India must play an active role in resolving the WTO’s Appellate Body crisis triggered by the US by supporting feasible options for the appointment of judges, a top legal expert has said. “There is a big chance that the US may declare the Appellate Body of the WTO non-functional in December 2019, as there would be just one judge left. India and other countries must then support Mexico’s proposal of appointing judges through an administrative majority decision (selection done on the basis of majority of vote cast),” said Ernst-Ulrich Petersmann, Emeritus Professor, Department of Law, European University Institute, in an interaction with BusinessLine. Petersmann is here to deliver a lecture on the WTO’s Appellate Body crisis at the invitation of the Centre for WTO Studies and the Centre for Trade and Investment Law. The Appellate Body is the top decision-making body that hears appeals from reports issued by panels in disputes brought on by WTO members. The WTO’s dispute settlement system is facing a crisis as the US has blocked the appointment of appeals judges since last year, which has now resulted in the shrinking of the numbers from seven to three. Two of the three judges are scheduled to retire on December 10, following which appeals made by WTO members on panel reports can’t be entertained.
Call for change
The Donald Trump regime had initially said the Appellate Body’s functioning needed to be improved and that the body had been over-reaching and creating laws through legal rulings. The EU and several other members including India subsequently came up with proposals for inter-governmental reforms of the dispute settlement system, but Washington’s goal posts changed. “The US’ blocking strategy seems to be now aimed at gaining leverage for WTO reforms in areas such as market access, notifications, state-owned enterprises, subsidies and least developed countries. The proposals on reforming the dispute settlement system is something it is unlikely to agree to,” Petersmann said. Initiating an administrative majority decision, which is provided for in Article IX of the WTO (‘where a decision cannot be arrived at by consensus, the matter at issue shall be decided by voting’), would require a meeting to be convened by the General Council or the Dispute Settlement Body, the trade law expert added. Asked whether going in for an administrative majority decision before the two judges retire in December would be a good move, Petersmann said it would be desireable but WTO diplomats are not likely to do so. “Members are more likely to wait and see as they do not want to provoke the US more at the moment,” he said.
Source: The Hindu Business Line
The genie is out of the bottle. After constantly objecting to India’s trade restrictions on import of goods, the US has finally responded by announcing the withdrawal of the preferential tariff benefits to India under the Generalized System of Preferences (GSP) programme. However, given the chequered use of preferential tariffs by the US, the recent measure deserves a closer look. One of the key principles of WTO (World Trade Organization)law is the provision of non-discrimination between WTO members, i.e., the principle of Most-Favoured Nation (MFN). Applying lower tariffs to imports coming from certain countries would be against the MFN principle. However, the enabling clause permits members to derogate from this MFN principle and provide preferential tariffs to imports from “developing countries".There is no criteria for qualifying as a developing country in WTO—a member may self-elect itself as a developing country. An analysis of average MFN tariffs applied by the US (as reported in the WTO tariff analysis online database) is of interest. The average MFN tariff by the US on import of goods is around 3.5%. Thus, for many products of export interest, the MFN tariff, in the absence of GSP benefits, may not be very high and may not have significant impact. However, it appears that the withdrawal will impact different products of export interest at varying degrees depending upon the applicable MFN tariff. Irrespective of the eventual trade impact, the US action is at loggerheads with its WTO obligations. Requiring the developing countries to provide “reasonable and equitable market access" is not strictly in compliance with the enabling clause, which expressly requires grant of preferential treatment by developed countries to developing countries to be on a non-reciprocal basis. Withdrawal of GSP benefits on such pretext also undermines the objective recognized in the preamble to the WTO Agreement that there is a need for “positive efforts" to ensure that developing countries secure a share in their growth in international trade commensurate with the needs of their economic development. GSP benefit to India is not being withdrawn because it has crossed certain financial, developmental or trade threshold, but because it has not reciprocated with “reasonable and equitable market access". Such criterion for discriminating between developing countries is not consistent with WTO. There is also an obligation to not discriminate between “similarly situated" developing countries. The WTO Appellate Body, in response to the complaint by India, in the case of European Communities—Conditions for the Granting of Tariff Preferences to Developing Countries (EC-Tariff preferences)—decided that discrimination between similarly situated developing countries is not consistent with the WTO obligations of the member country. The US action does not even attempt to distinguish or identify developmental, financial or trade needs of India vis-à-vis other developing countries. India’s response to the US action is yet to be formally announced. The record shows that India has been reluctant to resort to retaliatory tariff but has not been shy of initiating WTO dispute against the US. Another alternative in this case is to bend over backwards and allow what the US considers “reasonable and equitable" market access. Dhruv Gupta is partner at Lakshmikumaran & Sridharan.
Source: Live Mint
About 100km south-west of Delhi in the industrial belt of Bawal in Haryana stands an assembly plant of Harley-Davidson. One of only three such plants the iconic American motorcycle company has outside the US, it employs 170 people. That’s a small number, but in Trump’s fight against what he calls the unfair trade practices of “tariff king" India, which has led to the US withdrawing zero tariff benefits on some 1,900 Indian products, Harley-Davidson loomed large. Trump’s repeated tirades against high Indian tariffs on premium bikes forced India to reduce the duty on completely built units of such bikes to 50% from 75%. India, however, denied the charge of being a high-tariff nation, holding that its tariff regime is fully compliant with its commitments under the World Trade Organisation rules. Sajeev Rajasekharan, managing director of Harley-Davidson India, in an interview, refused to reveal the capacity of the Bawal plant. But he said 13 out of the 17 models of the bikes sold in India are assembled in India, including the best-seller Street 750cc.
Trade tension
On 4 March, the Trump administration decided to scrap duty benefits on $5.6 billion of exports from India by early May, alleging that India has introduced a “wide array of trade barriers that create serious negative effects on United States commerce". The Generalized System of Preferences (GSP) programme allows duty-free entry of around 1,900 products from India into the US market, benefiting exporters of textiles, engineering, gems and jewellery and chemical products. Both sides were negotiating a trade package after the United States Trade Representative in April last year announced that it was reviewing India’s GSP eligibility, following complaints filed by the US dairy and medical devices industries on market access issues. While American dairy companies were upset at Indian import restrictions, its medical devices industry had opposed Indian price ceilings on stents and knee caps. However, “disproportionate" demands by the US led to a collapse of the talks, leading to the withdrawal of GSP benefits from India, the largest beneficiary of the US programme. The trade war goes further back than the cancellation of the GSP. In March 2018, the US unilaterally hiked duties on steel and aluminium imports from major trading partners, including India. India has the option of enforcing tit-for-tat tariff hikes on 29 US products including almonds, apples and phosphoric acid worth $235 million in response to that measure. But New Delhi has been deferring its implementation month after month, apparently unwilling to take a harsh measure amid ongoing talks between the two sides on a possible trade package. India is unlikely to implement the decision and may yet again extend the deadline by another month after the current deadline expires on 31 March. “The US is not just another trade partner. We need to take into account the fact that our strategic partnership is growing at a fast pace and millions of Indian tech professionals are working in the US," a commerce ministry official said, speaking under condition of anonymity. However, he added that revoking the retaliatory tariffs at this time will send the wrong signal to the domestic audience and show the Indian government as weak. “Hence, the deadline for its implementation may be further extended. A final decision will be taken by the Prime Minister’s Office," he added. The US is also peeved with the new restrictions on e-commerce companies, directly impacting the Indian operations of Amazon and Walmart-owned Flipkart. The proposed data localisation norms could also impact internet giants like Facebook and Google, and complicate the bilateral trade relationship.
The bigger S&D Game
However, analysts believe there is a bigger gameplan: The US wants large developing countries like India and China to forgo the special and differential treatment they enjoy. It has recently convinced Brazil to give up similar benefits in return for membership of the Organisation for Economic Cooperation and Development. India, however, has been arguing that it lags behind developed countries on many socio-economic parameters and hence remains a legitimate beneficiary of differential treatment. Biswajit Dhar, professor at JNU said: “India has to assert its rights under WTO. It just cannot allow one member country to unilaterally redefine the rules of the game."
Source: Live Mint
New Delhi: India has emerged as the second largest market after the UK for Marks & Spencer, and the British retailer is looking at a double digit growth in terms of store addition in the next fiscal, said a top company official. M&S has opened one store each in Chennai and Hyderabad on Tuesday. As part of expansion, M&S is now looking at the fast emerging tier II & III cities and also plans to increase the products range with more local relevance. "India has now the largest market for us outside UK," Marks & Spencer India MD James Munson told. For M&S, India is a "strategic market", where there is acceptance of international brands and has space to grow. After recent openings, M&S now has 76 stores across 32 cities and is expanding its presence. As part of its expansion drive, M&S has opened six stores in last 48 days. "We are really excited to be reaching the landmark of our 75th store opening, as well as continuing to improve the online experience for our customers," he added. The company clocked a turnover of Rs 908 crore in India in FY 2017-18 and expects to continue its growth momentum further in the next fiscal. Besides, the company would also continue to add more stores to maintain the pace of expansion of its sales network. "In FY 2019-20, we would continue double digit growth in terms of store addition on like-to-like basis," Munson added. Presently, M&S sources around 30 per cent material locally and rest is from imports, and will increase more products "which are relevant to customers, he said. The company is also present on the fast growing online sales through its several channel partners. Although, the present contribution of online sales is in single digit but Munson expects it to grow further. M&S opened its first store in India in 2001 and in April 2008 signed a JV with Reliance Retail to form Marks & Spencer Reliance India Pvt Ltd. Established in 1884, M&S is one of the UK's leading retailers and trades in 57 markets, with over 400 stores and online presence in 33 markets.
Source: Financial Express
State-owned Jawaharlal Nehru Port Trust (JNPT) has handled 5 million twenty-foot equivalent units (TEUs) this fiscal, becoming the first Indian port to scale the peak. The milestone comes three decades after JNPT was built as a satellite port to de-congest Mumbai Port Trust with an investment of ₹1,109 crore, of which ₹956.97 crore was loaned by funding agencies, with the World Bank being one of the major contributors. JNPT has five container terminals, of which four are run by private entities and one is run by the port trust itself. In FY18, JNPT handled 4.83 million TEUs. Till March 26, 2019, it handled 5.03 million TEUs. Of the 5 million TEUs handled this year, Gateway Terminals India Pvt Ltd, the facility run by a joint venture between APM Terminals Management BV and Concor, emerged the top terminal yet again by handling 2.01 million TEUs. The container terminal run by the government-owned port authority handled 1.04 million TEUs. Nhava Sheva International Container Terminal, Dubai government-owned DP World’s first facility at JNPT and operating since 2000, handled 5.47 lakh TEUs. Nhava Sheva (India) Gateway Terminal, also run by DP World, handled 9.26 lakh TEUs. Bharat Mumbai Container Terminals, run by Singapore’s PSA International Pte Ltd, handled 5.03 lakh TEUs.
Source: Business Line
Diversified conglomerate ITC has sold its John Players apparel brand and related trademarks and intellectual property to Reliance Retail. An ITC spokesperson said that as part of the strategic review of the lifestyle retailing business, a restructuring plan is underway. In line with this ongoing restructuring, ITC had sold the brand ‘John Players’ and related trade-marks and intellectual property, and the goodwill related to it, to Reliance Retail Limited. ITC declined to disclose the deal size. Launched about 2002, the apparel brand started with men’s shirts and was later extended to jeans, tees and trousers. ITC’s lifestyle business covered the mass John Players brand and the premium WLS brand (erstwhile Wills Lifestyle. It recently repositioned the WLS brand .
Challenge from e-com
However, ITC faced challenges in its branded apparel business due to aggressive discounts offered by e-commerce players and GST transition, which triggered premature end of season sales. It responded by making structural interventions including store rationalisation, modifying offerings and sharpening working capital management. While WLS was available at 350 outlets across multiple channels, John Players was available at about 750 points-of-sale in leading national and regional department stores and also exclusive stores. In August 2018, ITC said in a regulatory clarification that it was undertaking a “routine business review of its apparel business.” Abneesh Roy, research analyst and senior vice-president — institutional equities — research at Edelweiss Securities, said the business was hit by competition for three years. “ITC will now focus on the premium-end through its WLS stores. It also said the sale would improve ITC’s consumer business margins but impact sales from this business. “Over the past three quarters, this business’s EBIDTA has been improving” , he noted.
Source: The Hindu
Indians are being encouraged to tap investment opportunities in textile and pharmaceuticals, under Kenya government are manufacturing agenda. Indian High Commissioner to Kenya Rahul Chabra says there is need for Indian investors to create partnerships with their Kenyan counterparts to deepen bilateral ties. Trade between Kenya and India stands at over 200 billion shillings with Kenya exporting soda ash, vegetables and tea and importing pharmaceuticals, steel, machinery and automobiles from the Asian country. To bridge the deficit, Kenyan investors have been urged to take advantage of direct flights to Mumbai and create partnerships with Indian traders to easily access the Indian market. Indian investors are being encouraged to explore investment opportunities in the pharmaceutical and textile sectors under the government’s manufacturing agenda. With direct flights between India and Kenya, tourism is another investment opportunity that Indians were encouraged to consider. Kenya has signed an agreement with a fast food chain and two coffee and tea companies that are expected to set up in the country once modalities are finalized. Elsewhere Indians, extremely hot temperatures and a prolonged dry spell in Uganda are hitting farmers hard in several parts of the country, with meteorologists warning that the country’s drought could continue until the end of March. Livestock keepers say more boreholes are needed in the country.
Source: KBC
India’s image of an unreliable supplier in the world market hits prospects, say sources. Contrary to expectations, Indian farm commodity exporters have not benefited from the ongoing trade war between the United States and China. Key commodities such as soybean seeds or oilcake and rapeseed oilcake, which had genuine prospects to replace US supplies, found no attention in China . In the case of soybean, China preferred imports from Argentina and Brazil to sourcing it from India . Sources said India’s image of an unreliable supplier in the world market could be the reason for China turning to the South American producers . The Soybean Processors Association of India (SOPA), the apex trade body of the oilseed producer in Central India, has expressed disappointment over the missed opportunity . “China usually buys soybean. And amid trade tensions with the US, it could have turned to India, but they (China) didn’t open it, instead it is procuring from Argentina,” said a SOPA official. The Solvent Extractors’ Association (SEA) had earlier stated that resumption of soybean meal exports to China could take longer due to pending inspection and approval of the units by Chinese authorities. Even in the case of rapeseed oil cake, the orders are not forthcoming. BV Mehta, executive director, SEA said, “There is no known reason why China is not allowing imports of rapeseed oilcakes from India. Already, five of the factories were inspected and approved by the Chinese authorities. But they have still not allowed any shipment. They have not given any reason for not allowing shipments despite companies showing readiness to start the shipments.” Major edible oil players, including Adani Group and Gujarat Ambuja Exports, are reportedly making efforts to begin shipments to China. In the past few months, several feelers were given to the trade that China will resume the import of rapeseed meal from India. It was believed that units that were approved by General Administration of Customs of the People’s Republic of China would be able to resume the export once their registrations with Chinese Ministry of Agriculture (MoA) was done. But there is no breakthrough yet. Prior to ban in 2012, China used to import nearly half a million tonnes of oilmeals (rapeseed meal 3.5 to 4 lakh tonnes and 1 lakh tonnes of soybean ) from India. “If the ban is revoked, there is an immediate possibility of at least 2 lakh tonnes of rapeseed meal exports to China,” said Mehta. “Exports have become a residual issue. When we have surplus production, we look at the international markets. Otherwise, we don’t see production as part of export strategy. If international markets was part of our strategy, then potential importers would have relied on us. We need to factor in international markets as a strategy,” said Biswajit Dhar, Professor, Centre for Economic Studies and Planning at JNU. According to cotton stakeholders, China possesses an important place in the cotton exports from India. Bangladeshhas bought about 10 lakh bales (each of 170 kg) so far this season (October 2018-September 2019) .Exports to China is reported at about 8 lakh bales. Rising prices of the fibre crop in the domestic markets slowed down the exports. “Cotton prices have shot up sharply in the past fortnight and due to higher prices, export contracts have taken a halt,” said Atul Ganatra, President, Cotton Association of India (CAI). Also the diplomatic initiative launched by the Modi Government to push shipments of Indian rice has not paid off. Sources said China has preferred to source its white rice requirement from Pakistan because of the cost advantage. In addition to the lower costs, the exporters from Pakistan have a 5 per cent duty advantage while shipping to China. The Indian rice has turned expensive in the world market after the Centre increased the MSP for paddy this year.
Source: The Hindu Business Line
NITI Aayog and ABB India organized a workshop aligned with the national objective of ‘AI for All’. NITI Aayog and ABB India organized a workshop to discuss various facets of AI based technology adoption across certain sectors that brought together entrepreneurs, policymakers, state government functionaries and technology experts. Aligned with the national objective of ‘AI for All’, the workshop, held at the ABB Ability Innovation Center (AIC) in Bengaluru featured MSME entreprenuers from the selected sectors of pharmaceuticals, textiles, electrical and electronics, food processing and manufacturingThe workshop focused in three key areas that included addressing sector specific issues - regulatory, financial and policy concerns relating to adoption of automation by the MSMEs; exploring innovative business and economic models (plug and play, cluster approach, shared manufacturing approach) to accelerate technology adoption by MSMEs, while optimizing costs; and addressing potential impacts of automation and AI on the workforce and steps that could be taken to educate, train and reskill the workforce. “At NITI Aayog we are no longer working on one-way policy plans, we have wide and deep interactions with those for whom the policies are intended to focus on. At ABB Ability Innovation Center we have brought all stakeholders of MSME value chain to identify the roadblocks they face in growth, be it in business models, financing or skilled labor, and together find ways in which we can address the same using tools ranging from policy to technology,“ said Anna Roy, Senior Adviser, NITI Aayog. “India can leapfrog and show the way when it comes to innovative AI applications. Working with MSMEs and the eco-system is critical for the industrial and manufacturing adoption of such technologies. With its established history of working with them for several decades and driving the change with new digital solutions, ABB would be the perfect catalyst,“ said Sanjeev Sharma, Managing Director, ABB India. Last year, NITI Aayog and ABB signed a Statement of Intent (SoI) to support the Indian government to realize its ambitious vision of “Make in India” through advanced manufacturing technologies that incorporate the latest developments in robotics and artificial intelligence.
Source: Zee News
The Goods and Services Tax (GST), which was introduced about 20 months ago, has seen the total number of returns filed increase, though the shift in trade towards a formal economy has been slower than anticipated. In a report by Motilal Oswal Financial Services, the brokerage highlighted that though the collections had increased, it was still below the target as deferment of anti-evasive measures for a smooth roll-out of GST impacted collections. In the GST regime, the manufacturing sector witnessed an increase in working capital requirements, while the services sector has had to comply with increased state-level compliances and higher tax rates, the domestic brokerage said. “GST collections have increased year-on-year in FY19 [until February], but the monthly average collection is lower than the target, slimming the prospects of achievement of the full-year target. However, in our view, collections should improve once the anti-evasive measures are put in place,” the report said. The average monthly GST collection in FY19 till February was ₹97,400 crore, higher than the FY18 monthly average of ₹89,900 crore, it added.
Scope for improvement
“We believe that GST collection should improve going forward, led by the rising compliance level from the broadening tax base and the government’s increased focus on implementing anti-evasive tax measures,” the brokerage report said. Meanwhile, the total number of returns filed increased from 6.5 million in July 2017 to about 7.8 million in recent months. Further, while the GST revenue collection trend has been improving over the past 20 months, the monthly average revenue collection of around ₹97,300 crore (until February) in this fiscal is below the target of ₹1.06 lakh crore. According to the brokerage, the FY19 revenue collection may fall short of the target by close to ₹1 lakh crore if the same revenue trend continues for the last month of FY19. “GST is certainly a move focused on ease of doing business. However, the lack of preparedness, the technology glitches in the GST platform and the non-clarity over certain procedural issues have made the transition phase tough,” the report highlighted.
Source: The Hindu
Polls bring in plenty of work to weavers of this textile town. Come elections, the powerloom weavers of Sircilla textile town have their hands full, looms busy, and later pockets full producing a variety of election campaign materials for all the political parties of the country. Any election, any political party, any contestant and any State, the election material is produced only in Sircilla town because of its quality and affordable prices. Weavers are busy producing flags, banners, caps, shawls and other poll-related paraphernalia for the TRS, Congress, BJP, YSRCP, BSP and others. The powerloom weavers, who were in a happy spot given the bulk orders by the State government to weave Bathukamma saris and school uniforms, are delighted with the general election as they have hands full of work producing election material for all political parties and contestants. Five months ago, the weavers had secured bulk orders for producing poll material for the Assembly elections in Telangana and had done a business of over ₹3 crore. Now, Parliament elections have come as a boon to the weavers as they have secured orders for more than ₹5 crore.
Screen printing
It all started in 1978 with screen printing of party flags. With the advancement of technology, the Sircilla textile industry had started producing all types of election material such as caps, shawls, banners, flags, festoons etc. They charge anywhere between ₹50 to ₹500 per banner depending on its size. Printed shawls and flags come at ₹20 to ₹50 a piece, festoons at ₹20 to ₹30, while the VIP shawls cost ₹100 per piece. The election season is hay-making time for the powerloom weavers and their womenfolk. Around 500 persons, including weavers would be actively involved in the business of producing election material. The womenfolk, who are otherwise involved in the beedi industry, shift to campaign material production side-by, stitching shawls, caps and flags and their packages. “Election time is happy days for the weavers and the womenfolk as we get plenty of work to make quick money. I regularly roll beedies to add to the family income. But during elections, I shift to election material production as I would get daily ₹250 against ₹90 to ₹100 I make per day by rolling 1,000 beedies,” said Gagerla Kavalathi, a beedi worker. D. Murali, who produces election material, said there were good, bulk orders from all political parties from Telangana and Andhra Pradesh. Declining to disclose the worth of the orders, he said he was employing 25 persons in his firm. One can stitch up the rest.
Source: The Hindu
The rupee appreciated by 10 paise to close at 68.86 against the US dollar on Tuesday, following a robust response to the RBI’s maiden rupee-dollar swap auction. Sustained foreign fund inflows and heavy buying in domestic equities also propped up the local unit, forex traders said. At the interbank forex market, the rupee opened strong at 68.88 against the greenback, but surrendered the gains to slip to a low of 68.98. However, it clawed back lost ground and finally ended at 68.86, up 10 paise against its previous close of 68.96 per dollar. “The success of India’s $5-billion swap auction will decide whether it will become a popular instrument in the central bank’s liquidity tool box,” said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Source: Business Line
BENGALURU: Online marketplace for manufacturing services Zetwerk has raised Rs 64 crore ($9 million) in Series-A funding coled by Accel Partners and Sequoia Capital India, along with participation from existing investor Kae Capital. The startup wants to connect mid-to-large original equipment manufacturers (OEMs) and manufacturing SMEs and said it will utilise the fresh funds to expand its supply base across India. Zetwork said it will build a host of tools to help small manufacturers run their. We have got 1,000 partners today and are constantly growing that number. Our eventual goal is to index all of India’s manufacturing supply whether they work with us or not,” said Amrit Acharya, cofounder at Zetwerk. The company partners with suppliers engaged in fabrication, machining, casting, forging and galvanising of machine parts, a sector which is highly fragmented and largely works offline. This serves as a roadblock for SMEs to market their services and leads to lower levels of utilisation. Zetwerk works with mid-to large engineering companies such as Jindal, BGR energy, Embassy Group, and Fidelity Contracts to source demand. “Today, if you want to order a $5 bag of tea you can find the best one online and it will ship to you from anywhere in the world,” said Prayank Swaroop, partner at Accel Partners. “But if you want to order or sell a factory part worth thousands of dollars, there’s very little visibility into where to find the perfect part or buyer. Zetwerk aims to solve this global problem by bringing information symmetry, efficiency and cost effectiveness.”
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1313.74 |
USD/Ton |
0% |
3/26/2019 |
|
VSF |
1811.23 |
USD/Ton |
0% |
3/26/2019 |
|
ASF |
2445.76 |
USD/Ton |
0% |
3/26/2019 |
|
Polyester POY |
1340.55 |
USD/Ton |
0.11% |
3/26/2019 |
|
Nylon FDY |
2904.53 |
USD/Ton |
0% |
3/26/2019 |
|
40D Spandex |
4751.51 |
USD/Ton |
0% |
3/26/2019 |
|
Nylon POY |
2606.63 |
USD/Ton |
0% |
3/26/2019 |
|
Acrylic Top 3D |
1534.19 |
USD/Ton |
0% |
3/26/2019 |
|
Polyester FDY |
3142.85 |
USD/Ton |
0.48% |
3/26/2019 |
|
Nylon DTY |
5630.31 |
USD/Ton |
0% |
3/26/2019 |
|
Viscose Long Filament |
1578.87 |
USD/Ton |
0% |
3/26/2019 |
|
Polyester DTY |
2696.00 |
USD/Ton |
0% |
3/26/2019 |
|
30S Spun Rayon Yarn |
2584.28 |
USD/Ton |
-0.29% |
3/26/2019 |
|
32S Polyester Yarn |
2018.27 |
USD/Ton |
0% |
3/26/2019 |
|
45S T/C Yarn |
2874.74 |
USD/Ton |
0% |
3/26/2019 |
|
40S Rayon Yarn |
2174.67 |
USD/Ton |
0% |
3/26/2019 |
|
T/R Yarn 65/35 32S |
2576.84 |
USD/Ton |
0% |
3/26/2019 |
|
45S Polyester Yarn |
2949.21 |
USD/Ton |
0% |
3/26/2019 |
|
T/C Yarn 65/35 32S |
2532.15 |
USD/Ton |
0% |
3/26/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
3/26/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
3/26/2019 |
|
40S Combed Poplin |
1.11 |
USD/Meter |
-0.13% |
3/26/2019 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
0% |
3/26/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
3/26/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14895 USD dtd. 26/03/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan’s exports at $15 billion, growing at 1.86 percent year-on-year in 8MFY19 must be a worry. Only that the massive slide in imports seems to have masked the minimal growth in exports. But imports can only be curtailed to a limit, and the limit appears to be here. Exports growth, on the other hand, will depend on a multitude of factors, mostly out of Pakistan’s control, unlike imports. Exports were never expected to rise immediately with the sharp currency correction. Prices were expected to slide with the dollar going dearer and that happened. Pakistan also made efforts on its part to provide the exporting sectors ground to play competitive through reduction in energy prices, issuing of promissory notes for clearing long pending dues of the textile sector, among other factors. But as luck would have it, the sharp slide in rupee and the resultant drop in unit prices almost across all major export product categories, coincided with a considerable drop in demand in the major exporting markets of Pakistan, such as Europe and the USA. Growth of textile and apparels in the European market has gone down from 4.1 percent in 1HFY18 to 1.4 percent in 1HFY19, according to SBP’s latest report on the state of the economy. That in the US almost doubled during the period, but Pakistan’s textile and related exports to the US grew by only 0.5 percent, down from 4.6 percent in 1HFY18. Apart from fruits with a total share of 2.25 percent in exports, all major export categories have either faced a drop in unit prices or quantity or both. Readymade garments, for instance, grew by a massive 27 percent year-on-year in terms of quantity, but the unit price slid to $4.43 a piece, by 19 percent, restricting the growth to under 3 percent year-on-year. Towels on the other hand, fetched 11 percent higher prices year-on-year, but the quantity dropped by the same magnitude, limiting the value growth. Basmati exports have shown resurgence with nearly 28 percent year-on-year growth in quantity. The unit prices dropped by 10 percent year-on-year, but the quantum growth were more than enough to keep the value growth well within double digits. But the story on no-Basmati rice is not as good, as the 10 percent drop in quantity, more than wiped off the Basmati gains. Most of the exporters’ concerns seem to have been addressed. Some are also reportedly in different phases of expansion. But, the SBP has rightly pointed out that the “support would not amount to much-desired forex earnings if the exporters continue to chase the same markets without making concerted efforts to improve their product quality and brand image”. There is a dire need for the exporters to tap new markets. Pakistan’s share in the Middle East textile and apparel market of over $5 billion is a mere 3 percent. This is simply not enough. Diversification has to happen, both in terms of product mix and markets, and soon.
Source: Business Recorder
Faisalabad is manufacturing hub of popular international textile brands while local businessmen have also introduced their own brands in South Asia which can be internationalized by launching joint ventures with the collaboration of Italian experts. Syed Zia Alumdar Hussain President Faisalabad Chamber of Commerce & Industry (FCCI) said this during a meeting with a six-member Italian delegation headed by Italian Designer Ms Stella Jean. The FCCI Chief said that Faisalabad is iconic textile city. However, other segments are also contributing their role in the overall development of this city. He said that Faisalabad is providing 55% textile related raw material to the Pakistan while its share in total textile export is around 45%. He said that Faisalabad has state-of-the-art textile units which are supplying branded items to American and European Union countries. Among these brands include Zara, Nexus, American Eagle, Puma etc. Regarding Italian machinery, he said that many local units are using Italian textile machinery. He said that a delegation of FCCI is scheduled to visit Spain to participate in international exhibition at Barcelona, adding that another delegation for Italy has also been proposed to have B2B meetings with Italian buyers. Ms. Stella said that Milan Fashion Week is scheduled to be held in September which will attract large numbers of buyers from all over the world. She hoped that Pakistani exporters will also participate in this event. A representative of United Nations Industrial Development Organization (UNIDO) said that 90% industrial sector of Italy is consisting of SMEs. He said that Italy has a very rich cultural values and its people have successfully combined their cultural values with modern technology to give a new and popular shape to their innovative products. He said that Pakistan should also get benefits from this Italian experience. Engineer Rizwan Asharf Former President FCCI, Sectary General Abid Masood, Fazal-ur-Rehman Rao Deputy Director Trade Development Authority of Pakistan (TDAP), Senior Vice President Mian Tanveer Ahmed, Rana Sikandar Azam, Mian Gulzar Ahmed, Engineer Asim Muneer and other executive member of the FCCI were also present during this meeting.
Source: Business Recorder
National Board of Revenue has offered duty waiver on import of two types of yarn for Jamdani industry to facilitate the development of the sector. Customs wing of NBR on March 19 issued a statutory regulatory order, amending the previous SRO on weaving industry, in this connection reducing the import duty for metalised round yarn and other metalised yarn. NBR waived customs duty in excess to 5 per cent, all supplementary duty, regulatory duty and value-added tax on import of the two products. Previously, there was a total of 91.88 per cent duty including 25 per cent customs duty, 20 per cent SD, 15 per cent VAT, 3 per cent RD, 5 per cent advance income tax and advance trade VAT respectively on import of metalised round yarn. On the other hand, total duty rate was 60.73 per cent including 25 per cent customs duty, 15 per cent VAT, 3 per cent RD and 5 per cent AIT and ATV respectively on import of other metalised yarn. After the waiver, total duty incidence will be around only 17 per cent. Metalised yarn, one kind of textile yarn combined with metal in the form of thread, strip or powder or covered with metal, are basically used for design and decoration of Jamdani, one of the luxuries textiles of Bangladesh. Officials of the NBR said that registered Jamdani Weavers Association would be able to import the yarns by paying duty at reduced rates. They said that NBR offered the benefit in line with demand of Jamdani manufacturers to boost production, employment and contribution to economy. The benefit will reduce the cost of production, Bangladesh Jamdani Manufacturers and Exporters Association founding secretary Md Zahirul Hoque told New Age on Monday. He said that metalised yarn costs 20 per cent of the total production cost of Jamdani. So, weavers will be benefited from the reduction of the duty as it will reduce the cost of production, said Zahirul, also the owner of Semom Fabrics, based in Tarabo of Rupgonj of Narayangonj. NBR officials said that registered Jamdani weavers would import the yarns and distribute to their member weavers for the purpose of production of Jamdani. Importers will have to pay duty at the original rate along with penalty for failure of using the imported yarns for the purpose, they said. Earlier on November 2016, the Department of Patents, Designs and Trademarks under the industries ministry certified the Jamdani as the country’s first geographical indication product. DPDT also registered 66 weavers as authorised users of geographical indication of Jamdani so that they can commercially utilise the GI recognition for the product.
Source: New Age Business
Concerned over the growing environmental damage caused by the clothing industry, the United Nations (UN) launched an Alliance for Sustainable Fashion in Nairobi, Kenya on Monday. Global textile production doubled between 2000 and 2014, leading to massive emissions, water use, and soil contamination. The clothing sector has emerged as the second biggest consumer of water, consuming nearly 93 billion cubic meters every year. Experts pointed out, manufacturing a pair of jeans consumes around 7,500 liters of water, the amount of water an average person drinks over seven years. Such a massive use of vital natural resources results in textile manufacturing units generating 20 percent of the world's wastewater annually. Moreover, this wastewater contains half a million tons of synthetic microfibers that eventually ends up in the ocean harming marine life. Since the recycling facilities for the waste remains extremely low, it results in one truck of textile waste ending up either at a landfill or burned, every second. The heat-trapping greenhouse gas release --responsible for global warming -- from textile manufacturing units has surpassed combined emissions from international flights and maritime shipping combined, a recent study estimated. The Alliance is aiming to improve collaboration among UN agencies by analyzing their efforts in making fashion sustainable, identifying solutions and gaps in their actions, and presenting these findings to governments to trigger policy changes, the UN officials said. Experts also pointed out that the clothing sector is also responsible for 24 percent of insecticides, and 11 percent of global pesticides used for growing cotton, which increases the toxicity in soil. Experts blamed the prevailing "fast fashion" business model responsible for creating such a large amount of textile waste. “Many people succumb to buying seasonal trends that then get thrown away within a couple of months, and it's just not sustainable,” said Nadya Hutagalung, a renowned Indonesian-Australian model and actress. The Alliance, comprising of leading fashion brands and famous personalities, like Chinese pop star Karry Wang, launched a series of campaigns at various social media platforms for promoting sustainable fashion. The campaign focuses on improving recycling facilities, enhance concept of sustainable clothing, and reducing demand. "It is crucially important to ensure that clothes are produced as ethically and sustainably as possible," a UN statement maintained. Fashion industry valued at around 2.4 trillion U.S. dollars, employs over 75 million people worldwide, making it environment friendly without harming revenue and job losses has become a significant challenge, in both developing and developed economies. “The UN Alliance for Sustainable Fashion doesn't perceive sustainability as a limitation to fashion, but rather a trigger for bringing real creativity and passion into the industry,” He Siim Kiisler, President of the UN Environment Assembly said.
Source: CGTN
At the recently concluded ‘Yarn Expo Spring’ fair in Shanghai, China, 468 exhibitors from 12 countries/ regions welcomed 28,302 visitors from 87 countries/regions, representing a 9 per cent increase in visitors. This was in comparison to 435 exhibitors from 10 countries/ regions in 2018, which saw 25,966 trade buyers from 88 countries/regions. The fair covered 26,000 sqm at the National Exhibition and Convention Centre (Shanghai), with new exhibiting countries including Egypt and France. ‘Yarn Expo Spring 2019’ was held concurrently with Intertextile Shanghai Apparel Fabrics – Spring Edition, Intertextile Shanghai Home Textiles – Spring Edition, PH Value and the China International Fashion Fair (CHIC). It is jointly organised by Messe Frankfurt (HK) Ltd and the Sub-Council of Textile Industry, CCPIT. Yarn Expo has certainly established itself as a leading networking destination for worldwide visitors and exhibitors, with a wide variety of products on offer. Most notably, there was onsite evidence of ever-shifting sourcing trends from around the world, according to a press release by Messe Frankfurt. The fair welcomed buyers from well-known brands such as Fila, Guess, Ralph Lauren, Jack Jones and Vero Moda, as well as Adastria, Itochu, Li-Ning, Maracaibo, s.Oliver and a buyer delegation from Korea. The India Pavilion of the fair witnessed 48 per cent more exhibitors at this edition. “The visitors to Yarn Expo are very professional and match our exhibitors’ expectations. Some large Chinese importers visited our booths, and I’ve noticed this edition there are a lot of new importers who haven’t bought from India before. We’re really happy with our participation in the fair as this is a global meeting point. This is definitely the best fair in China, and one of the best in the world. We place a lot of value on this fair,” said Ravindranathan Narayanasamy, director, The Cotton Textiles Export Promotion Council (Texprocil), India (India Pavilion organiser). “Yarn Expo Spring’s strength lies in its diversity of products and innovations. It’s undeniable that this is attracting trade buyers from throughout the supply chain,” said Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd. “It’s no longer just spinners and weavers buying from Yarn Expo. This week, we’ve also witnessed more downstream buyers sourcing directly from our exhibitors. They recognise that the properties of yarns and fibres are essential for ensuring a high-quality end-use product.” Brands like Sankom, who were searching for a unique functional fibre, are increasingly visiting Yarn Expo to meet their specific sourcing needs. Whether that’s in order to source the particular yarns or fibres needed to maximise efficiency or sustainability, it’s evident that ‘Yarn Expo Spring’ provides plenty of options to make end-use products stand out from the crowd. “Although we make end-use products, by sourcing yarn we have better control over the composition of our fabrics. We are making premium underwear products, so our consumers are quite conscious of the fibres in their purchases,” said Anita Lazo, senior product and business development manager of Sankom.
Source : Fibre2fashion
