Data on Friday showed gross domestic product grew 8.2 percent in the three months ended June from a year ago. India’s world-beating economic growth is running up against some big risks: high oil prices, emerging market stress as the era of easy money draws to a close, and policy paralysis in the run-up to next year’s Lok Sabha election. Those factors may push the rupee, Asia’s worst performer this year, even lower, as well as dampen some of the optimism that has propelled the local stock market to record highs. They also serve as a reminder to investors that Asia’s third-largest economy, which has overcome the twin shocks of a cash ban and the chaotic introduction of a nationwide consumption tax, is not fully out of the woods yet. Policy paralysis ahead of elections is also a threat investors will have to factor in. That together with a record low rupee and rising local interest rates could hurt consumption and throttle the recovery. Exports are separately at risk from the global trade war. “The outlook for the remainder of the year is not as optimistic,” said Priyanka Kishore, head of India and South East Asia Economics at Oxford Economics Ltd. in Singapore. “Reform momentum is likely to slow ahead of the 2019 general election, as the government shifts focus to capturing votes.” Data on Friday showed gross domestic product grew 8.2 percent in the three months ended June from a year ago, the fastest in nine quarters, while beating the 7.6 percent median estimate in a Bloomberg survey. For now, that number cements India’s position as the world’s fastest-growing major economy, putting it ahead of China, where an intensifying trade conflict with the US is dimming the growth outlook. While India’s share in world trade is relatively small, it isn’t entirely immune from global spats. Case in point: the oil price gain following American sanctions on Iranian crude. Every $10 increase pushes up the inflation rate by 30 to 40 basis points and hurts economic growth of the world’s fastest growing oil user by about 15 basis points, according to Nomura Holdings Inc. Add a weaker currency to this equation, and the problem gets compounded. Every rupee change in the exchange rate against the US dollar impacts New Delhi’s crude oil import bill by about 109 billion rupees ($1.5 billion) on an annualized basis, according to the oil ministry’s Petroleum Planning and Analysis Cell. A few indicators compiled by analysts at Nomura Holdings Inc. already point to some slowing. That is “consistent with our view that growth is set to slow cyclically due to tighter financial conditions, high oil prices, slowing global growth and a pullback in investment spending ahead of elections,” analysts led by India economist Sonal Varma wrote in a report last week. The median of a Bloomberg survey released last week shows that economists expect the economy to slow from here on. Economists forecast growth at 7.4 percent, 7.1 percent and 7 percent in the remainder three quarters of the financial year through March 2019, respectively. That will put average growth a notch below the Reserve Bank of India’s forecasts of 7.4 percent. The RBI appears confident that the domestic recovery is well entrenched with various indicators suggesting that economic activity has continued to be strong. It raised interest rates twice this year in a bid to curb inflation.
Investment Uptick
It’s not all gloomy though. In a sure sign that demand was holding up, companies have passed on higher input costs to consumers, amid a revival in investment activity and improving capacity utilization. Pranjul Bhandari, chief India economist at HSBC Holdings Plc, says as the twin shocks of the cash ban and consumption tax fade, demand and production have picked up, even leading to some “overshooting” in growth. HSBC estimated growth during January to June will average 7.8 percent, and will return to its trend of 7.1 percent by December as the base normalizes and inventories are re-stocked, she said. Key Details From Friday’s GDP Print: Gross value added -- a key input of GDP that strips out taxes -- rose 8 percent in April-June versus 7.5 percent survey estimate Agriculture expanded 5.3 percent, manufacturing rose 13.5 percent Electricity, gas expanded 7.3 percent, construction 8.7 percent. Siddharth Sanyal, India chief economist at Barclays Bank Plc expects the trend of investment uptick to continue. “We believe that the government’s continued focus on unlocking supply bottlenecks, reviving stalled investment projects and stepped up emphasis on public infrastructure projects is driving investment momentum,” Sanyal said, pointing to higher steel and cement production during the first half of 2018.
Source: The Economic Times
NEW DELHI: Growth in India's manufacturing sector moderated in August as domestic demand softened, a private business survey showed on Monday. The Nikkei India Manufacturing Purchasing Managers’ Index registered at 51.7 in August from 52.3 in July. A reading of over 50 on this survey-based index indicates expansion, below that contraction. “August data signalled a further loss of growth momentum across India’s manufacturing sector, reflecting slower gains in output and new orders,” said Aashna Dodhia, Economist at IHS Markit and author of the report. Official data released Friday showed that India's economy expanded 8.2% in the April-June quarter, its fastest pace in more than two years, driven by solid growth in manufacturing and consumer spending. “Indeed, some of the key headwinds facing the economy include high global oil prices, monetary policy tightening, and capital outflows from emerging markets,” Dodhia added. As per the survey, Indian manufacturing companies retained optimistic projections for output in the next 12 months. That said, the level of sentiment eased from July’s three- month high and remained below the historical average.
Source: The Economic Times
A government official, however, played down the concerns saying the interpretation being drawn is erroneous. A seemingly missing provision from the fine print in the amendments to the central goods and services tax (GST) law approved by parliament in the monsoon session has led to a furore in the industry. Tax practitioners say the latest changes deny carry forward of credit for cesses, as intended, but credit for service tax has also been done away with. A government official, however, played down the concerns saying the interpretation being drawn is erroneous. He told ET that the government will issue a clarification if it is so needed as the intent of the law is very clear. The issue, experts say, stems from the retrospective amendment to Section 140 (1) of the CGST Act 2017 that empowers assessees to transition the closing balance of cenvat (central value added tax) credit in the erstwhile indirect tax regime to the GST regime. The issue, experts say, stems from the retrospective amendment to Section 140 (1) of the CGST Act 2017 that empowers assessees to transition the closing balance of cenvat (central value added tax) credit in the erstwhile indirect tax regime to the GST regime. While the intention was to ensure that the credit of various cesses was not transitioned, the amended section replaces “amount of cenvat credit” by “amount of eligible duties.” The term “eligible duties” is defined to mean a specified list of duties in respect of inputs held in stock and contained in semi-finished or finished goods held in stock on a particular day. This explanation leaves out service tax. “Though unintended, absence of ‘service tax’ under eligible duties under explanations to Section 140, would mean that eligible credit of service tax transitioned under GST, can now be denied (as this is a retrospective amendment,” said Harpreet Singh, partner, indirect taxes, KPMG. “This lacuna in the drafting is likely to be challenged before the courts by suitable writ petitions.” This means that only the amount of eligible duties carried forward in the returns can be transitioned to GST and claimed as opposed to the previous provisions allowing the transition of entire amount of cenvat credit. Also, the definition of eligible duties refers only to various duties in respect of inputs held in stock but credits in respect of capital goods are not covered. This issue will impact businesses that had undertaken significant capitalisation just before GST introduction and accumulated cenvat credit attributable to capital goods. Experts worry that this issue could result in authorities potentially looking to bifurcate the accumulated cenvat balances and attribute the amount of credit transitioned to credits on capital goods and reject the same. “From the notes to the legislative amendments which outline the object and reasons, it is evident that the intention was only to restrict the opening credit of cesses. However, from the reading of the revised law, it appears that restriction applies on opening credit of service tax as well as tax paid on capital goods, “said Pratik Jain, leader, indirect taxes, PwC. Singh said: “As the CGST (Amendment) Act, 2018 is now effective, the government would need to come up with further amendment in the law to overcome this assumingly inadvertent mistake.”
Source: The Economic Times
New Delhi: Tax authorities are considering ways, including the levy of interest on tax dues, to ensure that micro, small and medium enterprises (MSME) pay taxes every month, two officials aware of the matter said. Nearly 93% of taxpayers with annual sales up to ₹5 crore need to file only quarterly returns, according to a recent decision of the Goods and Servie Tax Council (GST Council). The government is trying to prevent any cash flow problems for the exchequer from this politically crucial segment, the people cited above said on condition of anonymity. “The law committee of the GST Council is examining how to ensure that taxpayers pay tax every month. The monthly tax payment has to approximate a third of the quarterly tax payments. If the variation is beyond a percentage, the taxpayer may be asked to pay interest on that part,” said one of the two officials. Such safeguards are being introduced to address concerns of states over any potential revenue leakages from easing of compliance burden on firms. “MSMEs may also be asked to give a break-up of monthly sales data to check if the monthly tax payments made are commensurate to sales,” said the second official. The central government is keen to give relief to the MSME sector, which suffered from the November 2016 demonetisation and the July 2017 GST rollout. Small businesses and traders are also politically relevant as they form a key support base for political parties, including the ruling Bharatiya Janata Party. According to data available with the MSME ministry, there are more than 63 million MSMEs engaged in manufacturing, services and trade, more than half of which are in rural areas. These enterprises account for about 110 million jobs and contribute about 29% of the country’s economic output, the ministry said, citing the National Sample Survey 73rd round conducted during 2015-16. The role of SMEs in employment creation makes it a priority for the government to make it easier for them to do business and comply with regulations. Besides quarterly filing of tax returns, the GST Council is also exploring the option of providing partial tax relief to MSMEs from GST. This may be done through a refund mechanism for a certain percentage of the tax payment. The GST Council, in its previous meeting in August, had decided to set up a panel to look into issues faced by MSMEs and come up with suggestions before the next GST Council meeting on 28-29 September in New Delhi.
Source: Livemint
Currently, over 1.15 crore businesses are registered under the GST regime, of which 63.76 lakh have migrated from the erstwhile service tax and VAT regime, and over 51 lakh are new registrants. About 1,800 businesses that were registered under the earlier VAT and service tax regime have applied for migrating to the GST regime. The GST Council, in its meeting in July, had allowed businesses with provisional GST ID to migrate to the new GST regime. The Central Board of Indirect Taxes and Customs (CBIC) had then asked these taxpayers to approach the jurisdictional nodal officer of the Central or state government on or before the August 31, 2018, along with provisional ID, registration number under the earlier law, reason for not migrating in the system, along with the contact details. "About 1,800 businesses have migrated to GST regime availing the latest migration window. The number could go up as the state tax officers are still compiling data," an official told. Currently, over 1.15 crore businesses are registered under the GST regime, of which 63.76 lakh have migrated from the erstwhile service tax and VAT regime, and over 51 lakh are new registrants. "The migration window since November 2016 and closed after roll out of GST on July, 2017. Many taxpayers would have migrated when the window was open initially before GST roll-out. Hence the turnout for migration would have been less this time," the official added. The process of migration of existing assessees to the GSTN had started in a phased manner from November 2016. Once a business migrates to GST regime, it is given a provisional ID. After that, in the second stage, the business has to log in to the GSTN portal and give details of its business, such as the main place of business, additional place of business, directors and bank account details. Thereafter, the business has to verify its registration through digital signature, or by generating an electronic verification code (EVC). Many businesses, who were earlier registered with excise, service tax, VAT regime, had not completed the second stage of migration process. In the VAT regime, businesses with turnover upto Rs 5 lakh were exempt. However, in Goods and Services Tax (GST) regime, the exemption threshold has gone up to Rs 20 lakh. Hence, all businesses who were registered under erstwhile Indirect tax regime, need not migrate to GST regime.
Source: The Economic Times
Petition submitted to District Collector
Urging the district administration to fix the price of yarn once in a month instead of twice a day, members of Erode Vhisaithari Urimayalargal Sangam (Erode Power Loom Owners Association) submitted petition to the Collector here on Monday.
Major sector
The petition said that power loom industry was a major sector in the district next to agriculture and over 30,000 looms were functioning at Veerappanchatiram, Chithode, Lakkapuram and other areas. Most of the looms produced materials using rayon yarn that was purchased from companies. Though the cost of raw materials for making rayon yarn was fixed once in a month, these companies hiked the price of yarn twice a day and also depending upon the demand. “The price of yarn had increased from Rs. 202 per kg to Rs. 224 per kg in the past 15 days,” the members said. They wanted the price of yarn to be fixed monthly so that the sector that provided job to over one lakh workers would survive. They also wanted the textile cooperative mills to import rayon yarn and supply it directly to the power loom owners so that they need not purchase the yarn at higher price from private mills.
Reservation
The members said that modern looms were currently used for producing garments and hence they wanted reservation of articles for production in power looms. “Like handlooms, only if reservation is introduced for power looms, the sector will survive the competition from modern looms,” they added.
Source: The Hindu
The Indian rupee touched a fresh record low against US dollar on Tuesday as emerging market currencies declined amid continued concern over trade relations and the turmoil in Argentina and Turkey. At 9.15 am, the rupee was trading at 71.34 a dollar, down 0.19%, from its Monday’s close of 71.21. The home currency opened at 71.24 a dollar and touched a low of 71.36 a dollar. Bond yield gained for seventh consecutive session to hit over four-year high. The 10-year bond yield stood at 8.02%, from its previous close of 7.999%. Bond yields and prices move in opposite directions. Analysts believe that the rise in yields, due to the sharp depreciation in the rupee along with the rise in crude oil prices which heightened concerns over inflation, will increase the cost of funds. Investors sentiment has been impacted due to the expectations of rate hikes by Fed as well as Reserve Bank of India in coming months that may impact foreign inflows into domestic markets. The turmoil in emerging market currencies has further pushed up yields. Analysts also expect that the next half yearly borrowing calendar, which may out by month end is expected, to be heavy also dampened the sentiment. Benchmark Sensex Index rose 0.39% or 148.44 points to 38,460.96. Since January, it has gained 12.5%. So far this year, the rupee has weakened 10.34%, while foreign investors have sold $691.50 million and $5.65 billion in equity and debt markets, respectively. Asian currencies were trading lower. South Korean won was down 0.4%, Malaysian ringgit 0.18%, Singapore dollar 0.15%, Thai Baht 0.13%, Philippines peso 0.1%, Taiwan dollar 0.08%. However, Indonesian rupiah was up 0.24%. The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.25, up 0.12% from its previous close of 95.14.
Source: Financial Express
Union petroleum Minister Dharmendra Pradhan on Sunday asked Surat’s textile and plastic traders to invest in his home state Odisha, saying that the eastern state requires investment from Surat businessmen to make it industrially developed. Speaking at Textile and Plastic Investors Conclave here, Pradhan said: “Odisha has immense potential for growth in plastic and textile sectors with convenient access to all the primary raw material need… Few years ago, Prime Minister Narendra Modi had praised the hard work of Odia migrants in Surat and said that due to them, Gujarat was prospering. The hard work of the people of Odisha had helped the growth of textile industry in Surat. Now similarly, Surat investors should come to Odisha and start plastic or textile factories at Paradip and Bhadrak.” The conclave is aimed at attracting investment opportunities for Paradeep plastic Park and textile park at Bhadrak in Odisha. The Union minister also said that once the work at Paradip port is completed and industries are set up there, the east coast port will leave Kandla port of Gujarat behind. “The Kandla port in Gujarat is among the top ports of India. Couple of days ago, Prime Minister Narendra Modi had sent a message to Odisha government to finish the work of Paradip port with Haridaspur line, at the earliest. After this work is finished and when the factories start running, the Paradip port will leave behind Kandla port in the coming years. There will be rail, road connectivity at Paradip port, and in the future, we are planning to set up a mid-size airport at Paradip,” he added. Seeking Gujarat’s help in developing Odisha, Pradhan said, “Gujarat does not produce iron and yet Gujarat has factories for manufacturing iron pipes at Kutch. We want to develop a good industrial relationship with Gujarat to take Odisha on the development path… I have come here to make Odisha industrialised and to fulfill the dream of Prime Minister Narendra Modi of balanced development. The economic policy of a country is not decided by the powerful 10 to 20 people (industrialists), but through and medium and small size enterprises.” He said that to meet world-class competition, the Centre has set up ICT (Indian Institute of Chemical Technology) campus in Bhubaneswar which helps the textile and plastic industry to add more value to its growth to meet the international competition. He said that with coal in abundance, Odisha has no electricity problem. “Now, we are moving ahead with gas pipeline project and in the next three years, we will complete gas pipeline network in 19 districts of Odisha,” the minister added.
Source: The Indian Express
A factory worker sifts through bales of jute to sort the choicest fibers before loading them into machines to be softened and rolled. (Barbara Davidson / For The Times) In the dim light of a century-old mill, dozens of men work in silence, their sweat-darkened undershirts clinging to taut, weary backs. Hulking metal machinery clatters and thrums, coughing up fibrous dust that clings to the steel girders and catches in the laborers’ throats. The sounds rumble deep into the night as long strands of fuzzy golden thread are pulled, combed, spun and woven into sheets, rolling off the line like coarse, flat noodles. If it seems like a scene from the Industrial Revolution, that’s because India’s jute industry has changed little in 100 years. Many of the looms have been running since right after World War I, when British colonialists opened this sprawling cinder-block mill on a river bend north of Kolkata. Now India is betting that jute — an ancient textile whose harvesting and production have scarcely been touched by modern technology — could be a fabric of the future. Amid a global push to reduce the use of plastic for environmental reasons, India is promoting jute — better known in the United States as the fiber used in burlap — as a material for reusable shopping bags, home furnishings, clothing, even diapers and women’s sanitary pads. Indian officials tout the humble fiber’s eco-friendly qualities. Extracted from the bark of a tall, reedy plant, jute requires less water than cotton and almost no pesticides, absorbs more carbon dioxide for its size than most trees, and is totally biodegradable. The Indian jute industry sees a potentially huge market in places like California — the first U.S. state to ban disposable plastic shopping bags at most stores — and more than 80 countries where governments have introduced regulations against plastic bags and foam products, according to the United Nations Environment Program. “We are hoping it will explode — that the world will wake up to all the benefits of jute,” said Lata Bajoria, owner of the Hukumchand jute mill, the world’s largest, on the banks of the Hooghly River. Nearly all of the world’s jute is grown and milled in the humid, swampy lowlands surrounding Kolkata — formerly known as Calcutta — and in neighboring Bangladesh, where the climate is right and labor is cheap. Laborers stake jute sacks. India has a keen interest in propping up the industry, which employs 400,000 mill workers and supports an estimated 4 million families. (Barbara Davidson / For The Times) The fiber’s roots here go back more than 2,000 years. Mentioned in ancient Sanskrit texts, it was spun on peasants’ hand looms into twine and simple clothing. In the 19th century, British colonialists developed the rough, sturdy textile as a packaging cloth for bulk foodstuffs. They built mills on the banks of the Hooghly to churn out coarse sacks used to carry coffee, cocoa and grains around the world. In recent decades, as manufacturers worldwide found that plastic and synthetic fibers made for cheaper and softer packaging, business suffered and dozens of the mills closed. About three-quarters of India’s jute now remains in the country, bought by the government to package state-supplied food grains at a cost of nearly $900 million a year. India has a keen interest in propping up the industry, which employs 400,000 mill workers and supports an estimated 4 million families. Still, in the 12 months ending in March, India’s jute production fell by nearly 8% from the year before, to 1.68 million tons, according to government statistics. Many farmers have switched to crops that yield greater returns, such as rice. Jute remains among the most labor-intensive products in the modern world, starting with the backbreaking summer harvest. Amid a global push to reduce the use of plastic, India is promoting jute as an eco-friendly alternative for shopping bags, home furnishings, clothing, even diapers and women's sanitary pads. For several weeks every July and August, jute plants are cut down and immersed in ponds, covered in mud and leaves, for up to two weeks to soften and then rot. On a sticky morning recently, beside a narrow road lined with banana trees outside Kolkata, a dozen men stood waist-deep in a green-brown pond, whacking the stalks with wooden mallets until they fell apart. They pulled the fibers out in thick wet bundles, like flaxen hair twisting down a woman’s back, and hung them out to dry under the sun before they would be trucked off to the mills. “An experienced man can prepare six to seven pounds of dry fiber per hour; mechanical methods have not been devised which can compete with cheap labor,” a World Bank researcher wrote in 1949, in a paper assessing the prospects of marketing Indian jute in the U.S. Little has changed in nearly 70 years. “This is the hardest work in the farm sector,” said Mohammad Rafiul Islam, a slender man in his 30s, emerging from the pond with sodden trousers and a bundle of damp fiber twirled around his hand. He had started at 4 a.m. and would work until noon, earning about $4 for the day. At the mills, the shrinking market has left owners little capital to invest in modern production techniques. Some of Hukumchand’s early 20th century looms — whose clacking, fast-moving wooden shuttles are blamed for hearing loss and occasionally spark fires — have been replaced with quieter, Chinese-made models. But 10,000 workers still sift through bales of raw jute to sort the choicest fibers, load them into machines to be softened and rolled, and cart the unfinished threads through clouds of dust across the mill floor — all by hand. Top: Sunlight shines through an old mill in Kolkata as a laborer pulls a bail of jute to be processed. Left: A worker carries a large roll of jute. Right: Few women work in the mills due to the harsh conditions, low pay and long hours. (Barbara Davidson / For The Times) “The jute sector being so small and concentrated, and this not being a very global industry, the research and development on technology has been very limited,” said Raghavendra Gupta, chief executive of the Hooghly Group, which owns Hukumchand and several other mills. Hooghly and other companies are already supplying jute for use as “geotextiles” — a net-like material used by civil engineers to stabilize loose soil for road construction. Industry leaders hope that growing interest in jute as a consumer product in India and abroad will help stimulate innovation. Starting in 2015, Prime Minister Narendra Modi’s government included the jute industry in a push to boost struggling domestic manufacturing. Operating with a modest $1-million annual budget, government scientists with the Indian Jute Industries’ Research Assn., working out of a lab in Kolkata, have developed food-safe bags made entirely from jute, with the aim of selling them in Western countries. Scientists have been experimenting with bacteria to quicken the extraction of jute and improve the quality of the fibers to yield softer fabrics. A special digital printing technique developed in the lab could allow jute to replace plastic in banners and advertisements, the researchers say. This year, the association introduced a low-cost sanitary pad made entirely from the fluffy, highly absorbent cellulose of jute plants. Officials said they have begun talks with the Indian arm of Johnson & Johnson to bring the pad to the mass market. “Maybe one day jute will be used in sanitary napkins and diapers worldwide,” said U.S. Sarma, the association’s director. “All of these are the products of the future.” The jute mills are unionized and the workers do split shifts. Some of the workers sleep on the premises until their next shift starts. (Barbara Davidson / For The Times)
Shashank Bengali
Shashank Bengali is the Los Angeles Times’ South Asia correspondent, covering a stretch of countries from Iran to Myanmar.He joined The Times in 2012 asanational securityreporter in theWashington bureau. He has reported from more than 50 countries since beginning his career with McClatchy Newspapers, where he servedas a foreign correspondent in Africa and the Middle East.In 2016, he shared in the Pulitzer Prize awarded to The Times staff for coverage of the mass shootingin San Bernardino, Calif. Originally from Cerritos, Calif., Shashank holds degrees in journalism and French from USC and a master’s in public policy from Harvard. He lives with his wifein Mumbai, India.
Source: Los Angeles Times
The Union Ministry of Textiles has issued a draft notification prescribing quality standards for cotton bales as per Bureau of Indian Standards (BIS) norms. Industry experts say this would help Indian cotton to get better prices in the long run and, in turn, benefit farmers. According to the notification cotton Bales shall conform to IS 12171:2013 and shall bear the Standard Mark under a licence from the Bureau of Indian Standards as per Scheme–II of schedule II of BIS Conformity Assessment) Regulations, 2018. Nothing in the Order shall apply in relation to Cotton Bales meant for export, which conform to any specification required by the foreign buyer. The Bureau of Indian Standards shall be the certifying and enforcing authority. In addition, an officer not below the rank of General Manager, District Industries Centre in the Department of Industries of the State Government shall also be the enforcing authority. Penalty for Contravention: Any person who contravenes the provisions shall be punishable under the provisions of the Bureau of Indian Standards Act, 2016, said in the notification. Cotton Association of India (CAI) president Atul Ganatra said that this was in line with the Prime Minister's vision to double farm income in India. Today, Indian cotton is sold at a discount of 10-15 per cent to international prices due to quality issues in ginning, processing, and labelling stages. Nearly 18 types of trash contamination creep into Indian cotton, which, in turn, affects the spinning mills. If this all issues of trash contamination are sorted out at the ginning stage itself then spinning mills may also be willing to pay a better price. Once the new quality standards kick in, Indian cotton may command a higher price globally. While that may still not be at par with international prices in the short term, the farmers will stand to gain. Ganatra says the customer would not mind paying extra percentage for quality cotton. According to the Cotton Advisory Board, total domestic consumption of cotton in 2017-18 is estimated at 31.55 million bales. Further, in order to provide remunerative prices to growers, the government has fixed the Minimum Support Price (MSP) of cotton for 2018-19 season at Rs 5,150 per quintal for medium staple and Rs 5,450 per quintal for long staple. Total production and consumption during the current crop year 2018-19 is not available, but state-wise estimated production, as per the Third Advance Estimates for the year 2017-18 is 34.86 million bales, say reports.
Source: Business Standard
The CBI team probing the alleged loan fraud by a Thrissur-based textile group has filed a charge-sheet against the partners of the company and an official of the State Bank of India. The accused have been identified as Apu Mathew, manager of SBI RASMECC, Chenganur; Byju TP, Shaju T.O., Raju T.O., Jiju T.O., Annie Ouseph, all partners of the Thrissur-based Mariya Silks, formerly Emmanuel Silks, and Varki George of Erattupetta. As per the case, the textile group had taken a cash credit of ₹3.50 crore and later, a corporate loan of ₹1 crore in collusion with the first accused.
Source: The Hindu
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1673.24 |
USD/Ton |
0% |
9/3/2018 |
|
VSF |
2188.53 |
USD/Ton |
0.34% |
9/3/2018 |
|
ASF |
3044.91 |
USD/Ton |
0% |
9/3/2018 |
|
Polyester POY |
1793.28 |
USD/Ton |
0.16% |
9/3/2018 |
|
Nylon FDY |
3447.48 |
USD/Ton |
0% |
9/3/2018 |
|
40D Spandex |
5050.46 |
USD/Ton |
0% |
9/3/2018 |
|
Nylon POY |
3220.58 |
USD/Ton |
0% |
9/3/2018 |
|
Acrylic Top 3D |
1990.90 |
USD/Ton |
0% |
9/3/2018 |
|
Polyester FDY |
3601.19 |
USD/Ton |
0% |
9/3/2018 |
|
Nylon DTY |
5526.22 |
USD/Ton |
0% |
9/3/2018 |
|
Viscose Long Filament |
1990.90 |
USD/Ton |
0% |
9/3/2018 |
|
Polyester DTY |
3176.66 |
USD/Ton |
0% |
9/3/2018 |
|
30S Spun Rayon Yarn |
2869.24 |
USD/Ton |
1.82% |
9/3/2018 |
|
32S Polyester Yarn |
2408.12 |
USD/Ton |
0% |
9/3/2018 |
|
45S T/C Yarn |
3044.91 |
USD/Ton |
0% |
9/3/2018 |
|
40S Rayon Yarn |
2591.10 |
USD/Ton |
1.14% |
9/3/2018 |
|
T/R Yarn 65/35 32S |
2576.46 |
USD/Ton |
0.57% |
9/3/2018 |
|
45S Polyester Yarn |
2591.10 |
USD/Ton |
0% |
9/3/2018 |
|
T/C Yarn 65/35 32S |
3030.27 |
USD/Ton |
1.97% |
9/3/2018 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
9/3/2018 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
9/3/2018 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
9/3/2018 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0.44% |
9/3/2018 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
9/3/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14639 USD dtd. 3/9/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
U.K. manufacturing growth unexpectedly slowed to the weakest in two years last month as export orders contracted amid a weakening of the global economy. IHS Markit’s Purchasing Managers’ Index fell to 52.8 in August, the firm said Monday, down from 53.8 a month earlier, and below the 53.9 forecast by economists. A gauge of new orders for exports fell below the 50 level that indicates expansion for the first time since April 2016. The pound fell after the report and traded down 0.7 percent at $1.2873 as of 11:16 a.m. in London. Markit’s report also showed manufacturing production rose at the slowest pace in 17 months, while both input and output prices increased, with companies reporting higher costs of metals, electronic components and energy which were passed onto clients. Optimism among firms slumped to a 22-month low, with some citing ongoing uncertainty about Brexit and the exchange rate. The U.K.’s decision to leave the EU has already cost Britain more than 2 percent of economic output, according to a separate report published Monday by UBS Group AG. Investment is around 4 percent weaker because of the vote, the analysis showed. The manufacturing slowdown means the sector is unlikely to contribute to add to economic growth in the third quarter, Markit said. “The main constraint was the trend in new export business,” said Rob Dobson, director at IHS Markit. “Foreign demand declined for the first time since April 2016, despite the weakness of sterling, amid reports of slower global economic growth and the increasingly uncertain trading environment.” A study by Bloomberg Economics last month found that British exporters failed to make the most of the “sweet spot” created by the pound’s post-referendum drop and the time to do so may have passed. Businesses exporting from the U.K. mostly pocketed the exchange-rate windfall after the 2016 Brexit vote, rather than taking the opportunity to bolster output, the report said.
Source: Bloomberg
The market for quality control equipment is constantly growing in textiles as well as nonwovens, as per a top official of Mahlo GmbH, a manufacturer of measuring, control and automation systems for the textiles and finishing industry. He added that poor quality leads to reprocess cost and claims, while investing in quality allows optimising processes. For the textiles industry, specially denim and knitted goods, the company has developed a pick counter which not only controls the density of the fabric by the stenter or sanforizer overfeed, but also provides an indication of the weight at the exit of the process, said Stephan Kehry, sales manager (India), Mahlo, in an interview with Fibre2Fashion. “Unlike other systems, we use different sensor technologies for different tasks. For the control of the density we use the same light/dark modulation with an optical sensor as we use in our weft straightener, knowing that for this step only the best sensor principle is good enough. At the exit, we use a camera-based system which gives us information about the weight of the fabric. This way, our customers can show the result directly to their own customers,” stated Kehry. Talking about the market for Mahlo’s equipment in India, he said, “India is a very demanding market. This is very challenging on the one hand, yet it is also very rewarding. Once a customer realises the savings he can make by a good quality machine he'll always come back.” The company has recently doubled its production capacity by establishing new manufacturing facilities.
Source: Fibre2Fashion
US and Canadian manufacturers firmly support moving forward at full speed to seize the opportunity to forge a new trade deal between the United States, Canada and Mexico, the US National Association of Manufacturers (NAM) president Jay Timmons and Canadian Manufacturers and Exporters (CME) president Dennis Darby said in a joint statement. "There is an unprecedented volume of goods flowing between the three countries and significant integration of operations, which makes a trilateral agreement an imperative. Such an agreement secures the jobs of our manufacturing workers and strengthens the critical US-Canada trading relationship,” the statement said. “We must also stand together with our regional allies to ensure competitors like China do not reap the rewards of unfair anti-market trade practices. Because of our two countries' nearly $700 billion trading relationship, our economies are inextricably linked, and our manufacturing workers depend on a strong deal that keeps us all growing and prospering for generations to come," it added. (DS)
Source: Fibre2Fashion
According to the central bank, Ghana’s oil production leapt to nearly 60 million barrels in 2017, resulting in export revenues 124 per cent above the previous year Ghana could have one of the world’s fastest-growing economies in 2018, according to institutions such as the World Bank, the African Development Bank, the International Monetary Fund (IMF), and the Brookings Institution. Financial authorities have also concluded that Ghana’s 2018 growth, projected at 8.6 per cent, might outpace that of tech-led India and also Ethiopia, which since 2008 has been one of Africa’s most successful economies, thanks to improved agricultural production and substantial coffee exports. According to an IMF expert, only tiny Bhutan and post-civil war Libya are expected to see a higher rate of growth. Last January, Bloomberg reported that Ghana’s benchmark stock index achieved the world’s highest rate of growth, an astonishing 19 per cent. As oil prices have increased, the nation has also boosted its production, helped by two new major offshore oilfields over the past two years. According to the central bank, Ghana’s oil production leapt to nearly 60 million barrels in 2017, resulting in export revenues 124 per cent above the previous year. Ghana enjoys an enviable location on the Atlantic Ocean, bordering Togo, Ivory Coast and Burkina Faso. Its population of just under 30 million has seen the government strengthen in the past two decades as it flourished under a multi-party system, with the independent judiciary winning a high degree of public trust. When it comes to freedom of speech and press freedom, Ghana consistently ranks in the top three countries in Africa, with a strong broadcast culture that favours radio, although the internet is fast gaining in popularity. In the months since he was elected, President Nana Akufo-Addo has made steady progress in fulfilling his election pledges, including setting up a factory in each of the nation’s 216 districts; building one dam for every village and providing free high school education. Other projects include wide-scale planting that will provide both food and jobs. Cocoa is Ghana’s other great resource, and farmers are riding on the oil boom with alacrity. Other Ghanaian industries are performing creditably. The country’s industrial base is relatively advanced and import-substitution industries include electronics manufacturing. RLG Communications was one of the first indigenous African companies to assemble laptops, desktops and mobile phones, and ranks among the largest West African information and communications technology companies. Ghana’s automotive manufacturing is bolstered by investment from the Indian firm Mahindra while the textile industry is championed by a long-running quartet, namely Akosombo Textiles, Tex Styles Ghana, Printex Ghana and the Ghana Textile Manufacturing Company. Ghana also has an eye on the future of renewable energy, with a number a farsighted projects aimed at lessening its dependence on fossil fuels Ghana also has an eye on the future of renewable energy, with a number a farsighted projects aimed at lessening its dependence on fossil fuels and taking advantage of Africa’s natural bounty. The nation was one of the first in the region to initiate the construction of solar plants with the aim of getting 6 per cent of its energy from solar generation. As one of the biggest photovoltaic (PV) and largest solar energy plants in Africa, the Nzema solar power project has the potential to provide electricity to more than 100,000 homes. Unlike many other solar projects that use concentrated solar power, the solar plant’s PV technology converts sunlight directly into electricity. The installation of more than 630,000 solar PV modules started in 2013, with the first electricity being generated early in 2014. Similar projects are under consideration in other parts of the country. In a similar vein, the government is capitalising on the potential of wind energy. Ghana has high-wind locations, such as Nkwanta, the Accra Plains, and the Kwahu and Gambaga mountains, and the maximum energy that could be tapped from Ghana’s available wind resource for electricity has been estimated to be about 500-600 GWh/year. One of the first wind energy projects is due to go into operation next year – the 50MW Ada station, which is being built in the Greater Accra region at a cost of US$120 million. Developed by global energy company Engie together with South Africa’s eleQtra, Ada station will contribute to the Ghanaian government’s objective of generating 10 per cent of its electricity from renewable resources. The project is also in line with Ghana’s ambition to become a regional power generation hub and export power to its neighbours in the West African Power Pool. Finally, Ghana is aiming to attract investment to its biomass and bio-energy sectors, which should stimulate rural development, create jobs and preserve foreign exchange. Ghana’s vast arable land mass could be used to cultivate crops and plants that could be converted to solid and liquid bio-fuels, as the development of alternative transport fuels could assist the nation to diversify and secure its future energy supplies. The main opportunities in the sector exist in areas such as transport, storage, distribution, sales, marketing and export.
Source: South China Morning Post
New spinning mill – the first in almost half a century in city – will start churning out recycled yarn spun out of old, discarded clothes beginning this autumn Ernest Kao
Hong Kong may never reclaim its mantle as a textiles manufacturing powerhouse, but new developments suggest it has not shed all of its post-war industrial legacy either. A new spinning mill – the first in almost half a century to be built in the former garment-making hub – will start churning out recycled yarn spun out of old, discarded clothes beginning this autumn. The 19,000 sq ft Tai Po facility, owned by local textiles firm Novetex, is also the city’s first textile “upcycling” mill and when fully equipped, will be able to spin three tonnes of recycled fibre from roughly the same amount of textile waste daily, without affecting cost or quality. It is a small fraction of the 340 tonnes of textile waste discarded by Hongkongers every day, but the company believes it is “possible in theory” to expand capacity to handle about a third of that figure in the future, reducing pressure on the city’s landfills. River thought contaminated by Hong Kong’s biggest landfill ‘is safe’Edwin Keh Yee-man, chief executive of the publicly funded Hong Kong Research Institute for Textiles and Apparel (HKRITA), which developed the plant’s recycling system, said the move would put the city’s textiles industry back on the map and boost the “made in Hong Kong” mark. “We could have opened [this mill] in China, 10 times its current size,” he said. “But we decided to do it in Hong Kong to prove two things – that we can solve our local textile waste problem locally, and that in such a small, compact city, sustainable [textile recycling] is feasible.” He noted Beijing last year slapped import bans on 24 types of waste including scrap paper, plastics and textiles, shutting out a huge global aftermarket for post-consumer waste. Keh added: “Many think the only way to solve a waste problem is to just export it somewhere else … but that’s not a solution.” Old clothing and textiles will be collected by the firm from its retail partners or NGOs. Three production lines at the facility mechanically sanitise, sort and process the textiles into yarn in a largely automated process which can then be shipped off as raw material to mainland China and manufactured into new fabrics and garments. The operation requires at least six workers. Swedish clothing retailer H&M, which has worked closely with HKRITA on developing new recycling technologies, will take delivery of the first shipment of yarn in November. This island’s campaign against rubbish could inspire Hong Kong. The entire process operates without water use or effluent discharge. “Other countries that have big manufacturing industries for cotton and wool such as Turkey may be interested too,” Novetex director and chief executive Milton Chan said. Chan said new innovations in upcycling were vital because of the increasing costs and environmental concerns that came with producing conventional fibres, such as cotton, from scratch. Established in 1976 by industrialist Chao Kuang-piu – who founded local carrier Dragonair – family-owned Novetex produces about nine million kilograms of wool annually from its main factory in Zhuhai, Guangdong province. Most plastic bottles found in clean-ups came from mainland, survey finds Speaking at the plant’s inauguration on Monday, the city’s leader Carrie Lam Cheng Yuet-ngor lauded the development and stressed the government was committed to setting favourable conditions for the “re-industrialisation of Hong Kong”. Novetex, HKRITA and the H&M Foundation – the retailer’s non-profit arm – have also set up a “mini” garment-to-garment recycling shop at The Mills mall in Tsuen Wan.
Source: South China Morning Post
