India is preparing a specific strategy for exports to each geography as part of plans to make 2019 a year when outward shipments would start driving the country’s overall economic growth, Commerce and Industry Minister Suresh Prabhu has said. The minister said India’s exports performance has been “extremely good” in the past 14 months, but he is not fully satisfied as yet and the plans for 2019 also include a special focus on boosting shipments to the African continent and Latin America given huge growth potential there. He said the Indian exports are growing at a time when the global trade is witnessing worst ever headwinds, countries are fighting at import duty front and there is increasing protectionism and slowdown in demand. “(But) I am not fully satisfied. I want exports to drive India’s growth. To do that, the situation is very challenging as each country is trying to put their own borders,” Prabhu told PTI in an interview. Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion. Experts have cautioned that growing trade tensions between the US and China could impact the global trade growth. Imposition of high import duties by the US this year on certain steel and aluminium products have triggered a trade war kind of situation. The World Trade Organisation (WTO) too has stated that escalating trade tensions and tighter credit market conditions in important markets will slow trade growth in 2019. “In 2019, we would like to ensure that all measures that we initiated earlier and the new measures get consolidated and 2019 should be a new year for exports. So I am preparing a strategy. For each of the geographies, we will prepare a specific strategy,” Prabhu said. Elaborating on his plans, the minister said African continent holds huge potential for domestic exporters and there is a need to significantly boost shipments to that region. Prabhu said his ministry is in process of creating a template for some kind of a free trade agreement with Africa which will take into account the overall difference of level of growth of that continent and the country specific profiles. Similar plans are there for other regions as well, including for Latin America, he said. Central America, South East Asia, Central Asia and South Asia hold huge potential for domestic exporters, but “our performance is at sub-optimal level” in these regions, he added. Emphasised on the need to promote value added exports, Prabhu said his ministry is trying to bring Japanese and Korean companies on board to increase outbound shipments of marine products. He also hoped that the recently announced agri-export policy will help boost exports from the sector to USD 60 billion in the next five years and USD 100 billion in the next 10 years. “This is doable because we are the largest producers of milk and the second largest producer of fruits and vegetables,” he said. The ministry would be drawing a strategy to promote shipments of five categories — plantation crops, meat, fisheries, agriculture and horticulture, he added. For this, the minister will be meeting all plantation boards, farmers associations and organisations and discuss issues related to every segment. “We are asking states for product-specific clusters. For example, in Jalgaon (Maharashtra) we are promoting cluster for bananas, and for grapes in Nashik,” he said. The ministry is also preparing an incentive package for labour-intensive sectors like leather to address issues faced by exporters. “We are preparing a package which will ensure that exporters’ woes are addressed properly. There have been challenges for the export sector over a period of time and one big challenge is credit,” he said. The ministry is also looking at the quality of goods being exported by India as foreign firms are keeping a special tab on this. Further, Prabhu said as India is one of the major exporter of services like IT and ITeS, the ministry’s strategy will have elements to promote services exports also. The government has approved an action plan for 12 champion services sectors, including IT, tourism and hospitality, for realising their potential through the establishment of a Rs 5,000 crore dedicated fund. Commenting on the growth prospects next year, exporters said the government needs to focus on areas like a timely refund of Goods and Services tax; adequate availability of affordable credit; extending export duty benefits to more areas like seeds; and interest subsidy to merchant exporters. “If the government will take all these steps in the coming months, we can register 20 per cent growth in exports,” the Federation of Indian Exports Organisation (FIEO) President Ganesh Kumar Gupta said. Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.
Source: Financial Express
Total textile and apparel exports from India increased by seven per cent to ₹1600.10 billion in April to November 2018, compared to exports of ₹1492.54 billion in the corresponding period of last fiscal, according to data compiled by the Union ministry of textiles. In dollar terms, however, exports remained flat at $23.18 billion during the same period. India’s textile and garment exports growth moderated in November 2018, after a sharp 38 per cent jump in October, due to a sharp volatility in the rupee-dollar exchange rate. During the month, textile and clothing exports earned ₹189.65 billion, as against ₹167.07 billion fetched in the corresponding month of 2017, as per data compiled by the Union ministry of textiles. In dollar terms, exports were $2.64 billion, an increase of 2 per cent over $2.57 billion in same month last year. Segment-wise, textile exports rose 9 per cent to ₹108.53 billion in November 2018, compared to ₹99.87 billion in the corresponding month of the last year. While apparel exports jumped by 21 per cent to ₹81.12 billion in November 2018 from ₹67.20 billion in November 2017. In fiscal 2017-18, India’s textile and clothing exports totalled $35.666 billion with garments accounting for $16.705 billion, cotton textiles $11.190 billion, and man-made textiles $5.388 billion. (RKS)
Source: Fibre2fashion
Jaitley’s statement on his blog indicates the government’s willingness to embrace the idea of a simpler GST structure with benign rates as most analysts expected, but also signals that the process would take a few years. In ‘some reasonable time’ the Goods and Services Tax (GST) would principally have a two-rate structure, with the standard rate between 12% and 18% and a merit rate of 5% for scores of items of mass consumption, along with a list of exempted (nil rate) items, finance minister Arun Jaitley said on Monday. Of course, a handful of ‘luxury and sin goods’ will attract a higher rate. Reiterating that the 28% slab is ‘dying’, he said in the ongoing efforts at rate rationalisation “our next priority will be to transfer cement into a lower slab”. Arguing that GST revenue position isn’t disappointing as it is made out to be, the minister said the targets set for the states were ‘unprecedently high’ and so ‘almost unachievable’. Jaitley’s statement on his blog indicates the government’s willingness to embrace the idea of a simpler GST structure with benign rates as most analysts expected, but also signals that the process would take a few years. Of the 1,216 commodities which are used, broadly 183 are now taxed at zero rate, 308 at 5%, 178 at 12% and 517 at 18%. Barring tobacco products, luxury vehicles, molasses, air-conditioners, aerated water, large TVs, and dish washers, all 28 items have been transferred from 28% slab to 18% and 12% slabs. Only cement and auto parts are items of common use which remain in 28% slab. Recalling that tax incidence on some 235 items were 31% or higher during the UPA regime, Jaitley said substantial rate reductions — in monetary terms amounting to about Rs 80,000 crore a year — have already taken place from that levels in the UPA period.” “Notwithstanding the substantial tax reduction, the GST collection in the first six months of this year has shown a significant improvement as compared to the first year. The average monthly tax collected in the first year was Rs 89,700 crore compared to Rs 97,100 crore per month in the second year,” Jaitley wrote. Explaining why the states’ GST targets (14% guaranteed over 2015-16 base) were too high, the minister said: “Thus, even when 18 months have not been finished since the launch of GST, on this day every state has a target of improving its revenue with three 14% increases compounded annually over the base year of 2015-16. This is close to a 50% being reached in the second year itself. It is almost an unachievable target. Yet, six states have already achieved it, another seven are within a striking distance of achieving it and only 18 are still more than 10% away from achieving it.” While a panel headed by former chief economic adviser Arvind Subramanian, which had estimated a revenue-neutral rate (RNR) of 15-15.5%, had suggested a range of ‘standard’ tax rate of 17-18 per cent for bulk of goods and services, while recommending 12% for ‘low rate goods’ and 40% for demerit goods like luxury car, aerated beverages, pan masala and tobacco. Recently, Subramanian said that structure could be even simpler and Jaitley’s blog corroborates this view.
Source: Financial Express
A group of state finance ministers might recommend raising the turnover threshold for the goods and services tax (GST) from the current Rs 20 lakh to Rs 75 lakh, in a move that would give lakhs of micro and small enterprises the option to be outside the ambit of GST. Sushil Kumar Modi, deputy chief minister of Bihar, who is a member of the group, told FE that a proposal to raise the exemption threshold was found to be more practical than tax refunds in providing relief to MSMEs. Modi, who holds the finance portfolio in the state and has been a key member of many GST-related panels over the last two-three years, also said a composition scheme similar to existing ones for traders and manufacturers could be made available for small services providers. The annual revenue limit for the scheme could be between Rs 50 lakh and Rs 1 crore. However, the higher overall GST threshold might not dramatically reduce the number of GST registrants, 1.2 crore at last count. Nor would it impact the government’s revenue in any significant manner. While a quarter of the firms registered with the GST Network (GSTN) have turnover between Rs 20 lakh and Rs 1 crore, their share in the government’s GST revenue mop-up is just 5%. Even as the mandatory lower limit for a firm to register for GST is Rs 20 lakh, more than half of the firms registered are those with turnover below that level. Though these sub-Rs 10 lakh firms contribute just 1.5% of the GST revenue, they prefer to be in the tax chain for the benefit of input tax credit and to keep large businesses (which are in the GST chain) as their buyers. The panel headed by minister of state for finance Shiv Pratap Shukla was formed in August to suggest ways to make GST less burdensome for small firms. Although some states had proposed that MSMEs be refunded a portion of taxes paid by them, the group, Modi said, found the approach impractical. A better solution was to restore exemptions enjoyed by some of these companies in the pre-GST regime. GoM for raising GST threshold to Rs 75 lakh The excise duty threshold was Rs 1.5 crore turnover, while units with annual turnover of up to Rs 10 lakh were in the service tax net. As for the state VAT, the entry threshold varied among states in the Rs 5 lakh-20 lakh range. According to Modi, the composition scheme for small services providers could have revenue threshold between Rs 50 lakh and Rs 1 crore. The scheme, which provides for nominal tax rate without input tax credit is currently operational for traders and manufacturers with annual turnover of below Rs 1.5 crore. The GST Council had previously disagreed on bringing the scheme for the services sector because the value addition in the industry could be large in some cases compared with manufacturing or trading. Taxing the services providers at nominal rate, it was feared, would result in foregoing significant amount of revenue. “We need a better system for, say, a beauty parlour operator who runs a small business but finds 18% GST and related compliance cost prohibitive,” Modi said. Union finance minister Arun Jaitley last week had said the reluctance of small services providers in joining GST was one of the reasons for lower-than-expected growth in GST collections. Modi, who heads the group of ministers that examined the option of raising revenue for flood relief in Kerala via a cess, said the group reached a consensus that the affected state should be allowed to levy a higher SGST to generate the extra revenue for relief and reconstruction. However, a pan-India cess might not be favoured by the group as it could face dissent from some states, he said. The larger issue of generating funds under National Disaster Relief Fund, after the National Calamity Contingent Duty (NCCD) was subsumed under GST, would be left for the 15th Finance Commission which would submit its report late next year, Modi said. He added that the Finance Commission, rather than the GST Council, would be best placed to decide if the compensation for states for GST revenue shortfall could be extended by three years to 2025. “I personally believe that shortfall currently experienced by states would disappear in 3-4 years as was the case when states introduced VAT. However, to assuage states’ fears, it could be best left to the Finance Commission to make that recommendation (on extending the compensation period),” Modi said. On the remarkable decline in Bihar’s GST deficit, which came down to 20% in April-November period compared to 38% in August 2017-March 18 period, Modi said that earlier the GSTN software system was not able to allocate the deserved IGST portion to the state due to some glitch.
Source: Financial Express
Indian officials will hold bilateral meetings with a few countries, including China and some ASEAN members, in the coming days to iron out issues hindering negotiations of RCEP mega trade deal, an official said. The Regional Comprehensive Economic Partnership (RCEP) is a mega free trade agreement, which aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights. After the bilateral meetings, the RCEP members will meet for the 25th round of negotiations in mid-February in Indonesia, the official added. RCEP bloc comprises 10 ASEAN members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners - India, China, Japan, South Korea, Australia and New Zealand. The main issues that needs resolution include number of goods on which import duties should be completely eliminated and norms to relax services trade. RCEP members want India to eliminate or significantly reduce customs duties on maximum number of goods it traded globally. India’s huge domestic market provides immense opportunity of exports for the member countries. However, lower level of ambitions in services and investments, a key area of interest for India, does not augur well for the agreement that seeks to be comprehensive in nature. Under services, India wants greater market access for its professionals in the proposed agreement. Trade experts have warned that India should negotiate the agreement carefully, as it has trade deficit with as many as 10 RCEP members, including China, South Korea and Australia, among others. “India should not try to negotiate trade offs between goods and services as it may prove counter-productive in the long run. Trade off should be negotiated either between goods or between services,” an expert, who did not wish to be named, said. India wants to have a balanced RECP trade agreement as it would cover 40 per cent of the global GDP and over 42 per cent of the world’s population. India already has a free trade pact with Association of South East Asian Nations (ASEAN), Japan and South Korea. It is also negotiating a similar agreement with Australia and New Zealand but has no such plans for China.
Source: Business Line
The rupee was trading at 69.79 to the dollar at 11.43 am. It hit a low of 70.06 and a high of 69.75 in the course of trading on Wednesday. The rupee has gained on increased selling of the US currency by exporters and banks. However, a lower opening of the domestic equity markets capped the rise, dealers said. At the Interbank Foreign Exchange, the rupee opened on a strong note at 69.79 a dollar against the previous close of 70.14. Further, the domestic unit surrendered early gains to quote at 69.95, showing a gain of 19 paise. Financial markets were closed on Tuesday for Christmas. On Monday, the rupee had recovered 4 paise to close at 70.14 against the American currency, following weak crude oil prices and the dollar’s losses in global markets due to political uncertainty in the US. Meanwhile, the benchmark BSE Sensex plunged over 300 points as investors turned jittery over political uncertainty in the US and fears of a global economic slowdown amid a heavy sell-off by foreign investors.
Source: Business Line
Officials from the textile department said that co-operative spinning mills are expected to set up solar power plants in their premises in three years. The concessions in power tariffs are not applicable for residential users, said an official, adding that the subsidy will be reviewed every year to reduce the overall financial burden. Sources in the textile industry said that 90 co-operative spinning mills in the state are likely to benefit. “A committee has been set up under the chairmanship of the textile director. It is in the process of formulating the criteria to decide the eligibility,” said an official, adding that the textile director would carry out random inspections to check whether the power is being used for the same purpose. Apart from co-operative spinning mills, a power subsidy of Rs 2 per unit will be given to powerloom units and other textile processing units. “The information about the power consumption and productions of the spinning mills and other textile units will be collected through global positioning system,” the official said. In February, the state government approved a new textile policy for 2018-2023. A government resolution on giving the power subsidy was issued on Friday. Welcoming the decision, Ashok Swami, president of the Maharashtra State Textile Mahasangh, said: “It will give a much-needed push to the industry. One of the major reasons for spinning mills to incur losses is the higher power tariffs in the state compared to the state.”
Source: Indian Express
Maskati Market Kapad Mahajan, a body representing textile traders in Ahmedabad, has warned its members of rising cases of cheque frauds. It has also urged them to report cases if cheques from buyers have bounced so that such frauds can be curbed. "The sub committee, arbitration committee and managing committee has passed a resolution that in cases where selling of goods is done as per laid down procedures and the buyer has defaulted or delayed payments, members of Maskati Mahajan are requested to disclose the names of buyers or agents. Members who have filed a FIR in police stations regarding bouncing of cheques are also requested to disclose the names of buyers. Mahajan will put these names on its boards to create awareness to avoid repetition of such frauds," Mahajan said in a communication to all its members. Mahajan president Gaurang Bhagat told DNA that fraudsters give cheques with the intention of committing a fraud. "After getting their consignment, they refuse to make payments or undertake delaying tactics. This is causing substantial financial losses to our members. We have got couple of complaints and want to ensure that other members do not fall victim," said Bhagat. The trading of textile products is on credit. The credit cycle is typically of 90 days but slowdown has raised it to about 180 days, said market sources. With overall demand being subdued, traders want to increase their volumes by relaxing the payment terms, but this is resulting in frauds. "Despite falling victims to such frauds, traders are not reporting the cases to us. We have arbitration powers. We can help them get their money back. We have done this in the past and are pursuing such cases now as well. But for that members need to disclose the identity of the fraudsters," he said. About three months ago, Maskati Mahajan had warned that instead of dealing in cash and giving goods on credit, traders should transact in Post Dated Cheques (PDC), advance cash payment and Letter of Credit (LC).
Source: DNA
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1298.41 |
USD/Ton |
0% |
12/24/2018 |
|
VSF |
1985.97 |
USD/Ton |
-0.18% |
12/24/2018 |
|
ASF |
2363.04 |
USD/Ton |
0% |
12/24/2018 |
|
Polyester POY |
1233.99 |
USD/Ton |
-1.96% |
12/24/2018 |
|
Nylon FDY |
2721.30 |
USD/Ton |
0% |
12/24/2018 |
|
40D Spandex |
4762.28 |
USD/Ton |
0% |
12/24/2018 |
|
Nylon POY |
5457.08 |
USD/Ton |
0% |
12/24/2018 |
|
Acrylic Top 3D |
1505.40 |
USD/Ton |
-0.95% |
12/24/2018 |
|
Polyester FDY |
2576.55 |
USD/Ton |
-0.56% |
12/24/2018 |
|
Nylon DTY |
2475.23 |
USD/Ton |
0% |
12/24/2018 |
|
Viscose Long Filament |
1433.03 |
USD/Ton |
-1.49% |
12/24/2018 |
|
Polyester DTY |
3039.75 |
USD/Ton |
-0.94% |
12/24/2018 |
|
30S Spun Rayon Yarn |
2677.88 |
USD/Ton |
0% |
12/24/2018 |
|
32S Polyester Yarn |
1954.13 |
USD/Ton |
0% |
12/24/2018 |
|
45S T/C Yarn |
2880.53 |
USD/Ton |
0% |
12/24/2018 |
|
40S Rayon Yarn |
2981.85 |
USD/Ton |
0% |
12/24/2018 |
|
T/R Yarn 65/35 32S |
2475.23 |
USD/Ton |
-1.16% |
12/24/2018 |
|
45S Polyester Yarn |
2098.88 |
USD/Ton |
0% |
12/24/2018 |
|
T/C Yarn 65/35 32S |
2475.23 |
USD/Ton |
0% |
12/24/2018 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
12/24/2018 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
12/24/2018 |
|
40S Combed Poplin |
1.10 |
USD/Meter |
-1.30% |
12/24/2018 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
0% |
12/24/2018 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
12/24/2018 |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14475 USD dtd. 24/12/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Pakistan textile industry contributes, in excess, about 60 percent to the nation’s aggregates fares. Today, the Pakistan textile industry is seeing a decrease in its development rate. The textile industry contributes approximately 46 percent of the total outcome. It’s providing 38 percent of workforce in Pakistan. Pakistan is also the 8th largest exporter of textile material in all of Asia. Pakistan textile is responsible for economic growth and it’s playing its part in national integration as well as GDP increases. There are some issues in textile industry which are as follows: growing expense of production, increase in raw material cost, peace conditions, less research and development establishments, lack of new ventures, tight monetary policy and effect of expansion. Recommendations: There should be a proper remedy for foreign direct investment and attraction of investors by the building Pakistan’s reputation should be improved in the international market. Pakistan should explore new export markets on the basis of end goals. The energy and gas crisis should be dealt with and resolved as soon as possible. By decreasing the markup in textile industry, they can achieve the end goal. Government should take back sponsorship expulsion this would decrease the deficiency in the end goal and contend with their rivals to win remote trade for the nation in the global market. Pakistan textile industry is required to enhance the efficiency of the cotton area to gain profit in cotton division. The textile industry should find new and innovative ways like introducing new fabric in every season with best quality to gain customer loyalty.
Source: The Nation
Bangladesh-economyBangladesh is one of the world’s impoverished nations. Yet, its economy has been growing rapidly over the past few years, thanks in no small part to its massive textile exports. But risks are looming on the horizon. Bangladesh has been making progress and the country is so successful in many areas that it is a “role model for South Asia.” These are not the words of Bangladeshi Prime Minister Sheikh Hasina, but the British business magazine Economist. Bangladesh is going to the polls on December 30 to elect a new government and PM Hasina’s Awami League (AL) party is pulling out all the stops to secure victory and retain power. During the election campaign, ruling party members have repeatedly pointed to Bangladesh’s robust economic development under the incumbent government and promised that, should they win, this trend will continue in the coming years. The economy of the Muslim-majority nation, with a population of over 165 million inhabitants, has grown by an average of over six percent per year since 2008. Last year, Bangladesh’s gross domestic product (GDP) expanded by 7.3 percent, a faster rate than that of either India or Pakistan. Based on the US dollar exchange rate, Bangladesh’s per capita economic output is now higher than in Pakistan, an impressive feat by the former. Today, industry accounts for around 30 percent of the nation’s GDP. In 1971, the year of the bloody struggle for independence from West Pakistan, the share of industry in what was then East Pakistan was less than seven percent. In 1970, when a devastating cyclone killed hundreds of thousands of people, the country did not even have enough material to make shrouds for the victims, lamented Sheikh Mujibur Rahman, who went on to become the first prime minister of the newly founded state. Today Bangladesh exports more finished textiles than India and Pakistan combined, a remarkable turnaround.
Overtaking Pakistan and India
Bangladesh fares far better in some aspects of human development than its larger neighbors like India and Pakistan. Child mortality, for instance, is lower in Bangladesh. The country also does better than India and Pakistan when it comes to child literacy and life expectancy. According to data from the Global Hunger Index, published by the International Food Policy Research Institute in Washington, 26.5 percent of the Bangladeshi population suffered from hunger last year. This shows the acute problems the country still faces. Nevertheless, the starvation rate in Bangladesh today is half as many as in 1992, when it stood at around 53.6 percent. Moreover, fewer people are starving there than either in India (31.4 percent) or Pakistan (32.6 percent). A key factor in economic success is demographic development. While the birth rate in Pakistan was as high as 3.5 children per woman in 2016, the figure in Bangladesh stood at 2.1, a lower rate than even in India (2.3). “The country is a prime example of successful development policy and is indeed far better off than it was a decade ago,” Wolfgang-Peter Zingel, an economist at the South Asia Institute of the University of Heidelberg, told DW. “The population growth has fallen sharply, and the fertility rate of 2.1 is barely enough to maintain the current level of population in the long term. I would even assume that the fertility rate will continue to fall and that the population will continue to decline in the long term,” he added.
Infrastructure investment
The government has ambitious plans to develop the country further. These include major infrastructure projects such as the construction of a new bridge over the Ganges River, which is called Padma in Bangladesh. The more than six-kilometer-long structure, on which cars, trucks and trains are to roll from 2019, will shorten the journey time between the southeast, north and east of the country by several hours. So far, all private and freight traffic between the two parts of the country, which are separated by major rivers, has had to be handled by ferries. Minister Obaidul Quader, who is responsible for road traffic and bridges, estimates that the four-lane and two-storey Padma Bridge will boost trade and the economy considerably, accelerating the country’s GDP growth by 1.5 to 2 percent. The Padma Bridge and several other highway projects in the country are being built with Chinese support. But China doesn’t always end up as a winner in Bangladesh. “Since the Chinese government unveiled its gigantic new Silk Road project five years ago, China, India and Japan have been competing for access to the northern Bay of Bengal,” explained Samuel Berthet, who teaches at Shiv Nagar University in India. “In April 2015, the Bangladeshi government, which is friendly to China, decided to let Japan build the deep-water port in Matarbari, almost 100 kilometers south of Chittagong. Meanwhile, a Chinese conglomerate, which should have been commissioned with a similar port project further south, in Sonadia, had to finally leave empty-handed,” says Berthet. The reason for this was not least the consideration given to India, which has invested about $7 billion (€6.16 billion) in Bangladesh over the past decade as part of New Delhi’s efforts to improve connectivity to India’s underdeveloped northeastern states. Beijing’s plans to invest $30 billion (€26.39 billion) in Bangladesh’s infrastructure over the next few years draw mixed feelings in New Delhi. Compounding Indian policymakers’ skepticism is Saudi Arabia’s plan to finance the construction of around 560 mosques in Bangladesh in the coming years.
Bangladesh-economy
Bangladesh is an important supplier of textiles to America and European nations like Germany. “After the US, Germany is the second-largest buyer of finished textiles from Bangladesh,” said Wolfgang-Peter Zingel. “But clothes are not strategic products. Bangladesh would be easy to replace. It’s a classic asymmetric relationship,” he added. According to Zingel, Germany is an important partner for Bangladesh in the area of development cooperation, which also gives Berlin a certain leverage in bilateral relations. “We are one of the most important donors. Bangladesh is a good example to prove that development aid works. It’s not only the economic growth, but also the comparatively good human development indicators that prove that,” the expert stressed. In addition, Bangladesh is “relatively democratic in comparison with other Muslim-majority countries,” Zingel said. “There is also co-education at all levels boys and girls are generally taught together in Bangladesh.” The Bangladeshi government aims to take the country out of the group of the poorest and underdeveloped countries by 2021, the 50th anniversary of the nation’s independence from Pakistan. To that end, the government has even launched a program called “Vision 2021,” setting, among other things, the “Digital Bangladesh” action plan as one of the priorities. In addition to progress in education, health and gender equality, Bangladesh is experiencing a growth spurt that has reduced poverty and doubled per capita income. The government deserves praise for creating the essential conditions for the private sector’s dynamism that has boosted economic growth,” said Syed Al-Muti, associate director for the Economic Development program of the Asia Foundation, a San Francisco-based NGO. “The solid economic development of recent years is based on three pillars: the growth of agriculture, the export success of the textile industry and the remittances from Bangladeshis abroad,” noted Zingel. Despite the successes, the expert warned, risks loom large as the country is heavily reliant on the global economic trends, the employment of Bangladeshis, particularly in Gulf States, and the willingness of other countries to buy “Made-in-Bangladesh” garments. “There is a lack of diversity when it comes to Bangladesh’s exports,” Zingel said. Adding to the uncertainties are problems related to climate change and their ramifications for Bangladesh, a country that experts say will be among the most affected places in South Asia. “Dhaka is already one of the largest cities in the world; it is the largest and fastest growing poor city,” Zingel said. The expert also points out that the greater Dhaka area, where the textile industry is concentrated, has a completely different dynamic: “The around five million workers employed by the sector are mostly female and come from rural families. This is expected to lead to social and cultural change that should not be underestimated.”
Source: Market Express
DHAKA (Reuters) – Bangladesh’s clothing manufacturers, which dominate the southern Asian nation’s economy, are worried sporadic violence that has affected some factories ahead of Sunday’s election will spread. Workers have been demanding higher minimum pay than proposed in September by the government of Prime Minister Sheikh Hasina, who is seeking her third straight term in power. She has the support of many textile factory owners, and that can also make them a target for those opposed to the government. Around the last election in 2014, which the main opposition party boycotted, months of violence hit operations at many factories, leading to millions of dollars in lost sales. Many foreign buyers curbed orders at the time. In recent days, workers have gone on strike and taken to the streets in places including Mymensingh, about three hours north of Dhaka, and towns around the capital where textile factories are concentrated, three garment exporters told Reuters. The garments industry generates around $30 billion of exports a year, about 80 percent of Bangladesh’s merchandise export earnings, making it the second largest in the world behind China. The government said in September the minimum wage for garments workers would rise by up to 51 percent from December, payable in January, to 8,000 taka ($95.60) a month, the first increase since late 2013.
Workers, though, say that’s not enough.
“We want at least 12,000,” Meem, who goes by just one name, said outside the Dhaka factory where she works, as co-workers gathered around her by the dozens. “There’s ever increasing work pressure on us but our wages do not rise as fast.” Police say they are ready for trouble. “We have a definite intelligence report that a section of people want to create unrest in the sector, but that won’t be possible as we are alert,” police spokesman Mohammad Sohel Rana said, without elaborating. The Bangladesh Garment Manufacturers and Exporters Association has asked workers to remain calm and promised to make representations about wages to the government after the election, instead of each company negotiating with employees. Its president, Siddiqur Rahman, said he backed Hasina’s Awami League. “I am really worried because everything was OK until recently but due to political reasons they are doing this,” Shahidul Haque Mukul, another Awami League supporter, whose factory was vandalised on Monday morning, told Reuters by phone. December is typically the garment industry’s busiest time. “I have buyers from countries like Japan, France and Portugal. They are placing smaller orders than normal for this time of year,” Mr Mukul said, blaming opposition groups for the trouble. Mahmud Hasan Khan, a textile factory owner and a leader of the opposition Bangladesh Nationalist Party (BNP), declined to comment on the protests or violence. The BNP’s leader and former Prime Minister, Khaleda Zia, is in jail on what the party calls trumped-up corruption charges. Several workers outside the six-storey building of Mr Mukul’s Adams Apparel in Dhaka told Reuters they would continue to press for higher wages but were not involved in stone pelting that smashed windows on Monday.
Source: Khmertimeskh
FAISALABAD: Pakistan’s exports have remained restricted to textile but a comprehensive industrialisation policy is being planned now where focus will also be on engineering, chemical, information technology and agriculture sectors, revealed Adviser to Prime Minister on Commerce and Industry Abdul Razak Dawood. Speaking to members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Tuesday, the adviser pointed out that over the last decade, many industrial units had been closed down and the country’s exports had also dropped from $25 billion to $20 billion. “It is a clear indication that we have ignored our manufacturing sector, which is deemed necessary for ealth and job creation,” he said. He announced that the government would fine-tune the ‘Made in Pakistan’ policy in light of proposals and recommendations made by the private sector.
Trade deficit shrinks as exports grow faster than imports
He was critical of the free trade and preferential trade agreements signed with different countries, saying all these had proved counterproductive. “China, Malaysia, Indonesia and even Turkey have got advantage of these agreements, but we remain a loser,” he said, adding Pakistan was already renegotiating its free trade deal with China, which would be completed in June next year. Regarding Indonesia, the PM aide said it had given Pakistan duty-free access for 20 goods including denim and asked exporters to cash in on the facility in order to earn heavy foreign exchange for the country. Dawood revealed that he or Commerce Secretary Mohammad Younus Dagha would visit Malaysia to renegotiate the FTA. At present, the trade balance is in favour of Malaysia as its exports stand at around $1 billion against Pakistan’s exports of only $150 million. Moreover, he pointed out that he had talked to Japan and it was willing to provide greater market access to Pakistan. Talking about tariffs and regulatory duties, the adviser said he had decided to review the entire customs tariff and duty structure, which would be made part of another supplementary budget expected to be announced next month.
Pakistan needs to go for high value-added export basket
He was of the view that in principle there should be no duty on import of raw material for manufacturing export goods. Similarly, there should be minimum duty on intermediaries but finished goods should have no concession. “A meeting is expected in next couple of days in which a new duty structure will be discussed but it should be logical and long-term without any revision for next five years,” he emphasised. The PM aide assured businessmen that the government would resolve the gas infrastructure development cess (GIDC), Duty and Tax Remission for Export (DTRE) scheme and other issues in an effort to promote regional trade. Responding to delay in release of tax refund claims, the adviser told businessmen that he was devising a mechanism to clear the tax refunds. “Claimants will get negotiable bonds by the end of January,” he revealed. In this connection, the State Bank of Pakistan is working on a strategy to pay the tax refund claims within 15 days after receipt of export proceeds. He declared that gas crisis had already been resolved and a notification for the provision of electricity at 7.5 cents per unit to zero-rated major export industries would be issued soon. Dawood said the Cabinet Committee on Energy would take up the issue and he would give his input as it would help cut down the cost of doing business in Pakistan. He was of the view that the government would have to go for an IMF loan facility because of the country’s weak economic condition but voiced hope that industrialisation in next one to two years would stabilise the national economy.
Source : Tribune
Almost a third of global viscose supply is now low risk of coming from ancient and endangered forests, according to the Hot Button Report by environmental not-for-profit Canopy. Three major producers - Lenzing, Birla Cellulose and filament yarn producer ENKA - representing 28 per cent of global viscose supply, have attained ‘light green shirt’ rankings. Over 160 CanopyStyle partner brands, designers and retailers and many others in the clothing sector rely on this yearly assessment of the performance of viscose and rayon producers to make responsible sourcing decisions, inform their engagement of suppliers, and reach their sustainability goals. “Since 2018 and onwards, all products containing man-made cellulosic fibres that are delivered to C&A stores in Europe and China are sourced from producers that have completed the CanopyStyle verification audit with low risk findings,” stated Jeff Hogue, chief sustainability officer C&A.“This verification gives us confidence that our supply chain partners have the right practices in place to prevent wood pulp from ancient or endangered forests from entering our products.” Yibin Grace, the world’s fifth largest by volume, is highlighted for proactively engaging with Canopy this year, and for quickly finalising its policy and embarking on the CanopyStyle audit, according to the report. Sanyou has earned fourth place in the Hot Button rankings, earning a ‘yellow/green shirt’ indicating continuous progress. Sateri, a subsidiary of Royal Golden Eagle (RGE), has earned the 10 ‘buttons’ needed to technically receive a yellow shirt, but was awarded a ‘yellow/red shirt’ due to confirmed high risk and sources of controversial fibre. Three producers have ‘red shirt’s, which indicate they do not meet minimum requirement for compliance. Three Chinese producers - Sateri, Sanyou and Fulida –and German producer ENKA completed and published their CanopyStyle audits in 2018. “With brands and retailers having clear purchasing guidelines to source only from Hot Button green-shirt producers from 2020 onwards, it is no longer an option for producers to ignore their forest impacts,” says Nicole Rycroft, Canopy founder and executive director. “It is a clear sign that sustainable sourcing is imperative and that next generation solutions for the textile industry are on its way.” The 2018 Hot Button edition encompasses a much deeper level of information and data to help brands avoid sourcing from the world’s ancient and endangered forests. The report features for the first time a comprehensive list of 31 producers. It also introduces a white shirt category for newly engaged producers that are yet to be fully assessed, as well as a market flag to highlight areas where caution and attention is required by the marketplace. The CanopyStyle initiative was launched in 2013. Today, viscose producers representing close to 75 per cent of the entire global capacity of viscose production have policies in place and 54 per cent of supply has been audited through the CanopyStyle initiative. In addition, the recently released ForestMapper, supported by more than 100 companies, is used in the audit process, to identify risk level of sourcing from ancient and endangered forests. (SV)
Source: Fibre2fashion
The Nigerian Textile Manufacturers Association (NTMA) has cried out over some incentives given to foreign investors in the country, noting that the incentives are detrimental to local manufacturers. The association however urged the Federal Government to review some of the incentives in order to promote the growth of local manufacturers and boost the country’s economy. The Director-General of NTMA, Hamma Kwajaffa, insisted that some of the incentives set to attract Foreign Direct Investments (FDIs) posed a threat to the survival of many local textile manufacturers. Briefing newsmen in Lagos, Kwajaffa decried the proposal that operators, who invest a minimum of 10 million dollars in local cotton and textile garment industry and employ 500 direct Nigerian staff, can import fabrics worth 50 per cent of their operation levy free for a period of five years. “We textile manufacturers in the country have set a target to boost our production and also a 100 per cent off-take of locally produced raw cotton,” he said. He wondered what would happen to the cotton produced by the local manufacturers, querying, ‘will the farmers wait for you for these five years?’ The DG added, “With the proposed policy, that means you are discouraging cotton production and invariably the value addition to the textile industry. “Afterall, there are investors in the country with more than one billion dollars investment such as Sunflag Ltd., UNTL Ltd., which have above that in the textile industry.“The investors that are being encouraged to come in with finished fabrics would kill local manufacturers and hinder our quest to attain global competitiveness. “If new investors are allowed to import fabrics duty free and VAT free, it will infringe on the planned 1.7 billion metres of finished fabric sector target programme for the textile industry,” he stated. Kwajaffa, who noted that fabric importation by would-be investors would collapse cotton farming, urged government to pursue its drive for foreign investment in a way that would not be inimical to local investors’ competitiveness, employment, wealth creation and industrial growth.
Source: Daily Trust
Nigeria’s cumulative value of textiles and garments imported or smuggled into the country is worth $4.2 billion, according to minister of state for industry, trade and investment Aisha Abubakar, who said the government is losing $325 million in annual revenues because of heavy influx of cheap textile and garments and low impact of policy interventions. She was speaking recently at a policy meeting on cotton, textiles and garments. The sector is currently prioritised in the country’s Economic Recovery and Growth Plan (ERGP) as well as the Nigerian Industrial Revolution Plan (NIRP) due to its strategic importance to employment generation, wealth creation and industrial development, Nigerian media reports quoted the minister as saying. Abubakar, however, lamented that the outcome of the policy intervention were yet to materialise due to constraints like insufficient cotton seeds for production, high cost of operations, smuggling and counterfeiting, high influx of cheap textile and garments, lack of enabling infrastructure and absence of quality and standards. The government wants to create jobs for about a million people by 2023 in the sector, achieve self sufficiency and contribute 20 per cent share of the country’s total export earnings through textiles and garment exports which is projected to reach $2 billion by 2025, she added. (DS)
Source: Fibre2fashion
Though the majority of the businesses are not in favor of a further hike in gas price, a good number favored a rational level of the hike so that the textile and apparel industry can survive. Industry people are still concern over the quality supply of energy and its future cost as they are in uncertainty about the cost of the natural resource after liquefied natural gas (LNG) has connected to the national grid. There is no clear indication from the government about the costing after LNG entered in the national grid and the RMG sector people are worried that the price might go up after the national polls. RMG industry to lose competitiveness in global market if energy cost rises. The government has moved to increase the existing gas price in June while it took a u-turn in October from its previous stance of raising the gas price. And the industry people believe the national election is the reason behind the u-turn. The Bangladesh Energy Regulatory Commission (BERC) in one of its press conference at October announced its decision of not raising the price of gas in the present situation of the country especially just ahead of the general election to avoid any political repercussion. While participating at a hearing, the gas entities argued that as per the government decision they had to submit their respective price hike proposals because of the high import cost of LNG as it will push up their cost substantially. The Petrobangla started supplying the imported LNG to the national gas network from August 18 through re-gasification by private sector-operated floating storage and re-gasification unit (FSRU). According to officials currently 300 mmcfd gas is being supplied from LNG and it was supposed to go up to 500 mmcfd in a month or two and soon after 1,000 mmcfd gas would be flowed from next year as per a government plan. The textile and clothing industry of the country has already been facing a number of challenges to remain competitive in the global market and is in the dark about future costing of gas with a number of existing problems including fluctuation in energy supply, high cost for other utility services, high bank interest rate, inefficient port facilities, long lead time, huge investment for workplace safety initiatives, recent wage hike for workers and an appreciating local currency value against the US dollar. Besides, the government is not giving any new gas connection to the factory that meets the requirement of energy through captive generation. The support once considered as the policy support given by the government since mid of the ‘90s due to an unreliable gas supply to the industry. The state-owned energy provider Bangladesh Oil, Gas, and Mineral Corporation – commonly known as Petrobangla – stopped allowing new connections to captive power plants since August 2015. Rather, the government hinted several times for reducing the gas supply to captive generators last year and asked for enhancing their efficiency level to at least 60 percent through cogeneration process as cogeneration plants are more thermally efficient. A captive power plant is a localized power generation facility solely used by a commercial or industrial consumer. Cogeneration is the simultaneous production of electricity and heat. In a cogeneration system, also known as combined heat and power (CHP) system, the flue gas – the energy byproduct of power generation termed waste heat – is recovered from the atmosphere, mostly in the form of steam, and used to produce more electricity. RMG industry to lose competitiveness if gas price hiked Currently, more than 80 percent of the captive generators in the country are releasing their flue gas into the atmosphere. Some captive plants have already converted to CHP to tackle the severe shortage of gas, but 70 percent of the flue gas collectively released by the existing captive power plants is still being wasted. According to the power sector insiders, around 17 percent of the total gas consumed currently goes to the captive power plants and they can generate around 2,400MW of electricity.
How affects
In a recent CIP (commercially important person) Cards awarding ceremony the chief of the apex body of the chambers—FBCCI also pressed the issue saying that the industry needs not only gas but with quality supply at a time when it is the era of digitalization, innovation and fourth industrial revolution. Fluctuation of gas supply means damages of automated and computerized machinery worth of thousands of millions of taka, damages of products and their quality that finally resulted in losses. It not only increases the cost of doing business but also creates obstacles in a whole supply chain from producing backward linkages ranging from yarn, fabrics, accessories and final shipment of finished products. On the other hand, prices of apparels are not increasing in line with the rising production cost. Industry people feared that if gas price increases after the election it would add further woes to the industry. It would raise the production cost in several phases from spinning yarn to manufacturing finished products. Transportation cost would also increase from the import of raw materials to the store and internal movement of backward linkages like yarn, fabric and accessories and final shipment to ports.
What should be done?
The industry also believes that, as LNG is being imported it would require some additional cost. Though the majority of the businesses are not in favor of a further hike in gas price, a good number favored a rational level of the hike so that the industry can survive. The existing per unit price of gas at captive generation unit is Tk 9.66 which they believe to make an increase, not more than by Tk 2.0 (there was a proposal to increase by Tk 14-15 per unit). They also seek the hiking phase by phase. The first hike might last long for at least for four to five years and there would be indication time of next possible hike. Any policy changes should be for long-term ranging from at least five to ten years so that entrepreneurs can plan their investment for setting new industries or for expansion.
Source:Textile Today
