The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 08 APRIL, 2019

NATIONAL

INTERNATIONAL

Weavers to challenge 18% interest on ITC in Gujarat high court

Power loom weavers have decided to challenge department of Goods and Services Tax’s circular (GST) in Gujarat high court that raises 18% interest demand on accumulated input tax credit (ITC). Federation of Gujarat Weavers’ Welfare Association (FOGWA) office-weavers said the federation has already filed a public interest litigation in the high court for release of accumulated tax credit worth Rs650 crore from Central Government. Now, it will be challenging 18% interest demand raised by GST department in the high court. More than 35 power loom weaving associations in the city and district had organized a meeting on Saturday where they unanimously decided to confront the Central Government over its decision on interest demand. FOGWA president Ashok Jirawala told TOI, “This is something which will ruin the entire industry at one go. If you want ITC credit then you are bound to pay 18% tax. People here are not fools that for claiming ITC credit of 5%, they will pay 18% interest. We have decided to challenge this in the high court. Many small weavers had to shut down their units as they were not getting the tax credit from the GST department. The modernization in the textile industry has also come to a grinding halt.” Ashish Gujarati, leader of FOGWA, said, “Central Government should understand the situation of the weavers. Weavers are the backbone of the industry and they are trying to destroy them. We will fight till our last breath.”

Source: Times of India

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Huge potential of handlooms & textiles in Telangana State

Telangana has huge potential in traditional arts and cras like Cheriyal Paintings, Nirmal Paintings, Batik Paintings, Bidiri Cras, Pemberti Brassware, Dokra Castings, Black metal ware, Wooden carvings of Nizamabad Panels, Nirmal printed furniture, Red Sanders and also Nirmal Toys amongst others. Telangana has huge potential in traditional arts and cras like Cheriyal Paintings, Nirmal Paintings, Batik Paintings, Bidiri Cras, Pemberti Brassware, Dokra Castings, Black metal ware, Wooden carvings of Nizamabad Panels, Nirmal printed furniture, Red Sanders and also Nirmal Toys amongst others. It also have huge potential in handlooms & textiles like Pochampally, Ikkat Handloom products, Siddipet Handlooms, Nayaranpet Handlooms, Gadwal Handlooms, Banjara Embroidery and Cotton Durries. While listing out the huge potential of the State which is yet to get its place amongst the priorities of the State government, Director, Telangana Chamber of Trade and Industries Promotions (TECTIP), Abul Fateh Syed Bandagi Badesha Quadri during an interaction with media in city, said that in order to promote these traditional products of Telangana, there was a dire need for the state government to create marketing opportunities to explore this skilful potential of the state at various platforms like trade fairs, exhibitions in different places both at domestic and international markets. "The fashion jewellery of Lacware bangles, pearls and other artificial antique jewellery items and leather products of the state are also very popular which are mainly produced from the sections of SCs, STs, BCs and Minorities community of the state, their livelihood depends on this skilful professions as they have inherited these traditional business from their ancestors from long time, but due to lack of proper marketing opportunities and exposure to new global markets, they are not able to develop their business in the desired scales. Thus if they are provided opportunity to display and sale their items at proper markets at different places both domestic and abroad, they can be able to derive good profits / benefits and be encouraged to produce more goods which may improve their economic condition and also contribute to the state's economy," he noted. Abul Fateh said that trade fairs and exhibitions were mainly considered as vehicles of communications that would provide a platform for business transactions, product launches and test marketing. It also provides a one-stop point for quality products, services and technologies at competitive prices, he said. He emphasised that these promotional activities would open new avenues for transfer of technology to entrepreneurs of other countries it would explore joint venture opportunities. Finally, it offers business environment that promises to transform challenges into opportunities, he added. Generally, these trade fairs and exhibitions are open to trade visitors, company representatives and members of press and provide opportunities to the participants to have B2B (Business to Business and B2C (Business to Consumer) transactions and enable them to expand their business, he said. "It would be a great opportunity for the new Telangana State to participate in above said events, in order to promote its potential products in the above global market," he added.

Source: Hans News

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Knotty times for Tiruppur knitwear industry

The ₹46,000-cr. hub faces testing times with thinning margins, declining overseas demand and relatively high labour costs. Tiruppur, a hub for knitwear, and its nearby areas, boast of a ₹46,000-crore annual apparel business and house the entire ecosystem that supports the industry. Almost every street in this 159-sq.km. city witnesses some activity related to knitwear production. Yet, all has not been well in Tiruppur for the past three years. Export growth is not up to the expected level, investments have been need-based, and there is a struggle to be price-competitive. “We targeted annual business of ₹1 lakh-crore by 2020, including domestic sales. In the five years between 2012 and 2017, annual exports increased from ₹10,500 crore to ₹26,000 crore. The growth was flat for the last two or three years. However, we are confident of reaching the target by 2022,” says Raja M. Shanmugham, president of Tiruppur Exporters’ Association (TEA). His confidence stems from the recent announcement by the government that all embedded taxes in exports would be reimbursed. The incentives that the industry received before implementation of GST through different schemes worked out to nearly 13.2%. This was reduced to 5.7% after GST, he says.

Thin margins

“Margins are thin for garment exporters. They can absorb the costs if the incentives were reduced by 3% to 4%. But when there is a drastic cut, it affects liquidity,” adds A. Sakthivel, vice-chairman of Apparel Export Promotion Council (AEPC). So, why are government policies, and support, critical for garment exporters in Tiruppur? In supplier conferences, buyers give priority to countries that have GSP (Generalised System of Preferences) benefits. Buyers compare Indian prices with those of Bangladesh, says S.K. Kathiresh, joint managing director of Carona Knitwear.

Bangladesh exports

Annual garment exports from Bangladesh come to about $37 billion, Vietnam clocks $27 billion, and from Cambodia exports $12 billion worth. According to AEPC data, clothing exports from India in 2016-2017 were $17.47 billion, $16.72 billion in 2017-2018, and in the current fiscal till January, exports were $12.8 billion.

Global race

The industry is witnessing a global race where there is more competition. Some countries have an advantage because of the GSP and the support from their respective governments. Buying trends are also changing. Some brands have gone in for 16 seasons in a year and have a signature design for each season. This means garments for each season need to be supplied on time. The exporting units need to adapt to these changes and go with the rhythm, says Mr. Shanmugham. Despite the challenges, it is the inherent strengths of Tiruppur, and its focus on efficiency and technology that have helped it sustain exports for the last two years, according to Mr. Sakthivel. The exporters are of the view that they will be able to bag orders if they are price-competitive. Since countries such as Bangladesh and Cambodia have the GSP advantage, the Indian government’s support is crucial for the garment industry. But, the recent decline in overseas demand has dampened this momentum. Focus on key three areas — incentivising technology upgrades, expanding to new markets, and product innovation — can turn the situation around.

Technology upgrades

India cannot compete on lowering labour costs. The focus should be on expanding schemes for technology upgrades and introducing more policies that incentivise apparel exporters to upgrade technology. Exporters must look to new and emerging markets. Four markets show high potential for future growth — the U.K., Chile, Israel and Japan. They should identify products with high growth potential and leverage individual strengths such as technology innovation, a report by Drip Capital says. The knitwear industry in Tiruppur is largely in the micro, small and medium enterprises (MSME) segment. However, its profile is witnessing gradual changes. Of the 1,500-odd direct exporters, the number of exporting units with more than ₹100-crore turnover is more than what it was a few years ago and there are at least 20 units with more than ₹500-crore turnover. The number of letter-head exporters has reduced drastically after GST, say industry sources. The Apparel Export Promotion Council (AEPC) has a positive outlook for exports next financial year. The opportunities are huge for apparel exports as consumers wear multiple attires in a day — for exercise, work, casual wear, and the like. Further, western brands are eyeing Asian markets for sales, mainly the Indian market. For apparel makers, the market is only growing with this trend. After the recent announcement by the government on reimbursing embedded taxes, the sentiment is upbeat. “We are signing orders now. Industries need more working capital. Similar to the 59-minute loan approval scheme for MSMEs, the government should introduce a scheme for working capital,” says Mr. Kathiresh. Several common infrastructure facilities have been added by private players and those with government support. Mr. Shanmugham says the knitwear units will leverage on the opportunities in technical textiles soon.

Europe, a key market

A leading exporter and integrated player in Tiruppur says Europe is the key market for Tiruppur. The EU and U.S., together, constitute 70% of the market for knitwear exporters. Quality and delivery are important for exporters to gain the confidence of buyers. Prices can be negotiated. So, managements should focus on ensuring quality even when prices are under stress. Changes for better operation and management processes need to be adopted by all stakeholders in the knitwear town for it to leap to the next growth trajectory.

Source: The Hindu

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India to be third largest economy by 2030: Arun Jaitley

Currently, the size of the Indian economy is about USD 2.9 trillion, he said while addressing students of the Shri Ram College of Commerce. Finance Minister Arun Jaitley on Saturday said India is expected to become the third largest economy in the world by 2030 with GDP touching USD 10 trillion, helped by consumption and investment growth. Currently, the size of the Indian economy is about USD 2.9 trillion, he said while addressing students of the Shri Ram College of Commerce here. "We keep oscillating between fifth and the sixth largest economy, depending on the dollar rate. As we look at the years ahead, we would be USD 5 trillion by 2024 and USD 10 trillion by 2030 or 2031. "That's when we will be amongst first three - US, China and India and then of course, we would in the rat race of the big three wanting to catch up with much mightier competitors. So the sheer size and opportunities is going to expand," he said. Talking about avenues of growth for the next 20 years, the finance minister listed infrastructure creation, rural expansion and gender parity, among others. Jaitley, himself an alumnus of the college, said the 2011 Census showed that 21.9 per cent of India's population lived below the poverty line (BPL) and with the present rate of growth, this might have further reduced to 17 per cent today. It should shrink to 15 per cent by 2021 and further down to single digits by 2024-25, he said. At the same time, the middle class population would increase to 44 per cent from 29 per cent in 2015, he said citing a study. "Therefore as you look ahead you would see poverty deplete, you will see an exponential growth of middle class and probably by 2030 almost half of India would be in that category (middle class)," he said. "Going by the data, the size of India middle class would be four times the size of BPL when 2024 general elections takes place and therefore we have to see (whether) public discourse is still behind the curve or it takes the curve further," he said. So, consumption will get a boost with rising number of middle class, he said, adding that infrastructure creation, both rural and urban, would also help accelerate the growth process. He also said some sectors like infrastructure and railways need further fillip.

Source: ET Retail

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India mulls hosting second WTO mini-ministerial meet next month: Prabhu

India has time and again stressed the importance and relevance of the WTO for promoting global trade India is planning to host the second informal meeting of trade ministers from about 20 member nations of the World Trade Organization (WTO) here next month amid growing challenges for global trade, Commerce and Industry Minister Suresh Prabhu has said. This meeting assumes significance as several countries are raising questions over the relevance of the global trade body. Many countries are also taking protectionist measures, impacting global trade. "We are planning this (meeting) in May. We will be inviting about 20 WTO member countries this time," he told PTI. The US had imposed high duties on imports of certain steel and aluminium products, which triggered a major trade tariff tussle. Recently, the WTO cautioned that the global trade will continue to face strong headwinds this year and in 2020 after growing slower-than-expected in 2018 due to rising trade tensions and increased economic uncertainty. India has time and again stressed the importance and relevance of the WTO for promoting global trade. In March last year, over 50 nations participated in a meeting here which was convened by India to explore options for resolving various issues and re-invigorating the WTO. That meeting was organised in the wake of talks collapsing at the Buenos Aires ministerial conference in December 2017. India had appealed to the WTO members to identify common ground for strengthening the multi-lateral trade body amid challenges being faced by it following the deadlock at the Buenos Aires ministerial in December. Talking about the proposed national ecommerce policy, the minister said the draft is in the public domain and the ministry would look at all suggestions and views. "Every objections raised by small or big traders, we will take it on board," he said. Concerns have been raised by certain quarters over some proposals of the draft policy related with data localisation and cross border flow of data.

Source: Economic Times

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India shares with China list of 380 products for exports to bridge trade deficit

India has identified and shared with China a list of 380 products including horticulture, textiles, chemicals and pharmaceuticals as their shipments hold huge export potential in the neighbouring country, an official said. Increasing exports of these products would help India narrow the widening trade deficit with China, which stood at USD 50.12 billion during April-February 2018-19. During the period, India's exports to China grew by 28.61 per cent to about USD 15 billion, while imports contracted by 6.29 per cent to about USD 65 billion. The official said that in the recent months, India's exports of marine products, cotton, organic chemicals, grapes and plastics have increased significantly. Indian exporters face certain non-tariff measures in Chinese markets, which restrict exports to that country. The commerce ministry on April 4 had called a meeting of stakeholders including export promotion councils and other government departments to discuss ways to increase exports to China. India is taking several steps to promote shipments to China. Recently, it has managed to export agricultural goods such as non-basmati rice to China. India is seeking greater market access for various agricultural products, animal feeds, oil seeds, milk and milk products, pharmaceuticals in light of the potential of these products/services in the Chinese market The official also said that next month Chinese Vice-Minister for General Administration of Customs of China (GACC) is expected to visit India to discuss trade related issues. In that meeting, some more protocols for India's exports are expected to be finalised, the official added.

Source: Business Standard

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Brexit will have no impact on EU-India ties: Envoy

The Ambassador of the European Union to India, Tomasz Kozlowski on Friday said that the bloc would continue being India's largest trading partner despite Brexit, during a conference on Strengthening India-Europe Economic Relations at the PHD House here. He outlined the "balanced" trade between India and EU during his address, adding that the UK's exit from the EU would have no impact on India-EU ties. "Brexit will not have any impact on India-EU relations. All agreements between the two will be implemented. We have a lot of plans with India and we will continue. EU will remain the largest trading partner and will continue to work towards increasing the ties including in the technological sector," Kozlowski said during the conference. "EU-India trade in goods & services reached 141 billion USD, our investments - 90 billion USD. Trade is balanced, our economies are complementary. Still, speaking on Strengthening India-Europe economic relations at PHD conference, I underlined our potential is higher, we could do much more," the ambassador tweeted after the event. Speaking further on Brexit, Kozlowski said: "Brexit is not a positive development for both EU and Britain but it is a decision made by UK and we respect it. We have to move towards the integration process and the Brexit will not impact the process in the future." Also present at the event on Friday were Ministry of External Affairs Joint Secretary (Central Europe) Anju Kumar and the Ambassador of France to India Alexandre Ziegler. Efforts are on in the United Kingdom to break the deadlock on Brexit, with British Prime Minister Theresa May holding talks with Opposition leader Jeremy Corbyn to make headway on an agreement which is unanimously accepted by the British Parliament. The House of Commons has rejected the previously negotiated Withdrawal Agreement thrice now, with Corbyn indicating that the accord may be tabled again in the Parliament for a vote next week. No respite seems to be in sight for the United Kingdom, as it is now poised to exit from the bloc on April 12. While the opposition has called for a second referendum, May has dismissed the scenario. She now seeks another extension from the EU. The EU, meanwhile, issued a strong statement, outlining that a "no-deal" scenario is likely after the Withdrawal Agreement was rejected for the third time. The British Parliament, however, has also rejected leaving the bloc without a deal.

Source: Business Standard

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FPIs pour in Rs 8,634 crore in April so far on positive market trends

In March, the overseas investors had pumped in a net Rs 45,981 crore into the capital markets (both equity and debt). Overseas investors have pumped in a net sum of Rs 8,634 crore into the Indian capital markets in the first five trading sessions of April, mainly due to positive market sentiment. According to analysts, the positive change has been triggered by domestic as well as global factors and the trend is likely to continue for some time. In March, the overseas investors had pumped in a net Rs 45,981 crore into the capital markets (both equity and debt). According to depositories data, foreign portfolio investors (FPIs) put in a net amount of Rs 8,989.08 crore in equities during April 1-5. However, they pulled out a net Rs 355.27 crore from the debt markets, leading to an overall investment of Rs 8,634 crore in the capital markets. "Although India had some domestic concerns in the form of political uncertainty and increase in cross border tension with Pakistan, alleviation in some of these later improved India's prospects," Morning Star's Senior Analyst Manager (Research), Himanshu Srivastava said. Improvement in the country's macro-outlook, as well as expectations of the formation of a stable government at the Centre, brought foreign money back into the Indian markets, he added. "Consequently, foreign institutional investors (FIIs) turned net buyers in the India equity markets to the tune of $7.31 billion cumulatively for February and March," Srivastava said. Globally, after the January 30 FOMC meet, the US Fed chief declared that the "rate hikes are on hold”. Later, the European Central Bank (ECB) also announced a dovish monetary stance and Japan is continuing with its QE program. The dovish stance of the three leading central banks of the world along with the monetary stimulus being implemented by the People's Bank of China has unleashed a gush of liquidity through FPI. This liquidity is chasing risky assets like emerging market equity, said V K Vijayakumar, chief investment strategist at Geojit Financial Services. In the context of the economic slowdown in the developed world and the accommodative stance of the leading central banks, the FPI inflows can be expected to continue going forward, he added.

Source: Business Standard

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Branded apparel makers post steady profit growth in December quarter

There are generally three major channels through which branded apparel is sold in the country - well-established distribution networks, company owned or franchisee stores and large format stores. Branded apparel makers reported a steady increase in their profit margins in the December quarter on the back of increased sales in the festive season. Data compiled by the global consultancy, Wazir Advisors, showed that Aditya Birla Fashion & Lifestyle reported a 2.2 per cent jump in earnings before interest, taxes, depreciation and amortization (EBITDA) margins for the quarter ended December 2018 as against 1.2 per cent posted in the previous quarter. The company had posted negative EBIDTA margins of 1.2 per cent for the quarter ended June 2018. Similarly, Gokaldas Export and Page Industries reported 4.3 per cent and 21.5 per cent of EBITDA margins for the quarter ended December 2018 versus 2.2 per cent and 20 per cent in the September quarter of 2018 “December quarter is always good due to festivals. There are a number of festivals including the Dussera, the Diwali and the Christmas and the New Year come during December quarter. Also, many wholesalers build their stocks during the December quarter which improves sales. Most importantly, no discounts are offered during the December quarter as it is the peak seasonal demand season. Hence, branded players report an increase in sales,” said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI). There are generally three major channels through which branded apparel is sold in the country - well-established distribution networks, company owned or franchisee stores and large format stores. Online selling or e-commerce is a very recent phenomenon. Both domestic and international brands have a presence across all the channels. “We will not do the business for less than 20 per cent of EBITDA margin. We currently have a high return on capital employed (ROCE) of more than 60 per cent which is highest in the industry while our peer groups don't have more than 15 – 16 per cent. Having said that we would like to grow much faster than the compounded annual growth rate (CAGR) growth we had delivered in the last 10 years, that was at 13 per cent. We are aiming for better growth than the rate at which we have grown in the last three years,” said Kewal Chand Jain, chairman and managing director, Kewal Kiran Clothing Ltd, which produces leading denim brands like Killer, Lawman pg3, Integriti, K-Lounge and Additions. The discounting of branded apparel has become a very common phenomenon after e-commerce players started offering discounts throughout the year. However, consumers have realized the real value of denim and have started buying from exclusive branded stores. Since large format stores don't want to take the risk of keeping an inventory, the choice available at such stores is limited and sometimes consumers may not get what they want. Exclusive brand outlets (EBOs), on the other hand, are always well stocked and offer a wider choice when compared to e-commerce and large format stores. Some of the foreign brands in the country have grown very fast at the expense of profitability whereas the leading domestic brand Killer believed in sustainability before scalability. Kewal Kiran Clothing has outlined a plan to invest Rs 150 crore in the next two years in expanding its capacities, in both denims and branded shirts and T-shirts. The company has also outlined a growth plan for its retail stores which currently number 336. The company plans to open 36 - 40 stores every year and also double the number of distributors. Meanwhile, a senior industry leader said, “The profit growth in the branded segment is likely to continue due to their huge spend on advertising and marketing.”

Source: Business Standard

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What India’s industry wants

As expected, the RBI cut the repo rate by 25 bps in a bid to stoke some investor fire into the country’s growth story—especially the industrial growth, which has been stuttering for some time. Indian industry grew by just 1.7 per cent last January after a 2.65 per cent growth in December and an abysmal 17-month low of just 0.5 per cent in November. The country’s GDP growth was 6.6 per cent in the October-December 2018 quarter and is expected to be even lower at 6.4 per cent in the quarter that ended on 31 March 2019. However, with banks reluctant to pass on the rate cut, it seems unlikely that there will be a rush among private investors and consumers to borrow money to set up factories, buy homes or even cars. Automobile sales between April 2018 and February 2019 have shown a growth of just 3.3 per cent compared to 8 per cent the previous year. No wonder the industry has been seeking rate cuts of at least half a per cent every time RBI starts pondering about the country’s monetary policy. Driblets of rate cuts are helpful in pushing down India Inc.’s interest pay-out costs, but do not seem to enthuse the country’s entrepreneurs and consumers to take enough big-ticket investment decisions. According to the World Bank’s estimates, global growth too is expected to slow to 2.9 per cent in 2019. “International trade and investment are moderating, trade tensions remain elevated, and financing conditions are tightening. Amid recent episodes of financial stress, growth in emerging market and developing economies has lost momentum,” the Bank says in its Global Economic Prospects. With some 41 per cent of the country’s GDP growth accounted for by foreign trade, a slowdown in global growth again spells bad news for large swathes of India’s industry—ranging from textiles to diamonds to engineering. If inflation continues its moderate stance, perhaps the central bank would do well to read the tea leaves of India’s growth saga better and decide in favour of a larger rate cut in June when it sits down once again to decide on the future course of the monetary policy.

Source: The New Indian Express

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GST on a firmer footing

With the month of March seeing Goods and Services Tax (GST) rake in its highest mop-up since its inception, the new tax regime has ended financial year 2018-19 on a high note. Gross GST collections of ₹1.06-lakh crore in March have helped the government close this fiscal year with ₹11.77-lakh crore in the GST kitty, against revised estimates of ₹11.47-lakh crore it set out in the Interim Budget, defying apprehensions of a significant shortfall. But despite this last-minute rise in collections, the Centre’s share of GST for the year at ₹4.3-lakh crore hasn’t quite measured up to its revised estimate of ₹5.03-lakh crore. With direct tax collections said to be falling short by a substantial ₹60,000 crore for the year, the Centre’s ability to meet its fiscal deficit target of 3.4 per cent depends on whether it managed to scrounge up enough non-tax revenues to fill the gap. It is intriguing that GST collections should pick up in the last three months of FY19 to manage a 13-15 per cent year-on-year growth, when consumption indicators in the economy have been losing steam. The last three months have seen India’s high-frequency economic indicators such as automobile sales, IIP and core sector output register sharp deceleration after charting a revival in the first nine months. One possible explanation for this is that better growth in the services sector has buoyed GST collections, even as manufacturing has floundered. But it is more likely that the GST Council’s drastic pruning of items in the highest tariff band of 28 per cent and its rationalisation of rates to correct sector-specific anomalies in recent meetings, have paid off in the form of higher collections. Harnessing the centralised data generated by the GST Network, the revenue department has also redoubled its efforts to curb evasion in recent months. It has tracked down invoice mismatches, tightened e-way bill rules and has unleashed a rash of raids and arrests. This seems to be paying off in the form of improving compliance, with the number of GSTR 3B return-filers inching up to 75.9 lakh in March, compared to just 72.4 lakh in December 2018. In an interview to BusinessLinelast week, the CEO of GST Network pointed out that compliance rates under GST were 15 per cent better than those under the erstwhile VAT and service tax regimes. Overall, it is good to see the much-reviled GST stabilise in the second year of its operations, with businesses getting over their initial reservations with this watershed tax reform. Buoyant collections in recent months also hold out a strong message to policymakers that low tariffs and ease of compliance must accompany anti-evasion measures to meet collection targets.

Source: The Hindu

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Index of Eight Core Industries (Base: 2011-12=100) February, 2019

These eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).  The combined Index of Eight Core Industries stood at 125.8 in February, 2019, which was 2.1% higher as compared to the index of February, 2018. Its cumulative growth during April to February, 2018-19 was 4.3%.

Coal

Coal production (weight: 10.33%) increased by 7.3% in February, 2019 over February, 2018. Its cumulative index increased by 7.1% cent during April to February, 2018-19 over corresponding period of the previous year.

Crude Oil

Crude oil production (weight: 8.98%) declined by 6.1% in February, 2019 over February, 2018. Its cumulative index declined by 4% during April to February, 2018-19 over the corresponding period of previous year.

Natural Gas

Natural gas production (weight: 6.88%) increased by 3.8% in February, 2019 over February, 2018. Its cumulative index increased by 0.8% during April to February, 2018-19 over the corresponding period of previous year.

Refinery Products

Petroleum refinery production (weight: 28.04%) declined by 0.8% in February, 2019 over February, 2018. Its cumulative index increased by 3% during April to February, 2018-19 over the corresponding period of previous year.

Fertilizers

Fertilizers production (weight: 2.63%) increased by 2.5% in February, 2019 over February, 2018. Its cumulative index declined by 0.02% during April to February, 2018-19 over the corresponding period of previous year.

Steel

Steel production (weight: 17.92%) increased by 4.9% in February, 2019 over February, 2018. Its cumulative index increased by 4.7% during April to February, 2018-19 over the corresponding period of previous year.

Cement

Cement production (weight: 5.37%) increased by 8% in February, 2019 over February, 2018. Its cumulative index increased by 13% during April to February, 2018-19 over the corresponding period of previous year.

Electricity

Electricity generation (weight: 19.85%) increased by 0.7% in February, 2019 over February, 2018. Its cumulative index increased by 5.4% during April to February, 2018-19 over the corresponding period of previous year.

Source: Textile Excellence

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GST officers seek clarification from companies for mismatch in sales returns, eway bill data

GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated, as revenue authorities start matching supplies data to check tax evasion, sources said. Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018. Following this, it has come to the notice of tax officers that some transporters are doing multiple trips by generating only a single e-way bill or not reflecting e-way bill invoices while filing sales return. It has also come to the notice that certain businesses are not generating e-way bills even as supplies are being made. Goods and Services Tax Network (GSTN), the company which handles the technology backbone for GST, has started sharing details of e-way bills vis-a-vis taxes paid to help tax officers identify any discrepancy, sources added. In one of the letters issued by Ghaziabad GST commissionerate, a taxpayer has been asked to provide "clarification" within three days on the difference between taxes paid and the liability which the tax officer has ascertained after analysing sales return GSTR-3B and e-way bill data for the period October 2018 and January 2019. The government is banking on anti-evasion measures to meet its GST collection target for the current fiscal. For fiscal 2019-20, the government proposes to collect Rs 6.10 lakh crore from Central GST and Rs 1.01 lakh crore as compensation cess. The Integrated GST balance has been pegged at Rs 50,000 crore. AMRG & Associates NSE -1.64 % Partner Rajat Mohan said tax officers have started using the pile of GSTN data retrieved through return filings and e-way bill mechanics to carve out a summary reconciliation statement of estimated tax liability, compelling businesses to justify the outward tax liabilities in a comprehensive manner. "Tax authorities would be at fault if they presume that reconciliation difference is due to tax evasion only. There be other reasons for this difference like clerical errors, cut off supplies and pre-delivery expiry of e-way bills," Mohan added. To further streamline the e-way bill system, GSTN is planning some changes, including auto calculation of route distance based on PIN code and blocking of generation of multiple e-way bills on one invoice/document. The matching of e-way bill data with that of tax payment is in addition to analysis being done by GSTN by matching taxes paid in summary sales return GSTR-3B and final returns GSTR-1. Also, businesses whose GSTR-1 did not match with GSTR-2A, which is a purchase return auto-generated by system from the seller's return, have been flagged by GSTN systems. Based on this, last year tax officers sent scrutiny notices to taxpayers seeking explanation for the reason for the discrepancies.

Source: Economic Times

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Global Textile Raw Material Price 07-04-2019

Item

Price

Unit

Fluctuation

Date

PSF

1311.02

USD/Ton

0%

4/7/2019

VSF

1830.36

USD/Ton

0%

4/7/2019

ASF

2495.54

USD/Ton

0%

4/7/2019

Polyester POY

1337.06

USD/Ton

-0.17%

4/7/2019

Nylon FDY

2886.91

USD/Ton

-0.51%

4/7/2019

40D Spandex

4747.04

USD/Ton

0%

4/7/2019

Nylon POY

1532.74

USD/Ton

0%

4/7/2019

Acrylic Top 3D

3154.77

USD/Ton

0%

4/7/2019

Polyester FDY

5625.02

USD/Ton

0%

4/7/2019

Nylon DTY

1572.92

USD/Ton

-0.28%

4/7/2019

Viscose Long Filament

2693.46

USD/Ton

0%

4/7/2019

Polyester DTY

2604.18

USD/Ton

0%

4/7/2019

30S Spun Rayon Yarn

2544.65

USD/Ton

-0.29%

4/7/2019

32S Polyester Yarn

2023.82

USD/Ton

0%

4/7/2019

45S T/C Yarn

2886.91

USD/Ton

0%

4/7/2019

40S Rayon Yarn

2172.63

USD/Ton

0%

4/7/2019

T/R Yarn 65/35 32S

2574.41

USD/Ton

0%

4/7/2019

45S Polyester Yarn

2886.91

USD/Ton

0%

4/7/2019

T/C Yarn 65/35 32S

2425.60

USD/Ton

0%

4/7/2019

10S Denim Fabric

1.37

USD/Meter

0%

4/7/2019

32S Twill Fabric

0.83

USD/Meter

0%

4/7/2019

40S Combed Poplin

1.11

USD/Meter

0%

4/7/2019

30S Rayon Fabric

0.63

USD/Meter

0%

4/7/2019

45S T/C Fabric

0.71

USD/Meter

0%

4/7/2019

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.14881 USD dtd. 07/04/2019). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Indonesia: Ministry tightens rules on sandals, textiles, home appliances over safety concerns

The Trade Ministry has issued new regulation requiring safety checks and labeling for electronic devices and goods containing hazardous chemicals, including rice cookers, rubber sandals and mattresses. The regulation, which will take effect on Aug. 14 2019, applies to local producers and importers. "The ministry is requiring local producers and importers to register products that may affect safety, security and health as well as the environment before distributing them to the market," the ministry's consumer protection and trade order director general, Veri Anggrijono, said in a statement recently. Indonesia has health and safety rules on goods, such as the Indonesian National Standards (SNI), although it does not cover some of the 42 goods listed under the new ministerial regulation. The list of goods stipulated in Ministerial Regulation No. 18/2019 includes small home appliances, such as vacuum cleaners, electronic razors, rice cookers and juicers, as well as crayons, rubber footwear and mattresses, among other products. Producers and importers must submit a self-declaration form to prove that they have conducted laboratory tests on their products using methods stipulated in the regulation to be eligible for registration. If the ministry approves, it will issue registration numbers, which producers and importers must then attach to their products. The ministry also requires re-registration of the products every five years. The rules also apply to products already on the market. The ministry said it would give a year for the importers and producers to comply. "The ministry will terminate the trading activities of producers and importers who violate the rules. We will withdraw their products from the market and revoke their registration numbers," Veri said. Electronic Producers Association chairman Ali Soebroto lauded the new regulation, saying that such rules were necessary because no prevailing regulation had covered the listed small appliances. Because small appliances were mostly imported in completely built units, or produced locally on a small scale, he said, the Industry Ministry had not applied the standards on them. So far, the home appliances required to follow the standards include washing machines, air conditioners, electric irons and refrigerators. "If we want to ensure consumer protection, then all goods should be safe. Appliances such as rice cookers and vacuum cleaners pose just as many risks as refrigerators, which have been standardized," he told The Jakarta Post. "Self-assessment is a way to ensure these products are safe,” Ali added.  He said further that supervision should follow the implementation of the regulation, noting that the absence of strict sanctions would only cause unfair competition among the concerned parties and pose bigger risks to consumers. A source from the main secretariat of the Importers Association of Indonesia who spoke on the condition of anonymity, said the regulation was important to ensure consumer protection. However, the source suggested that the ministry disseminate information on the new regulation to concerned producers, importers and associations before enacting the regulation. Indonesian Consumers Foundation (YLKI) chairman Tulus Abadi highlighted that the new regulation could help reduce the negative impacts of electronic waste in Indonesia, noting that consumers should also start purchasing products responsibly. A 2015 report released by the United Nations University shows that Indonesia recorded the highest amount of electronic waste in Southeast Asia at 812 kilotons.

Source: Jakarta Post

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Textile exporters’ issues to be resolved on priority basis: Aslam

Punjab Minister for Industries & Trade Mian Aslam Iqbal has said that genuine issues of textile exports would be resolved on priority basis. The Provincial Minister stated this while talking to a delegation of Pakistan Textile Exporters Association (PTEA) led by Secretary General Aziz Ullah Goheer which called on him at Civil Secretariat on Friday. During the meeting, matters related to tax on export services, refund, problems facing exporters and industrialists, issues regarding Khurdianwala Industrial Zone also came under discussion. Former Minister Dr. Tahir Ali Javaid, Secretary Industries and other concerned officers were also present on the occasion. Mian Aslam Iqbal assured the delegation to solve all their genuine problems at priority basis and said that the Punjab government is acting upon the policy to colonialization of all industrial zones, development works are rapidly being completed in these industrial zones. He said that the provincial government is promoting Export-Oriented Industry in the province and every possible steps is being taken to enhance the exports.He directed to make a development plan for the Khurdianwala Industrial Zone. He said Board of Management will also be constituted to run the affairs of Khurdianwala Industrial Zone and to solve other related issues. The Minister Industries and Trade said that new job opportunities can be created by strengthening industrial sector and the government is moving towards right direction. He said it is our duty to protect the interests of exporters and the government will perform this duty and all the genuine issues of the exporters will be solved on priority basis.

Source: Pakistan Observer

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Colour-changing threads for smart clothes can detect gases: Study

Scientists have created threads that change colour when they detect a variety of gases, an advance that could help develop smart fabrics that can sniff out toxic chemicals. Researchers from Tufts University in the US demonstrated that the threads can be read visually, or even more precisely by use of a smartphone camera, to detect changes of colour due to analytes as low as 50 parts per million. Woven into clothing, smart, gas-detecting threads could provide a reusable, washable, and affordable safety asset in medical, workplace, military and rescue environments, they say. The study, published in the journal Scientific Reports, describes the fabrication method and its ability to extend to a wide range of dyes and detection of complex gas mixtures. While not replacing the precision of electronic devices commonly used to detect volatile gases, incorporation of gas detection into textiles enables an equipment-free readout, without the need for specialised training, researchers said in a statement. Such an approach could make the technology accessible to a general workforce, or to low resource communities that can benefit from the information the textiles provide. The study used a manganese-based dye, MnTPP, methyl red, and bromothymol blue to prove the concept. MnTPP and bromothymol blue can detect ammonia while methyl red can detect hydrogen chloride -- gases commonly released from cleaning supplies, fertilizer and chemical and materials production. A three-step process "traps" the dye in the thread. The thread is first dipped in the dye, then treated with acetic acid, which makes the surface coarser and swells the fibre, possibly allowing more binding interactions between the dye and tread. Finally, the thread is treated with polydimethylsiloxane (PDMS), which creates a flexible, physical seal around the thread and dye, which also repels water and prevents dye from leaching during washing. Importantly, the PDMS is also gas permeable, allowing the analytes to reach the optical dyes. "The dyes we used work in different ways, so we can detect gases with different chemistries," said Sameer Sonkusale, professor at Tufts University. The team used simple dyes that detect gases with acid or base properties. "But since we are using a method that effectively traps the dye to the thread, rather than relying so much on binding chemistry, we have more flexibility to use dyes with a wide range of functional chemistries to detect different types of gases," Sonkusale said. The tested dyes changed colour in a way that is dependent and proportional to the concentration of the gas as measured using spectroscopic methods. In between the precision of a spectrometer and the human eye is the possibility of using smart phones to read out and quantify the colour changes or interpret color signatures using multiple threads and dyes. "That would allow us to scale up the detection to measure many analytes at once, or to distinguish analytes with unique colorimetric signatures," said Sonkusale.

Source: Business Standard

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Trade Event to Discuss U.S. Trade Policy Impact on Apparel and Textile Market

Amidst Changing Global Trade Landscape, Leading Apparel Event to Unveil Top Speaker Line-Up to Boost International Trade Success for Fashion Industry Players in Florida, Southern U.S. and Latin America MIAMI – Latest updates on U.S. trade policy, customs and imports, investment opportunities for apparel brands and retailers, industry trends and forecasts, and the future of fashion, technology and sustainability, are among the key topics to be presented at the upcoming Apparel Textile Sourcing Miami (ATSM) show. The show gets underway May 28-30 at the Mana Wynwood Conference Center, coinciding with Miami Fashion Week to bring to the Magic City more than 10,000 fashion industry representatives for a first-hand discovery of new developments and insights in the apparel and textile market — from concept to consumer. “With the U.S. in the midst of a shifting trade environment, ATSM has put together the most comprehensive sourcing seminars, expert panels and Q&A segments to arm representatives across all segments of the industry — brands, retailers, e-commerce sellers, designers, importers and buying offices — with the knowledge, tools and practical solutions they need to address current industry issues and navigate through the rapidly-transforming sourcing ecosystem,” said Jason Prescott, CEO of JP Communications, producer of the show and publisher of North America’s leading of B2B trade platforms TopTenWholesale.com and Manufacturer.com. Highlights of the ATSM educational sessions — which take place on the show floor alongside 300 exhibits of the latest in apparel and textile products and services from more than 15 countries — include:

U.S. Trade Policy Update

U.S. trade policy is changing quickly and Julie Hughes, President of the DC-based United States Fashion Industry Association (USFIA) — which works to facilitate global trade for U.S.-based brands, retailers, importers and wholesalers doing business internationally — will provide an update on the latest developments in global trade, tariff and non-tariff barriers, and new sourcing opportunities. Navigating through the complex supply chain and other complicated issues associated with trade present a challenge for businesses, small and large. Learn from international trade and legal expert Laura Siegel Rabinowitz, Special Counsel of national law firm Kelley Drye & Warren LLP, about all you need to know to ensure compliance with current trade laws and policies surrounding imports, exports and customs, and reduce duty exposure.

New Investment Opportunities

Tap into an unprecedented number of investment opportunities available to Florida apparel brands, retailers and businesses — from local to international sources. Speakers include Manuel A. Mencia, Sr. Vice President – International Trade and Development of Enterprise Florida, as well as representatives from The Investment Association of China (IAC), who will provide details as part of the first Asia-US-Latin America Investment Summit on the group’s vision to invest in local opportunities in Miami and Fort Lauderdale in the areas of logistics, ports, commercial/residential real estate, infrastructure and technology. IAC, the authority of the Chinese investment industry, regulated by the National Development and Reform Commission of the Peoples’ Republic of China, has injected billions of dollars into different economies worldwide across numerous industries since the inception of China’s One Belt, One Road global trade initiative.

What’s Next in Fashion Color Trends

Laurie Pressman, Vice President of the Pantone Color Institute, will unveil global color authority Pantone Color Institute’s fashion color trend forecast for Autumn/Winter 2020-2021. Be among the first to see how next year’s colors and beyond will be reflective of color as an oasis and how they will be incorporated into fashion.

Stream for Designers on Growing a Successful Business

Launching and growing a successful business today is a challenge for both expert and novice designers alike, especially with limited budgets. What’s the best way to launch or scale a brand — online, direct to consumer, crowd sourcing sites or wholesale? Mercedes R. Gonzalez, Founder and Director of Manhattan-based Global Purchasing Companies, specialists in fashion strategy and brand development, will reveal valuable tips on everything designers needs to know about breaking through the clutter and launching a successful collection. Design industry expert Anna Livermore, Founder of Chicago-based V. Mora, who has helped launch hundreds of designers’ careers over the last decade, will share top mistakes designers make and how to avoid them.

Latest Developments in Manufacturing Technology

With technology evolving at a rapid pace, discover the many advances in technology use and how it can speed up product development and the manufacturing process, including pattern design, creating technical packs, 3D scanning, grading, marking and cutting. Learn from experts such as Ram Sareen Head Coach and Founder of California-based fashion tech firm Tukatech on how technology can help your company save time and money in meeting manufacturing demands, and Shahrooz Kohan, CEO of California-based fashion ERP software provider AIMS360 on the benefits of integrating apparel value chain technologies into your business.

Sustainable Fashion: How to Adapt Your Business to Conform

In the wake of the United Nations’ launch of the “UN Alliance on Sustainable Fashion,” a panel of top industry experts will discuss the implications for apparel businesses, and provide guidance on how companies can launch, convert and grow their sustainable operations.

Responsible Sourcing and Your Bottom Line

Avedis Seferian, President and CEO of Worldwide Responsible Accredited Production (WRAP), will examine why responsible sourcing is more important than ever in today’s world of instant communication, what companies need to do in order to ensure business continuity and stay competitive, and how responsible sourcing impacts the bottom line. Presented free of charge, the interactive educational sessions are expected to draw more than 4,000 local, national and international visitors who will attend ATSM to learn, source new innovations, and make connections with sourcing partners globally. In addition to the show’s exhibits and conference sessions, ATSM will deliver a world-class fashion show, representing local and international designers, up-and-coming student talent and global fashions presented by show exhibitors.

Source: South Florida Carribean News

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China refuses to give up ‘developing country’ status at WTO, despite US demands

China will refuse to give up the “special and differential treatment” it enjoys as a developing nation at the World Trade Organisation, in a rebuke to a US proposal that would pare back the privileges China and other nations enjoy on trade. China is categorised as a developing country at the Geneva-based institution, which affords it “special and differential treatment”. This enables China to provide subsidies in agriculture and set higher barriers to market entry than more developed economies. The dispute reflects a fundamental divide within the World Trade Organisation (WTO) that has threatened the future of the global multilateral trading system. The United States has long complained that too many WTO members – about two-thirds of all member nations – define themselves as “developing countries” to take advantage of the terms the status permits them to trade under. US President Donald Trump has railed against the organisation, calling it “a catastrophe” and “a disaster”. However, big trading countries such as China and India insist that the preferential treatment is an important cornerstone of the global trading system. China continues labelling itself “the world’s largest developing country”, even though it is now the world’s second biggest economy and the largest exporter. Gao Feng, a spokesman for the Ministry of Commerce, said in a press conference on Thursday that China would stand by its position, even as Brazil has agreed to forgo the status in exchange for US support in joining the Organisation for Economic Co-operation and Development (OECD), an influential intergovernmental economic organisation with 36 member countries. “China’s position on WTO reform has been very clear. China is the largest developing country in the world,” Gao said. “We do not shy away from our international responsibilities and are willing to assume obligations in the WTO that are compatible with our own economic development level and capabilities. In fact, we do the same and will continue to do this.”  “At the same time, we will work with other developing members to firmly uphold our fundamental rights and to voice our common voice and safeguard our development interests,” Gao added. The US claims that current WTO rules go too far in allowing China to subsidise its industries, support state-owned firms and discriminate against foreign investors. The terms have helped foster problems such as the forced transfer of technology and theft of intellectual property theft, Washington claims. At the Boao Forum for Asia in Hainan last week – billed as China’s answer to the World Economic Forum in Davos – Zhou Xiaochuan, the former governor at China’s central bank, acknowledged that some of the criticisms brought up by the US are valid. However, he said there was also some misunderstanding from other WTO members regarding China’s trade practices. “We have substantially reduced market distortions and unreasonable subsidies [in moving from a planned economy to a market economy], but because this is a process of transformation, it is necessary that it has taken many years, so some distortions will remain,” Zhou said on a panel discussion about WTO reform. “The Chinese government is very willing to speed up the reform process to eliminate this distortion, so these distortions will eventually disappear. [The criticisms] may be caused by a misunderstanding,” Zhou said. “We need to do some clarification work. China is a big country. In the process of implementation, there may be inconsistencies. The implementation at the local level may not be consistent, and local governments may have behaved inappropriately, but this does not represent the Chinese government’s stance,” he added. China, India, South Africa and Venezuela have opposed a US proposal to reform the “special and differential treatment”, published earlier this year. The four countries have already submitted a paper to the WTO saying that the self-classification of developing member status had been a long-standing practice and best serves the WTO’s objectives. The joint letter also claims that many WTO rules have actually favoured the US and other developed countries, in the areas of agricultural support, textile quotas, and intellectual property rights protection under the WTO guidance.

Source: South China Morning Post

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US: Trade optimism supports dollar ahead of jobs report

Optimism for a US-China trade deal helped the dollar hit a three-week high against the yen on Friday, although moves in the broader foreign exchange markets were limited as investors saw a lot of headlines but no conclusions out of the trade talks. Xinhua reported that Chinese President Xi Jinping had said progress was being made in trade talks with Washington and called for an early conclusion of negotiations. US President Donald Trump said on Thursday a deal could be announced in about four weeks, but warned it would be difficult to let China trade with the United States if remaining issues were not resolved. The dollar rose to a three-week high of 111.8 yen per dollar while holding firm against most other currencies. The offshore yuan also rose 0.2 per cent to 6.7065. Against a basket of currencies the dollar was flat, however, and the European session opened with most major currencies trading in tight ranges. The focus for the day is US labour market data due out at 1230 GMT, which will help traders decide how the US economy is holding up. MUFG analysts said the market was “struggling for direction” before the jobs report. Expectations are for a rebound in jobs growth in March and a weak February. ING analysts said that should the data show 160,000 to 170,000 jobs were produced in March the dollar would gain. “Such an NFP (non-farm payrolls) release should prove slightly positive for the dollar against the low-yielders ($/JPY to 112.20), but probably good for risk assets in general confirming that US domestic demand should stay strong and allaying recession fears,” they said in a note. The euro rose slightly to 1.1228, its gains capped after data released on Thursday showed German industrial order dropped in February. Sterling strengthened back towards $1.31 as a senior European Union source said Donald Tusk was likely to offer Britain a flexible extension of the date of the country's exit from the bloc of up to one year.

The pound was up 0.2 per cent at $1.3093.

The Australian dollar rose 0.2 per cent to $0.71245.

The currency has risen this week, supported as signs of progress in the US-China trade dispute lifted risk assets and commodity prices.

Source: The Hindu

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Bangladesh: July-March exports soar riding on RMG sector

The export earnings are 7.20% higher than the target of $28.82 billion set for the period. Bangladesh’s export shipments in nine months of the current fiscal year have risen by 12.57% to $30.90 billion, riding on the apparel sector bolstered by improved safety standards and political stability. According to the Export Promotion Bureau (EPB) data released yesterday, during the July-March period of FY2018-19, Bangladesh earned $30.90 billion — up from $27.45 billion during the same period in the previous fiscal year (FY2017-18). The export earnings are 7.20% higher than the target of $28.82 billion set for the period. Meanwhile, in March of this year alone, export earnings rose by 9.35% to $3.34 billion — up from $3.05 billion in March 2018. “It is a good sign that double digit growth in export earnings continues, which is also higher than the export target set for the time,” Centre for Policy Dialogue (CPD) research director Khondaker Golam Moazzem has told the Dhaka Tribune. Moreover, the double digit growth in the apparel sector means stability in the sector; apparel makers are taking the advantage of work orders shifting from China over the tariff tension with the USA, says Moazzem. Also, it is a good omen for the Bangladesh economy that the non-RMG sectors such as agriculture, frozen foods and pharmaceuticals are doing better, observes the trade analyst. Bangladesh, however, needs to focus on infrastructural development and improving ease of doing business to attract the foreign direct investment relocating from China, Moazzem finds. He stresses that the government and the export-oriented manufacturers must come up with measures in identifying the goods not handled by the Chinese manufacturers or relocating due to the trade war. The apparel sector, the $30 billion industry employing 4.4 million workers, contributed $25.95 billion to Bangladesh’s total export earnings, up by 12.57% from $22.83 billion during the same period of the previous fiscal year. Of the total export earnings by the apparel sector, knitwear products earned $12.80 billion, which is 13.65% higher than the $11.32 billion earned during the same period of FY2017-18. Woven products earned $13.15 billion, up by 13.07% from $11.51 billion during the same period of the previous fiscal year. The specialized textile sector saw a 36.63% growth to $112.5 million from $82.34, while home textile products saw a negative growth of 3.36% to $647.34 million, down from $669.87 million. “Political stability and uninterrupted services and safety improvement enhance buyers’ confidence. With boosted confidence, the buyers are placing more orders here pushing up the export earnings,” Mohammad Hasan, executive director of Babylon Group, has told the Dhaka Tribune. In addition, he mentions China-US trade war as another reasons for sharp rise in export earnings as the buyers hunting alternative sourcing destination.

Export performance of other major sectors

Among other major sectors, agricultural products posted a sharp rise of 53.05% growth to $722.73 million in the first nine months of FY2018-19, from $472.23 million in the previous fiscal year. Additionally, export earnings from the pharmaceuticals sector rose by 30.35% to $100 million, up from $76.52 million, and plastic goods rose by 18.34% to $87.09 million, up from $73.59 million during the July-March period of FY2018-19. However, earnings from leather and leather goods witnessed a 9.08% negative growth to $771.69 million during the period, down from $848.79 million during the same period of FY2017-18. Jute and jute goods, the third export earning sector, also registered a 23.23% negative growth to $628 million, which was $818 million during the same period in the previous fiscal year. Exports of frozen and live fish with a positive growth of 2.77% earned $419 million, up from $407.71 million in FY2017-18.

Source: Dhaka Tribune

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Clothes that don’t stain the environment

 

How can we make our RMG sector more sustainable?

The Bangladesh ready-made garment (RMG) industry is now, quite rightly, experiencing increased demands from international customers to address a broader spectrum of issues related to the sustainability of the sector. We are all familiar with customer requirements regarding building safety, workers’ welfare, and environmental concerns, but a growing number of customers are beginning to make preparations to expand the levels of compliance to cover areas that will require better waste management, recycling of product and the components used, strict control of carbon emissions, and greater control of micro-plastics. The emerging two-fold question facing the RMG sector today is: Are we ready for this increased level in sustainable targets being set by our customers and where will the necessary investment to implement the necessary upgrades to our industry come from? It is important for us to realize that the RMG sector cannot ignore the rising demands of our customers for higher levels of sustainability. More important than simply complying with our customer’s wishes is the simple fact that increasing the sustainable credentials of the sector brings environmental benefits to us all -- both locally and for the world at large -- but also offers an untapped opportunity to increase revenue for the sector. Alongside the topics of carbon emissions and micro-plastics, the issues surrounding better waste management and recycling are coming to the fore.With customers seeking to put more requirements on their suppliers in order to achieve their own objectives of establishing a more sustainable, circular economy. We are all aware that the RMG sector and the nation as a whole need to address the issue of carbon emissions. We should all be investigating ways that reduce our carbon footprint, from harnessing natural resources through to the adoption of hydrogen fuel cells for our public transport system and vital goods transportation services. This is not an area that is the sole preserve of the RMG sector, but one that requires greater investment at a national and local government level. The issue of micro-plastics is another example of a by-product of our lives today that affects us all. The RMG industry needs to take steps to minimize the impact of plastic pollution on the environment, whether that be the introduction of more stringent filtration control of effluent from weaving and washing plants through to the day-to-day house-keeping of any waste that we produce.

We are not alone in this.

Again, national and local government bodies need to be actively involved with the issue of plastics in the environment, from the collection and disposal or recycling of waste through to education of the general public of the dangers that plastic pollution carries. One area that those of us involved with the RMG industry can throw our weight behind is that of the recycling and re-purposing of waste product that our industry produces. This is an area that is worthy of serious investigation. Currently, the Bangladesh textile industry’s garment units produce some 500,000 tons of waste material annually, comprised of yarns, cutting scraps, cut pieces, roll ends, overproduction, rejected pieces, and garments, which can sometimes be as much as 47% of the total raw material input of garment production. The small proportion of recycled fibres, that do not find their way to landfill or export, are generally used domestically in the manufacture of low-end garments for the local market or as filling material for furniture, mattresses, and car seats, all of which represent very low returns for the fibres used. According to Recover -- a Spain-based textile company that produces recycled yarns -- as much as 95% of all textile waste that is in landfills can be recycled, reducing carbon emissions as a significant amount the waste is not incinerated and reducing dramatically the environmental impact involved with the manufacture of virgin yarns. In a recent study, Reverse Resources -- an Estonia-based software company that has set up an online track and trace system and an intelligent management process of garment waste in Bangladesh, ensuring maximum utilization and better value for the waste -- found that the country could significantly benefit from adopting more initiatives for recycling the waste from RMG industry for reuse as export-ready product. The current practice of garment scraps being passed onto a chain of traders, eventually being transported to India or China, whose recycling technology is far more advanced than here in Bangladesh, means that we are both missing an opportunity to use the waste product effectively but also passing that opportunity onto other nations. I find it ironic that, having imported a large percentage of the material we as an industry use in production, we then re-export our waste product for it to be transformed into recycled yarns and fabrics, that can then be used for export grade products by third-party suppliers or our direct competition. The time is right for us to take control of this process and nurture a healthy recycling culture within the RMG industry, which would provide the opportunity of turning our so-called “waste” into a financially contributing area for the sector. The Reverse Resources report estimated that the so-called waste product the industry produces could generate an estimated $4 billion for the RMG sector -- if fibres were re-purposed into higher grade textiles, fit for the export market. Over and above this fact is that the adoption of this form of approach would contribute significantly to the environmental impact of fabric production. The growing and dyeing of cotton to produce one simple T-shirt alone can use as much as 2,700 litres of water, causing with it the risk of effluent being deposited into the local waterways in addition to the power usage in heating. Due to the processes involved, mechanically recycled products don’t require any dye, chemical applications and minimal amounts of water, making it a sustainable solution to pollution from garment production. Fabrics are broken down and mixed together to create different colours. The fibres are carded, spun, and then turned into completely new material, often offering a 15-30% price advantage versus fabrics made from virgin yarns. There are a variety of other new recycling technologies already available, with companies setting up or testing their first industrial plants (Worn Again, Circular Systems, Tyton, Evernu, Re:newcell, Moral Fibre, Refibra from Lenzing, for example) that take the recycling of fibre to a completely new level of quality and enables the recycling of up to 85% of different compositions. These are very different technologies, with some requiring a bigger investment. The environmental impacts are various, and the market potential is different, but all of these technologies have one thing in common -- they require support to thrive and to reach bigger market volumes. It is one of the RMG sector’s biggest market opportunities to work hand-in-hand with those early innovations and invite them to carry out their research in Bangladesh by opening up the market data to them to allow them to operate effectively and introduce systems that would benefit the industry as a whole. The material in question are not waste. We need to rethink our approach to the waste product we produce and consider how we can best utilize it both for the sake of the environment and to put a halt to the resources flowing out of our industry on a regular basis. It is now time for us as an industry to take the lead and investigate ways that we can finance and embrace these changes to the sector. It makes sense, both for increasing the sustainability and circularity of our business, but also because they offer potential financial streams that will otherwise go ignored. With a wholesale change in approach towards garment waste, Bangladesh would be able to show to its RMG industry customers that we are taking the initiative when it comes to a sustainable circular approach to the fashion industry. Mostafiz Uddin is the Managing Director of Denim Expert Limited. He is also the Founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).

Source: Dhaka Tribunal

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Garment, textile export fetches nearly 8.7 billion USD in Q1

The Vietnam Textile and Apparel Association (Vinatex) has reported that total export earnings of the garment and textile sector in the first quarter reached nearly 8.7 billion USD, up 11.31 percent over the same period last year. The US remained the biggest market of the sector with turnover of more than 3.4 billion USD, followed by the EU with over 1.4 billion USD, Japan with 964 million USD, China, 936 million USD, and the Republic of Korea, 874 million USD. In the past three months, Vinatex, the country’s largest textile company made a revenue of over 10.6 trillion VND, with exports reaching 594 million USD. The firm’s pre-tax profit was 280 billion VND, making up 16.2 percent of its yearly target and representing a rise of 24.4 percent against the same period last year.

Source: Vietnam News Association

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South-east Asian consumer growth could spark joy for companies

THE future of the consumer sector lies in Asia, a recent financial industry report has noted. And, while hard-travelling, free-spending Chinese consumers are expected to drive a hefty chunk of growth, the South-east Asian market is not to be sneezed at either. Thailand’s home improvement market and Indonesia’s department stores are some consumer segments in Asean that HSBC is keeping its eye on. The bank has put out a report on 21 consumer stocks on which it hews to “buy” calls, based on how it expects emerging markets in Asia to make up close to 35 per cent of the global economy in 2030 - up from 26 per cent now. “Research has shown that it is small and medium-sized cities in Asean that will drive future economic growth,” said consumer analyst Nigel Kiernan. “In Indonesia, for instance, some relatively smaller cities are becoming growth hot spots. “Gresik in the East Java province of Indonesia is a case in point: The city has only about 1.2 million inhabitants but nearly 60 per cent of them are in the consuming class. Discretionary spending is 12 per cent higher there than the Indonesian urban average.” Mr Kiernan added that “such developments are key to profit growth for companies, such as Matahari Department Stores”, where almost three-quarters of gross sales in 2018 took place outside Jakarta - mostly in medium-sized cities. He also highlighted Thai retailer Home Product Center as a company to watch, as incomes rise and the retail sector becomes more formally organised. “We believe both of these long-term growth engines offer attractive tailwinds to HomePro’s medium-term growth story,” said Mr Kiernan, who noted that Thailand’s economy “is directly influenced by intra-Asian trade and outbound Chinese tourism”. South-east Asia could also get a lift from companies that hail from outside the region. HSBC analysts were bullish on Taiwan-based clothing manufacturer Eclat, which serves athleisure brands such as Under Armour and Lululemon. “Eclat should benefit from orders shifting to South-east Asia,” they wrote, pointing to fresh management plans to expand fabric and garment capacity. The capacity growth, they said, is probably “underpinned by the trend of orders shifting from China to South-east Asia and wallet share gains from existing customers”. Growth goes both ways: “As US-China trade tensions heated up in H2 2018, brand customers started to look for production bases outside of China. Vietnam became one of the best destinations, given the country’s complete infrastructure and textile supply chain,” they said. “Eclat has closed all of its China production plants in 2016 and most of its capacities are located in Vietnam and Taiwan. Regardless of the US-China trade tension, we also note that wages in China have been a substantial pressure for textile companies.”

Source: Business Times

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