Commerce and Industry Minister Suresh Prabhu Tuesday made a case for extending interest subsidy benefits to more products from the chemical sector to boost exports. The government provides interest subsidy of 5 per cent to certain sectors, including the micro, small and medium sector, under its interest equalisation scheme. Currently, the subsidy is also given to certain products from the chemical sector. It helps exporters get credit at affordable rates. "Minister (Prabhu) elaborated that expansion of interest equalisation scheme needs to be done by adding more tariff lines, the process of environmental clearance to be speeded up especially relating to product mix and also expeditious approval process," the ministry said in a statement. These issues were discussed during a meeting called by Prabhu with representatives of pharma and chemical industries. The minister also stated that there is a need for the removal of pre-import condition for advance authorisation with prospective effect. Under advance authorisation, manufacturers are allowed to import duty-free inputs for export purpose. He stressed the need for additional incentives under the Merchandise Exports from India Scheme (MEIS) for those products that are at disadvantageous position on account of free-trade agreement. Prabhu said his ministry would seek support from Indian embassies and missions abroad to understand market profiles to push exports. On the pharmaceutical sector, the minister said some important factors have affected exports recently, especially to the US. The issues include pressure on drug pricing due to record number of US ANDA (abbreviated new drug application) approvals, foreign regulatory issues, lack of blockbuster drugs going off patent in the recent years. The country's pharma exports are likely to touch USD 19 billion in 2018-19 from USD 17.27 billion in 2017-18. The exports to the stringent regulatory authorities (US, EU, Canada, Australia, Russia) account for 51 per cent of the total shipments. During April-December 2018, the exports stood at USD 13.94 billion, a growth of 9.32 per cent over the previous year.
Source: Business Standard
India is hoping that better connectivity will help boost trade ties with ASEAN and decrease its trade deficit with the 10-member bloc. ASEAN is India’s second largest trading partner after China and total bilateral trade between ASEAN and India reached US$81.3 billion last year – an increase of more than 28 times the US$2.9 billion recorded in 1993. Bilateral trade between the two parties was US$21 billion in 2005-06, and although it has increased nearly fourfold since then, the ASEAN-India Free Trade Area (AIFTA) which came into effect in 2010 hampered India’s exports and its trade deficit with ASEAN rose from US$7.7 billion in 2009-10 to nearly US$13 billion in 2017-18. However, the AIFTA does not cover the services sector and its encompassing industries such as engineering and information technology (IT) - in which India’s strength lies. India’s trade deficit of US$162 billion in 2017-18 was due to higher oil, gold and electronic imports – with China accounting for US$104 billion of that sum, South Korea US$12 billion and Japan US$6 billion. Speaking at the 4th India-ASEAN Expo and Summit held in New Delhi from 21-23 February, Rajnath Singh, India’s Minister of Home Affairs said India is currently working with ASEAN on multiple connectivity projects to further consolidate and deepen trade ties via road, rail and air. “Exploring opportunities through connectivity projects will help India to remove physical impediments to trade with ASEAN countries and further integrate the two regions for better economic and security relations,” said Singh in a press release from India’s Press Information Bureau. “Our engagement with ASEAN has acquired a new dimension with our Prime Minister’s vision to ‘Act East’,” he said, referring to Indian Prime Minister Narendra Modi’s Southeast Asian stand outlined in 2014.
Act East
The Act East policy is an evolution of the Look East policy introduced by former Indian Prime Minister Narasimha Rao in 1992 which focused on trade and attracting investment. Seen as a counter to China’s growing influence in the region, the Act East policy is pillared around commerce, culture and connectivity. Key to unlocking greater commercial benefits for ASEAN and India is the Regional Comprehensive Economic Partnership (RCEP) which is expected to be completed this year. The RCEP is a 16-country regional trade deal in which ASEAN hopes to integrate its economy with India, China, Japan, South Korea, Australia and New Zealand -creating a market comprising nearly half the world’s population and a third of the world’s gross domestic product (GDP). RCEP negotiations were formally initiated in November 2012 at the ASEAN Summit in Cambodia and among the issues yet to be ironed out include competition laws, trade obstacles, the rule of origins, e-commerce and intellectual property rights. It is seen as an alternative to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP – formerly known as the TPP), a free trade agreement which reduced tariffs in 11 Pacific Rim countries and came into effect late last year. The 11 CPTPP countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – make up more than 13 percent of the global economy and have a combined GDP of US$10 trillion, making it the third largest free-trade agreement in the world. There have been suggestions by both, Indian and ASEAN officials that the yet to be completed India-Myanmar-Thailand Trilateral Highway – an Indian-led initiative mooted in 2002 which aims to build a 1,360 kilometre (km) highway from India to Thailand – should be extended to Cambodia, Lao PDR and Vietnam. Apart from the India-Myanmar-Thailand Trilateral Highway, ASEAN and India are also working on the Kaladan Multi-Modal Transit Transport Project which will provide an alternative route through Myanmar for the transportation of goods to the northeast region of India.
Digital villages
India has provided ASEAN with a US$1 billion line of credit to promote infrastructure connectivity and is also actively investing in digital connectivity – an example being its digital villages. A leader in information and communications technology (ICT), India is helping to enhance rural connectivity in Cambodia, Lao PDR, Myanmar and Vietnam by setting up digital villages which provide easier access to banking, education, health and financial services. With historical and cultural links which date back more than 2,000 years, India and ASEAN can improve their already strong ties by establishing more digital and physical linkages and opening up the Indian services sector.
Source: ASEAN Post
The government has extended the deadline to impose retaliatory customs duties on 29 US products, including almond, walnut and pulses, till April 1. The Commerce Ministry had asked its finance counterpart to again defer the implementation of a notification in this regard. A notification said that implementation of increased customs duty on specified imports originating in USA has been postponed from March 2, 2019 to April 1, 2019. In June 2017, India decided to impose retaliatory tariffs after the US imposed high customs duties on certain steel and aluminium products. As part of the imposition of higher import duties, New Delhi has notified higher tariffs on several products. While import duty on walnut has been hiked to 120 per cent from 30 per cent currently, duty on chickpeas, Bengal gram (chana) and masur dal will be raised to 70 per cent, from 30 per cent currently. Levy on lentils will be increased to 40 per cent, from 30 per cent. Senior officials of India and the US are in discussions to finalise a kind of trade package. Both sides are holding two track discussions -- to increase trade in short and medium term, and identify long-term trade potentials
Source: The Hindu Business Line
India and Italy on Tuesday discussed ways to increase cooperation in areas such as machinery, infrastructure, engineering and agriculture to promote trade and investments between the countries. These issues were discussed during the meeting of 20th India-Italy Joint Commission for Economic Cooperation (JCEC) here. The two-day session is being co-chaired by Commerce and Industry Minister Suresh Prabhu and by Deputy Minister of Economic Development Michele Geraci from the Italian side. The bilateral trade between the countries increased to $10.41 billion in 2017-18 from $8.8 billion in 2016-17.
Source: The Hindu Business Line
The district’s first integrated apparel manufacturing park called “Gobi Apparel Park” that is to come up at ₹ 106.58 crore at Kolapalur village at Gobichettipalayam is expected to provide jobs to 7,000 persons. Under funding from the Ministry of Textiles of the Government of India and under the Scheme for Integrated Textile Parks (SITP) of the State Government, the park is being established that will have common facilities and other infrastructure to house 12 companies. While the foundation was laid for establishing 11 companies, one company was inaugurated by Minister for School Education, Youth and Sports Development K.A. Sengottaiyan and Minister for Environment K.C. Karuppannan in the presence of Collector C. Kathiravan, Tirupur MP V. Sathyabama, MLAs and other officials here on Monday. Mr. Sengottaiyan said the park would come up on 80 acre and provide jobs directly to 7,000 people. The park would be provided with all the basic amenities, effluent and sewage treatment plants, uninterrupted power supply and wider roads. Also, quality testing centre, skill development centre, and modern accommodation for 3,000 works would also be established. The Minister said that children’s home, sports ground, old age home, community hall and other facilities would also be established in the park. He said that 2,500 people would be trained in the park every year and they could secure jobs anywhere in the country. Mr. Karuppannan said the other 11 companies would be established soon and called upon entrepreneurs to utilise the facilities in the park.
Source: The Hindu
Ludhiana's yarn, garment and textile manufacturers were on tenterhooks as taxmen swooped down on at least eight yarn industries, with pan India presence, in city on Monday. Sources said, "The raids are being conducted by Directorate General of GST Intelligence (DGGI), New Delhi, at nearly 50 business houses in Punjab, Haryana and other states. The operation was kept under wraps so much so that not even the offices of DGGI in these states were aware of it initially. Besides, the DGGI headquarters has instructed the offices conducting the checks not to reveal about the operation till it was overThe bogus billing issue is not Punjab centric, it is a national phenomenon from ages. It is now time to curb such malpractices of business community and save states revenues.Verma SureshEven as the department officers refused to comment, sources said the raids aimed at checking GST evasion. In another case, the CGST commissionerate, Ludhiana, on Monday conducted raids on three Mandi Gobindgarh firms for their alleged involvement in bogus e-billing . The checks on firms' accounts, bank details and stocks were on till the filling of the report. Sources said, "It is suspected that that the firms evaded about Rs 6 crore GST."
Source: Times of India
Thermax Ltd., an Indian maker of electricity-generation equipment, expects demand for captive power plants, typically small units to meet the internal needs of a business, to rise in the next 4-5 years as investments in large power projects slow down and state utilities struggle to give reliable supplies. Industries such as food processing, textiles, pharmaceuticals and automobiles are expanding capacities and will look at generating their own power rather than depending on the unreliable grid, Thermax’s Managing Director M.S. Unnikrishnan said in an interview. The expected revival of captive power in India points to a chronic problem in the country’s power industry -- indebted state utilities are unable to ensure reliable supply because they’re financially hamstrung to purchase adequate power. In addition, India’s thermal power sector suffers from fuel shortages, delayed payments and underutilized capacities causing investors to shun it. The industry is among the biggest contributors of bad loans in the country and lenders have struggled to find new investors.
Source: Economic Times
India has decided to again defer the imposition of higher duties on 29 key imports from the US, for the unprecedented sixth time. Originally set to go live from June 28, 2018, the tariffs have been repeatedly postponed by the government and are now expected to take hold from April 1 as opposed to March 2. Despite them being notified by the Central Board of Indirect Taxes and Customs, the tariffs have been postponed repeatedly. In the meantime, four delegation level talks with Washington DC have been unable to solve the issue. In response to an unilateral increase in steel and aluminium duties from India and other countries by the Trump administration, New Delhi had announced higher tax by up to 50 per cent on import of mostly agri goods like apples, almonds, walnuts and some industrial products. The new taxes are proposed to rake in an estimated $240 million worth of additional taxes. Spread across sectors from which imports stood at $1.5 billion in 2017-18, New Delhi claimed the amount was equal to the estimated loss faced by India after the Trump Administration imposed a 25 percent extra levy on steel and 10 percent on aluminium products from many countries, including India in May, 2018. Since then, other nations have been given an exemption by the US from the steel, aluminium duties. Now, we are working on a trade package to resolve this and other issues; a senior commerce ministry official said. This will include changes in import duties on the US information and communication technology products, and preferential tariffs for Indian exports, apart from data localisation norms, he added. Among the commodities to be hit by the list of items targeted by India, apples and walnuts remain crucial with farms stateside being the largest source for India. Overall fruit import from the US remained $872 million in 2017-18, with India being one of the largest markets. The US is also pressurizing India on its Generalised System of Preference program, in which it has dropped as many as 50 Indian goods from the list of items, supplies of which were earlier eligible for concessional tariff.
Source: Business Standard
The Tiruppur Exporters’ Association (TEA) has sent a representation to the Union commerce minister for extending (i) IGST exemption for import of capital goods under EPCG scheme and (ii) inputs under Advance Authorisation scheme beyond March 31, 2019. The association has sought extension for another two years to help the domestic industry bounce back. “After implementation of GST, TEA had requested for exemption from the payment of IGST while importing capital goods under EPCG scheme or inputs like specialty fabrics under Advance Authorisation scheme and considering the need, the Government permitted for exemption from payment of IGST for a period of six months on each occasion and finally, till March 31, 2019,” TEA president Raja M Shanmugham said in a press release. Continuous modernisation/expansion is regularly taking place in Tiruppur, comprising the sector having more than 80 per cent in MSMEs to enhance the quality for fulfilling the buyers’ requirements and also increase the productivity. At this juncture, the exporting and job working units are having doubt on continuation of IGST exemption beyond March 31, 2019, and the major concern is that the IGST paid for Capital Goods could not get adjusted/refunded. Due to this, the units are under confusion whether to place the order with machinery suppliers by presuming that the exemption would continue beyond March 31 or to wait for a clarification from the Government side, Shanmugham said. “Once the election code of conduct is announced, probably in the second week of March, and if the IGST payment exemption notification has not been issued, then it would be a big setback for the units, particularly MSMEs going for modernization,” he added.
Source: Fibre2Fashion
The Federation of Karnataka Chambers of Commerce & Industry (FKCCI) today inaugurated the three-day ASEAN Chambers of Commerce & Industry Business Meet 2019 at Vidhana Soudha by the Hon’ble Chief Minister of Karnataka, Shri H D Kumaraswamy. The summit aims to explore the scope for business opportunities in the Karnataka region of India. Focus areas are Automobile & Auto Components, Aerospace & Defense, Engineering & Fabrication, Smart Cities, Agriculture/Horticulture & Food Processing, Health & Pharmaceuticals, Ayurveda & Yoga, Herbal Tourism, Startups, Textiles & Garments, Gems & Jewelry, Education & Skill Development, Fintech, Logistics, Medical Electronics, Aquaculture & Fisheries, Infrastructure, Information Technology and Renewable Energy. Speaking at the inauguration of the summit, the the Hon’ble Chief Minister, Government of Karnataka, Shri H D Kumaraswamy said, “Karnataka has immense potential which is still unmapped and unexplored. Hence, this summit will help explore this potential for the development of the country as a whole which in turn will contribute to the making of ‘New India’ that has emerged as the world’s leading investment destination.” This 3-day summit will be the first of its kind as there has not been any meet of the major Chambers of Commerce of ASEAN PLUS and that too in Bengaluru. The International Business Meet will bring together the Chambers of Commerce, Exporters and Importers of ASEAN, ASEAN Plus countries along with some Special Invitee countries, High-profile conference delegates from India & Overseas, C Level and Top management of Leading Corporates and Industry, Bureaucrats, Policy Makers and Heads of PSUs and Members of National and State Industry Associations on a single platform to promote Trade, Business and Investments for mutual benefit of both the host country as well as the participating countries. The event spectrum will see participation of special countries such as UAE, Hong Kong, UK, Germany, France, ASEAN: Plus Eight Countries such as USA, India, China, Republic of Korea, Japan, Russia, Australia, New Zealand and participation from ASEAN countries like Singapore, Philippines, Thailand, Vietnam, Brunei Darussalam, Cambodia, Indonesia, Myanmar and Malaysia. Inaugurating the event, Shri. Vajubhai Vala, Hon’ble Governor of Karnataka said, “I am excited to present the first ASEAN Chambers of Commerce and Industry Business Meet which is set to become a platform of choice for global investors and business leaders from across ASEAN countries. Our Government is focused on making Karnataka a global hub for innovation and FKCCI is playing a critical role in shaping the innovation ecosystem in India.” On the occasion, Principal Secretary, Department of Commerce & Industries and Department of IT, BT and Science & Technology, Mr. Gaurav Gupta, said, “India is looking further to deepen our engagement and relationship with the ASEAN countries, and this is a great opportunity to host them in Bengaluru which serves as a destination for innovators and startups.” Sudhakar S. Shetty, President, FKCCI, Bengaluru said, “FKCCI has always been playing a catalytic role to strengthen the commercial prospects of the state and the country. We are certain that this summit will create a positive impact on trade and commerce.” A major highlight of this summit would be the Global Leaders Conclave which will be a power packed session with ASEAN plus countries heads / Global Industry Captains / Policy Makers coming together on a single platform to throw light on the challenges ahead, uncover potential opportunities and discuss the means to achieve exponential growth.
Source: Orissa Diary
The rupee on Tuesday snapped its gains of previous two sessions and closed 10 paise lower at 71.07 to the US dollar amid fears of escalation in geopolitical tensions following Indian fighter jets’ air strikes on Pakistan-based terror camps. Besides, weakening investor sentiments in domestic equity market and rising global crude oil prices impacted the rupee movement. Reacting to rising tensions between India and Pakistan, the domestic currency opened 30 paise lower at 71.27 in the early trade and further weakened to 71.35 as the day progressed. However, it recovered from early plunge to settle at 71.07, a loss of 10 paise against the dollar. Similarly, growing geo-political tensions also hit investor sentiments in domestic equity markets, with benchmark Sensex diving 240 points to close at 35,974. According to analysts, market movement is likely to be cautious until further clarity over cross border threat.
Source : Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1322.32 |
USD/Ton |
0% |
2/26/2019 |
|
VSF |
2004.01 |
USD/Ton |
-0.15% |
2/26/2019 |
|
ASF |
2405.71 |
USD/Ton |
0% |
2/26/2019 |
|
Polyester POY |
1260.35 |
USD/Ton |
0% |
2/26/2019 |
|
Nylon FDY |
2882.07 |
USD/Ton |
0.52% |
2/26/2019 |
|
40D Spandex |
4733.76 |
USD/Ton |
0% |
2/26/2019 |
|
Nylon POY |
1478.37 |
USD/Ton |
0% |
2/26/2019 |
|
Acrylic Top 3D |
3121.00 |
USD/Ton |
0% |
2/26/2019 |
|
Polyester FDY |
5644.67 |
USD/Ton |
0% |
2/26/2019 |
|
Nylon DTY |
1545.57 |
USD/Ton |
0% |
2/26/2019 |
|
Viscose Long Filament |
2687.94 |
USD/Ton |
0.56% |
2/26/2019 |
|
Polyester DTY |
2553.54 |
USD/Ton |
0% |
2/26/2019 |
|
30S Spun Rayon Yarn |
2747.67 |
USD/Ton |
0% |
2/26/2019 |
|
32S Polyester Yarn |
2023.42 |
USD/Ton |
0% |
2/26/2019 |
|
45S T/C Yarn |
2882.07 |
USD/Ton |
0% |
2/26/2019 |
|
40S Rayon Yarn |
2165.29 |
USD/Ton |
0% |
2/26/2019 |
|
T/R Yarn 65/35 32S |
2553.54 |
USD/Ton |
0% |
2/26/2019 |
|
45S Polyester Yarn |
3046.33 |
USD/Ton |
0% |
2/26/2019 |
|
T/C Yarn 65/35 32S |
2538.61 |
USD/Ton |
0% |
2/26/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
2/26/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
2/26/2019 |
|
40S Combed Poplin |
1.12 |
USD/Meter |
0% |
2/26/2019 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
2/26/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
2/26/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14933 USD dtd. 26/02/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Doha: The export from India to Qatar has risen by more than 80 percent in 2017-18 and is expected to rise further in 2018-2019, said P. Kumaran, Ambassador of India to Qatar. The Ambassador was speaking at a roadshow titled ‘Vibrant Terry Towel 2019’ held in Doha to promote the ‘Vibrant Terry Towel Global Expo and Summit 2019 (VTGES 2019)’. He also laid strong emphasis on the key factors that are driving India as a business and investment destination, along with the opportunities emerging in Qatar. The textile sector of India is the second biggest employer after the agriculture sector, said the Ambassador. The Textile Development Foundation (TDF), a leading not-for-profit association works for hundreds of small decentralised terry towel and textile units located in Solapur, Maharashtra. In association with Global Network, an international trade advisory firm based in Ahmedabad, Gujarat, they had organised the Roadshow in Doha in collaboration with the Indian Business & Professionals Council, Qatar (IBPC), which was attended by around 50 people from this sector. The Roadshow was held to promote and highlight the salient features of the VTT GES 2019 which will be a first of its kind event focused on the towel industry in India. The event, scheduled to be held in Solapur, from September 25 to 27, 2019, will bring customers, towel manufacturers, importers, exporters, technologists and traders together on a common platform to discuss, share, debate and celebrate the best practices of the towels industry.
Source: Qatar's Daily
Viet Nam’s trade turnover reached US$43 billion in the first month of 2019, the best January performance seen in the last few years, according to the General Department of Vietnam Customs. This figure is $2.9 billion higher than in January 2018 and nearly double the average figure of $23 billion per month recorded in the 2012–18 period. In addition to the record turnover, the department’s statistics showed many positive signs for Viet Nam’s foreign trade activities. In particular, the trade value of domestic enterprises grew at a faster pace compared to the foreign direct investment (FDI) sector in January, with an increase of $1.92 billion against the $973 million of the latter. Another good sign is related to the trade balance. While Viet Nam suffered a trade deficit of nearly $1 billion in the first half of January, a sharp increase in exports in the second half led to a trade surplus of $816 million for the whole month. For key export products, Viet Nam posted an export value of $22.07 billion, an increase of $1.8 billion year on year. The textile and garment, equipment and parts, and footwear sectors contributed the most to this positive performance. Textiles recorded an increase of $810 million from the same period last year, equipment posted an increased of $415 million and footwear was up $351 million. These three groups of commodities were among Viet Nam’s top five export staples with an export value of more than $1 billion each for the month. In January, Viet Nam imported goods worth $21.26 billion, up $1.09 billion against January 2018. Significant growth of import turnover was seen in equipment and parts with an increase of $522 million, crude oil with an increase of $390 million, all types of cars with a $256 million increase and coal with a rise of $205 million.
Source: Vietnam Net
Exporters are hoping the current tax waivers will be continued, with half of respondents surveyed by the University Network for Indonesia Export Development (UNIED) saying they had benefited from the schemes.The first scheme, the tax waiver for imported materials for exports (KITE), exempts eligible companies that do not operate in bonded zones from paying value-added tax (VAT) and luxury goods tax (PPnBM) as well as excise fees on capital goods or intermediary goods they import for export purposes. The second scheme automatically exempts companies that operate in bonded zones from paying these taxes. In its research, the UNIED interviewed 1,606 businesses that had benefitted from either the regular bonded zone or KITE schemes. The study found that 50 percent of respondents believed the schemes had helped improve their production efficiency. Should the government decide to revoke these schemes, 32 percent of respondents said they would move their operations abroad, mostly to Vietnam. Among those that operate in bonded zones, textile, electronics and footwear manufacturers would be the most likely to relocate if the incentive was stopped. For those operating under the KITE scheme, the most likely to move overseas would be textile and automotive manufacturers as well as manufacturers of foodstuffs, plastic, wood and paper. The UNIED was established by government-backed export financing company LPEI, also known as Indonesia Eximbank, in partnership with 11 state colleges. At a recent launch of the study in Jakarta, Indonesian Exporters Association (GPEI) chairman Benny Soetrisno said the two incentives had helped businesses, particularly in managing their cash flows. However, he said greater inter-ministerial coordination would be required if the country wanted to increase its export output. Support from technical ministries, such as the Trade Ministry, among others, would be a great help in unlocking overseas market access, he said. “There should be intense cooperation among ministries,” he said, suggesting that the government should provide further support for exporters, such as by providing export insurance. While expressing appreciation for the KITE scheme, Edward Otto Kanter, an advisor at the Association of Priority Lane Companies (APJP), said some businesses had been hurt by the government’s import-restriction policy, which raised the income tax on 1,147 imported consumer goods. “The regulation is quite a burden for businesses that utilize the KITE scheme as some of the [imported capital or intermediary] goods are subject [to higher income tax],” said Edward, calling for the government to exempt KITE-based businesses from the regulation. Responding to these concerns, Finance Minister Sri Mulyani Indrawati said the government could give special treatment to KITE businesses by exempting them from the regulation. This is because these companies import goods for manufacturing purposes, while the regulation is aimed at reducing imports of foreign-made consumer goods. The UNIED study found that the value created from both schemes totaled Rp 57.28 trillion (US$ 4.09 billion) in 2017, and helped facilitate the export of Rp 780.8 trillion in goods over the same year. The incentives also helped attract Rp 178.17 trillion in investment in 2017, with these businesses employing 1.95 million people in the same year, 97 percent of whom were Indonesians. Thirty-four percent of the Indonesian goods exported in 2017 were manufactured using the capital or intermediary goods that were subject to the incentives, the research showed. The schemes also contributed Rp 85.49 trillion to the government’s tax revenue in 2017, up from Rp 64.96 trillion in 2016, according to the study. The study found that more than 95,000 small and medium enterprises (SMEs) were indirect beneficiaries of the incentives, as they formed networks with companies that operated in bonded zones or used the KITE scheme. Responding to the study, Sri Mulyani hinted that the schemes were unlikely to be revoked as they had created significant greater economic value, in the form of increased exports, investment, job creation and the multiplication of linkages among sectors.
Source: The Jakarta Post
Drapers speaks to UK textile mills about what they are doing to stay ahead, the future of the industry and the impact of Britain’s looming departure from the European Union. AW Hainsworth has a long heritage to draw upon, as well as some friends in high places. The Yorkshire mill created the scarlet cloth used to make the uniforms of British soldiers in the Battle of Waterloo, and its cloth is still worn by the Queen’s Guard outside Buckingham Palace today. It is also used to make the military uniforms worn by the royal family during state occasions. But it is by focusing on the next generation of fashion talent that AW Hainsworth is securing its future. The mill often collaborates with students, many of whom – such as Christopher Raeburn and Joshua Kane – have gone on to become established designers. Most recently, it worked with Central Saint Martins graduate Alex Mullins on a bespoke blanket fabric for his catwalk show at the autumn 19 edition of London Fashion Week Men’s in January. “Lots of mills don’t like working with students – they roll their eyes when students approach them at textile trade shows,” marketing manager Julie Greenough tells Drapers. “We started working with Christopher Raeburn and Alex Mullins when they were both still studying. If you start working with designers at that age, they gain an understanding of quality products and continue to use them throughout their careers. That’s how you hook designers in. They find it very difficult to turn to lower-quality products once they’ve used good cloth as a student.” AW Hainsworth is also focusing on its fashion offer, particularly internationally, to drive growth. It has expanded its sales team to include international roles concentrating on new business in the US and Japan. Diversifying into new markets should help buffer AW Hainsworth from the challenges presented to the UK textile’s market by Britain’s upcoming departure from the European Union. “Brexit is challenge because of the level of uncertainty,” Greenough adds. “There are some orders that would have been placed by now that are still a little bit questionable because people are holding back until they’ve got to grips with what’s going to happen. Our fleece comes in from Australia and New Zealand, but we export a lot to mainland Europe, so duties and tariffs are an issue. “Our prices are high, and customers are willing to pay because of the quality and the brand heritage, but we’ve got to maintain that balance, and we don’t want higher costs to push us out of customers’ remits.” She adds, however, that the future is looking positive for UK textiles even if Brexit puts a few bumps in the road ahead: “All the mills are in the same boat, and there has been a massive swing towards customers buying their cloth from the UK over the past few years. Most of our markets shouldn’t be too badly affected, and diversifying means we have our fingers in many pies.”
Johnstons of Elgin
Established: 1797
Based: Elgin, Scotland
Specialisms: Cashmere, wool
As well as working with its private clients – which include Chanel and Burberry – cashmere specialist Johnstons of Elgin is continuing to build its own brand, to help future-proof the business. Underpinning this is an ongoing investment in equipment. “Over the last year, we’ve invested significantly more than we ever have before,” says chief executive Simon Cotton. “We’ve invested in new equipment that can create a finer-gauge knit and a finer jacquard in the woven side of the business, as well as in our finishing. We’re trying to stretch our tech capabilities both to help broaden the seasonality of our offer for our private-label clients, as our customers have different requirements, and to build the Johnstons brand.” In Edinburgh this spring, the mill will open its second Johnstons of Elgin store, which Cotton hopes will attract well-heeled international clientele who will spread the label’s message around the world. Developing its own brand has helped Johnstons to manage production fluctuations and further improved its reputation among private clients, he adds: “We have the best private-label clients in the world, and that’s fantastic, but the business fluctuates and can be seasonal. When you’re making your own brand, you can make it when you want it, which helps from a production point of view. Building a brand known for beautiful products also fits well with the private label arm, because their customers are increasingly concerned with where the products are made.” Cotton is relatively sanguine about the challenges posed to UK textiles by Brexit, noting that although the mill “would be foolish not to be thinking about it”, Johnstons has survived two world wars and three floods in the area. A bigger issue for the industry as a whole, he says, is finding new talent: “The industry is enjoying a period of growth, but the biggest challenge remains getting skilled people and training them quickly enough. We’re at the forefront of that by creating hundreds of modern apprenticeships but we still need more people, more quickly.”
English Fine Cottons
Established: 2015
Based: Dukinfield, Greater Manchester
Specialism: Cotton
Interest in British textiles is growing among high street retailers, but price remains a barrier for the cost-conscious larger players, says Andy Ogden, director and general manager of Manchester-based cotton mill English Fine Cottons.
Textile company Culimeta-Saveguard embarked on an ambitious project to bring cotton spinning back to Manchester when it launched English Fine Cottons in 2015. The mill began test production in July 2016, and opened for business in December 2017. “The interest [in UK-made textiles] is definitely growing, but whether the demand is there yet is a more complicated question,” Ogden tells Drapers. “There is appetite and enthusiasm for sustainability, particularly among younger customers. However, the high street is still driven extensively by cost and price. But the conversations are starting, whether that’s been driven by consumers or Brexit or myriad other factors.” English Fine Cottons has gone from manufacturing 12 hours a day, five days a week when it opened in 2016, to 24 hours a day, seven days a week. The mill will also launch a range of off-the-peg shirts with an as-yet-unnamed high street retailer later this spring. Marks & Spencer already offers customers the chance to choose English Fine Cottons fabrics in its custom shirting offer. Ogden says the current market for UK textiles presents both opportunities and challenges: “On the one hand, there’s no doubt that consumers are starting to look at labels more often and ask question about sustainability. Interest in heritage and provenance is good for us. But on the other, these are challenging times when it comes to importing and exporting raw materials because of countries not understanding what the UK’s position is around Brexit. There could well be export challenges ahead.”
Abraham Moon & Sons
Established: 1837
Based: York
Specialism: Wool
A focus on the fashion apparel industry and ongoing investment in machinery are at the cornerstone of vertical woollen mill Abraham Moon & Sons’ strategy. Over the past year, the mill has invested in more spinning frames, new carding machines and new looms that can weave 10% faster than the previous machines “Our philosophy is that if you’re not investing, you’re standing still,” marketing manager Martin Ellis tells Drapers. “As a mill, you have to be at the top of your game or risk being overtaken. The human element is extremely important – we have a total of 250 staff at our mill and our three retail stores – but machinery is key. We travel the world trying to find the best solutions.” Demand from the fashion industry is booming, Ellis adds: “We’ve seen a great increase in orders from British brands, including Boden and Hobbs, as well from Japan and South Korea. The high street is interested in provenance and quality and the Far East just loves British textiles.” Like many others in the UK textile industry, Ellis points to imports and exports as being the biggest concern surrounding Brexit: “We’ve made a concerted effort to build stocks in the event of no deal, and ordered more raw wool than we would normally would to ensure we continue working with our partners. The big thing on the horizon is trade tariffs. However, we are in quite a fortunate position in that we have a short supply chain and import only one raw product – wool. But even that has been affected by the weaker pound and currency swings, because everyone buys wool in dollars.”
John Foster
Established: 1819
Based: Bradford
Specialisms: Worsted, mohair
The team at Bradford-based John Foster will be raising a class of champagne this year to celebrate its 200th anniversary. The mill has been a leading supplier of worsteds and mohair since textile tycoon John Foster started the business in 1819. Two centuries on and trade remains strong, says managing director David Gallimore: “The market [for UK textiles] is very buoyant at the moment, despite raw material increases – the price of wool has gone up astronomically over the past 18 months – and all the uncertainty around Brexit. We should be heading into a difficult time but, actually, the orders are flowing in, and when I speak to my competitors, they say the same thing – it’s a busy time for the trade.” Japan and the Middle East are two key markets for John Foster, and the mill prides itself on building strong relationships in the two regions. “We’ve spent a lot of time and dedication on those two markets,” Gallimore adds. “We’ve spent more than 60 years visiting Japan, and you can’t beat that kind of relationship.” John Foster has also been investing in machinery, including purchasing five new weaving machines over the past 12 months. However, Gallimore echoes his peers in stressing that mills must invest in their people: “We have one of the largest and strongest design teams on the trade and we spent a lot of time travelling the world, sitting down with customers to find out what the market really wants from us. That kind of experience and expertise is vital.”
Source: Drapersonline
INDA and EDANA, two global trade associations representing wipes manufacturers, announce support from additional European Union countries for the industry’s standard for assessing the flushability of wet wipes. Key provisions of the fourth edition of the Guidelines for Assessing the Flushability of Disposable Nonwoven Products (GD4) have now been adopted by Belgian and Spanish authorities. GD4 contains test methods and strict pass/fail criteria to determine if a wipe can be marketed as “flushable.” In 2015 Belgium adopted and put into law the previous Guidance Document provisions (GD3) and is favourably inclined toward enhancing those requirements with adoption of GD4 provisions. More recently, the Spanish standard UNE 149002 was released January 31, 2019, establishing criteria required to label a product as “flushable.” Those criteria include the key disintegration/dispersion test method of GD4 as well as the pass/fail limits of GD4. Additionally, for wipes not marketed as “flushable” but likely to be inadvertently disposed of in the toilet, such as baby wipes and disinfecting wipes, labeling practices that include the INDA/EDANA “Do Not Flush” symbol are prescribed. These guidelines are proven to be effective. A 2017 Water UK study of sewer blockages found that less than 1% of the blockage material was identified as products designed to be flushed. “International acceptances of GD4 are noteworthy as the adoptions included the approval of the wastewater sector in each country, indicating the desire to achieve consensus and therefore strength and unity in addressing the larger issue of developing public awareness and support for proper disposal of the various types of wet wipes on the market, “said Dave Rousse, President of INDA. “Other countries in Europe are in the process of adopting these standards, indicating a growing consensus that, accompanied with the prescribed labelling provisions, they ensure proper protection for wastewater systems,” said Pierre Wiertz, General Manager, EDANA. Rousse and Wiertz believe GD4 acceptance within the wastewater and regulatory sectors in these countries provides important validation that these test methods, pass/fail criteria, and “Do Not Flush” labelling practices are good for citizens and local wastewater treatment facilities.
Source: TextileWorld
The apparel industry is quickly becoming a leader in circularity, from scaling innovative business models such as recommerce and clothing rental to developing textile recycling programs to incentivizing product take-back. Given the potential for brand-boosting (and undeniably compelling marketing narratives), it’s no surprise that many companies are beginning their foray into circularity with consumer-facing programs. This approach can tell a strong story about closing the loop and curbing environmental impact, and engages consumers in the process. But not all circular developments in the apparel industry are seen by consumers, even though they may feel their impacts each day. Much of the action is behind the scenes and can include some impactful innovations.
One innovator to watch is Netherlands-based DyeCoo, a company that developed the first commercially available textile dyeing machine that eliminates the need for water and processing chemicals in the dyeing process. When it comes to fashion, water is no drop in the bucket. Conventional textile dyeing uses anywhere from 25 to 40 gallons for every two pounds of fabric. Globally, the water used in textile production (including cotton farming) adds up to about 24.56 trillion gallons each year, according the to the Ellen MacArthur Foundation’s New Textiles Economy report. A single DyeCoo dyeing machine saves 32 million liters of water and about 176 tons of processing chemicals per year, according to the company's website. As water scarcity increases, DyeCoo’s approach offers textile manufacturers geographical freedom from water sources when citing new operations. The name "DyeCoo" comes from mashing up "dyeing" with "CO2," a nod to its approach. The process works by pressurizing and heating carbon dioxide to above 31.1 degrees Celsius (about 88 Fahrenheit), the temperature at which it becomes "supercritical," a phase between a liquid and a gas. This allows dyes more easily to dissolve and to penetrate deeply into fibers without the use of water or bonding chemicals. The CO2 is then cleaned and 95 percent is recycled back into the machine to be reused. The technology doesn’t just save water and chemicals. Because DyeCoo’s approach is waterless, fabrics don’t need to be dried, speeding up the dyeing process by 40 percent and cutting energy use by 60 percent. Impressive. DyeCoo has been working with Nike, Ikea and Adidas since 2013 (both Nike and Ikea are investors), and the company was recognized in Davos last month as a finalist in The Circulars. This award program is led by the World Economic Forum and the Forum of Young Global Leaders in collaboration with Accenture Strategy, and recognizes individuals and organizations worldwide making notable contributions to the circular economy. (I encourage you to peruse the diverse and inspiring list of honorees.) DyeCoo is one of several companies working to reduce the resource intensity and toxicity of the apparel industry: The Vienna Textile Lab& fabricates sustainable alternatives to conventional, chemical-intensive, synthetic colors by using naturally occurring bacteria; Unmade gives brands the ability to offer custom-manufactured products, cutting down on overproduction; and Worn Again Technologies chemically recycles non-reusable textiles and plastic bottles into virgin-quality fibers. And, no doubt, lots more to come. From shifting toward renewable and nontoxic ingredients, to keeping clothing at its highest and best use and recycling it at the end of its usable life, the apparel industry has a ways to go before circularity is adopted widely. In the meantime, companies such as DyeCoo offer encouraging proof points.
Source: Greenbiz
