The $36-billion textile export sector, the third-largest foreign exchange earner for India, clocked only 0.75% growth in 2017-18, after a contraction in the past two years. The textiles and specialty garments sector has been a major employment generator with 45 million workers employed directly and 20 million indirectly. Textiles and readymade garment exports may see some recovery after a poor run of five years if exporters stand up to the challenges. Industry insiders say that the fall in exports was due to India’s textiles not being competitive enough, buyers insisting on several compliance norms for which a large part of industry was not prepared and other trade issues. There could be a recovery if the product base diversified, orders are delivered faster and compliance improves. Exports of Ready-Made Garments are under pressure. Exports dropped 3.46 per cent to $16.37 billion in 2018-19 from $16.7147 billion in the year-ago period. India’s garments were 10-15 per cent costlier than other competing countries. Indian exporters are also over dependent on a narrow product base. This made matters worse. In the last five years of NDA rule, the year 18-19 was the worst for exporters. Textiles, especially the garments sector, has been a major employment generator with 45 million being employed directly and 20 million being employed indirectly. Meanwhile, exports from Vietnam and Bangldesh grew 11.19 per and 13.7 per cent, respectively, in 2018-19. Care Ratings said, “Bangladesh, Sri Lanka, Vietnam have low production cost and exporters there enjoy preferential duty access in key markets.” This also contributed to making India’s exports less attractive. According to Tirupur Exporters Association (TEA), which represents $3.72 billion of knitwear exports, “Under the goods and services tax (GST), there was almost a seven per cent reduction in the incentives that earlier helped exporters to be cost competitive. Incentives were withdrawn after the implementation of GST.” Indian exporters face higher trade barriers compared to countries like Bangladesh, Vietnam and Pakistan in key markets such as the United States (US) and the European Union (EU). Average tariffs levied on Indian textile exports are around 5.9 per cent in the EU, while it is 6.2 per cent in the US, compared to zero per cent and 3.9 per cent on exports from Bangladesh. The US and EU are the world’s largest apparel importers and account for 60 per cent of total global imports. Employee costs in India grew from 9 per cent in financial year (FY) 2010 to 13 per cent in FY 2018, while in other countries either it saw a stable or a marginal growth. Exporters feel they would not be able to compete with Bangladesh and Vietnam and are now focussing on diversifying their markets to countries like Japan, Israel, South Africa, Hong Kong and others. However, according to a large corporate exporter, the sector should reduce its over-dependence on cotton casual wear to be able to cater to global markets better and increase exports. India is not a major competitor in man-made fibre (MMF) or polyester-based garment segments and doesn't have the capacity to make winter-wear, active wear, sportswear etc. Formal clothing accounts for a major chunk of the global trade. Rahul Mehta, president of Clothing Manufacturers Association of India, says specialised performance garments such as polyester-based shirts, suits, jackets, woollen clothes, leather garments and hard winter-wear, are not part of India's export basket. Indian textile exports are primarily dependent on a product basket of limited summer and casual wear that includes cotton shirts, t-shirts, cotton blouses etc. CARE estimates that exports will remain subdued in the near future, growing marginally in rupee terms, and declining in US dollar terms due to competitive pressures from other countries. India needs to increase its production of MMF-based apparels to remain competitive. “I feel that we are finally turning the page after about three or four years of stagnancy or slight de-growth. Monthly export charts show a year-on-year growth from October onwards. Support from the government has gone up. Exports from Bangladesh are becoming expensive and Vietnam is showing signs of reaching the peak of its capacity,” added Mehta. Buyers are getting more stringent on compliance and seeking faster delivery as market dynamics and preferences are changing faster than before. Indian textile exporters have to adjust and deliver products faster if exports are to revive.
Source: Business Standard
BHIWANDI: The powerlooms of Bhiwandi are falling silent one by one, the industry unable to bear the heavy losses that its representatives say are the result of GST, an unfavourable garment import-export policy, yo-yoing yarn prices and rise in electricity bills. In the Bhiwandi Lok Sabha constituency, 2 lakh powerloom units — one electric-powered machine is called a unit by the industry — in various production facilities have gone cold over the past couple of years. Those who depend on the industry say they will vote for the candidate who can bring the Manchester of Asia back to life. Today, only 7 lakh powerloom units are operational, providing 2 lakh people employment. Bhiwandi Lok Sabha constituency is in the Mumbai Metropolitan Region and has six assembly segments, Kalyan West, Shahapur and Murbad, Bhiwandi East, Bhiwandi West and Bhiwandi Rural. It is the three assembly segments with Bhiwandi in their name that are home to powerloom; over 8 lakh of the nearly 18.9 lakh voters in the LS constituency live here. As a result, both sitting BJP MP Kapil Patil and Congress candidate Suresh Taware have designed their campaigns around the concerns of the powerloom industry. Fajil Ansari, an owner of powerlooms, president of Nizampura Textile Association and convenor of Bhiwandi Development Front, said only once in five years did MP Patil put forth a question on the dying powerloom industry of Bhiwandi. “He failed to do anything and we decided not to vote for him,” he said. Powerloom owners complained that their problems remained despite textiles minister Smriti Irani visiting Bhiwandi twice and assuring them of corrective measures. “The main reason behind shutting down powerlooms are GST, as many deals in the industry are done on kaccha bills, and lack of government control on yarn prices, which in a day go up and down like the share market,” Sharadram Shejpal, spokesman of the Bhiwandi Powerloom Association, said. The competition from cloth imported from China at very low prices is another major worry, said Shejpal. Industry owners also claim their electricity bills are too high under the private Torrent power company. Ansari said if the family of those employed by powerlooms was to be considered, then the industry feeds 8 lakh people. “In the past two years, thousands of people have been rendered unemployed as 2 lakh powerloom units shut down in the city,” he said. Another powerloom owner, Ambar Ansari, said it was do or die. “This time we have decided to vote only for the candidate who will assure us a resolution to the powerloom industry issues, because if the industry doesn’t survive, how will we?” he said.
Source: Times of India
Hardening its stand against Pakistan, India indefinitely suspended trade at two points along the Line of Control in Jammu and Kashmir effective Friday, following reports that it was being “misused” by elements from across the border to smuggle weapons, narcotics and fake currency. In an official statement, the Home Ministry said orders have been issued for halting the trade at Salamabad of Bara. The Indian government on Thursday suspended the cross-LoC (Line of Control) trade between the Azad Jammu and Kashmir (AJK) and the part of Kashmir it occupies, in a move that evoked strong reactions from traders who feared the decision could force them into destitution. According to a notification issued by India’s Ministry of Home Affairs, the trade was suspended from both Chakothi-Uri and Tetrinote-Chakan da Bagh crossing points of the LoC because of the alleged "misuse of these routes by unnamed elements in Pakistan". “The Government of India has received reports that cross-LoC trade routes in Jammu and Kashmir are being misused by Pakistan-based elements. This misuse involves inflows of illegal weapons, narcotics and currency,” read the notification, a copy of which was also available with Dawn. “The LoC trade mechanism is, therefore, being suspended pending the putting into place of a stricter regulatory regime. This is to ensure that only bonafide trade takes place for the benefit of the people of Jammu and Kashmir, through this mechanism,” it added.
The unilateral decision spread fear among traders who have invested billions of rupees in the barter trade launched pompously in October 2008 as the second Kashmir-specific confidence building measure (CBM) between India and Pakistan after cross-LoC travel. “India had long been finding excuses to wind up this CBM because it strengthened the bonds between divided Kashmiris, which it cannot digest,” the AJK premier said. “Secondly,” he added, “Indian Prime Minister Narendra Modi has given a message to the extremist Indian voters that he will go to any lengths to punish the Kashmiris who are fighting Indian occupation fearlessly.” While condemning India’s decision as one taken under a “preposterous assumption”, traders also sought the intervention of the international community for its reversal. “The LoC travel and trade were initiated by India and Pakistan on the persuasion of the international community. Now when India has suspended this activity on flimsy grounds, the international community should step in once again,” said Azaj Ahmed Meer, an office-bearer of the traders in Chakothi. He said at least 1,200 traders and hundreds of other workers were associated with the activity on both sides of the LoC “who will now be economically devastated if the decision is not reversed”.
In-Depth: Valley of death: Being young and restless in Kashmir
Advocate Pervez Ahmad, a migrant from Kashmir valley who traded from Chakothi, pointed out that the valley was a landlocked area with the Srinagar-Jammu and Srinagar-Muzaffarabad highways the only routes connecting it with the outside world. Earlier, India had stopped Kashmiris from using the Srinagar-Jammu highway for two days a week and now it has blocked the Srinagar-Muzaffarabad route for them by suspending the trade, he said. He, too, expressed concerns over the suspension of barter trade, which he said was bound to worsen the economic woes of Kashmiris. “It obviously means that India wants to create a famine-like situation in the valley to force the Kashmiris into giving up their legitimate struggle,” he said, asking Islamabad and the international community to take stock of the situation on an urgent basis. Sardar Ansar Ahmed, a trader in Tetrinote, also condemned the Indian government’s decision and demanded its immediate reversal.Dismissing the Indian allegations, he pointed out that a strict regime was already in place on both sides of the LoC to ensure that no contraband item made its way to the opposite side. Ahmed, too, remarked that traders had invested billions of rupees into the barter trade and its suspension would reduce them to destitution.He claimed that similar views were expressed by their counterparts on the other side of the divide during telephonic conversations. It may be mentioned here that while trade was held between Tetrinote and Chakan da Bagh on Thursday, it has remained suspended between Chakothi and Uri since March 9 due to damage to Kaman Bridge towards the Indian-occupied side. India had sought two weeks for repairs but it has not accomplished the task to this day, due to which travel from this side is also suspended ever since. Meer said today’s unilateral decision by the Indian government had confirmed that repair work had been deliberately avoided.
Source: Business Standard
Five years ago, then Gujarat chief minister and Bharatiya Janata Party’s Prime Ministerial candidate Narendra Modi wooed traders from all across the country with the promise of trust, ease of doing business and a better tomorrow. On Friday, Modi returned to the party’s key vote bank, seeking another term while setting the target to take India to 50th rank in Ease of Doing Business in five years and committing a policy for small traders. “You are the biggest stakeholders in the economy,’’ the PM said, while addressing more than 1,000 traders at Talkatora Indoor Stadium in the Capital on Friday evening, in the midst of a phir ek baar Modi sarkar chant. If the clap and cheer could be any measure, Modi should be back as PM. Responding to the high-pitch welcome, the PM listed the achievements of the past five years while lambasting the Congress for its “failures of 70 years’’, in a style that had election written all over. While counting the many positives of the goods and services tax, he left out any mention of demonetisation, the biggest disruption for small and medium traders during the current rule of the BJP-led NDA government. There was no talk on foreign direct investment in multi-brand retail either. In its campaign for the 2014 election, the BJP had told traders that FDI in multi-brand retail wouldn’t be allowed if it was voted to power. In the past five years, no FDI proposal has been entertained by this government. Even as he put forward a to-do list, including a national policy for small traders, the creation of a national trader welfare board, fixed pensions and accident insurance, Modi’s thrust was on giving “respect” to traders. According to the PM, during the Congress rule, there was dearth of respect for traders. Addressing a packed auditorium at the national conclave of the Confederation of All India Traders (CAIT), Modi said the Congress had labelled traders inherently criminal. “Gandhiji used to take pride in saying he belonged to the trader community, but his party has over the past 70 years thrived on calling traders thieves," Modi said. This was the first time any PM was addressing a gathering of traders, according to representatives of the CAIT. Praveen Khandelwal, national secretary general of the CAIT, who uses ‘Chowkidar’ as a prefix in his Twitter account (following the PM), told Business Standard it’s clear that “the trading community will be a priority for Modi when he forms the next government’’. On Saturday, traders will take an “official’’ call on who to vote for after analysing the manifestos. Traders claim they would be united in that decision.What about the Congress? Hasn’t it reached out to this community? It seems the core committees of traders had sent across their wishlist to all political parties, but only the BJP responded. Not that traders have not been angry with the Modi government in the past. Both after demonetisation and introduction of the GST, their businesses were hurt, but things are coming back on track, most of those who attended Modi’s address said. Once the new government takes over, the traders’ bodies want to take up issues such as subsidy for computerisaton, funds for infrastructure development and further easing of norms. However, on Friday, there was no second opinion on who will form the next government. “Undoubtedly, it will be Modi government again,’’ said Rajesh Dave, a jeweller from Delhi’s Chandni Chowk, after the three-hour event that was peppered with speeches, songs and dances and plenty of nationalism. Sporting a main bhi chowkidar tee, Nayan Jhaveri, who’s into chemical business, listed out reasons why Modi’s the best PM and the vote is for him. A textile businessman Pankaj Seth refused to get drawn into any conversation about demonetization, saying, there’s been no problem at all in the last five years. “It’s surprising how he comes out with so many novel ideas….’’ Wearing a NaMo shirt, Pradeep Gehlot, owner of a construction business, told this newspaper that the promises made by the PM will be incremental to the benefits BJP has already provided. This includes the way it has become easier to purchase commodities like sand and stones, which earlier faced problems such as items getting stolen in transit and low quality, as well as counterfeit goods reaching the market. For the 70-million traders across the country, Modi managed to hit all the right notes on Friday, reiterating the promises made in the election manifesto of the BJP — a party traditionally known as being close to the trading community. He added to the manifesto list by announcing that loans worth Rs 1 trillion would be disbursed to micro, small and medium enterprises (MSMEs) by 2024, which currently stands at Rs 19,000 crore. He also had something to offer to start-ups, a sector that was part of many signature schemes of the NDA government. Ideal conditions will be created for 50,000 new start-ups to flourish, the PM said. On GST, Modi said the number of registered traders had nearly doubled since the implementation of the new tax regime. Regarding easing of rules, he said: “I had promised you in 2014 before I became PM that I will abolish one regulation a day as against a policy formed a day by the Congress.’’ Pointing out that he had kept his word, he added, “In five years, I have abolished 1,500 regulations.’’ While concluding his hour-long speech, the PM presented his “daily’’ report card: Around 11,000 new homes were handed over to homeless citizens every day; 50,000 homes got power; 9,000 benefitted from Ayushman Bharat; 70,000 women received cooking gas connections; 200,000 new bank accounts were opened under Jan Dhan Yojana…. Just like traders calculate their daily earnings at the end of every business day, “I have to keep account of the country's development every single day,” Modi said.
Source: Business Standard
Reserve Bank of India (RBI) Governor Shaktikanta Das rooted for a rate cut citing falling growth and loss in investment traction, while his deputy Viral Acharya advocated caution citing rising oil prices and a risk of inflation spike as a result of fiscal assistance to alleviate rural distress, edited minutes of the monetary policy committee (MPC) showed on Thursday. Acharya, who in the February policy had also advised a pause, said the central bank should be cautious as a deflation in food prices may have an attendant fiscal risk. “Fiscal responses to deal with agrarian distress resulting from low food prices can impart a significant upside risk to the inflation trajectory, an uncertainty that may get partly resolved in the coming months,” Acharya said, the minutes showed. The inflation rate, excluding food and fuel, remains “uncomfortably close to 5.5 per cent, i.e., at elevated levels as through most of the past 12 months”, Acharya said. In contrast, food saw deflation for the fifth month in February and the consumer price-based inflation averaged 2.3 per cent for January and February. Perhaps in a deep critique of the monetary policy, Acharya said looking at the headline inflation would be misleading. “It is only the benign food inflation that is allowing the monetary policy to not respond to the discomforting elevated levels of inflation excluding food and fuel.” According to Acharya, in recent years even as food prices have remained low, they have been highly volatile. The peak-to-trough cycle in food inflation typically tends to be of around eight months. And February has already shown some seasonal uptick in prices of several food items, he said. “Hence, soft food inflation may not persist for long, a scenario in which the elevated level of inflation excluding food and fuel would steer the headline inflation away from the target rate of 4 per cent. This can risk hardening of inflation expectations of households,” Acharya warned. External member Chetan Ghate expressed similar concerns and advocated a pause. “My major concern with inflation (ex food and fuel) is that sequential gains continue to be strong,” Ghate said. However, according to Das, there was a “further loss of pace in growth”. Demand for passenger cars, air travel and consumer durables remained weak, while the industrial growth decelerated. The growth of core industries also remained sluggish. “Investment demand is losing traction and a deceleration in exports may further impact investment activity. With the inflation outlook looking benign and headline inflation expected to remain below target in the current year, it becomes necessary to address the challenges to sustained growth of the Indian economy,” Das said, advocating a 25 basis points’ cut. “I would like to state here that there is a need to consider interest rate adjustments, not necessarily in the conventional way of 25 bps or multiples thereof,” Das said. He also advocated a neutral stance, considering “several uncertainties facing the economy”. External member Ravindra Dholakia, who in the February policy had said there was space for a 50 basis point cut, rooted for a 25 basis points cut in the April policy. Moreover, “developments after the February MPC meeting have further opened up additional space of about 40 to 50 bps”, he said. Dholakia said sustainability of high oil prices remain doubtful. RBI’s Executive Director Michael Patra said, “With inflation being quiescent and growth at risk, I vote for a reduction in the policy rate by 25 basis points while maintaining a neutral policy stance. I will, however, remain watchful about the upturn in food prices that usually precedes the onset of the monsoon.” External member Pami Dua also voted for a rate cut “in view of the global growth slowdown and a benign global and domestic inflation outlook”.
Source: Business Standard
An alliance of countries that includes Russia is cutting oil production to end a global glut. One of the big winners: the nation’s own crude exporters. The supply cuts from the so-called OPEC+ nations, coupled with U.S. sanctions on Venezuela and Iran, have reduced the amount of medium- and heavy-grade sour crude on the market. While Russia is part of the output cuts effort, exports of its medium-sour Urals crude -- the country’s biggest export grade -- are set to soar this month to an almost two-year high. “The apparent lack of other alternative medium, sour grades is forcing Mediterranean and Northwest European buyers to rely increasingly on Urals,” consultants JBC Energy GmbH said in a report. So even as OPEC+ starves the global market of heavier grades, Russia’s exports are surging. Shipments of Urals from the Baltic ports of Primorsk and Ust-Luga and Novorossiysk on the Black Sea are set to rise to 2.06 million barrels a day combined, according to Bloomberg calculations from loading programs. Russia’s overall crude exports are set to rise to 5.7 million barrels a day in April, ESAI Energy LLC said in a report last week, noting that much of that will go to Asian countries. Last month, Lukoil Senior Vice President Vadim Vorobyov said global demand for high- and mid-sulfur grades such as Urals should increase because of the OPEC+ supply cuts and U.S. sanctions on Venezuela and Iran. He also noted that Urals’ value versus Brent crude could rise. In Northwest Europe, the grade traded at a 50 cent premium to benchmark Dated Brent earlier this month, its firmest since reaching a five-year high in January, according to traders and brokers monitoring the Platts window. In the Mediterranean, potential buyers sought the grade at a 65 cent premium to Dated Brent -- the strongest bid in the Platts window since July 2013 -- though there were no sellers.
Flows Rearranged
“The OPEC+ curbs have contributed to the rearrangement of Urals flows and have had a significant impact on the Urals market,” JBC analyst David Reid said. The curbs are only part of the picture, he said. In addition, higher refinery maintenance in the country and increased shipments to the U.S. are playing a part. Russia’s refiners had about 746,000 barrels a day of primary capacity offline earlier this month, the highest weekly volume this year, according to Bloomberg calculations from Energy Ministry data. Monthly maintenance will probably peak in May at its highest since October 2017. Still, Russian oil output slipped to 11.3 million barrels a day in March, a reduction of about 150,000 daily barrels from the end of last year, the latest government figures show. And change is coming to the oil market. While the OPEC+ cuts are set to remain in place at least through June, it’s not certain whether they’ll be extended. Later this year the effects of the International Maritime Organization’s rule to cap the sulfur content of ship fuel from 2020 will start to be felt. Support for Urals in Europe probably will remain strong during the next two months, at least until more clear-cut sulfur penalties from the shipping rules start to be felt, JBC said in its note.
Source: Bloomberg
LONDON (Reuters) - Oil prices rose slightly on Thursday, boosted by a decline in U.S. inventories, ongoing supply cuts from OPEC and its allies, and U.S. sanctions on Venezuela and Iran. Brent crude futures were at $71.89 a barrel at 1129 GMT, up 27 cents from their last close and near Wednesday's five-month high of $72.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures were at $64 per barrel, up 24 cents. Both contracts traded slightly lower earlier in the day. U.S. crude inventories fell by 1.4 million barrels in the week to April 12, U.S. Energy Information Administration (EIA) data showed on Wednesday. "The latest weekly statistics on U.S. oil inventories were seemingly positive. All the major categories registered draws," Tamas Varga of London-based oil brokerage PVM said. Gasoline stocks fell by 1.2 million barrels, and distillate stocks, which include diesel and heating oil, fell by 362,000 barrels, the EIA data showed. Prices have been supported this year by an agreement reached by the Organization of the Petroleum Exporting Countries and its allies, including Russia, to limit their oil output by 1.2 million barrels per day (bpd). Global supply has been tightened further by U.S. sanctions on OPEC members Venezuela and Iran. Iran's crude exports have dropped in April to their lowest daily level this year, tanker data showed, and industry sources said, suggesting a reduction in buyer interest ahead of expected further pressure from Washington. Indian refiners are turning to other OPEC members, Mexico and the United States to make up for any loss of Iranian oil. Spain's Repsol has suspended its swaps of refined products for crude with Venezuela's state-run oil company PDVSA, people familiar with the matter said, as U.S. officials weigh penalties for foreign firms doing business with Venezuela. Growing U.S. oil production and concerns over the U.S.- China trade dispute are keeping prices in check. U.S. crude oil output from seven major shale formations was expected to rise by about 80,000 bpd in May to a record 8.46 million bpd, the EIA said in its monthly report on Monday. Surging U.S. production has filled some of the gap in supplies, although not all of the lost production can be immediately replaced by U.S. shale oil due to refinery configurations.
Source: Kitco.com
April 18 is observed as World Heritage Day each year to celebrate and promote the cultural heritage across the world, thanks to the efforts of the International Council on Monuments and Sites (ICOMOS). And heritage is something which is having a moment of sorts in Indian fashion too. Over the last few years, several India design houses have attempted to create a sensorial impact with their powerful take on the bridal trends thus taking us back to our roots. Designers have recreated a parallel universe, which reignite the Maharani regalia, and also speak at length about the history of the rich silk and brocaded textiles. A section of homegrown labels has focused on creating beautiful experience at their flagship stores rooted in our cultures and customs for their clients. Think models looking like they walked out of the Impressionist artworks or the soul-searing imagery reminiscent of a Raja Ravi Varma painting. Picture Chanderi saris shot against the vibrant city of Vrindavan bringing to mind the abandon of Holi. One sees statement lehengas teamed with diaphanous dupattas, which have a conversation with aviator sunnies, as models cut a fine figure in the foyer of a palace. Either the models’ hair is artfully dishevelled or slickly tied into a chignon. All in all the key bridal pieces radiate the quintessential appeal of the late Maharani Gayatri Devi with contemporary touches. Stylist Allia Al Rufai sees it as a key trend.”The heritage-inspired vocabulary has always been Sabyasachi’s core style. On the other hand, Raw Mango reaches out to their clientele on a cultural level. Guess designers know their customers very well. It’s a lady, who’s well read, and someone who appreciates the arts,” says Allia, who recently styled Anushka Sharma for a magazine inspired by a vintage Maharani look. As a designer, their goal has been to be representative of India’s potential - as makers, design thinkers, innovators and as a scalable homegrown brand rooted in Indian culture. “We have always believed that music, dance, food are all integral part of the social fabric in India, and the idea is to incorporate local elements not just in our design and spaces, but also the curation of events that engages people on a more personal level,” says designer Sanjay Garg.There are labels which have made their handwoven textile offerings - the real hero of their visual language. More than selling the merchandise, the shift has been to craft a unique way of storytelling - either a long-forgotten tradition or a local festival. “There’s always a sense of time travel in most of the recent campaigns. It could be Indian Baroque or something derived from Italian Renaissance,” says stylist Isha Bhansali. Designer Gaurav Khanijo’s recently-unveiled menswear campaign shot against the backdrop of the holy town of Pushkar too airs a choir echoing the poetry of the ghaats and temples. However, a section of stylists opine that the vintage-inspired campaigns are a bit overdone. “The Maharani look is a tad done to death, I feel. Having said that, I’d suggest embrace heritage, but yet look of the moment. Today’s brides and their entourage of bridesmaids want to dance, drink and have fun at the weddings,” says stylist Mohit Rai. Choose one statement jewel piece and rework the entire ensemble around it, for example a pair of chand baalis.
Source: Hindustan Times
ISLAMABAD - Pakistan’s textile exports were recorded at $9.99 billion during nine months (July to March) of the ongoing fiscal year. The country’s textile exports had remained at the same level of previous year, showing no growth. The incumbent government had provided several incentives to the five exports oriented sectors including textile to enhance the country’s exports. The government had depreciated the currency and reduced the prices of electricity and gas but it failed to achieve the desired results. The data released by PBS showed that country’s overall exports had increased by only 0.11 percent to $17.08 billion during July to March period of the year 2018-19. The major chunk of the overall exports is from the textile sector, which remained at $9.99 billion. Exports from all other sectors are only $7.09 billion during nine months of the ongoing fiscal year. In textile sector, according to PBS, exports of knitwear had enhanced by 9.29 percent during July to March period of the year 2018-19 over a year ago. Similarly, exports of bed wear had also recorded an increase of 2.69 percent and exports of made-up articles had gone up by 1.26 percent. Meanwhile, exports of ready-made garments had also surged by 2.02 percent in first nine months of the current financial year. The PBS data showed that exports of cotton cloth had recorded a decline of 2.09 percent. Similarly, exports of raw cotton had tumbled by 71.84 percent. Exports of cotton yarn witnessed decrease of 15.44 percent. Meanwhile, exports of towels had declined by 1.85 percent. Meanwhile, the exports of food commodities had recorded decrease of 2.4 percent during first nine months of the current fiscal year. In food commodities, exports of fruits recorded growth of 8.66 percent, vegetables exports declined by 2.48 percent and oil seeds, nuts and kernels exports had gone up by 117 percent. Similarly, the exports of petroleum group and coal had enhanced by 21.52 percent during July to March period of the ongoing fiscal year.
Imports
The country’s imports had gone down by 7.96 percent to $40.75 billion during the nine-month period (July-March 2018/19) over the same period of the last financial year. The country spent $10.6 billion on the imports of petroleum group, 3.81 percent higher than a year ago. In the petroleum sector, the government imported petroleum products worth $4.62 billion and spent $3.38 million on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $2.4 million and liquefied petroleum gas (LPG) worth $207 million. The PBS data showed that country had spent $6.74 billion on importing machinery during July and March period of the ongoing fiscal year. The third biggest component was food commodities whose imports rose to $4.26 billion during first nine months of the ongoing financial year.
Trade deficit
The country’s trade deficit was recorded at $23.67 billion during nine months of the current financial year as against the deficit of $27.21 billion during corresponding period of the previous year. This depicts 13.02 percent or ($3.54 billion) reduction in the deficit.
Source: Nation
KARACHI: Pakistan’s textile and clothing exports recorded 9.47 percent year-on-year decline to $1.088 billion in March 2019, taking the nine-month (July-March FY19) exports to $9.99 billion, as higher cost of doing business and economic uncertainty kept the industry under pressure. “This is the largest monthly decline in textile exports since May 2017, and it should also be noted that during that previous instance the drop in textile exports (-12 percent) was due to external factors ie transporters’ strike,” Ahmed Lakhani at JS Global Capital said. On month-on-month basis, textile sector exports recorded a decline of 0.12 percent in March compared with $1.09 billion recorded in February 2019, the Pakistan Bureau of Statistics (PBS) reported. An industrialist said Pakistan’s exports were largely dependent on imported inputs. “Fluctuation in rupee value and costlier utilities rendered Pakistan’s products uncompetitive in the international markets.” In March, cotton yarn exports decreased 28.23 percent year-on-year to $91.919 million; knitwear exports declined 6.48 percent to $215.28 million; bed wear exports decreased 3.63 percent to $189.234 million; readymade garments exports slipped 3.42 percent to $214.915 million, while cotton cloth fetched $185.55 million in March, down 3.42 percent over the same month a year earlier. “During March 2019, every major textile segment witnessed a decline in exports. The dismal performance during this month can mainly be attributed to declining textile imports by China, Pakistan’s major yarn customer, whereas a fall in global demand and higher local sales were also likely causes of the decline during the month,” Lakhani said. However, recent statements by the country’s policymakers suggest optimism that exports were expected to show a resurgence in the next 1-2 months, which also conveniently coincides with the ongoing China-Pakistan Free Trade Agreement-II and the upcoming Federal Budget in May 2019. An office bearer of FPCCI said the policy of higher interest rates had backfired, as there was no respite in inflation, but industrial investment had slowed down. No industrialist could afford to expand at the prevailing interest rates, the official said. Moreover, the currency devaluation also proved counterproductive, as the exports did not pick up despite 34 percent devaluation since January 2018.
Source: The News
LAHORE: The All Pakistan Textile Mills Association (APTMA) Chairman Syed Ali Ahsan has said that a competitive and viable domestic textile industry is in the larger interest of the textile sector across the value chain. He said while realizing gravity of the situation, the present government very aptly announced and implemented initiatives to ensure regionally competitive energy, both electricity and gas, to the exporting industry five zero rated sectors. Consequently, viability as well confidence of the businessmen/industrialists and prospective investors has restored. He said the industry, all across the value chain, has started preparing a policy framework, under the able guidance of Advisor to Prime Minister on Commerce Abdul Razzak Dawood and Chairman Task Force Dr Salman Shah to achieve an export target of $50 billion in five years, which will attract huge investments and create 15 million direct workforce in line with the manifesto of the present government. Chairman APTMA dispelled the impression that export of yarn is impacting the value added industry and stated that export of yarn has declined by 24% percent in quantity terms in the month of March and the quantity per month exported is still 44 percent lower than the maximum export quantity of yarn at 60,000 per month. More than 80 percent lower count yarn (below 20) being exported are not in demand of the domestic industry. Today, he said, the kind of yarns required by the domestic industry is available in abundance for their consumption. Any price increase in such yarns is linked with international cotton prices. It may be noted that cotton yarn import for re-export under all exemption schemes is already allowed. More so, around 10,000 tons per month yarn is being imported by the value-added industry. He has urged upon all the subsectors to learn coexistence for the betterment of their respective sectors. He said some mills are designed for export production and cannot be forced to sell locally amidst long unreliable credit sales and previous bad debts in the knitwear sector. He said these mills have explored new markets, made customers and established their brands with lot of efforts of many years of hard work and consistency of quality. Such mills should not be forced to close down their operations, he added. He has stressed the point that strengthening of all sectors is a must in the larger interest of the textile industry. Meanwhile, Patron-in-Chief APTMA Gohar Ejaz has said that Razak Dawood leads the way in this PTI Government of Prime Minister Imran Khan. He said major Textile Groups of Punjab Saphire , Suraj ,Kamal , US Apparrel , Interloop ,Fazal Cloth Mills ,Mahmood Textile, Ayesha Group, Bhanero Group, Ejaz Group, Kohinoor Mills, Sadaaqat Textile Ltd and others have decided after 10 years to Invest $1 billion this year to avail the export-friendly policy of the government, especially the energy policy of 7.5 cents electricity and 6.50 dollars of gas for zero rated export sector and Long Term Finance Availability’ by the SBP. He said these groups are all taking major initiatives in textiles expansion in downstream to consume and convert available basic textiles to home textiles, towels, socks knit apparel and clothing will enhance exports by $2 billion through value addition and create one million Jobs.
Source: Dunya News
ISLAMABAD: The National Institute of Folk and Traditional Heritage (Lok Virsa) launched a unique exhibition of textiles here Friday featuring the craft of textile and skills of craft persons associated with this industry in Pakistan. Minister of State for Climate Change, Zartaj Gul inaugurated the exhibition while the opening ceremony was followed by performances based on “Kalam-e-Iqbal” to pay tribute to the great philosopher and national poet Dr. Allama Muhammad Iqbal coinciding with his forthcoming death anniversary. Speaking on the occasion, Zartaj Gul said Iqbal’s teachings are the source of guidance for the young generation and those who follow the philosopher poet Allama Iqbal, follow the concept of connecting people to each other rather then dividing them. “Our government has given high importance to the cultural values and traditions of the country and there is no competition of our folk crafts in the world. Our crafts have become limited to exhibitions only as we give importance to international brands,” she said, adding that Lok Virsa is promoting the textile craft to give recognition and identity to the people of Pakistan. The colorful activities of the textile exhibition were followed by Folk Food Festival carrying culinary delights and there will be musical evenings for fun lovers of federal capital during the three-day festivity. The three-day “National Exhibition of Textiles” has been arranged in collaboration with provincial culture departments and small industries corporations to welcome the spring season in festive mood. The textile exhibition aims at promoting the traditional textiles and encouraging master artisans associated with them to continue practicing the centuries’ old traditions inherited by them from their forefathers. It is a unique opportunity for the artisans in the field of textile to not only demonstrate their craftsmanship for three consecutive days at federal capital but also sell their products to public and visiting foreign delegates without any exploitation by the middleman. The food festival has displayed stalls of traditional foods like Balochi Sajji, Chapli Kabab, Saag Roti and many other scrumptious regional foods to attract and please the visitors. Besides the food stalls, folk dance and regional musical nights will also be arranged to entertain the audience. The event has been planned to celebrate Spring as it was Lok Virsa’s tradition to hold Annual Lok Mela in the month of April that was shifted to October and November, keeping in view the desire of people to have a Spring festivity, these activities have been planned to provide various cultural and fun activities to culture lovers in the same spirit of Lok Mela, said Executive Director Lok Virsa, Shahira Shahid while talking to APP. Shahira Shahid said this festival is for the people Pakistan and appreciation to the craftsmanship. The objective of the festival is to reinforce and strengthen national integration by promoting the cultural heritage of Pakistan through active participation of all provinces, Gilgit-Baltistan, Azad Jammu and Kashmir. This unique event will serve as a symbol of the federation’s recognition and patronage to the rich cultural diversity and active participation of the people of Pakistan.
Source: B Recorder
Most of these textiles are vanishing, some nearly extinct, and most are rarely used by designers any longer, who favour cheaper imports Handwoven and hand-printed textiles of Africa are among the continent’s greatest gifts to the world now disappearing. Former Miss World Kenya Magline shows the first gown designed by Alan Donovan of African Heritage for a street festival in New York City in 1971. Magline is followed by Radido blowing an ivory and silver horn from Guinea wearing emboidered velvet trousers and silver jewellery from Ethiopia Former Miss World Kenya Magline shows the first gown designed by Alan Donovan of African Heritage for a street festival in New York City in 1971. Magline is followed by Radido blowing an ivory and silver horn from Guinea wearing emboidered velvet trousers and silver jewellery from Ethiopia. Along with the vanishing rituals and ceremonies are the handwoven and hand-printed textiles of Africa, one of Africa’s greatest gifts to the rest of the world. I showed a collection of authentic African costumes and fashions created from the textiles of Africa over the past 50 years that I have been in Africa. Most of these textiles are vanishing, some nearly extinct and most are rarely used by designers any longer, who favour cheaper imports. The handmade textiles that once gave prestige to the wearer, as well as the weaver, are very labour-intensive and now are used only for ceremonies like weddings. We look at some of the fashion collections created of authentic African textiles now owned by Makena Mwiraria of Ari Africa, with the intention of saving some of them in an existing museum space or building a special museum for this purpose, with African Heritage House as a potential site. Here is a textile tour through the African continent:
THE ROYAL TEXTILES OF GHANA
The Kente, one of the world’s most complicated weaves, is woven only by Ashanti men on looms for both hands and feet. The Ashanti still have grand ceremonies, such as the coronation of a king, weddings and funerals, for which the old Kente cloths are used. They were once woven only of silk from imported cloths that came across the Sahara desert by caravan and were then painstakingly picked apart and re-dyed and rewoven into sumptuous cloths worn by the royalty and the royal court. Few of the original Kentes are in existence, but the Kente patterns are revered around the world as the most recognisable cloth of Africa. So it does continue to live on through mass printed fabrics on cotton, and there are still Kentes from the original designs woven with cotton or rayon.
THE ADINKIRA
This is also a royal cloth of the Ashanti, is hand-printed with combs or stamps cut out of calabashes and then hand embroidered with multicolour patterns along each seam. The black Adinkira is usually reserved for funerals. The original embroidery on Adinkira is now extinct, and machine-printed multicolour bands are used. The original Adinkira, hand-printed stamps cut from the rind of calabashes with calabash is now nearly extinct.
THE EMBROIDERED SHARMA CLOTH OF ETHIOPIA
Sharma cloth is the gauzy handwoven cotton cloth famous in Ethiopia with magnificent and colourful bands of embroidery along the edges. It is still worn in many parts of the country, as well as being exported, but as in all of Africa, more and more people turn to the cheaper imports from China or cast off clothing from the USA. I used sharma (or shema) cloth for the first design of what became Kenya’s African Heritage Festival, which travelled the world with its cast of models, musicians, acrobats, stiltwalkers, chefs and hairdressers.
THE VIBRANT CULTURE OF THE CAMEROON
From the kingdoms of Bamoun comes wondrous beadwork often used in ceremonial masks, including furniture and royal accessories. Most of these crafts are now pursued for the tourist markets, feeding the interior décorators in the West and other parts of the world. The Indigo-dyed, handwoven cotton cloth called “NDOP” is now rare. Formerly, it often had maps depicting a chief’s compound, showing the plots of his wives, his farms and his domain.
NIGERIA: MEN’S and WOMEN’S WEAVES
Nigeria is the richest in its textile heritage. Men weave on a narrow hand loom outside the house while women weave on wide stationery looms and remain inside the house to look after the children. The most famous men’s weave is the ASEOKE, a Yoruba prestige fabric for both the wearer and the weaver. Now, much of this glorious heritage is forsaken for cheaper imports from China and other countries, and only worn for such occasions as weddings. During WWII, when the Yoruba could not import lace from London, they started incorporating holes and wefts in the weave to represent lace. Strips of Aseoke are now exported for the dwindling overseas market. Women’s weaves include the gorgeous panels of OKENE woven in a village of that name, and the Ibo AKWETE, as well as the sumptuous cloths from Bida in Central Nigeria. The Ibos produced amazing appliques for their masquerade costumes which are now very rare and once again given up for imports Probably the most famous of Nigerian fabrics is the indigo dyed fabrics. Indigo is a dye sought after by many cultures for centuries from the roots and leaves of the Indien plant. The famous “Adire” cloth created by Yoruba women painting the designs with cassava starch on cotton cloth with a palm frond of feather, and then dipping the cloth several times to get the dark blue colour before chipping off the starch and dipping one more time to get the light blue. Sometimes men create a stencil for the cloth from zinc. Nike Seven Seven Okundaye has spent a good deal of her life reviving this art of the Yoruba women.
NIGER
The Tuareg and Fulani of Niger produce exquisite embroidered garments along with fabulous silver and leather work. Again all of these are endangered arts, and most of the embroideries have disappeared (Photo 14)
KORHOGO CLOTH
At the village of Korhogo in Ivory Coast, an art of hand painting the Senoufo strip wove cloth with Senoufo images, mostly animals, birds and masquerades was started about 60 years ago. This art now depends mostly on sales to overseas outlets and tourists. (Photo 15)
MALI
Mali has become synonymous with “ Bokolonfini” most commonly referred to as mud cloth, as it is dyed with high acetate mud from the bottom of lakes in a reverse process to get the black colour, and now other colours, mainly gold or rust are also part of the palette. The mud cloth has a large export market but is scarcely worn anymore in Mali by local people. (Photo 16)
KUBA CLOTH FROM THE CONGO
The Kuba of the Congo produce a huge variety of techniques and cloth woven of palm fibre by both men and women: embroideries, pile cloth cut like velvet, tie dye, appliques and other techniques. The cloth is sought after all over the world as a source for home decorators, to the detriment of some of the royal cloths being cut up without knowledge of its past when it was used by Kuba royalty in the royal courts. Since the Kuba live in a relatively inaccessible place due to lack of roads, and conflicts, the Kuba continue to produce this living art of Africa, but for how long?
MADAGASCAR
Some of the most extraordinary cloths of Africa are from this Island country off the coast of East Africa. The most sumptuous cloths are woven of raw silk by Merino women.
KHANGA, KITENGE, and KIKOI FROM KENYA
Kenya has a centuries-old tradition of Nomadic people decorating skins from their cows with beadwork and other techniques. This tradition has all but disappeared as people turn to textiles, mostly imported. There has been a burgeoning cottage industry in the country to replace the handwoven “Kikois” worn mostly in Somalia for men with machine-made Kikois which has found a huge market both for tourists and local people to denote they are from Kenya. Kikois and the beadwork of the Maasai have become an unofficial Kenyan national dress.The same applies to the cotton Khanga, which was imported for centuries from India and other sources and the “lesos” that Muslim Malagasy and Coastal Kenyan women sewed together from handkerchiefs exposing only their eyes, grew into the market we know today as Khangas (from the word in English “Guinea Fowl” as most of the early Khangas had a spotted or dotted border or interior) with political and other slogans incorporated into the design. This is still a thriving industry with khangas coming from many sources, and still being worn mostly at the Coast. What is called “Kitenge” developed as cheaper copies of the once fabled “Dutch Wax Prints” which were printed in Holland for the African Market and are still available and being used by modern designers in place of the hand woven and hand printed fabrics of the past. Kenya has a centuries-old tradition of Nomadic people decorating skins from their cows with beadwork and other techniques. This tradition has all but disappeared as people turn to textiles, mostly imported. There has been a burgeoning cottage industry in the country to replace the handwoven “Kikois” worn mostly in Somalia for men with machine-made Kikois which has found a huge market both for tourists and local people to denote they are from Kenya. Kikois and the beadwork of the Maasai have become an unofficial Kenyan national dress.The same applies to the cotton Khanga, which was imported for centuries from India and other sources and the “lesos” that Muslim Malagasy and Coastal Kenyan women sewed together from handkerchiefs exposing only their eyes, grew into the market we know today as Khangas (from the word in English “Guinea Fowl” as most of the early Khangas had a spotted or dotted border or interior) with political and other slogans incorporated into the design. This is still a thriving industry with khangas coming from many sources, and still being worn mostly at the Coast. What is called “Kitenge” developed as cheaper copies of the once fabled “Dutch Wax Prints” which were printed in Holland for the African Market and are still available and being used by modern designers in place of the hand woven and hand printed fabrics of the past.
Source: The Star
‘Smart clothing’ is the fourth industrial textile revolution, a sector that will reach a sales volume of more than $130 billion in 2025, said Mostafiz Uddin, founder of Bangladesh Apparel Exchange (BAE). He said this at a press conference held at a hotel in the capital yesterday. The second-ever Bangladesh Fashionology Summit will be held on May 2 at the International Convention City Bashundhara (ICCB) in Dhaka with the aim to firm up Bangladesh’s position in fetching its share in the $130-billion dollar market. Addressing the press conference, Mostafiz Uddin, founder and CEO of the (BAE) said, “The recent increase in wages and the cost of production have made it inevitable for the apparel manufacturers of the country to concentrate on value-added products. The $130 billion dollars smart clothing market is an area we need to focus on to survive and thrive.” “The shift from producing basic to smart clothing will not be so easy and it has to be done gradually with proper planning and preparation. The objective of Bangladesh Fashionololgy Summit is to facilitate the shift,” he added. The theme of the 2nd edition of the Bangladesh Fashionology Summit is ‘Digitalization—the Next Destination’. So, the event is aligned with the government goals of ‘Digital Bangladesh Vision’. Talking about innovation, he said, “Our mission is to facilitate modern, innovative, technology-driven apparel manufacturing and supply chain conversations and build a thriving community of leaders and innovators who will help to guide our nation in transforming into a ‘next-generation’ apparel manufacturing and marketing hub using latest digital technology and advancements.” “We want to bring together under one roof the most inspiring and innovative thinkers/companies from around the globe to initiate the much-needed conversations around technology, digitalization and innovation in the apparel and fashion industry,” Mostafiz added. Apparel and fashion industry is on the cusp of a huge transformation and disruption enabled by digital and technological advances sweeping the apparel industry and customer expectation landscape. “We believe that the time is ripe for Bangladesh—the second largest apparel exporter to the world to take a leadership role in shaping, defining and initiating a future that is sustainable and profitable for all stakeholders", said Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange (BAE). Apparel stakeholders including brands, garment makers, technology and innovation companies, fabrics producers, software service providers across the world will participate in the summit to discuss the latest products, technologies and innovations that will take shape in future and dominate the fashion industry. Keynotes, exhibits and knowledge-sharing sessions from some of the brightest minds and most inspired thinkers from across the globe will converge at the Bangladesh Fashionology Summit and cover a wide range of compelling topics that are relevant to shaping the future of our industry. The summit will also present a unique platform for start-ups to demonstrate their cutting-edge innovation in fashion. An exclusive “Digital Tech Fashion Runway Show” will also be organised at the summit, where smart wearable by world’s renowned fashion tech designers will be showcased on ramp. Moreover, a Tech Innovation Zone will be set up to display latest technologies and innovations in fashion. A total of 41 speakers from 15 countries will speak at the sessions of the summit.
Source: The Independent
ISLAMABAD: National Assembly Speaker Asad Qaiser Friday said Tunisia was a gateway of trade in Northern Africa whereas Pakistan was a gateway of trade for South Asia and both countries can grow economically and socially by mutual cooperation in the fields of trade, tourism and investment. He further said both countries were tied in the strong bond of historical and religious affinity. "Pakistan always values its ties with Tunisia as both countries are enjoying cordial relations in all socioeconomic spheres," the speaker added. He expressed these views while taking to Ambassador of Tunisia Adel Elarbi who called on him in the Parliament House. The speaker said both countries can enhance the mutual bond by improving the inter-parliamentary diplomacy. Stressing the need for parliamentary exchanges, he mentioned that regular interaction between parliamentarians of both counties would provide them the opportunity to benefit from each others experiences. He also mentioned that Pakistan can get access to Africa by this gate way for trading its agricultural, textile and sport products to this region. He said the incumbent government in Pakistan is making business and investment friendly policies by which the Tunisian government and traders can take benefit. He also expressed his wish that Pakistan intends to extend its relation with Tunisia on the basis of mutual cooperation, trade and business. Ambassador of Tunisia Adel Elarbi expressed his gratitude to the speaker for his kind remarks and assured him for his country's cooperation in access to African markets for agriculture, textile and sport products. He said Tunisia also gives great importance to its relations with Pakistan and wanted to further strengthen its ties with Pakistan. He said Tunisia appreciated Pakistan's efforts for maintaining peace and stability in the region.
Source: Urdu Point
KARACHI: Adviser to the Prime Minister on Commerce, Textile, Industries and Production, Abdul Razak Dawood on Thursday asked the industrial community to best prepare themselves to reap the fruit of signing of the second phase of Free Trade Agreement (FTA) with China. Speaking at an interactive session with exporters and industrialists, he said negotiations on the revised FTA had been completed after holding 12 rounds since 2012 with three final rounds at the level of secretaries of commerce of both the countries. The revised FTA would be signed on April 28, which would be a big day for Pakistan as it had offered many concessions and had brought Pakistan on a par with Asean member countries who enjoyed zero duty on a wide-range of tariff lines. He said there had been serious reservations by the business community on the first phase of FTA signed in 2006 and was implemented next year that is why, he continued, the negotiations on the second phase was initiated seven years back. It was a big success for Pakistan to get many things reversed to its favour, which will pay in short and long run, he said. He, however, warned the business community that there was no free meal in the world and they will have to work hard to pursue their high targets of expansion, modernisation diversification and maintaining the quality of their products at international standards. “As the business community, it is your responsibility and task to work for industrialisation and boosting exports,” he asserted, adding that the government could play a limited role on this account. “The answer to all economic issues and for bringing socioeconomic uplift, simple answer was fast industrialisation based on research and knowledge about the changing world,” he remarked. Dawood said that the next five-year commerce policy had been finalised and will be announced soon. The industrial policy was also in the pipeline and due consultations were being made with the stakeholders. He emphasised the need for the policies for leather, gems and jewellery, rice and other major export industries. Federal Secretary Commerce Sardar Ahmed Nawaz Sukhera was also present.
Source: Ary News
