India’s exports are expected to reach $32.38 billion in March, the highest in any month so far, on account of healthy growth in sectors such as pharmaceuticals, Commerce and Industry Minister Suresh Prabhu said on Wednesday. He said exports will cross the $331-billion mark in the year 2018-19. He said for the “first time”, India has crossed $19- billion mark in pharma exports this fiscal. The Commerce Ministry will release the trade data on April 15. Prabhu said the country’s exports were declining for a long time, but now “this year, we would have record exports”. The figures in 2018-19 will be the highest ever at a time when there is a worst scenario in the world trade front, he said. Outbound shipments are growing because of concerted efforts by the Ministry in the last one year, the Minister said. “We created a matrix between every product and every geography. Secondly, we had done series of road shows,” Prabhu said adding export potential was tapped in regions such as Africa and Latin America. The Ministry also held several meetings with the line ministries, including food, agri, pharma and IT Ministry, to resolve issues hindering exports. India’s exports grew 8.85 per cent to $298.47 billion during April-February 2018-19.
US trade issues
Meanwhile, the Commerce Ministry, after consulting various departments like IT and agriculture, has made an offer to the US to resolve trade issues between the two countries, Prabhu said. The US is demanding greater market access for its agricultural, dairy products and medical devices. Besides, it is seeking reduction in import duties on certain IT products and increasing their exports to bridge trade deficit with India. “We have consulted all the ministries and we have given them an offer,” the Minister said.
Source: The Hindu Business Line
The power derived and given by Parliament to the government is being used through the Reserve Bank of India (RBI) but it essentially follows from the insolvency code. Union commerce & industry and civil aviation minister Suresh Prabhu spoke to Shishir Gupta and Rajeev Jayaswal about trade, privitisation of Air India, ease of doing business, among other issues. Edited excerpts: The RBI insolvency circular of February 12 has been made invalid. What is your take on it? The power derived and given by Parliament to the government is being used through the Reserve Bank of India (RBI) but it essentially follows from the insolvency code. If you take all G20 economies, India did not have a code like this. As a result, the biggest sufferers were the promoters, bankers, and the recycling of capital never happened because it was stuck in one particular place. Employees were suffering because they could never come out of it and therefore the insolvency code was necessary and it actually solved the problems. In the absence of the insolvency code, the economy will slow down because the capital which could be used for something else will be put into the non-performing assets (NPAs). I have not read the Supreme Court judgment - I don’t know exactly why the court termed it invalid. The judgment said that without the concurrence of the Centre, RBI cannot direct banks to take action against companies after 180 days of notice. It must be a technical point, the law ministry and finance ministry will look into it. I am talking about the broad philosophy. There’s a classic example so we understand it better: The backbone of India’s manufacturing sector was the textile industry. The biggest textile centre of India was Mumbai, besides Ahmedabad and Kanpur to some extent. All textile mills have closed down. Why? Because they were stuck, they were not mordernised, they could not recycle the capital. We respect the SC judgment and we will respond to it in a proper manner. India has jumped in the ease of doing business rankings to 77. What is the biggest contributor? We did a lot of baseline studies. The World Bank has a well laid down procedure to what leads to ease of doing business. There were measures necessary which were legislative in nature. In fact, the insolvency code is one of the measures for ease of doing business. Frankly, and I’m not making a political statement, it was the prime Minister who personally took interest, he got all the ministries together, he chaired a few meeting to make it happen. He provided the leadership. We decided to do something completely different and that work has already started. We are working on ease of doing business for every district . So, if ease of doing business increases in all the districts of India, it will really bring change. While we do it on a pan-India level, we are trying to work on grassroots level. Do you think you can break into the top-50 next year? Allow me to deviate a little. We talk about the GDP crossing the barrier into double digits. We have started working on it. We took six districts in five states – Muzaffarpur in Bihar, Sindhudurg-Ratnagiri in Maharashtra, Varanasi in Uttar Pradesh, we have taken Vishakhapattinam, and in one hilly district of Solan in Himachal Pradesh. We did a complete analysis - what is the contribution of that district to GDP, and can we make the district from the baseline to 4-5% more. Why are we doing this? If each district of India grows at 3-4% more than the normal growth, as an aggregate of all districts India’s growth will automatically be 3-4 % more. President Donald Trump has withdrawn general trade preferences. What is the current state of India-US trade? India and US have good trade relations. We have a trade surplus with the US. While working on the trade deficit issue, they came across the issue of medical equipment and devices. The Indian government launched a major programme of giving concessional medical treatment to people. Before Ayushman Bharat, there was Jan Aushadhi and there was a pricing cap on things like stents. As a result, medical device firms in the US went to its commerce department saying this is an unfair trade practice. There is another issue - the dairy industry wants to export to India but we have some issues, because it has got to do with the religious sensibilities. And we made an informed choice that milk may have residue in it which may affect religious sentiments. The third issue is the export of certain agricultural products to India such as strawberries, almonds etc. We prepared a package for the US for their consideration. We have given a package which they say they’re examining. Our government is working towards addressing US concerns. The US must appreciate India’s concerns. The other side is the trade deficit with China, which is at $63bn. Are you looking to address this? For the first time, the trade deficit with China has gone down. In March 2018, soon after I became the commerce minister, I invited China’s senior-most political leader, one of the top five, he’s the commerce minister also. I told him we would like to balance the trade with China, not only reduce the trade deficit. So we are working on the strategy. This year, we exported rice for the first time in 20 years. We exported rapeseed, we are negotiating on soyabean, sugar and pharmaceuticals. We are going to make a concrete proposal as to how to balance trade, increasing export to China, bringing more of manufacturing of China’s products in India, so automatically that would mean India’s share of manufacturing will increase, job creation will happen, and imports from China will go down. We are changing our engagement with China on the economic level. What are your plans to disinvestment of Air India. Is reasonable to presume it can be privatised in the coming months? First time AI was attempted to be privatised, it was our government. We did everything possible. We ran the process transparently. Unfortunately, when the bids were to be submitted, oil prices shot up. But the intention was clear. We are also trying to professionalise the management of AI and it should be a board-run company and not the government of India. Are you coming up with a new industrial policy? That policy is ready. It could not be cleared by Cabinet because of last-minute rush. This will be helpful for the new industry. We are reviewing all the regulations which could come up in the way. What’s the status of the e-commerce policy? The e-commerce draft policy is already in the public domain. Let all comments come in, somebody will benefit, somebody will not. We don’t want to take sides. We will not make the policy final unless we are satisfied all issues are addressed.
Source: Hindustan Times
India's economy to expand 7.2%, down from 7.6% previously. The Asian Development Bank downgraded economic growth forecasts for India and Southeast Asia for 2019 as global risks from trade tensions to Brexit mount. Gross domestic product in India will probably increase 7.2 percent this year, down from a December forecast of 7.6 percent, according to the ADB’s latest Asian Development Outlook report. Southeast Asia’s growth estimate was lowered by 0.2 percentage point to 4.9 percent. A drawn-out or deteriorating trade conflict between China and the U.S. could damp investment, the ADB said, while the U.K.’s potential chaotic exit from the European Union and financial market volatility comes with additional risks.
Source: Business Standard
The Reserve Bank of India’s (RBI's) Monetary Policy Committee under governor Shaktikanta Das will announce its policy decision today. The market is expecting a cut in policy rates by 25 basis points ahead of the general elections, along with a change in policy stance to accommodative from neutral. Mint takes a look at the five things that could be on the rate-setting committee’s radar.
What will be MPC’s rate action and stance?
Of the 10 economists and treasurers polled by Mint, nine expect the monetary policy committee to cut the benchmark repo rate by 25 basis points to 6%, as inflation continues to undershoot the central bank’s targeted trajectory and growth continues to be hit due to a global slowdown. One among them was of the view that the MPC could go for a reduction of 50 basis points. The poll was, however, divided when asked if the RBI's monetary policy committee (MPC) will change its policy stance. Half of those polled expect the RBI to change its stance to accommodative from neutral and the other half expects it to maintain the neutral stance. Majority expects another round of rate cut before the end of the fiscal year.
Will the MPC revise its inflation target?
Inflation concerns seem to have reduced with food prices continuing to be in deflation mode for the fifth consecutive month, and core inflation softening to 5.5%. India’s headline CPI inflation rose to 2.6% in February, reversing a declining trend since July 2018. Majority of bankers and economists polled expect inflation to settle below 4% in 2019-2020, with a few expecting it to inch up to 4.10%. In February, the MPC had revised its consumer price index-based inflation projection for the first half of the next fiscal year to 3.2-3.4% from 3.4-4.2% earlier, and fixed the third-quarter inflation forecast at 3.9%. It had, however, ignored the impact of both high core inflation —waiting to see whether the underlying reasons (such as elevated costs of education and healthcare) were secular in nature — and an expansionary fiscal policy.
Will the MPC revise its growth target?
Declining growth is a matter of serious concern due to a fall in employment generation and slowdown in industrial activity. India’s gross domestic product (GDP) growth slowed to a five-quarter low of 6.6% in the December quarter and is expected to further slow to 6.4% in the March quarter. Bank treasurers and economists polled by Mint are unanimous in their view that the MPC will pare down their forecast to 7-7.25% for 2019-20. Goldman Sachs, however, believes there will be some pick-up in growth over the course of this year, and forecast real GDP growth to increase from 7.1% in 2018-19 to 7.5% in 2019-20.
What are the external factors before the MPC?
Since the previous policy, risks to global growth have increased with rising trade tensions and tighter financial conditions. International Monetary Fund (IMF) director Christine Lagarde said on Tuesday that the global economy was still "unsettled"after two years of steady growth, with the outlook "precarious" and vulnerable to trade, Brexit and financial market shocks. In January, the IMF cut its global growth forecast for 2019 to 3.5% from 3.7%. Many central banks, including the US Federal Reserve and the European Central Bank have signaled that rates would be held at current levels through 2019. Oil prices are higher by 8.5% compared to the previous MPC meeting. Economists expect brent crude prices to taper to $60 per barrel over the next 12 months as new pipelines release low-cost US shale oil into the global oil market.
What are the other miscellaneous policy developments that the RBI could announce?
The market will watch out for commentary from RBI governor Shaktikanta Das on the 12 February circular which was struck down by the Supreme Court, citing that the central bank acted beyond its powers. In the coming days, the RBI is expected to come out with new rules on debt restructuring framework. Any remarks on the dollar-rupee swaps that the central bank had announced to infuse liquidity into the market will also be closely watched. The market will also look for the governor’s comments on monetary policy transmission and whether enough has been done by banks to pass on the rate cuts.
Source: Live Mint
Odisha can address joblessness by utilising its cotton production and establishing textile mills in the state. The main reason behind poverty in Odisha is unemployment. Although the state has abundant natural resources and manpower, successive governments have not been able to create employment opportunities utilising the resources. At present, about 50 lakh youth are working outside the state and in foreign countries (‘Dadan Sramik’) as there are no jobs in the state. Migrant labourers are being ill-treated and live in unhygienic environments, often subject to mental and physical torture. Lakhs of educated youth are also roaming the streets without jobs. Odisha is self-sufficient in food, the first necessity, but not in clothing, the second. Clothes are imported from outside the state. On the eve of Independence, Biju Patnaik, the leader who was also an industrialist and visionary, set up up a textile mill, Orissa Textile Mills, at Choudwar. Biju approached Harekrushna Mahatab, then chief minister to setup the mill. But Mahatab refused to accept the proposal citing that Gandhiji had given the country a call to support the Khadi movement and to boycott mill made cloth before Independence and that it would be unfair to use mill made cloth instead of khadi soon after Independence. Mahatab said instead of textile mills, khadi would be encouraged. But Biju countered that the khadi movement would not be able to meet the clothing needs of all people as the country’s population was increasing. Farmers producing cotton are selling their produce to outsiders at unremunerative prices. About 7 lakh workers of Odisha are working in Surat, Gujarat, in textile industries Khadi had become a main instrument of the freedom movement, mainly because the British where selling their mill cloth produced in Manchester here and Indians lost interest in Khadi clothing that took more time to produce and was also costly. If Odisha will not have textile mills, people of the state will have to use cloth produced in Mumbai. The only way the increasing clothing requirements of the populace can be met is to establish textile mills in Odisha. Mahatab was finally convinced allowed Biju to set up OTM, the most modern textile mill in eastern India then in January 1946. The mill, unfortunately, was closed down 19 years back. Odisha now imports clothing from outside state to meet demands of the people. Why should money from the state go to other parts of the country when people here are unemployed? Odisha produced 4 lakh tonnes of cotton each year but we do not have ginning, spinning and textile mills here. Farmers producing cotton are selling their produce to outsiders at unremunerative prices. About 7 lakh workers of Odisha are working in Surat, Gujarat, in textile industries. They are enriching the economy of Gujarat, while we are importing textiles from Gujarat to meet clothing requirements of our people. If we set up ginning mill in areas where cotton is being produced, it will help both farmers and unemployed youth. Ginning mills will help separate cotton from seeds and these seeds can used to extract oil and the oil cake utilised as animal feed. Oil extracted from cotton seeds is edible and can be utilised for production of vanaspati. Cotton farmers also would get better price if seeds are separated from the bolls. We can also set up spinning mills. Yarn produced by these can be utilised by the handloom industry. Weavers will get yarn at competitive prices. The state can also set up textile mills based on production of cotton and meet the clothing demand of the people of Odisha.
Source: Orissa Post
At the Interbank Foreign Exchange, the rupee opened at 68.72 per dollar and advanced to a high of 68.37 during the day. It finally settled at 68.41, up 33 paise against its previous close of 68.74. The rupee surged by 33 paise to close at 68.41 against the US dollar Wednesday amid the greenback's weakness against key rivals overseas, even as oil prices firmed up on supply concerns. This is the third straight session of gain for the domestic currency, during which it has strengthened by 89 paise. At the Interbank Foreign Exchange, the rupee opened at 68.72 per dollar and advanced to a high of 68.37 during the day. It finally settled at 68.41, up 33 paise against its previous close of 68.74. Heavy foreign fund outflows, rising crude oil prices and selling in domestic equities capped the gains for the rupee, forex dealers said. "Oil prices rose for a fourth day, pushing Brent towards a nearly five-month high of USD 70 a barrel as support from OPEC-led supply cuts and US sanctions overshadowed a report showing an unexpected rise in US inventories," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,040.48 crore Wednesday, as per the provisional data. Brent crude futures, the global oil benchmark, rose 0.48 per cent to trade at USD 69.70 per barrel amid OPEC-led supply cuts. The dollar index, which gauges the greenback's strength against a basket of six currencies, tripped 0.37 per cent to 97.00. Forex traders noted that the RBI is likely to adopt a dovish policy stance Thursday, which could restrict significant appreciation for the rupee. Below-normal monsoon forecast by private firm Skymet could also weigh on the domestic unit, they added. Snapping their four-session rising streak, benchmark indices closed in the red Wednesday as investors took money off the table following forecast of below-normal monsoon this year. The 30-share Sensex settled 179.53 points, or 0.46 per cent lower at 38,877.12, while, the broader NSE Nifty too pared early gains and ended 69.25 points, or 0.59 per cent, down at 11,643.95. Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 68.4896 and for rupee/euro at 76.8800. The reference rate for rupee/British pound was fixed at 90.0204 and for rupee/100 Japanese yen at 61.45.
Source: Money Control
The total cargo, including containers handled by the 12 ports, rose 2.9 per cent to 699.048 million tonnes from 679.371 mt in FY18 India’s 12 state-owned ports loaded a combined 9.876 million 20-foot equivalent units or TEUs in the year to March 2019, 8.08 per cent more than the previous year. In FY18, the dozen major ports handled 9.138 million TEUs. Containers handled at major ports are expected to cross the 10 million TEU mark this fiscal. Jawaharlal Nehru Port Trust (JNPT), India’s biggest container port, retained the pole position among the major ports in container handling, ending the year with a volume of 5.133 million TEUs against 4.833 million TEUs in FY18, followed by Chennai Port Trust with 1.620 million TEUs against 1.549 million TEUs in FY18. Kolkata Port Trust held the third spot with 830,000 TEUs from 796,000 TEUs in FY18. The total cargo, including containers handled by the 12 ports, rose 2.9 per cent to 699.048 million tonnes from 679.371 mt in FY18. The largest jump in commodities was in coking coal shipments (used in steel-making), which jumped 14.25 per cent during FY19, to reach 57.508 mt, from 50.337 mt a year earlier. Thermal and steam coal shipments (used by power plants) rose 9 per cent during the year to 103.843 mt, from 95.266 mt a year ago. Petroleum, oil and lubricants, including crude oil, products and LPG/LNG shipments, grew 2.52 per cent to 232.378 mt from 226.676 mt in FY18. Iron ore shipments registered a decline during the year, a drop of 16.18 per cent to 40.685 mt from 48.541 mt in FY18. Shipments of raw fertiliser cargo declined by 7.21 per cent to 6.987 mt from 7.530 mt, while that of finished fertilisers jumped 9.69 per cent to 8.256 mt from 7.527 mt, the Shipping Ministry said. Deendayal Port Trust (formerly Kandla Port Trust) retained the top slot in overall cargo handling by loading 115.402 mt, followed by Paradip Port Trust with 109.275 mt. JNPT was in third spot at 70.706 mt. Cargo handled at Mormugao Port Trust fell by 34.26 per cent – the biggest drop among the 12 ports – to 17.682 mt.
Source : Hindu Business Line
Indorama Ventures Public Company Limited (IVL), a global chemical producer, has completed the share purchase of 83,000,000 newly issued shares in Indo Rama Synthetics (India) Limited (IRSL), equaling to approximately 31.79 per cent of IRSL’s enlarged share capital at the price of ₹36 per share. IRSL is a fibre manufacturing facility located in Nagpur, India. IRSL’s Nagpur facility has a combined capacity of 605,000 tonnes/ annum, consisting of polyester chips, fibres and filament yarns. “IRSL is a strong strategic fit with IVL’s fibre strategy in home and apparel, where the company focuses on building a low-cost position in Asian operations and leveraging innovation in high-margin growth markets. This strategic investment provides IVL entry into a large domestic market where local presence gives duty and logistic benefits,” IVL said in a statement. Thailand-based IVL has already invested in India over three years in the PET business. India is the second largest polyester market in the world after China with consumption growing at about 7.0 per cent per annum, with a population of 1.2 billion. “India’s per capita consumption of polyester is about 3 kg, compared to 14 kg in China. This low-level per capita consumption is expected to increase along with the rise in India’s per capita GDP, which will provide affluence-related consumption and opportunities for growing into more functional and high value-added (HVA) products. IVL is in a strong position to benefit from this evolving trend, backed by its strong R&D capabilities,” the statement added. The textile industry contributes 15 per cent of India’s exports and employs 4 per cent of the population and therefore has an important part in India’s industrial policy. “This strategic investment is another step in executing our strategies to position IVL for sustainable growth. India has been on our radar for some time. It is the only large domestic market for fibres where we are not present. The market for fibre in India is expected to grow exponentially and is still largely untapped,” said IVL group CEO Aloke Lohia. “As a company listed in the Dow Jones Sustainability Index, we put the circular economy and sustainability as a priority. We will bring our knowledge and expertise of recycling to play a role in the creation of awareness and practices thus protect the environment and society,” Lohia added. (RKS)
Source: Fibre2fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1310.66 |
USD/Ton |
0.11% |
4/3/2019 |
|
VSF |
1829.87 |
USD/Ton |
-0.40% |
4/3/2019 |
|
ASF |
2494.87 |
USD/Ton |
0% |
4/3/2019 |
|
Polyester POY |
1338.93 |
USD/Ton |
0% |
4/3/2019 |
|
Nylon FDY |
2901.02 |
USD/Ton |
0% |
4/3/2019 |
|
40D Spandex |
4745.76 |
USD/Ton |
0% |
4/3/2019 |
|
Nylon POY |
2603.48 |
USD/Ton |
0% |
4/3/2019 |
|
Acrylic Top 3D |
1532.33 |
USD/Ton |
0% |
4/3/2019 |
|
Polyester FDY |
3153.92 |
USD/Ton |
0% |
4/3/2019 |
|
Nylon DTY |
5623.51 |
USD/Ton |
0% |
4/3/2019 |
|
Viscose Long Filament |
1576.96 |
USD/Ton |
0% |
4/3/2019 |
|
Polyester DTY |
2692.74 |
USD/Ton |
0% |
4/3/2019 |
|
30S Spun Rayon Yarn |
2551.41 |
USD/Ton |
0% |
4/3/2019 |
|
32S Polyester Yarn |
2023.27 |
USD/Ton |
0% |
4/3/2019 |
|
45S T/C Yarn |
2886.14 |
USD/Ton |
0.52% |
4/3/2019 |
|
40S Rayon Yarn |
2424.95 |
USD/Ton |
-4.12% |
4/3/2019 |
|
T/R Yarn 65/35 32S |
2172.04 |
USD/Ton |
0% |
4/3/2019 |
|
45S Polyester Yarn |
2573.72 |
USD/Ton |
0% |
4/3/2019 |
|
T/C Yarn 65/35 32S |
2886.14 |
USD/Ton |
0% |
4/3/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
4/3/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
4/3/2019 |
|
40S Combed Poplin |
1.11 |
USD/Meter |
0% |
4/3/2019 |
|
30S Rayon Fabric |
0.63 |
USD/Meter |
0% |
4/3/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
4/3/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14877 USD dtd. 04/03/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The State Council, China's cabinet, will cut the tariff rates for baggage brought by individuals and articles mailed into the country starting April 9 to expand imports and consumption. The tax rate on products including food and medicine will be lowered from 15 percent to 13 percent, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang. The rate for commodities including textiles and electric appliances will be cut from 25 percent to 20 percent, the statement said.
Source: Xinhua
The demand for UK goods and services is growing across the globe, with exports to India increasing at the fastest rate among the United Kingdom’s top non-European Union (EU) trading partners, according to data released recently by the UK Office of National Statistics (ONS). UK exports, which increased by 2.7 per cent to £634.1 billion in 2018, continue to rise. UK exports grew faster to India (up 19.3 per cent), Japan (up 7.9 per cent), China (up 4.6 per cent) and Canada (up 4.2 per cent) than to the EU (up 3.6 per cent) in 2018, according to an ONS press release. Share of UK exports to the EU over the past ten years has declined by nearly 5 percentage points to 45.6 per cent last year. The export of goods and services to non-EU trading partners in 2018 reached a high of £345.1 billion. The figures show the share of exports to the United Kingdom’s top three non-EU trading partners—the United States, China and Switzerland—increasing from 21.3 per cent in 2000 to 25.4 per cent in 2018. In contrast, the share of UK exports to the EU has decreased significantly from 54 per cent to 45.6 per cent over the same period. The data also highlights the attractiveness of the United Kingdom as a destination for foreign investment as inwards stock has increased by 12.6 per cent to a record high of £1,336.5 billion in 2017. The United States is the top investor, with its investment stock increasing by 19.5 per cent to £351 billion. There has also been a growing demand from Asian investors in the United Kingdom, with inwards investment stock increasing by 201 per cent since 2008, the highest growth rate of any continent. The share of inwards stock from Asia has increased from 6.8 per cent to 9.6 per cent between 2008 and 2017. (DS)
Source : Fibre2fashion
Despite showing excellent performance in exports, Vietnamese garment firms are struggling to fully penetrate the domestic market. Growth of garment products of big firms in the domestic market was extremely low last year, with some even much lower than their targets, according to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS). With free trade agreements, several foreign fashion brands like Zara, H&M, Topshop and Old Navy have landed in the Vietnamese market, directly competing with Vietnamese brands. The local fashion industry has also not kept pace with global fashion trends, feels Giang. Last year, the country’s garments exports exceeded $36 billion, up 16.1 per cent compared to 2017 figures. Fashion designers and firms still have to do things on their own as there is no school for training of professional fashion designers, according to a Vietnamese newspaper report. What adds to the problem is local consumers’ preference for imported clothes despite a campaign to encourage consumption of made-in-Vietnam products. VITAS sees five factors to achieve sustainable development for the garment industry: develop technology; build resources through training; set up distribution networks—traditional as well as e-commerce; standardise business ethics and services and catch up with latest fashion trends; and build industrial zones with sustainable facilities and call for investment in fibre textile and dyeing units. Some export-oriented firms have already started targeting the domestic market. (DS)
Source: Fibre2fashion
Could the RMG sector be in trouble?
Populist moves by the government could impact heavily on the thriving RMG sector with the enforced new pay scales for employees. On one hand, the buyers’ consortium has been asking the Bangladesh Garments Manufacturers’ Association (BGMEA) to prevail in the government to extend the time frame for Accord implementation. On the other, exporters had their hands forced by the commerce minister to introduce new pay scales. Inevitably, these two factors lead to a loss in competitiveness. Sri Lanka has addressed the issue by turning to specialized manufacturing with their highly educated workforce. China has already felt the pressure of wage increases by having to play second fiddle as Vietnam looks set to become Asia’s garments hub. The government sought to support the RMG sector by not extending the time frame for Accord based on industry assurances that there was no longer a requirement for it.
Facts are not that simple.
There are lots of low hanging fruit that will turn bad sooner than later and barring the big players, the new wage structure may not be possible to be absorbed as selling prices continue to remain static to low. According to those in the know, a fresh recruit with standard three-grade education will take home Tk16,000 in pay. The cost of re-educating and training them is not considered at all. The added benefits and welfare jack up the ticket further. And there are fears that, unless Bangladesh garners high-priced product benefits, this is unsustainable. With more and more factories heading to composite nature, essentially under one roof, the breakthrough has to be in the direction of Sri Lanka -- that of a more mechanized animal and lower workforce numbers. Ever since the unrest over wage hikes, some 11,000 workers reportedly lost jobs as factories closed down.
The trend is ominous.
Globally, Accord has its network of suppliers ferrying wares that assist factories to be in line with the safety, security, and environment-friendly factors that are desired by buyers. When Accord’s activity ends, the income flow for these suppliers end with it. Increasingly, factories are going green and obtaining LEED certificates. The same companies are asking for intervention in terms of pricing models, given the high margins that buyers operate on, but are reluctant to part company with. Most of the factories have had to bend over backwards to find the new investment required with a number of them going into the red. European buyers have their case too. Their economies are going dangerously close to recession and this is reflected in consumer confidence. Shoppers are more inclined to hold on to their spending for the time being. Policy decisions will have to focus on the future instead of being myopic, if the golden goose of export is to avoid going south. It’s a tough call but then governance is never easy. Mahmudur Rahman is a writer, columnist, broadcaster, and communications specialist.
Source: Dhaka Tribune
Twine Solutions will be unveiling world’s first digital thread dyeing system at ITMA show from June 20-26, 2019 in Barcelona, Spain. The system digitally dyes raw and off-the-shelf white thread for a variety of industry sectors: sewing, knitting and embroidery. The dyed threads can be used for endless applications in apparel, activewear, shoes, home decor, etc. Twine will be exhibiting at Hall 3, Stand C105, where visitors will be able to see the systems digitally dyeing various thread types, including Coats thread, the company said in a press release. The strategic partnership between Twine and Coats was announced last November and will include future capabilities of Twine’s system, to feature inbuilt colour software, integrated with Coats ColourStitch. Coats will also be included in Twine’s booth at ITMA. At the show, Twine will also showcase its digital colour matching mobile application. The SnapMatch application simply captures an image of a sample using a mobile device and Twine’s proprietary algorithms analyse the colour immediately and accurately. The user then sends the captured colour to the TS-1800 system for immediate thread dyeing in the desired colour. The entire solution is the world’s first digital dye-to-match process. Twine’s products create a virtual inventory, with any colour and any length needed, reducing stock management, inventory and deadstock costs. Twine’s sustainable digital waterless thread dyeing process saves 70 litres of clean water per 1 kg of dyed thread. The process also reduces waste and air emission. In many of the industry sectors today up to 50 per cent of dyed thread is disposed of before even being used. Twine’s system dyes exactly the amount needed in a highly sustainable process. “Our Twine Digital Thread Dyeing system unleashes the power of thread, at the touch of a button. The fast-paced digital transformation of the textile industry is challenging both for production and its environmental impact. We are excited to bring solutions that will have much needed and crucial economic, social and sustainability benefits,” said Alon Moshe, Twine CEO and co-founder. Twine Solutions was founded in 2015 in Israel, with seasoned multidiscipline professionals emerging from the digital printing and textile industry. Twine is an award-winning technology start-up developing a proprietary and revolutionary digital thread dyeing system, and a digital dye to match mobile application.
Source: Fibre2Fashion
