The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19 DEC, 2018

NATIONAL

INTERNATIONAL

India trying to address textile trade-linked issues: Irani

The Indian external affairs ministry has intensified efforts to help the domestic industry facing trade-related challenges, textiles minister Smriti Irani recently said. She has intimated the ministry about certain issues related to challenges and non-compliance of treaties by some nations that the industry has raised, she said at a conference in New Delhi. The government recognises the need to have a World Trade Organisation-compliant structure, a news agency report quoted the minister as saying. The textiles industry has been focussing on exports for too long and the huge potential of the domestic market remains to be exploited, she added. (DS)

Source: Fibre2fashion

Back to top

High growth rate in manufacturing a doable challenge, says Niti Aayog CEO

New Delhi :  Niti Aayog CEO Amitabh Kant Tuesday said achieving double digit growth in the manufacturing sector on sustainable basis is a "doable challenge" but for that the country needs to integrate with global markets. Referring to the draft report of Department of Industrial Policy and Promotion (DIPP) on making India a USD 5 trillion economy by 2025, he said the plan envisages an annual GDP growth rate of 11.7 per cent. On sectoral basis, growth in the manufacturing gross value added has to be 14.6 per cent year after year, Kant said. "To my mind that's a challenge, but it is a doable challenge. We have to be extremely competitive and across chemicals, across automobile, across metals and that would require size and scale," he said at a CII event attended by industrialists. He said that if manufacturing sector has to grow at 14.6 per cent, then "you have to be a very integral part of the global supply chain" and it cannot be done without looking at global markets. As per the Central Statistics Office (CSO), the growth in the Gross Value Added (GVA) at basic prices for 2017-18 from 'manufacturing' sector was estimated to be 5.1 per cent as compared to growth of 7.9 per cent in 2016-17. "For too long, Indian manufacturing has been looking at domestic markets. One thing is very clear that all of us must realise is that the big bucks are out there in the global markets...therefore, penetrating global markets must be our challenge," Kant said. He said that no country in the world, may it be Japan or China, has grown without penetrating global markets. Kant urged the industry to create "2-3 global champions" which will lead India into penetrating the global markets. The Niti Aayog official further said he was going through various schemes of textiles ministry. The ministry has plethora of schemes which have grown over the years, he noted. "I think all of them need to go and we just need to have one simple scheme of creating plug and play world-class facility which will ensure that we make our industry competitive," Kant said.

Source: Fibre2fashion

Back to top

India must increase exports to SAARC countries: Minister

India is yet to realise its full potential of exports and cooperation with neighbouring countries like Bangladesh and Sri Lanka, said Union minister of commerce & industry at the forum in New Delhi. The minister urged to work closely with these countries who have managed to become a part of the global value chain in industries like textiles. In order to incentivise and encourage Indian companies to compete globally by improving their exports, the commerce ministry is working on various fronts like creation of new policies, improving Ease of Doing Business (EoDB), scrapping irrelevant regulations and formulating the concept of growth of GDP in every district of the country, said the minister at the inauguration of the ongoing National Forum organised by department of industrial policy & promotion (DIPP) and Confederation of Indian Industry (CII) where discussions are being held on India moving towards '$1 trillion manufacturing economy by 2025.'As the Indian economy continues its growth trajectory and strives to reach $5 trillion by 2025, the manufacturing sector is expected to play a key role by contributing $1 trillion to the overall target, requiring the sector to grow 2.5 times in next 7 years. The country needs to build further momentum and target at maximising local value add, creating scale, capturing global market share and fulfilling India’s job creation needs, explained the minister. The two-day forum highlighted issues that are restricting growth in the manufacturing sector, identify growth drivers and create the roadmap. The sectors shortlisted for the roadmap based on their contribution, size and potential are automotive, textiles, chemicals, electronics, capital goods, food processing and metals & mining. In addition, there will be a significant focus of this exercise on various horizontal pillars of manufacturing, including cost of doing business, EoDB and trade policy, technology and R&D, job creation and skilling. To further strengthen an integrated approach, DIPP with the CII in close association has initiated the exercise towards developing a roadmap for achieving $1 trillion manufacturing economy and has designed an action-oriented national level Workshop-cum-policy dialogue forum involving key manufacturing sectors. The inputs derived from the deliberations will make space in the actionable roadmap, which, as an outcome of the 2 days-workshop would be shared with the key nodal ministries, DIPP and PMO. (RR)

Source: Fibre2fashion

Back to top

PM Modi says most articles to be taxed at 18% or lower

Prime Minister Narendra Modi pledged a further rationalisation of the goods and services tax (GST) to ensure that items of regular use won’t face the top 28% rate.“All things related to common man will be 18% or below that… 99% articles will be 18% or below 18% rate,” he said, adding that GST should be made as simple and as convenient as possible. That could mean cement, marble, air conditioners, dishwashers and other items becoming cheaper. The proposal may be put up at the GST Council meeting on December 22. “I have already given my suggestion to the upcoming GST Council because that (rate) is decided by all the states together,” Modi said in his address at a function in Mumbai. Only 1% or 0.5% of luxury items will remain outside the 18% slab, PM said, flagging planes, expensive cars and cigarettes that will likely continue to be levied at 28%. There are about 40 broad categories of goods that are in the top GST slab. They include cement, marble, tyres, air conditioners, digital and video cameras, monitors and projectors and video games consoles. Modi said the GST system had by and large settled into place but the government will continue to make changes as required in the interests of the common man. “We have reached a point where 99% articles can be brought in the 18% or less than 18% bracket and we are progressing in that direction,” Modi said. Prior to the implementation of GST in July last year, registered enterprises numbered 6.6 million. That has risen to 12 million, Modi said. “Even developed countries find it difficult to implement small tax reforms,” he said, acknowledging the contribution of everyone in making the reform a success.

INSOLVENCY AND BANKRUPTCY CODE

The Insolvency and Bankruptcy Code (IBC) passed in 2016 has meant that promoters of companies that fail to repay loans are no longer able to get away scot free and are faced with the prospect of losing their assets. Previously, nothing used to happen to them, Modi said. “That is because since the start they had been given protection from probes by certain ‘special’ people,” he said. “Those who had taken loans from banks and… were sitting on thousands of crores of the country’s money,  such companies are on their own coming forward to return the money.” In just two years, defaulting companies have returned Rs 1.25 lakh crore to banks and debtors, a significant amount of which was owed to small suppliers and micro, small and medium enterprises (MSMEs). About Rs 3 lakh crore has been recovered through the insolvency law in past two years, Modi said, adding that the process was ongoing. The government is committed to ensuring that anyone who seeks to defraud banks of money will have no place to hide anywhere in the world. Vijay Mallya recently lost an extradition case in the UK while jewellers Nirav Modi and Mehul Choksi are overseas. All three are facing questioning over fraud and other allegations.

Source:  Economic Time

Back to top

Rupee logs best day in over 5 years, vaults 112 paise on crude slide

MUMBAI: The Indian rupee Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion. Besides, sustained selling of the American currency by exporters and banks as well as the greenback's weakness against its key rivals globally ahead of the US Fed policy decision Wednesday also helped the domestic unit scale further heights. The Brent crude, an international benchmark, was trading 2.26 per cent lower at USD 58.26 per barrel, a 14-month low. At the Interbank Foreign Exchange (forex) market, the rupee opened on a firm note at 71.34 from. It gained further ground to hit a high of 70.44, a massive climb of 112 paise over its previous closing. The Indian currency had gained 34 paise to close at 71.56 against the US dollar Monday.Forex dealers said a drop in bond yields easing liquidity concerns in the market and bullish trend in equities trading also supported the rupee in maintaining its upward movement. The benchmark Sensex Tuesday wiped off early losses to end 77 points higher at 36,347 Tuesday, the sixth consecutive session of gains. The broader NSE Nifty edged higher by over 20 points to end above the 10,900-mark.The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1940 and for rupee/euro at 80.7554. The reference rate for rupee/British pound was fixed at 89.8829 and for rupee/100 Japanese yen at 63.21.

Source: Economic Times

Back to top

Rupee may stay range-bound in near term

It was a volatile week for the Indian rupee. The sudden resignation of the RBI Governor, and a surprise defeat of the ruling government in State Assembly elections, kept the currency market volatile in the past week. The Indian rupee opened with a wide gap-down at 72.43 on Tuesday last week following the resignation of RBI Governor Urjit Patel. However, a strong recovery in the equity markets after the State Assembly election results, helped the rupee claw back from the low. The currency strengthened towards 71.51 on Thursday last, and reversed lower again to close at 71.55 on Monday, down 0.3 per cent for the week.

US Fed meet

The Indian rupee may remain stable in the first half of this week. However, volatility is likely to increase in the second half after the US Federal Reserve meeting. The outcome of the much-awaited Fed meeting will be known on Wednesday. A 25-basis-point hike in interest rate has already been factored in by the market. But what the Fed foresees for 2019 will be key to deciding the strength of the US dollar. If the Fed hints at a slowdown in the pace of rate-hike next year, the dollar may come under pressure. In such a scenario, the rupee may appreciate against the US dollar in the coming weeks. The US dollar index (97.32) has a key support in the 97.10-97 region and resistance in the 97.80-97.90 zone. A breakout on either side of 97 or 97.90 will determine the direction of the next move. A break below 97 will drag the index lower to 96. On the other hand, if the dollar index manages to breach 97.90 decisively, possibly after the Fed meeting, it can gain fresh momentum. Such a move will increase the possibility of the index rallying towards 99 or even 100 in the coming weeks. It will also increase the pressure on the Indian rupee. The Indian rupee may remain in a narrow range between 71.5 and 72 in the near term. The outcome of the Fed meeting on Wednesday may set the further direction of the move. A break above 71.5 can take the rupee higher to 71. The level of 71, the 21-day moving average, is a key short-term resistance. Inability to breach this hurdle can drag the rupee lower to 72 again. In such a scenario, a range-bound move between 71 and 72 can be seen for some time. But if the currency manages to rise past the 21-day moving average resistance, there is a strong likelihood of it strengthening towards 70 against the US dollar in the coming weeks. On the other hand, if the rupee declines below 71.5 in the coming days, it can fall initially to 72. A further break below 72 can drag the currency lower to 72.45 or even 73 again in the coming weeks.

Source: Business Line

Back to top

Welspun group targets Rs 1,000 cr sales from new flooring biz

NEW DELHI: Home textiles major Welspun is bullish on its new flooring venture to clock a turnover of Rs 1,000 crore in the next 3-4 years on the back of its new modular solutions, according to a senior company official. Welspun Flooring, an integrated and independent flooring vertical of the USD 2.3 billion Welspun Group, is looking to tap the potential of the renovation segment of the Rs 35,000-crore overall Indian tiles market. "Our target is to achieve a turnover of Rs 1,000 crore in the next three to four years," Welspun Flooring CEO Mukesh Savlani told PTI here. Commenting on distribution network plans, Savlani said:"We will have presence in 30 cities, from metros up to tier III, by March 2019. Currently we are in the process of appointing distributors." Further, he said from the middle of next year, Welspun Flooring will start exports to the US, Europe, Australia and southeast Asian countries. Bullish on the potential of the business, Savlani said:"The overall Indian tiles market is around Rs 35,000 crore per annum, of which 90 per cent is for new construction and 10 per cent is renovation. Our belief is that the renovation segment will grow significantly."Explaining why the segment will grow, he said while many aspects of home decor such as wall painting, curtains and interiors have changed over the years making it easier and less time consuming, flooring hasn't changed. "It is still considered as part of construction. What we are trying to do is change it with the concept of modular flooring. With our solutions we can do flooring in 5-8 hours or just one hour in cases of small offices," he added. Welspun Flooring will offer stone polymer composite luxury performance tiles, carpet tiles, wall to wall carpets and artificial grass to begin with. The company is in the process of setting up its Rs 1,150 crore manufacturing facility spread over 600 acre in Hyderabad, where it will produce items for residential, hospitality and commercial applications. "The plant will be operational by March next year," he said adding at present the company is in the pilot stage of marketing its products. The facility will have an initial capacity of 10 million square feet in the phase I and can be further upgraded as per requirement, he added.

Source: Economic Times

Back to top

Bombay Dyeing hits 5% upper circuit as firm decides to shut down subsidiary

The closure is expected to be completed by December 31, 2019, the company said in an exchange release. Shares of Bombay Dyeing & Mfg Company hit the upper circuit of 5 per cent after the textile company decided to shut down its loss-making Indonesian subsidiary PT Five Star Textile Indonesia (PTFS). The closure is expected to be completed by December 31, 2019, the company said in an exchange release. "This is to inform that as approved by the Board, the Company has given its consent by signing the Shareholder's Resolution of its subsidiary in Indonesia i.e. PT Five Star Textile Indonesia ("PTFS") on December, 2018 for closure of the same." the release said. "As already intimated that PTFS was incurring losses for many years hence; this is in line with the strategic move to close this subsidiary. We would also like to inform that all the financial risks related to this subsidiary have been provisioned in the past years reported financials," the company said. At 10:50, the stock was locked in at 5 per cent at Rs 115.10 on the BSE. Over 1.14 million shares traded so far on the National Stock Exchange (NSE) and BSE. In comparison, the S&P BSE Sensex was trading at 36,084, down 186 points or 0.5 per cent.

Source: Business Standard

Back to top

Global Textile Raw Material Price 18-12-2018

Item

Price

Unit

Fluctuation

Date

PSF

1308.63

USD/Ton

0.33%

12/18/2018

VSF

1992.65

USD/Ton

-0.07%

12/18/2018

ASF

2365.82

USD/Ton

0%

12/18/2018

Polyester POY

1270.95

USD/Ton

0%

12/18/2018

Nylon FDY

2753.48

USD/Ton

-0.52%

12/18/2018

40D Spandex

4782.36

USD/Ton

0%

12/18/2018

Nylon POY

2478.13

USD/Ton

0%

12/18/2018

Acrylic Top 3D

1456.45

USD/Ton

0%

12/18/2018

Polyester FDY

3115.78

USD/Ton

0%

12/18/2018

Nylon DTY

5463.48

USD/Ton

0%

12/18/2018

Viscose Long Filament

1525.28

USD/Ton

2.66%

12/18/2018

Polyester DTY

2623.05

USD/Ton

-0.55%

12/18/2018

30S Spun Rayon Yarn

2695.51

USD/Ton

0%

12/18/2018

32S Polyester Yarn

1956.42

USD/Ton

0.37%

12/18/2018

45S T/C Yarn

2883.91

USD/Ton

0%

12/18/2018

40S Rayon Yarn

2507.12

USD/Ton

-0.57%

12/18/2018

T/R Yarn 65/35 32S

2101.34

USD/Ton

0%

12/18/2018

45S Polyester Yarn

2478.13

USD/Ton

0%

12/18/2018

T/C Yarn 65/35 32S

2999.84

USD/Ton

0%

12/18/2018

10S Denim Fabric

1.34

USD/Meter

-0.11%

12/18/2018

32S Twill Fabric

0.81

USD/Meter

-0.18%

12/18/2018

40S Combed Poplin

1.14

USD/Meter

-0.13%

12/18/2018

30S Rayon Fabric

0.64

USD/Meter

-0.23%

12/18/2018

45S T/C Fabric

0.69

USD/Meter

0%

12/18/2018

Source : Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14492 USD dtd. 18/12/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Pakistan : Textile exports remain flat at $5.5 billion in five months

KARACHI: Textile exports remained flat at $5.506 billion during the first five months of the current fiscal year of 2018/19 as the value-added sector couldn’t perform up to the mark despite constant rupee devaluation against the US dollar. Pakistan Bureau of Statistics (PBS) data on Monday showed that knitwear was the only product in the textile sector that saw a double-digit growth in exports in the July-November period. Knitwear exports increased 10.58 percent to $1.214 billion in the first five months over the corresponding period a year earlier. Exports of readymade garments inched up 0.3 percent to $1.022 billion in the first five months of the current fiscal year. Bedwear exports were up around two percent to $966.007 million during the period under review. Ehsan Malik, chief executive officer of Pakistan Business Council said the flat growth might be attributed to the lagged impact of rupee devaluation. Rupee has lost a quarter of its value against the US dollar since December last year. The latest major spell of devaluation occurred in October when the local currency plunged as much as seven percent against dollar. “New season may see some recovery,” Malik said, referring to spring and summer sales in the western markets. In July-November, towel exports fell 2.24 percent to $314.576 million. Exports of made-up articles, however, rose around two percent to $285.100 million during the period under review. Raw cotton exports witnessed a significant drop of 73 percent to $13.773 million. Total exports, during the five months, amounted to $9.119 billion, up 1.29 percent year-on-year. In November, textile sector’s exports stood at $1.1 billion, down two percent year-on-year and falling three percent month-on-month. PBS data showed that food exports increased 1.27 percent to $1.514 billion in the first five months period. Rice exports decreased around six percent to $614.193 million despite a 24 percent jump in exports of flagship rice brand Basmati. Exports of leather goods, carpets and rugs remained almost flat at $1.422 billion in the July-November period. PBS data further showed that imports of petroleum, oil and lubricants soared around 18 percent to $6.534 billion during the period under review. All other major import groups saw decrease in import bills as the regulatory duties on non-essential merchandises teed off a slide in inbound shipments. In July-November, imports of machinery plunged around 18 percent to $3.729 billion with significant decreases of 53 percent and 29 percent witnessed in imports of power generation machinery and construction and mining machinery, respectively. Food imports slid 9.3 percent to $2.468 billion in the July-November period. Transport group’s imports fell 22 percent to $1.283 billion. Total imports, during the period, amounted to $23.632 billion, down one percent year-on-year.

Source: International The News

Back to top

Nigeria : Textile manufacturers target massive fabric production to revive industry

The Nigerian Textile Manufacturers Association (NTMA) has set a 1.7-billion metre finished fabric production sector target for 2019 to resuscitate the industry and increase its contribution to the nation’s gross domestic product. Mr Hamma Kwajaffa, Director-General of NTMA made the disclosure in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos. He said the association also set a target to capture a short to long-term local market share of between 35 to 70 per cent in finished fabrics, and 100 per cent off take of locally produced raw cotton. Kwajaffa said commensurate investments to achieve the set target would be generated, adding that idle production lines in existing factories would start operating toward boosting production and restoring the sector’s waning position. According to him, enablers required from government to shore up its present 500 million metres per annum finished fabric production to its set targets are: infrastructure support, fiscal incentives, financing, anti-smuggling and regulatory. “VAT exemption on locally produced textiles for five years to improve competitiveness, and existing Common External Tariff (CET) policy should be sustained without individual based waivers. “Plant and machinery should be exempted from customs duty and VAT for five years, zero duty on importation of dyestuff and chemicals, packaging materials and spare parts for textile industry for five years,” he said. He advocated that gas pipelines be extended to the North considering the concentration of mills there, adding that low pour fuel oil (LPFO) should be supplied at concessionary price until gas pipelines were extended to the region. Kwajaffa urged government to harmonise power tariff for textile mills from DISCOs across the country and consider supply of power to textile manufacturers at globally competitive tariff of eight US cents per kilowatt. The NTMA boss called for market assistance for garment producers to gain access and leverage the United States market under the African Growth and Opportunity Act (AGOA) and capacity building for textile industry operators. He urged the government to enforce compliance with local sourcing of uniforms and other textile goods in line with Executive Order 3, and extant law should be made punitive to recognise smuggling as a criminal economic offence. Kwajaffa noted that implementing this strategies would assist the industry create more employment, wealth and contribute to economic growth as it did in the past. (NAN)

Source: Vanguarding

Back to top

Myanmar groups ask EU not to scrap trade privileges

The Union of Myanmar Federation of the Chambers of Commerce (UMFCCI) and two trade unions have appealed to the EU to continue granting the country the Generalized Scheme of Preferences (GSP), while pledging support and cooperation on human and labor rights, The Myanmar Times reported on December 17. EU Trade Commissioner Cecilia Malmström on October 3 announced that the EU was considering ending Myanmar’s trade privileges due to human rights violations against the Rohingya in northern Rakhine State. According to the Myanmar daily, the UMFCCI, the Confederation of Trade Unions of Myanmar and the Myanmar Industries, Craft and Services, Trade Unions Federation released a joint statement saying that such “drastic action” taken by EU would only make things worse for the existing labor market, which they say is “fragile and under-developed.” Revoking Myanmar’s Everything But Arms (EBA) scheme, part of the bloc’s GSP, would lead to “catastrophic economic and social consequences,” destroy the livelihood of “grassroots workers” and derail Myanmar’s “ongoing journey towards decent work and industrial peace,” the statement said. Myanmar’s garment industry, which employs 300,000 workers and generates exports of US$3 billion every year, would be severely affected if EU trade privileges were withdrawn. Garments are now Myanmar’s second largest export item. In 2017, 72.2% of Myanmar’s exports consisted of textiles and the EU was the third largest export market for textiles, absorbing about 8.8% of Myanmar’s total exports last year.

Source: Asia Times

Back to top

As trade war bites, China advisers recommend lowering 2019 growth target

BEIJING (Reuters) - China should lower next year’s growth target to 6.0-6.5 percent as headwinds including a trade dispute with the United States increases risks for the economy, according to government advisers’ recommendations to top leaders who will meet to map out the 2019 economic agenda. This week’s annual Central Economic Work Conference, a closed-door gathering of top party leaders and policymakers, is being watched by investors for any fresh policy steps to ward off a sharper slowdown in the world’s second-largest economy. The economic conference is likely to convene on Wednesday, two policy insiders said, a day after an event marking the 40th anniversary of China’s reform and opening up, where President Xi Jinping is due to make what the official Xinhua news agency described as an “important” speech. The meeting will not result in any public announcement of economic targets, which are usually reserved for the opening of the parliamentary session in early March. China’s trade war with the United States is spurring some Chinese entrepreneurs, government advisers and think tanks to call for faster economic reforms and the freeing up of a private sector stifled by state controls. Government advisers and think tanks, which are influential in the decision-making process but aren’t empowered to execute policies, have recommended a growth target of 6.0-6.5 percent for 2019, versus around 6.5 percent in 2018. “Next year’s growth target could be 6.0-6.5 percent as the economy is likely to slow from this year,” a policy insider who advises the government, said on condition of anonymity. The Chinese Academy of Social Science, a top government think tank, has forecast growth to slow to 6.3 percent in 2019 - which would be the weakest since 1990, from an estimated 6.6 percent in 2018. Some advisers suggested the government should be more tolerant of weaker growth, pushing reforms and avoiding strong policy stimulus that could worsen the country’s debt problems. Still, a growth rate of 6.0 percent for next year is seen as the bottom line, amid concerns about employment due to pressures on the economy both domestically and on the external front. “The economy is expected to slow next year, but the situation won’t be very serious if we can manage it well, because room for expanding domestic demand is relatively big,” said one adviser. The State Council Information Office did not immediately respond to Reuters’ request for comment.

POLICY SUPPORT

Last week, a meeting of the politburo - a top decision-making body of the ruling Communist Party - pledged to keep China’s economic growth within a “reasonable range” next year. Growth in Asia’s powerhouse economy slowed to 6.5 percent in the third quarter, the weakest pace since the global financial crisis. Indications are that momentum is likely to come off further in the current quarter and next year, with data last week showing surprising softness in November factory output and retail sales. Although full-year growth is expected to come just above 6.5 percent in 2018, government officials and China watchers have already warned of greater risks to the economy next year from trade frictions with the United States. China’s monetary conditions should be relatively easy to support its slowing economy but policy cannot be too loose as falls in domestic interest rates could hit the local currency, central bank chief Yi Gang said last week. The central bank is likely to deliver more cuts in banks' reserve requirement ratios, to add to the four reductions this year, but it may not rush to cut benchmark interest rates that could hurt the yuan CNY=CFXS, policy insiders said. The government has pledged to cut taxes more aggressively next year, spurring a debate among Chinese economists on whether Beijing should expand its fiscal deficit ratio beyond 3 percent next year.

Source: Reuters

Back to top

HKTDC Lifestyle Expo to foster Hong Kong-India cooperation

Fostering Hong Kong-India cooperation, the Hong Kong Trade Development Council (HKTDC) Lifestyle Expo will create new partnership opportunities by capturing the robust demand for trendy lifestyle products. The two-day expo scheduled to kick-start from December 19 will connect suppliers from Hong Kong and Mainland China with buyers from India and South Asia. Jointly organised by the Hong Kong Trade Development Council (HKTDC) and the Trade Development Bureau of Ministry of Commerce of the People’s Republic of China, the expo will showcase a wide range of high-quality stylish items from about 140 Hong Kong and mainland exhibitors, including household appliances, fashion and fashion accessories, consumer electronics and electric parts, as well as gifts and premiums. The Lifestyle Expo in Mumbai will provide an ideal platform for regional buyers from India and South Asia to take advantage of customize done-on-one business-matching services, helping them to connect with exhibitors from Hong Kong and Mainland China, HKTDC said in a press release. During the international expo, approximately 2,000 importers, distributors, mass retailers, mail-order houses, department stores and specialty stores from India and surrounding subcontinent countries, including Sri Lanka, Bangladesh, Bhutan and Nepal, are expected to attend. The event will also feature one-on-one business-matching service, frequent buyer award, networking events and seminars. Highlighting Hong Kong’s position as Asia’s lifestyle trendsetter, the Lifestyle Expo is among the HKTDC’s signature international promotional events that have a successful track record in fostering trade between companies from Hong Kong and emerging markets worldwide, including Russia, Poland, Turkey, India, Indonesia and UAE. In Hong Kong, the HKTDC organises more than 30 international fairs, attracting more than 11,000 buyers to source a wide variety of products in 2018. In addition to the main expo, products will be spotlighted at the hktdc.com Small Orders showcase, where buyers can place orders of between five and 1,000 pieces. (RR)

Source: Fibre2Fashion

Back to top

Pakistan: Competitiveness crisis continues to weave havoc through textiles

LAHORE: Though the government has resolved the gas price disparity between five exporting sectors operating in Punjab and other regions of the country, the disparity still exists as gas prices for the most populous province are in dollars, while the rest pay in rupee. Punjab textile sector and the federal government after lengthy negotiations agreed that the gas tariff for all provinces in the country would be brought at par. The official gas tariff for Sindh, Khyber Pakhtunkhwa, and Balochistan at that time was Rs650 per unit (mmBtu). This amount at the time of negotiation was equivalent to $6.50 at the value of dollar at the time of negotiation. Both agreed that Punjab-based five exporting sectors would be charged $6.50 per mmBtu. This was a big relief as Punjab industries were paying Rs1350 per mmBtu for the imported regasified liquefied natural gas (RLNG) that they were using. The federal government agreed to provide Rs44 billion subsidy per year to rationalise gas prices. The government has since released a subsidy of Rs2.5 billion for this purpose. However the gas price disparity between Punjab and other provinces still exists because of sharp decline in the value of rupee against the dollar. The price has shot up from Rs650 to Rs910 as the current dollar rate is Rs140. This is much higher than what entrepreneurs in other province pay for gas. The price officially is Rs650/mmBtu but the entrepreneurs in these provinces have obtained stay order against Gas Development Surcharge and increase in gas tariff from high courts and for several years are paying Rs480/mmBtu. This disparity has again placed Punjab-based industries at disadvantage against their peers operating from other parts of the country. The textile sector after the acceptance of its demand on bringing the gas and power rates at par with regional rates are now hard-pressed to deliver on their promise to increase exports; but they face another dilemma which is that of declining crude oil rates. After the decline in crude oil rates from $65 to $50 a barrel the competing economies are set to bring down energy and petroleum products rates. The Punjab-based industries would however continue to get gas at $6.50 per unit irrespective of crude oil rates. That would again place them at a disadvantage against regional competitors and industries established in other province where they pay unchanged price in rupee that is constantly declining. Pakistani exports have not picked up in recent months despite high devaluation of rupee. The exports in fact declined in the month of November 2018 by over 6 percent compared with exports achieved in November 2017. The exports are unlikely to surge under the current circumstances. The decline in energy and power rates at best could stem the decline but are unlikely to boost much needed exports. There is gloom is global textile market. The perception of the country has also not improved and there are reports some US importers are reluctant to place repeat orders with Pakistani exporters probably under the influence of lobbying by forces that be. The domestic mills consume only 75 percent of yarn and fabric produced in the country while the remaining quantity has to be exported. If the mills throw this exportable surplus in the domestic market for sales then the market crashes to very low prices due to supply glut. They have to produce carefully so as not to create surplus in the market. Exports of yarn are constantly on decline, while the fabric exports are stagnant, making life difficult for the basic textile sector. The industry badly needs technology upgrade but the textile crisis in the country occurred at a time when the third generations of textile entrepreneurs were joining their family business. Many of them got disgusted with the turmoil that prevailed in the textile sector for seven years. They do not want to invest in textiles and are looking for other businesses. Real estate has fascinated them because they earned much more than in it during the last seven years than textiles. The sector would be doomed its technology is not immediately upgraded. Moreover textile sector is in another fix as it has to import 30 percent of its basic input that have become costly after the devaluation of rupee. The industry fulfills 30 percent of its cotton needs through imports and also imports polyester fiber because of short production of both cotton and manmade fiber. They have to bear high incidental charges like custom duty, advance income tax and other levies that further increase their cost. They want the incidentals waived for commodities that are short in Pakistan.

Source: International News

Back to top

Textile recycling beginning in Cartier

Cartier residents will soon be able to drop off unwanted clothing items at Diabetes Canada textile collection bins in their neighbourhoods. The RM of Cartier council recently agreed to join a Diabetes Canada and York University program aimed at diverting textile waste from landfill sites. Metal collection bins will be placed at the Elie recycling depot and Community Club; St. Eustache recycling depot; Springstein kiosk; Lido Plage recycling depot; and Cartier landfill site this month or in January. York University will be gathering data on the quantities of textiles that are generated and recovered as local residents recycle their textiles for Canada’s first national study to identify the economic, environmental and social impacts of textile diversion for municipalities. “We’re really grateful; that Cartier is partnering with us,” said Diabetes Canada’s national manager for government and strategic partnerships Simon Langer.

Source: Winnipeg Free Press

Back to top

Training grants available for young textile technicians

Funding is now available for businesses to train their young textile technicians across the UK, as part of UKFT’s mission to raise the skills and productivity of the people who work in the fashion and textiles industry to the highest level. UK Fashion & Textile Association (UKFT) has secured support from The Worshipful Company of Weavers and The Worshipful Company of Drapers to match-fund 50% of the costs of in-depth training for young textile technicians, predominantly in weaving positions. UKFT has secured support from The Worshipful Company of Weavers and The Worshipful Company of Drapers to match-fund 50% of the costs. UKFTAs companies invest in new textile technology, the requirement for highly-skilled textile technicians have never been more important, but this type of in-depth training is not currently available in the UK, the association reports. “Training is carried out by machinery builders at overseas training schools and due to its specialised nature, is extremely expensive.” The new scheme builds on the success of other match-funded technician training programmes and opens the initiative to companies across the UK. It is open to textile technicians under the age of 30 and businesses can apply to UKFT from the start of 2019. “This type of training is a critical way of ensuring that the UK textile sector remains competitive against global competition. It is great news that employers across the UK can now access funding to train textile technicians to allow the industry to capitalise on all the opportunities that exist for further growth,” said Martin Jenkins, Project Manager at UKFT. “UKFT is deeply grateful to Weavers’ and Drapers’ Companies for their support in upskilling the textile technicians of the future.”

Source: Innovation

Back to top

Fulgar shows eco-sustainable fabrics at Textile Evolution

Fulgar showed its eco-sustainable creations resulting from collaborations with brands that are ambassadors of excellence at the Textile Evolution expo, which was held from November 16-18, 2018, in Milan, Italy. Fulgar is a leader in the man-made fibre market with the production of polyamide 6.6 and covered elastomers in the textile and technical sector. The Textile Evolution exhibition, with almost two thousand registered visitors during the thirteen days of the event, which for the first time hosted the best of Italian technical fabric production. Its aim was to highlight the relationship that exists in Italy’s textile industry between research, creativity in design, sustainability and technology. Visitors to Textile Evolution could admire outerwear from urban-sportswear brand Sease, made in the innovative sunrise fabric using bio-based Evo by Fulgar yarn, sports garments by Cifra combining the use of Evo with the exclusive patented WKS technology, the prestigious ecological lace by Iluna containing recycled Q-NOVA fibre for lingerie. Other applications and items were from the ‘The Sustainable Kit’ collection by eco-designer Tiziano Guardini, made with Fulgar’s range of eco yarns and launched at the MFW2018, according to Fulgar. Alongside the finished garments, an exciting display presented a close-up experience of Fulgar’s eco- sustainable yarns - Evo, a yarn made from castor oil, a totally-renewable plant not intended as a food resource, and Q-Nova, a fibre made exclusively from regenerated raw materials without the use of chemicals. Textile Evolution also hosted the presentation of Luminescente, the innovative experimental technology developed by company’s R&D labs that enables the creation of garments and accessories that are also visible in the dark, a feature made possible by the use of natural minerals incorporated in a 6.6 polyamide yarn that can store light and fluoresce in conditions of total or partial darkness. Fulgar also made a contribution to the ‘Textile Sustainability – the brands describe themselves’ debate during the national convention on November 23, 2018, alongside the show, organised by AICTC (Italian Association of Textile and Dyeing Chemistry). The contribution made by Alan Garosi, marketing manager Fulgar, entitled ‘Biosynthetics, a new generation of man-made fibres: from plant to nylon’ examined the value of new eco-sustainable fibres like the versatile, innovative Evo fibre, a bio-based product made from castor oil plants. (GK)

Source:  Fibre2fashion

Back to top