers had an absolute dominance in the RMG sector not long before,’ said BRAC Institute of Governance and Development research fellow Lopita Huq as she took part in a discussion after the study report was released. ‘Women are losing the largest sector of their employment,’ said Lopita. ‘If it [the trend] continues, it will definitely impede Bangladesh’s development,’ she added. The study said that female RMG workers faced at their workplace different types of work-related verbal harassment including teasing and rough behaviour, and were confronted with sexually abusive slangs. It also found wage discrimination on the basis of gender at some factories. The study also revealed that workers now did not wish to work more than 7.4 years. Bangladesh Institute of Development Studies senior research fellow Nazneen Ahmed said that only improving working condition in factories might not hold back female workers. ‘There are issues women need to deal with outside factories while staying away from home for work. Women may decide to leave her place of work for many reasons,’ said Nazneen. CPD chairman Rehman Sobhan said the change Bangladesh and the world as well is seeking to bring in the RMG sector would remain unattainable if workers live in decrepit housing conditions and they lack safety on their way to workplace. He also emphasised ensuring that workers get a proper share of margin. The study said that there had been a significant improvement in terms of safe working condition, but technological improvement was slow. CPD distinguished fellow Debapriya Bhattacharya said that the future of RMG industry depended on how fast it could accept technological advances. Regarding minimum wage, the study said that it did not increase as required by the law, revised at the latest after the Rana Plaza collapse in 2013. ‘Workers’ average income covers only 49.9 per cent of their total family expenditure,’ said the study. The fear of losing job is persistent among workers alongside their salary being so inadequate that it prevents married workers from having more than one child, said the study. According to the study, 47 per cent of married workers have one child while another 27.8 per cent do not have any children at all. Commenting on the findings on workers’ rights, the study said 40 per cent of workers do not have service book, 25 per cent do not have their employment documents and only 4 per cent get their experience certificate after working at a factory. The study said that worker organisations remained in either weak or non-functional state as 97.5 per cent of RMG factories did not have trade unions. RMG factories are run by companies dominated by families, the study said, showing that two of the three directors of about 88 per cent of the companies were from the same family. A sizable amount of the factories established after the Rana Plaza collapse are still housed in shared buildings, said the study. Speaking at the programme as chief guest, lawmaker Saber Hossain Chowdhury said that the Rana-plaza disaster was a wake-up call for the RMG sector. ‘But now we don’t want a second wake-up call’. He urged the garment owners and the government to be pro-active to achieve the $50 billion export target by 2021. FBCCI president Shafiul Islam admitted that there was lack of trade union activities in the RMG sector but said that workers welfare committees were working to protect workers’ interests. He said that factory owners remained under a perennial pressure to sustain in the business as brands and buyers take away 70 per cent of the profit. He said that factory owners were committed to ensure safe working condition. He said that 1,200 factories were closed since Rana Plaza collapse as they failed to improve the condition. Garment Workers’ Trade Union Centre president Montu Ghosh alleged that factory owners were not willing to improve the working and social conditions of workers. He called for the owners to train up its management to enable it deal with workers humanly. He criticised the government for failing to regularly review minimum wage. CPD executive director Fahmida Khatun, its distinguished fellow Mustafizur Rahman, World Bank economist Zahid Hussain, Bangladesh Garment Manufacturers and Exporters Association vice-president Faruque and Mohammadi Group managing director Rubana Huq also participated in the discussion on the findings of the study.
Source: New Age Business
If China’s economy is slowing, it’s sparing shoppers of apparel and shoes for now, judging by prices of some raw materials. Take polyester, the ubiquitous yarn used to make synthetic fabrics found in everything from Adidas shoes to H&M dresses and Under Armour leggings. Prices in China have risen this year to the highest level since at least 2014, official statistics show. The main reason is the “somewhat unexpected” garment-consumption growth in the world’s most populous nation, according to Salmon Aidan Lee, a consultant at Wood Mackenzie Ltd. in Singapore. China’s consumer confidence index reached the highest level in more than two decades in February, according to the statistics bureau. Apparel companies that sell their products in the nation are seeing shoppers flocking to buy their merchandise this year and sales are strong, said Catherine Lim, a consumer analyst at Bloomberg Intelligence in Singapore. The earliest indicators for China’s economy show that the pace of expansion slowed for a fourth month in August, highlighting the pressure for the government to push through pro-growth policies. While growth in demand could potentially slow due to uncertainty over the economy and equities market, one thing is clear --- shoppers are still purchasing their favorite clothes. “If you’re just looking at apparel and shoes, these are very basic items,” said Lim. “Consumption demand is basically still rising and so far July and August look good. Even if there is a slowdown, it’s not going to be severe. Of course, you can’t expect demand to grow hypothetically 20 percent year-on-year, but people still need to use them.”
Source: Bloomberg
