India’s garment exports slumped by 26% in September due to higher input cost and lack of favourable trade agreements for major global markets. The sharp fall is witnessed month after the Centre’s move to protect the domestic industry by raising import duties on over 300 textile items in August. Exports of readymade garments declined sharply in September, which is the biggest fall in the current fiscal, experts said. India exported garments worth Rs 7,968 crore in September 2018 compared to Rs 10,705 crore in September 2017, according to data released by Directorate General of Commercial Intelligence and Statistics, Kolkata.The decline is a jolt to apparel exporters, particularly from Punjab, Haryana and Uttar Pradesh, who blame it on high input costs. Production costs in the northern hubs are high compared to other competing countries. According to experts, manufacturers based in the northern states are not even able to compete with Tirupur cluster in Tamil Nadu because of high labour, transportation and processing cost. Major textile hubs in the northern India are in Ludhiana, Jalandhar, Panipat, Gurugram and Noida. Textile clusters in the three northern states employ over 2 million workers. Around 200 textile exporters are based out of Punjab and Haryana alone. According to the exporters, the Indian garment exporters are facing stiff competition from countries such as Bangladesh, Sri Lanka, Vietnam, Cambodia and Ethiopia. “Competition in the international market has become very severe,” said Harish Dua, Managing Director of Ludhiana-based KG Exports. “While our margins are very thin, we also lose on account of trade agreements,” he said. Neighbouring competitors like Bangladesh, Pakistan, Sri Lanka, and Vietnam have duty advantage of 9.6% in major European markets compared to the Indian manufacturers because India does not have the Free Trade Agreement (FTA) with the European Union (EU). “Our products, therefore, get outpriced and we lose the market,” he added. Overall, India exported readymade garments worth Rs 52,814. 52 crore in April-September 2018, a decline of 10.66% in the first half of the current fiscal as compared to corresponding period of the previous year. During April-July 2017, India’s apparel exports were to the tune of Rs 59,114.39 crore. “There are many factors responsible for the decline in exports. Globally, the apparel trade has declined from $475 billion to $435 billion, impacting country like India, which is already facing stiff competition from countries such as Bangladesh, Vietnam and Cambodia,” Apparel Export Promotion Council (AEPC) chairman HKL Magu said. “What is worrisome for us is that the exports from Bangladesh grew by 15%. Compared to India, products manufactured in Bangladesh are 10% cheaper. Also, Bangladesh has FTA with EU. But, there is a duty of 10% on readymade garments manufactured in India,” he added.
Source: Tribune
New Delhi :Century Textiles & Industries (CTIL) on Monday reported nearly three-fold jump in its standalone net profit of Rs 156.52 crore for the second quarter ended September 30. The company, which has received shareholder’s nod to sell its cement assets to Ultratech on October 24, had posted a net profit of Rs 52.78 crore in the July-September quarter a year ago, CTIL said in a BSE filing. Its net sales stood at Rs 1,949.77 crore, up 8.83 per cent, during the quarter under review as against Rs 1,791.53 crore in the corresponding period last fiscal. “Profit before Interest, Depreciation and Tax jumped 40 per cent to Rs 393.44 crore vis-a-vis Rs 280.84 crore in the corresponding period of the previous year,” the company said in a statement. Century Textiles total expenses rose 8.35 per cent to Rs 1,879.42 crore, compared to Rs 1,734.53 crore. CTIL’s revenue from textile segment surged 37.83 per cent to Rs 238.79 crore, as against Rs 384.13 crore. While revenue from cement was up 16.84 per cent to Rs 977.01 crore in the second quarter this fiscal, it was Rs 836.14 crore in the corresponding period a year ago. “In the NCLT convened Shareholder’s meeting on October 24, 2018, minority shareholders showed full confidence and gave a thumping support to the Company’s decision to sell its cement assets at an enterprise value of Rs 8,621 crore with 81.39 per cent votes in favour of the decision,” the company informed. CTIL’s Pulp and Paper’s revenue was up 28.04 per cent at Rs 690.66 crore as against Rs 539.39 crore. Over the outlook, the company said its “debt stood at around Rs 4,200 crore as at September 30, 2018 and after the demerger of cement division, it will be reduced by Rs 3,000 crore putting it in a strong position to deliver robust growth going forward”.
Source: Business Line
NEW DELHI— Commerce and Industry Minister Suresh Prabhu has said India and the US have exchanged offers for a possible trade deal with a view to resolving issues related to bilateral commerce. “The negotiations are ongoing. Of course at this stage they have given an offer and we have also given a counter-offer and we are working on it ” he said at an event here. The statement assumes significance as India has deferred a notification for hiking import duties on as many as 29 US products. India had announced hiking customs duty on 29 products including pulses and iron and steel items imported from the US as a retaliatory action against the tariff hike by Washington. The duty hike would come into effect from November 2. India is pressing for exemption from high duty imposed by the US on certain steel and aluminium products resumption of export benefits to certain domestic goods under their Generalised System of Preferences (GSP) as well as greater market access for its products from sectors including agriculture automobile auto components and engineering. As many as 3 500 Indian products from sectors such as chemicals and engineering get duty-free access to the US market under the GSP introduced in 1976. On the other hand the US is demanding greater market access for its agriculture goods manufacturing products and medical devices. India’s exports to the US in 2017-18 stood at USD 47.9 billion while imports were USD 26.7 billion. The trade balance is in favour of India.
Source: Tecoya Trend
TOKYO : India is going through a massive transformative phase and international agencies say the country will drive the growth of the global economy in the coming decade Prime Minister Narendra Modi said Monday as he invited the Indian community in Japan to contribute actively in building a “new India”. Modi who arrived in Japan on Saturday to attend the 13th India-Japan annual summit detailed India’s economic and technological growth during his four-year tenure. “India is going through a massive transformative phase today. The world is appreciating India for its service to humanity. The nation is being felicitated for its policies and for the work being done towards public welfare ” he said. Modi said that India is continuously working with the spirit of Indian solutions-global applications. He said that India’s model of financial inclusion especially JAM (Jan Dhan Yojana Mobile Aadhar) trinity and digital transaction model is now appreciated all over the world. He hailed the expanding network of telecommunications and internet in in the country. “Today India is making tremendous progress in the field of digital infrastructure. Broadband connectivity is reaching villages over 100 crore mobile phones are active in India. 1 GB is cheaper than a small bottle of cold drink. This data is becoming the tool for service delivery ” Modi said. Speaking about ‘Make in India’ initiative Modi said the initiative has emerged as global brand. “We’re manufacturing quality products not only for India but for the world. India is becoming a global hub especially in field of electronics and automobile manufacturing. We’re rapidly moving towards being no 1 in mobile phones manufacturing ” he said. He said that solutions or innovations taking place in India are not only cost-effective but the best in quality as he cited India’s space programme as an example. “Last year our scientists created a record by launching over 100 satellites into space simultaneously.We sent Chandrayaan and Mangalyaan at a very low cost. India is preparing to send Gaganyaan into space by 2022. Gaganyaan will be ‘Indian’ in all aspects and the one travelling in it will also be an Indian ” he said. Modi said India is becoming one of the fastest growing big economy due to the development taking place in the country. “After seeing these developments international agencies say that India would drive the growth of the global economy in the coming decade ” he said. He said Japan and the Indian diaspora has a big role to play in India’s growth story. Modi emphasised on the Japanese contribution in creating smart infrastructure for building a New India’. “From bullet train to smart cities Japan is contributing in all the new India infrastructure that is being built ” he said. Terming the Indian community as ambassadors of India in Japan the prime minister urged them to invest in India and to maintain cultural ties with the motherland. He urged the Indian community to strive to continuously improve the relations between India and Japan. Modi hailed the Indian diaspora for introducing Kabbadi and cricket in Japan where martial art is very popular.
Source : Tecoya Trend
India and Qatar Monday decided to set up a joint commission (JC) to strengthen their relations and regularly review all the bilateral matters, as well as regional and global issues of mutual interest. The decision was taken after external affairs minister Sushma Swaraj met Emir of Qatar Sheikh Tamim bin Hamad Al-Thani and discussed ways to move forward on the roadmap set by the top leaders of the two countries. It is the first ever visit of Swaraj to Doha. The two sides have decided to establish the joint commission, according to a joint declaration issued after the talks. The JC will be co-chaired by the ministers of external affairs and foreign affairs of the two countries or their representatives and may include in its membership representatives of the sectors concerned with the bilateral cooperation in both the countries, it said. The body will be tasked to strengthen the relations between the two countries particularly in the economic, commercial, cultural, scientific, technological, information technology and educational fields. It will be responsible for following up the implementation of the agreements concluded between the two sides and finding suitable solutions for the resulting problems of the implementation thereof. It will also be charged with facilitating the exchange of information and expertise and encouraging bilateral consultation in service of cooperation between the two countries.
Source: Business Line
NEW DELHI: Naphtha, bovine leather, shrimps and cotton yarn are among about 200 export items from India for which tariff concessions can be sought from China under the Asia-Pacific Trade Agreement and the Regional Comprehensive Economic Partnership. China has granted deeper duty cuts to India’s competitors including Peru, Pakistan, Australia, South Korea and ASEAN in free-trade agreements with them, which has displaced some of India’s exports, commerce department officials said. Other products eligible for potential concessions include frozen, shelled shrimps, broken rice, fresh grapes, zinc, aluminium oxide and hydrocarbons like paraxylene, polyethylene, polypropylene and benzene, according to a commerce department study. “These are the items where we can ask for deeper concessions in the Regional Comprehensive Economic Partnership,” said an official aware of the details. APTA (formerly known as the Bangkok Agreement) is the only operational trade pact linking India and China, the two fastest-growing markets. South Korea, Bangladesh, Lao PDR and Sri Lanka are also APTA members. The two countries are separately negotiating the RCEP agreement with 14 others. India’s exports of naphtha, a major industrial fuel, to China are subject to 6% duty with a 10% margin of preference under APTA. This is the highest duty for any of China’s FTA partners as ASEAN countries pay zero, Australia 2.4% and South Korea 4.8%. As per the commerce department’s study, India’s exports of major products like frozen shrimp and prawns form a small share in the Chinese market due to the absence of tariff concessions. ASEAN members face 0% tariff in the Chinese market and thereby account for a 6% share in that country’s imports of these products. “Another glaring example is of aluminium oxide,” the department said in the study. This product is not negotiated in APTA because of which India is subject to an 8% duty, duty, while ASEAN countries face nil tariffs. This is the reason that ASEAN countries are a major supplier to China and form a 41% share while India’s share is only 8%. Australia doesn’t face any tariffs and has a 39% share in China’s imports. “These along with polyethylene and zinc can be pursued in the fifth round of APTA,” it said.
Source: The Economic Times
The rupee ended almost flat at 73.45 against the US dollar on October 29 after its initial gains were erased by a late dollar demand from importers despite strong equity markets and the RBI's move to ease liquidity crunch. Despite the initial bounce, the home unit appeared to struggle, as the dollar remained broadly firm. Foreign investors also pulled out Rs 2,230.79 crore from capital markets amid the dollar hovering near 10-week high and hitting 96.66 against the basket of six global currencies. The rupee opened higher at 73.33 amid sharp gains in local stock markets. The local currency, however, gave up initial gains due to capital outflows and a firming dollar to hit a session low of 73.53. The rupee made a comeback in the closing hour to settle at 73.45, showing gains of just 2 paise over the previous close. Brent crude oil futures were down 31 cents at $77.31 a barrel, while WTI Futures fell by 28 cents to $67.31. Meanwhile, market benchmark Sensex rallied over 718 points to end above the 34,000-level, while the broader 50-share Nifty rose over 220 points to close above 10,250. At the same time, the Reserve Bank's decision to pump in Rs 40,000 crore into the system in November through purchase of government securities, with an aim to tackle liquidity crunch, failed to bring cheer to the forex market, but arrested any significant fall in the rupee. In an another development, India and Japan on October 29 concluded a $75 billion bilateral currency swap agreement, a move that will help in bringing greater stability in foreign exchange and capital markets in the country. "India and Japan has signed currency swap agreement worth $75 billion – a step will go long way in soothing frayed nerves of Rupee bulls," said V K Sharma, Head PCG & Capital Markets Group, HDFC Securities. Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 73.4181 and for rupee/euro at 83.6942. The reference rate for rupee/British pound was fixed at 94.2644 and for rupee/100 Japanese yen at 65.62.
Source: Financial Express
India is considering allowing some imports from China to be settled in yuan, people familiar with the proposal said, as the South Asian nation moves to limit its currency’s loss against the dollar.The plan would enable direct convertibility between the rupee and yuan and will help cut transaction and hedging costs, the people said, asking not to be identified citing rules. The proposal would allow Indian exports of pharmaceuticals, oilseeds and sugar to China to be settled in rupee, while keeping out trade in high volume products such as electronics, they said. India-China trade is mainly settled in US dollars since currencies between the two nations aren’t directly convertible. By allowing Indian importers to pay for Chinese goods in yuan, the South Asian nation would be able to save on dollars to pay for escalating oil import costs in the face of higher crude prices and the rupee’s slump to a record low.Oil is India’s biggest import item and the government estimates it will pay a record $125 billion, or 8.8 trillion rupees, for crude imports this fiscal year, the highest in rupee terms since 2001. A small but viable and ring fenced basket of commodities is being considered for rupee-yuan trade, according to the person. Allowing direct convertibility can help cut currency risks for Indian traders, the person said.
Source: Economic Times
The Tiruppur Exporters’ Association (TEA) has expressed concern over employees availing long leaves during festivals such as Diwali which is impacting productivity at knitwear units. TEA is worried that delay in delivery schedule will lead to cancellation of orders which will have cascading effect on working capital leading to severe financial stress. This will be an advantage to our competing countries at a time when we are struggling to withstand the onslaught of their competition, TEA president Raja M Shanmugham said in a press release. "It is the right time for all exporting units to inform employees about reality and convince them as to how they can contribute in the betterment of their unit by taking two or three days leave after Diwali instead of ten to fifteen days leave at a stretch and letting all utilities remain idle with a loss of productivity," said Shanmugham adding that we have now reached at a stage where it has become necessary to cut down costs wherever possible, within our limits to sustain in the business. In this connection, a circular has also been sent to TEA members requesting them to commence the exercise effectively, make the workers understand the fact and get the expected cooperation for the well being of their units. A communication has also been sent to the Knitwear Stakeholders Association to advice their members seeking cooperation so that production can be resumed within two to three days and minimise the loss in productivity. (RR)
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1438.88 |
USD/Ton |
-1.62% |
10/29/2018 |
|
VSF |
2165.16 |
USD/Ton |
-0.40% |
10/29/2018 |
|
ASF |
3015.96 |
USD/Ton |
0.41% |
10/29/2018 |
|
Polyester POY |
1468.39 |
USD/Ton |
0% |
10/29/2018 |
|
Nylon FDY |
3383.06 |
USD/Ton |
-0.42% |
10/29/2018 |
|
40D Spandex |
4822.66 |
USD/Ton |
0% |
10/29/2018 |
|
Nylon POY |
5441.69 |
USD/Ton |
0% |
10/29/2018 |
|
Acrylic Top 3D |
1734.72 |
USD/Ton |
0% |
10/29/2018 |
|
Polyester FDY |
3109.54 |
USD/Ton |
0% |
10/29/2018 |
|
Nylon DTY |
3167.12 |
USD/Ton |
0% |
10/29/2018 |
|
Viscose Long Filament |
1669.94 |
USD/Ton |
0% |
10/29/2018 |
|
Polyester DTY |
3527.02 |
USD/Ton |
0% |
10/29/2018 |
|
30S Spun Rayon Yarn |
2836.01 |
USD/Ton |
0% |
10/29/2018 |
|
32S Polyester Yarn |
2130.61 |
USD/Ton |
-0.67% |
10/29/2018 |
|
45S T/C Yarn |
2965.58 |
USD/Ton |
0% |
10/29/2018 |
|
40S Rayon Yarn |
2533.70 |
USD/Ton |
0% |
10/29/2018 |
|
T/R Yarn 65/35 32S |
3152.72 |
USD/Ton |
0% |
10/29/2018 |
|
45S Polyester Yarn |
2677.66 |
USD/Ton |
0% |
10/29/2018 |
|
T/C Yarn 65/35 32S |
2288.96 |
USD/Ton |
0% |
10/29/2018 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
10/29/2018 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
10/29/2018 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
10/29/2018 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
10/29/2018 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
10/29/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14396 USD dtd. 29/10/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Sindh-Balochistan Region unit of the All Pakistan Textile Mills Association (APTMA) has urged the government to address textile sector problems, including removal of duties from import of cotton and polyester staple fibre, removal of the gas infrastructure development cess (GIDC), low productivity of labour and shortage of water available for industries in Karachi. Chairman of the APTMA unit Zahid Mazhar also requested the government to immediately pay overdue refunds of sales tax and income tax and export drawback of local taxes and levy (DLTL). These issues are hurting the viability of the industry by increasing the cost of business that cannot be passed on to international buyers, Pakistani media reports quoted Mazhar as saying. Due to shortage of cotton, the spinning industry has to annually import almost 3.5 million bales of raw cotton. Despite this, there is 3 per cent customs duty, 2 per cent additional customs duty and 5 per cent sales tax imposed on the import of raw cotton, Mazhar lamented. Special attention should be paid for a free trade agreement with China as it is providing zero customs duty facility on import of textiles from many south-east Asian countries, while imposing 3.5 per cent duty on textiles from Pakistan, he added. (DS)
Source: Fibre2fashion
HCM City — A project to make the textile industry more environment-friendly has been launched in Hà Nội by the World Wide Fund for Nature and the Việt Nam Textile and Apparel Association. “Greening Việt Nam’s textile sector through improving water management and energy sustainability” will engage multiple players in the sector to promote better river basin governance and contribute to water quality improvement and sustainable energy use. It is part of the “Driving impact reduction through the textiles value chain” project sponsored by HSBC to support the green textile industry in China, Bangladesh, India, and Việt Nam. The textile and apparel industry is one of Việt Nam’s most economically important sectors. It contributes 15 per cent of exports and has seen a steady annual growth rate of 12 per cent since 2010. With 6,000 factories nation-wide and employing three million people, the sector is not only economically but also socially important for Việt Nam. But the sector also causes environmental impacts. Intensive water extraction, use and discharge of wastewater and high energy consumption for water heating and steam generation mean that the industry can have significant impacts on water resources and greenhouse gas emissions. As it continues to expand, changes in practice will be required to reduce impacts and adapt to changing conditions. The UN predicts that a 40 per cent water shortage globally by 2030. “Việt Nam is the fifth largest exporter of apparel in the world, but our industry is more famous for low-cost production with limited environmental standards and we must change now,” Vũ Đức Giang, chairman of VITAS, said. “That is why this project is so important and timely.” The project will be implemented from 2018 to 2020 with a vision to transform the textile-apparel sector in Việt Nam. It will achieve this through engaging the industry and influencing environmental governance in order to bring social, economic and conservation benefits to the country. Geographically, the project will focus on the Mekong and Đồng Nai deltas where more than half of Việt Nam’s apparel factories are located. The main focus of the project is to improve water and energy sustainability in the sector, thus reducing its impacts on the environment. It will also work with textile–apparel manufacturers to encourage them to be more active river stewards, practise sustainable energy planning and discuss collective actions for long-term sustainable investments and development in the sector. One important target of the project is to influence Vietnamese textile investors to implement more sustainable practices. Key stakeholders in the project include international brands with suppliers in Việt Nam, factories around the country, in particular in the Mekong and Đồng Nai deltas in areas around HCM City, financial institutions, development partners, and other relevant stakeholders. HSBC has long been involved in supporting the conservation of water globally through the HSBC Water Programme, an eight-year, US$150 million project started in 2012. — VNS
Source : Vietnam News
Egypt : The first specialized free zone for the textile industry in the world is underway in Minya Governorate on an area of 2.2 million square meters, and the first specialized technological city is also underway in southern Giza, Chief Executive of the General Authority for Investment and Free Zones Mohsen Adel announced. The textile industry is facing global changes, one of which is transferring the focus of this industry from the East to other regions in the world, which requires Egypt to take advantage of the opportunity and attract textile investments, he added during his speech at the closing session of the 200 Years of Egyptian Cotton Conference organized by the Egyptian Junior Business Association. East Asian companies believe that the Middle East region has many advantages, including Egypt, which has four competitive advantages: geographical location, consumer market, free trade agreements with COMESA, and availability of labor and suitable investment atmosphere. Free zones have a great role in the Egyptian economy, said Adel, pointing out that free zones recorded exports worth $14.7 billion from January to September 30, 2018, with an increase of $1.1 billion compared to the same period in 2017. Commodity exports recorded $8.3 billion, while service exports reached $ 6.4 billion, he added.
Source : Egypt Independence
South Africa’s Clothing and Textile Competitiveness Programme has helped sector exports grow from 7.1-billion rand (R) in 2008 to R25.1 billion in 2017 and will receive its share of the R15.9 billion allocated to incentives and the Expanded Public Works Programme. The Small Business and Innovation Fund will also help entrepreneurs in the pre-start-up phase. Twenty two new leather factories have been opened in the last nine years creating 2,200 jobs. To augment this, government funds will be reprioritised to the clothing and textiles production incentive from special economic zones, according to a report in an engineering news website from South Africa. The national treasury has, over the medium term, placed incentives for agriculture, land reform, manufacturing and research and development among its priorities for expenditure reprioritisation. The CEO Initiative’s Small and Medium Enterprises (SME) Fund has raised R1.4-billion till now, with about R500-million expected to be committed for debt and equity investments in SMEs by the first quarter of 2019. The financial sector has committed to invest R100-billion over five years in black industrial enterprises and firms. The Financial Sector Transformation Council is working with the Department of Trade and Industry to finalise guidelines for the disbursement of this funding, the report added. (DS)
Source: Fibre2fashion
LAHORE - The All Pakistan Textile Mills Association chairman Syed Ali Ahsan has said that in order to boost exports the government should announce long-term investment and growth policies so that industry could undertake new investment decisions for technology upgradation and value-addition, which will not only generate more exportable surplus but also new sustainable jobs. He was addressing a press conference at APTMA Punjab on Friday. He said the industry has envisaged to double exports from $13.5 billion to $27 billion in next 5 years with the investment of $ 7 billion which will create additional 1.5 million jobs. He appreciated the vision of the government in recognizing importance of exporting industry, the only way forward to export-led growth to overcome trade deficit and the consequent financial crisis faced by our economy. Chairman APTMA said the government has fulfilled its commitment for crisis ridden exporting industry (5 zero rated sectors) by announcing regionally competitive tariff for both gas and electricity i.e. flat regionally competitive electricity tariff US cents 7.5/kWh all inclusive and flat gas tariff USD 6.5/mmbtu all inclusive for captive and processing use in 5 zero rated sectors (exporting industry). He said the initiative of flat regionally competitive electricity tariff would not only reduce interprovincial disparity but also inter sectoral (captive/prime user) disparity. Now, prime users of electricity will enjoy the same tariff as is to captive industrial units, he added. He said resolving the energy affordability issue is a positive step for reviving 30% closed/idle capacity, which is located predominantly in Punjab. However, he added, this regime should continue for next 5 years for the growth of industry on sustainable basis. Regarding the announcement of flat gas tariff, he said priority of exporting industry has been upgraded and moved to 2nd in Gas Allocation and Management Policy 2013. This will ensure gas availability throughout the year, he added. Meanwhile, Gohar Ejaz welcomed initiatives for providing affordable energy to export industry by the government as promised to do so within a period of three months. This will go a long way in taking the textile industry to a new height, he added. He urged the government and the economic managers to ensure earliest issuance of related notifications so that the industry can focus on production, secure export orders and undertake new investment initiatives. He also demanded of a long term export-led growth policy, containing initiatives for availability of raw materials, both cotton and polyester staple fibre, without incidentals and at regionally competitive price, immediate payment of pending refunds of the industry, and the facility of LTFF to indirect exports for making investment in technology and value addition. He said foreign exchange earning from exports is the only sustainable solution instead of looking towards IMF or a country specific support. The industry is all set to work in tandem with the government to achieve national economic goals, he concluded.
Source: Nation.com
CAIRO – Egypt’s imports recorded $49 billion during the first nine months of 2018, with a 6.2 percent increase, compared to the same period of 2017, according to Advisor to the Minister of Trade and Industry for Small and Medium Enterprises Hossam Farid. Farid added during his speech at the conference of “200 years of Egyptian Cotton” that exports reached $18 billion by the end of September, compared to $16 billion during the same period of 2017, with a 10 percent increase. He clarified that the witnessed increase in the rate of exports is good still it needs to be raised during the upcoming period. “Engineering, chemical and building material sectors represented 46 percent of Egypt’s imports, while products of these sectors accounted for 54 percent of exports,” he explained. He pointed out that although the textile industry represents 6 percent of Egypt's imports and 4 percent of the exports, it is one of the top five industries the Ministry of Industry is keen to develop. Farid stated that the ministry’s attentiveness to the spinning and weaving industry is attributed to the reason that it is a labor-intensive industry which employs many young men and women, adding that in this regard, the World Bank report mentioned that 80 million young people entered Egypt's labor market over the past 10 years. He pointed out that the ministry targets to turn the textile industry into an export industry to increase the Egyptian exports to African countries, which reach $3.5 billion, not exceeding 1 percent of the continent's imports. Farid referred to the ministry's efforts to achieve this goal by exploiting Egypt's leadership of the next African session. The General Organization for Import and Export Control (GOEIC) previously said that Egypt’s trade volume hiked 13 percent during the first nine months of the year, recording $67.63 billion, compared to $59.83 billion during the same period of 2017
Source: Egypt Today
The Indonesian trade ministry is pushing the country’s export performance by exploring new markets through trade deals amid the ongoing US-China trade war, according to trade minister Enggartiasto Lukita. The country will now import cotton from the United States to compensate, he said. Its imports still exceed its exports worth $14.60 billion. The country’s Central Statistics Agency (BPS) announced this month that its trade balance had experienced a surplus of $230 million throughout September, a contrast to the preceding month that experienced a $1.02-billion deficit, according to Indonesian media reports. Indonesia currently has trade deals with 10 countries that generated a total transaction up to $10.02 billion from January to October this year. The countries are Pakistan, India, the United States, Spain, Swiss, Tunisia, Bangladesh, Taiwan, New Zealand and Morocco. (DS)
Source : Fibre2fashion
"The most affected sector is the garments one as production in the factories was halted because the workers could not join their workplaces timely," said Shafiul Islam Mohiuddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). Apart from that, the transportation of exportable goods from Dhaka to Chattogram port was also affected as not a single truck was allowed to carry goods over the last two days. Some 12,000 to 15,000 goods-laden trucks or covered vans ply between Dhaka and Chattogram port every day, according to industry insiders. Of those, 80 percent are engaged in carrying either export or imported textile and apparel items, they said. The direct loss only to the garment sector is estimated to be Tk 723.68 crore a day ($1=Tk 85.14), said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). So, the loss of the sector over the last two days is Tk 1,447.36 crore, he added. The BGMEA chief also said that now the garment factory owners would have to bear the cost of expensive air shipment for the timely delivery of goods to the buyers, which would mean they could not make profit as it was much higher than seaway fares. "We fear [that] expensive air shipment or having to give discounts to the buyers due to delays in delivery of goods," he said. For instance, sending a kilogram of garments item to any airport in Germany from Bangladesh costs between $2 and $2.5, he said. The airfares from Bangladesh to the US were much higher than in Europe, with export prices of T-shirts reaching $4 to $5, which is almost the level of airfare of a kg of garment items. The seaway fare for sending a kg of garment items from Chattogram port to any destination in Europe varies between $0.25 and $0.30, industry insiders said. "So no one can make profit in case of air shipment," Siddiqur said. Following disruptions in Chattogram port or due to damage of scanning machines in the airport in Dhaka, Bangladeshi exporters sent 1,87,762 tonnes of goods by air in fiscal 2015-16, according to Bangladesh Freight Forwarders Agencies Association. Meanwhile, the FBCCI chief could not estimate the loss incurred by other businesses but said that it was also felt in the domestic markets. For instance, food items and perishable goods like vegetables and even baby food items could not be transported due to the strike, he said. "We, the businessmen, do not like such [a] situation. We want a peaceful and long lasting solution through discussions. If the transport workers think they are not treated well in formulation of any law, they have the room for discussion to resolve the crisis. They need not turn to any anarchism," Mohiuddin said.
GROWERS FEEL THE CRUNCH
Vegetable growers in Mahasthangarh Bazar in Bogura suffered an estimated loss of Tk 4 crore in the last two days due to the work stoppage by transport workers, while wholesalers had also stopped procuring any goods from them. The prices were three times lower in the Bazar, which is the largest wholesale vegetable-market in northern Bangladesh. Khwaja Mia, 55, a farmer at Bogura's Shibganj village, who went to the market on the first day of the strike without knowing about it told or Bogura correspondent over the phone “I took five maunds of yardlong beans and 15 maunds of brinjal to the Bazar...The wholesale buyers were not interested in buying my vegetables, so I later sold everything at a rate three times cheaper than the market price of the day before.” Another farmer, Rafiqul Islam, of the same upazila, brought 10 maunds of radish and sold it at Tk 200 per maunds instead of the previous price of Tk 800. Meanwhile, wholesalers are counting their losses from unsold, damaged stock of goods. They have also stopped buying new stock as they cannot supply those to Dhaka. Zahidul Islam, a wholesaler, said, “Almost 36 hours ago I bought various vegetables worth Tk 600,000. A portion of it has already has rotted. If I can't send them within another 12 hours, I will lose everything I invested.” Another local trader, Gopal Chandra Shah, said, “I have been doing this business for the last 20 years. Before this strike, there had been hartal during which I could send the vegetables at night, but this time the workers have been so strict, I could not send anything. I will face heavy losses.” Khayrul Islam Khaza, treasurer of the Mahasthan Bazar's Aartadar Samity, said, “Everyday, we send almost over a hundred vegetable-laden trucks to Dhaka and other districts of the country. For the last two days, the wholesalers of the markets bought vegetables worth two crore at the lowest price.” In Dhaka, Delwar Hossain Kusum, office secretary of Karwan Bazar Aratdar Samity, an association of wholesalers, said the strike did not impact vegetable prices in the wholesale trade there. “Supplies from Dhaka's surrounding areas, such as Savar have come. That's why, we do not see any impact,” he said. A senior official of the country's largest retail chain, Shwapno, echoed Kusum's views. “We have not seen an impact to that extent. Vehicles have somehow managed to come from the growing regions...,” he said.
Source : Daily Star
The government introduced the Value Added Tax (VAT) Act 2052 and textile industry had been enjoying subsidy facilities ever since. Along with other facilities, the government also started giving us VAT refund facility — up to 70 per cent — from 2013. As the production cost of Nepali textiles is very high making domestic textile products uncompetitive, the VAT refund facility and other subsidies on textiles had been providing relief to textile entrepreneurs to some extent. However, government scrapped the VAT refund facility for textiles through the budget of the ongoing fiscal year. As a result, production cost of textiles in the country has started surging. This has made Nepali textiles further uncompetitive in the domestic market and textile factories across the country have started cutting down on their production. As of today, textile factories are operating below 50 per cent of their capacity. We reported all these circumstances to the government and two months back the Ministry of Finance (MoF) had vowed to address our concerns and had formed a committee for the purpose. However, the committee has not come up with its report and suggestions though it was given a mandate of one month. Thus, the Nepal Textile Industries Association (NTIA) has decided to stop operation of all textile factories across the country to put pressure on the government to address problems being faced by textile entrepreneurs. However, the government is still reluctant towards addressing our issues. As a result we are being compelled to shut operation of factories from November 1, as announced earlier. We should note that the government earlier had been giving us VAT refund facility realising the fact that domestic textile products cannot compete with foreign textiles which are comparatively cheaper. Along with the problems that have resulted after the VAT refund facility was scrapped, NTIA has also submitted a report to the government on necessary long-term and short-term policies that need to be introduced to make Nepali textile industry competitive in the domestic and international market. We had high expectations with this government as it holds two-third majority in the Parliament. Unfortunately, the government seems unwilling to address the problems of the private sector. The government has been saying that its top priority is to reduce the trade deficit gap, create employment opportunities and foster economic growth. However, it is crystal clear that none of these goals can be achieved without promoting domestic products and industries, especially the textile industry. Similarly, promotion of textile industry should be given top priority as this industry is directly related to the promotion of other industries. Looking to India, it has a separate ministry to look after textiles while we do not have even a unit at the Ministry of Industry, Commerce and Supplies to deal with issues related to textiles. The government earlier had formed a textile board which is defunct today. The government should revive this board and form a separate institution to deal with textile issues.
Does this mean that the government is not taking the textile industry’s problems seriously?
As the government has set ambitious goals to reduce the trade deficit gap and generate additional 500,000 job opportunities within the next few years, the government has to be serious towards the issues of the textile industry and other sectors too. Though the government’s decision has affected the textile industry today, such decisions can leave a negative impact on other sectors also in the future. In case the government fails to address industrial problems today, other industries will also shut down their operations gradually. As ‘prevention is better than cure’ we expect the government to take necessary steps to promote the industrial sector on time.
In what ways can the government address the contemporary problems of textile industry?
We want the government to review its decision to scrap VAT refund facility for textile entrepreneurs. The VAT refund system in the textile industry is crucial to make domestic textiles competitive in the market amid the availability of cheaper imported textiles. However, the government today is saying that VAT refund system is against the principles of VAT, which is false. Had it been, the government had been adopting wrong VAT policy since the last two decades. If VAT refund is not possible, the government should subsidise the sum equivalent to what textile entrepreneurs had been getting under VAT refund. The government has been subsidising sugarcane farmers. It can subsidise textile entrepreneurs in a similar way. Textile industry is one of the major contributors to the country’s economy. The private sector has injected more than Rs 15 billion in the industry while more than 200 textile factories in the country have been providing employment opportunity to thousands of people. The government should realise this fact and seriously deal with concerns raised by textile entrepreneurs. Investment in the textile industry increased especially after the government implemented VAT refund facility for entrepreneurs. Such incentives had also been encouraging textile entrepreneurs to give priority to the quality of the product using latest technologies in recent years. Cancellation of the VAT refund system will hit all these aspects in the textile industry. In the context of Nepal, industries cannot sustain without the support of the government.
Entrepreneurs have been stating that the increasing illegal import of textiles in the country has been affecting their business. Why do you think the country has not been able to curb this trend?
This is especially because of the weak regulatory system in the country. In fact, almost 90 per cent of the domestic demand for textiles is met through illegally imported textiles. We do not have data on per capita consumption of textiles in Nepal. But taking the reference of neighbouring nation India, an individual there requires almost 30 metres of cloth per year to fabricate clothes. Hence, as Nepal’s population is almost 30 million, the country requires almost 900 million metres of textiles annually for clothing purposes. As textile is also used in various other purposes, we estimate that Nepal requires almost two billion metres of textiles annually. Domestic textile factories have the capacity to produce up to 70 million metres every year and some 200 million metres of textiles are being imported through legal channel annually. This clearly shows the stake of illegally imported textiles in the domestic market. The rise in illegal import of textiles is not only affecting domestic manufacturers but the government has been losing huge revenue too. If the government seriously adopts effective measures to control illegal import of textiles, the trend can be controlled. However, the government seems less serious about this issue.
Source: The Himalayan
Vietnam's textile and garment sector saw its exports increase over 17% in the first nine months of the year, according to new figures. Textile and garment exports were valued at US$22.56bn in the period, according to data from Vietnam's Ministry of Industry and Trade, representing growth of 17.1% on last year. The main export markets of the Vietnamese textile industry are the US, the EU, Korea, China and the Comprehensive and Progressive Agreement for TPP (CPTPP) – or TPP-11 – countries. The figures, published by Vietnam's National Textile and Garment Group (Vinatex) following a Ministry press conference, show the country's industrial production index is estimated to increase by 10.6% in the nine-month period the highest growth since 2012. Manufacturing continued to be the bright spot of the industrial sector and the main engine of economic growth with an increase of about 12.65%.Deputy Minister for Industry and Trade, Do Thang Hai, said trade and industry during the first nine months of the year achieved "remarkable results", making a positive contribution to the national economy. Total export turnover was estimated at $178.91bn, up 15.4% over the same period of 2017. Major contributors were telephones, computers and components, and textiles. Vietnam is the world's third largest clothing exporter, and has benefited as producers and buyers diversify their supply chains, helped by its low labour costs and industry focus on specialisation, modernisation, and increasing value added. According to an overview of Vietnam on re:source by just-style, a new online strategic planning tool, it stands to gain from duty-free access to the EU market once the EU-Vietnam free trade agreement comes into force, and is widely expected to be one of the biggest beneficiaries of the Comprehensive and Progressive Pacific Partnership (CPTPP) free trade deal. Increased foreign direct investment – particularly in spinning and weaving – has pushed the country into the world's top ten textile exporters.
Source: Just Style
