NATIONAL

• Retail inflation contracts to 2.3% in November; Industrial output zooms to 8.1% in Oct.
• MEA stepped up efforts to address trade related issues of textiles industry: Smriti Irani
• India still in “middle class” in ease of doing biz: WEF chief.
• TAI southern unit to host All India Textile Conference
• TEA upset over reduction in duty drawback rates on apparel.
• Rupee opens 33 paise up at 73.80 against dollar

INTERNATIONAL

• Global Textile Raw Material Price 13-12-2018
• Japanese capital pouring into textile, garments in Vietnam.
• Jordan PM lays foundation stone for Chinese textile unit
• More than 30 textile chemicals to be restricted in the EU
• Italian textile machinery on show at Irantex
• Vietnam and Greece expand economic cooperation

Retail inflation contracts to 2.3% in November; Industrial output zooms to 8.1% in Oct.

Retail inflation dipped further to 2.33 per cent in November while industrial output zoomed to over 8 per cent during October, according to government data released on Wednesday. Lower inflation means possibility of a policy rate cut. However, it is too early to predict a rate cut as the Monetary Policy Committee (MPC) is scheduled to review credit and monetary policy in February. At the same time, oil prices have bottomed out raising fear of a rebound which, in turn, will raise the inflationary expectations. However, the bad news is that food prices continue to be in a disinflationary mode and that could further aggravate rural distress.  A detailed analysis of retail inflation as represented by the Consumer Price Index (CPI) revealed that inflation for vegetable recorded at (-)15.59 per cent while that for pulses, sugar and eggs were 9.22 per cent, 9.02 per cent and 3.92 per cent (all in negative zone). All these took Consumer Food Price Index (CFPI) further into the negative territory (-2.33 per cent). Core consumer inflation was about 5.7 per cent in November, compared with roughly 6.1 per cent in October. Core inflation is the change in costs of goods and services, but does not include those from the volatile sectors such as food and energy.

Industrial output (IIP)

Industrial output was almost double that of a downwardly revised 4.47 per cent year-on-year increase in September. 21 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of October compared to the corresponding month of the previous year. The industry group ‘Manufacture of furniture’ has shown the highest positive growth of 41.0 per cent followed by 39.0 per cent in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ and 30.2 percent in ‘Manufacture of computer, electronic and optical products’. As per experts, the October growth was due to the base effect of 1.8 per cent recorded during corresponding period of previous year. In November 2017, growth was 8.8 per cent and in December 2017 it was 7.1 per cent. This will statistically put pressure on the growth rate this year, he said while adding that growth for the year as a whole could be in the range of 5-6 per cent. “The liquidity shortage witnessed in the system which should have affected the SMEs and auto sector has not had any impact this month. Therefore, it would be instructive to observe if November would reflect the same. Also, with the base effect kicking in the reverse, growth will be pressurised,”said the expert.

Source: The Hindu Business Line

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MEA stepped up efforts to address trade related issues of textiles industry: Smriti Irani

NEW DELHI: Textiles Minister Smriti Irani Thursday said the External Affairs Ministry has stepped up efforts to help the domestic industry facing trade-related challenges, including non-compliance of treaties by certain countries. While addressing a CII conference here, the minister said the domestic market also holds enormous potential for textiles industry. The minister said she has brought to notice of the External Affairs Ministry certain issues that the industry has raised with regards to challenges and non-compliance of treaties by some nations. "We have been extremely grateful that the MEA has also stepped up and put in its own efforts to bring resolutions for the industry," Irani said. She, however, did not elaborate. The minister also stressed that the government recognises the need to have a WTO-compliant structure where the industry can be supported by it. "...we are currently working on it but since Parliament is in session, I am not in a position to give an active comment on it," Irani said. On complaints regarding non-implementation of some decisions taken by the GST Council, Irani sought a paper from the industry so that the matter could be formally taken up with the Ministry of Finance.The minister further said the textiles industry, for too long, has been focussing on exports. The domestic market has huge potential, she said, adding the retail segment could be helped by new managerial skills.

Source: Economic Times

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India still in “middle class” in ease of doing biz: WEF chief.

World Economic Forum (WEF) founder and Executive Chairman Klaus Schwab said India is still in the “middle class” in ease of doing business and the country should work towards creating the necessary ecosystem to boost entrepreneurship. Speaking to reporters here, he said most jobs in the future will be self generated and the country should have an education system that is future-ready. “The education system has to be tailored to provide skills that we need tomorrow. The country also has to create the necessary ecosystem for all entrepreneurial activities,” he said. Schwab highlighted that it will be less, not-so-big companies which will provide jobs in the future and “to facilitate start-ups is absolutely essential”.

‘Far from perfect’

Talking about the ease of doing business, Schwab pointed out that in global competitiveness, India is ranked the 58th among 140 countries, which is five places up over 2017. “So, it’s far from being perfect. I also think the very important indicator is that how long it takes to create business and you have some places today where it takes half a day. India is still in the middle class here,” he added. Schwab said it is important for young entrepreneurs to be able to create companies faster because the jobs of the future will not be created by large companies. “It will be by young entrepreneurs who have the courage to create an enterprise,” he added. He further said that future richness of a country will not only be measured by the potential of its young generation, but data will also be a key factor. “India, which has began getting digital information of its 1.3 billion population, has special competitive advantage only matched by China,” said Schwab. Highlighting the need for more technological development, he said, the most innovative country will be the most competitive and ultimately the most wealthy and most powerful one in the future. “India has to make efforts to keep up, particularly with the US and China,” he said. Schwab said India will have to bring in an important message to ‘Davos 2019’, in a world which has many challenges, including polarisation. “India represents largest functioning democracy in the world and is one of the few countries which has a growth rate of over 7 per cent. It’s the fastest growing G20 country. It has a history of successful reforms and I expect a strong presence from India (in Davos 2019) and I hope India has a strong message despite the forthcoming elections,” he added. WEF organises a meeting of the global elite of business, finance, and politics in Davos, Switzerland, in January every year.

Source: Tecoya Trend

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TAI southern unit to host All India Textile Conference

Post a gap of 25 years, the southern unit of the Textile Association of India (TAI) is set to host All India Textile Conference in Coimbatore beginning December 15. The 74th edition of the two-day conference will be held on the theme - Global Textiles – The Way Forward. Further, the programme will focus on the spinning segment of the textile industry. "On this memorable occasion, we will be honouring R Jagadish Chandran, chairman, Premier Mills (P) Ltd with the Life Time Achievement Award and Sanjay Jayavardhanavelu, chairman and managing director of Lakshmi Machine Works with the Industrial Excellence Award for their contribution and service to the textile industry," a leading said quoting conference conveyor K Ramalingam. The event is scheduled to be organised in association with SIMA, Indian Texpreneurs Federation, Tamil Nadu Spinning Mills Association and Tiruppur Exporters’ Association. (RR)

Source: Fibre2fashion

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TEA upset over reduction in duty drawback rates on apparel.

The Tiruppur Exporters’ Association (TEA) is dismayed on the reduction of duty drawback rates on apparel items. In this revised list, government has reduced rates for value added readymade garments while improving rates for raw materials like cotton, yarn and fabrics. The rates have been lowered from 2 to 1.8 per cent for few and 1.9 per cent for others.  The new list has totally disappointed the knitwear garment sector in Tiruppur when they were expecting hike in the rates, said TEA in a representation made to the prime minister. The revision will not only affect the exports but will also strengthen the business of competing nations. Highlighting the plight of the apparel industry, TEA has asked the prime minister to initiate a consultative process with all stakeholders in the apparel manufacturing segment and arrive at means to compensate the exporters by increasing the drawback and ROSL rates so as to arrest the further fall in exports. It may be noted that the industry has been crying for an increase in the duty drawback rates because of the continuous negative growth being encountered post implementation of GST, said the letter urging the prime minister to look into the issue and help to revise the drawback rates upwards.  "When the raw material cotton and subsequent processed item cotton yarn drawback rates were enhanced, how can the value added garment sector and employment generator be neglected?" pointed out TEA president Raja M Shanmugham.India is already at a disadvantage with all its competing nations like Bangladesh, Cambodia, Myanmar, Ethiopia and Vietnam that enjoy tariff benefits with the western countries. Till July 2017, a portion of this competitiveness gap was being offset by the cushion made available through duty drawback and ROSL benefits. The elimination of this additional cushion has immediately shown its result whereby there is an unprecedented month on month fall in apparel exports for the past one year. "Your intervention in this regard will go a long way in not only preventing huge job losses in one of the biggest employing industry of the country but also realise its true potential of becoming the global leader in textile manufacturing," stated the letter.

Source: Fashion Network

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Rupee opens 33 paise up at 73.80 against dollar

NEW DELHI: The rupee on Friday opened 33 paise higher at 73.80 against the US dollar on account of some selling of American currency by banks and exporters. The local currency advanced 9 paise to end at 74.13 per dollar on Thursday after falling to a fresh lifetime low in intra-day trade amid a sharp selloff in global markets. According to Motilal Oswal Financial Services, rupee rose primarily on back of weakness in the greenback after US President Donald Trump criticised the Federal Reserve for raising rates aggressively. US president said that the Fed is making a big mistake and being too tight in its policy and that led a big correction in US equities. The Fed has raised interest rates three times this year and is largely expected to hike once more before year end. On the domestic front, government is expected to take further steps to increase import duties on various products to curb a ballooning current-account deficit and a falling rupee. On the other hand, RBI is also intervening to curb the volatility in the currency. In the recent past, RBI has changed its tack in its foreign exchange intervention policy, increasing its participation in the derivatives market in relation to the spot market in an apparent attempt to avoid a cash crunch in the banking system. “Today, USDINR pair is expected to open at 74.20(Oct) and quote in the range of 73.70 and 74.30,” Motilal Oswal Financial Services said in a report. Softening crude oil prices and the some weakness in dollar against other currencies provided support to rupee. In the international market, Brent crude price slipped from $84.98 on October 1 to $80.71 on October 12.

Source: Economic Times

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Global Textile Raw Material Price 13-12-2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14519 USD dtd. 13/12/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Japanese capital pouring into textile, garments in Vietnam.

Several Japanese companies, including Itochu and Sakai Amiori, are investing in expanding their stake in the Vietnamese textile and garments sector. In the first 11 months of this year, the sector’s export value was $30 billion and trade surplus surpassed $13 billion, according to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association.  The influx of such foreign direct investment is boosting the sector as well as turning Vietnam into a global manufacturing base.  Itochu bought an additional 10 per cent stake in Vietnam’s state-owned textile and garment conglomerate Vinatex some months ago, bringing its ownership to approximately 15 per cent. It is now Vinatex’s second-largest shareholder next to the ministry of industry and trade which, on behalf of the state, currently manages a 53 per cent stake, according to a report in a Vietnamese news portal. With Vietnam being the most recent country to have approved the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), its garment companies are trying their best to reap the benefits being offered by the agreement.  The Japanese group’s annual apparel exports from Vietnam are worth about $558 million, with about half of this produced by Vinatex. The company plans to boost processing volume and scale up its export value to $878 million by 2021. Sakai Amiori has around 30 plants in operation and has opened an export apparel production plant in Phu Ha industrial zone in the northern province of Phu Tho. The plant, completed in April 2017, now sees stable production and exports. Japan’s Matsuoka Corporation, which first set foot in Vietnam in 2014 and quickly expanded production to raise capacity six- to seven-fold through the Matsuoka Phu Tho plant that primarily manufactures apparel carrying the Uniqlo brand to be exported back to Japan.  The company has chosen Vietnam for capital injection and production expansion in recent years to take advantage of the opportunities anticipated to be brought by new-generation free trade agreements. After its first plant in 2016, the second plant began production in last August, with an annual capacity of about two million products.  Several Japanese companies, including Itochu and Sakai Amiori, are investing in expanding their stake in the Vietnamese textile and garments sector. In the first 11 months of this year, the sector’s export value was $30 billion and trade surplus surpassed $13 billion, according to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association. The influx of such foreign direct investment is boosting the sector as well as turning Vietnam into a global manufacturing base. Itochu bought an additional 10 per cent stake in Vietnam’s state-owned textile and garment conglomerate Vinatex some months ago, bringing its ownership to approximately 15 per cent. It is now Vinatex’s second-largest shareholder next to the ministry of industry and trade which, on behalf of the state, currently manages a 53 per cent stake, according to a report in a Vietnamese news portal. With Vietnam being the most recent country to have approved the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), its garment companies are trying their best to reap the benefits being offered by the agreement. The Japanese group’s annual apparel exports from Vietnam are worth about $558 million, with about half of this produced by Vinatex. The company plans to boost processing volume and scale up its export value to $878 million by 2021. Sakai Amiori has around 30 plants in operation and has opened an export apparel production plant in Phu Ha industrial zone in the northern province of Phu Tho. The plant, completed in April 2017, now sees stable production and exports. Japan’s Matsuoka Corporation, which first set foot in Vietnam in 2014 and quickly expanded production to raise capacity six- to seven-fold through the Matsuoka Phu Tho plant that primarily manufactures apparel carrying the Uniqlo brand to be exported back to Japan. The company has chosen Vietnam for capital injection and production expansion in recent years to take advantage of the opportunities anticipated to be brought by new-generation free trade agreements. After its first plant in 2016, the second plant began production in last August, with an annual capacity of about two million products. (DS)

Source: Fibre2fashion

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Jordan PM lays foundation stone for Chinese textile unit

Jordanian Prime Minister Omar Razzaz recently laid the foundation stone for a Chinese textile factory that will create hundreds of jobs in the country’s south. The factory, affiliated to the Jerash Holdings Company that started operations in Jordan since 2000, will initially create 500 jobs in the Al Hasa area. Later, around 1,000 jobs will be created. "The investment by Chinese investors shows their strong belief in the country and its economy," Razzaz was quoted as saying by a state-run news agency. Chinese ambassador to Jordan Pan Weifang promised his country’s commitment to offer grants and investments to Jordan. (DS)

Source: Fibre2fashion

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More than 30 textile chemicals to be restricted in the EU

The European textile industry has until December 2020 to comply to a new EU regulation restricting the use of 33 chemicals which are classified as carcinogenic, mutagenic or toxic for reproduction, including benzene, formaldehyde and heavy metals. These substances are either used to confer certain properties to textiles or remain in fabrics as a residue from the production process. The new maximum concentration limits apply to clothing, accessories, footwear and any textiles that come into contact with the human skin.

Source: Fashion United

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Italian textile machinery on show at Irantex

This year’s edition of Irantex, a comprehensive international trade fair for textile machinery and textile products that concluded in Tehran last week, featured a significant number of Italian textile machinery manufacturers. Among them 14 companies exhibited in the Italian Pavilion, the common area set up by the Italian Trade Agency and ACIMIT (the Association of Italian Textile Machinery Manufacturers). The following ACIMIT members companies were presenting their latest developments at the Italian Pavilion: Arioli, Caipo, Cognetex, Fadis, Ferraro, Fk Group, Laip, Lgl, Marzoli, Mesdan, Savio, Sicam, Smit, and Stalam. “Despite the concern for the restoration of international sanctions against the country, Iran remains a market of absolute importance for Italian textile machinery manufacturers,” commented Alessandro Zucchi, President of ACIMIT. “Irantex is a further opportunity to strengthen the links between the Iranian textiles industry and Italian technology suppliers. Indeed, the Italian textile machinery offer is already well-known by Iranian textiles companies. The value of Italian sales in 2017 – equal to EUR 45 million – is proof of this. In 2018 first half the Italian exports to Iranian market totalled a value of EUR 15 million.” ACIMIT represents an industrial sector comprising around 300 manufacturers employing close to 12,000 people and producing machinery for an overall value of about EUR 2.7 billion, with exports amounting to more than 85% of total sales.

Source: Knitting Industry

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Vietnam and Greece expand economic cooperation

The Ho Chi Minh City branch of Vietnam Chamber of Commerce and Industry yesterday  hosted the Vietnam - Greece trade exchange with the participation of 16 enterprises from Greece and many Vietnamese enterprises. Textile and garment are Vietnam's key export items to Greece. Statistics showed that despite the long-time establishment of the diplomatic relations and the two governments have been actively supporting each other at regional and international multilateral forums, however, the trade relations of the two countries still remained modest and has not optimized the potential cooperation. In 2017, the two- way trade turnover reached over US$ 300 million. Vietnam not only is becoming an attractive destination for foreign investors, including Greece but also has export advantage of agricultural products, textiles and footwear, etc. Meanwhile, Greece had a developed manufacturing industry, especially its shipping industry in the top of the world. In recent years, Vietnam has actively renovated the economy, improving the business investment environment as well as the legal system to attract foreign investors. In the coming times, the approval of European Union -Vietnam Free Trade Agreement (EVFTA) will contribute to setting the legal corridor and creating opportunities to promote trade relations between the two countries.

Source: SGGP News

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