With the emerging global trade war expected to throw up tremendous opportunities for Indian companies, representatives of trade bodies, small industry associations, banks and corporates felt a right ecosystem with a simplified Goods and Services Tax regime, lower taxes and greater lending support will help Indian SMEs tap the export potential. Speaking at a panel discussion, ‘Tapping into Global Trade — Challenges and Opportunities,’ at the SME Growth Summit presented by ICICI Bank and BusinessLine, the panellists urged the government to provide financial assistance to SMEs, assured orders for a minimum period of 3-5 years, availability of bank credit, tax rebates for Research and Development (R&D) and enhanced export incentives. “Tamil Nadu is a forerunner in the small-scale industries model and it has the capability to produce goods of any international standards,” said CK Mohan, former General Secretary, Tamil Nadu Small & Tiny Industries Association (TANSTIA). “But small industries must be allowed to establish themselves in the domestic environment before they think of exports,” he added.
Time-consuming
R Sundaram, MD & CEO, Aerospace Engineers Pvt Ltd, Salem, said that in some cases companies have to wait for more than 60 months to get their a return on investment, but banks do not wait for such a long period. “But small companies can do wonders with the available government support and if they are ready to innovate,” Sundaram added. X Arokianathan, Convenor, MSME Panel, Confederation of Indian Industry (CII) – Chennai Zone, said that timely availability of packing credit, delay in GST refunds, and non-usage of government mandated TReDS platform by large corporates are some of the fiscal issues that hamper small businesses. He also said that if the government is interested to promote SMEs to export then it needs to work at the ground level in improving logistics since shipments from India take much longer time than countries like China. However, he lauded the government’s efforts in activating Indian Embassies, Consulates and High Commissions to help businessmen build relationships with their counterparts in various countries.
Open trade model
Viral Rupani, Retail Business Head-South, ICICI Bank, said that from ‘Make in India’ the country is now progressing towards ‘Making for the world in India’. He also added that India should emulate the open trade model of Singapore, which has maintained a trade surplus for the last 25 years, and Germany — the third largest exporter after the US and China. “Technology is now available at throwaway prices. So, SMEs have to come out of the mindset that the technologies are only for large corporates,” said Prince Sudersanam, Head-ERP Product Development & Delivery, Ramco Systems. The panel discussion was moderated by Lokeshwarri SK, Chief of Research Bureau, BusinessLine.
Source: The Hindu Business Line
India's government is working with the Reserve Bank of India as well as private banks to reduce lending rates for exporters, commerce minister Piyush Goyal said on Friday. Piyush Goyal also told a press conference India saw a "$50 billion" opportunity for exporters, due to ongoing global trade wars, without specifying a time period.
Source: Economic Times
The GSP allowed Indian traders and exporters duty-free access to supply certain items such as imitation jewellery and leather articles (other than footwear) into the US market. Commerce Minister Piyush Goyal on Friday reiterated that the withdrawal of generalized system of preferences (GSP) by the US will not have significant impact on India. The GSP allowed Indian traders and exporters duty-free access to supply certain items such as imitation jewellery and leather articles (other than footwear) into the US market. Replying to a question asked by CPI leader D. Raja in the Rajya Sabha over the trade tension with the US, Goyal said “some of the demands that were raised on India was such that India could not yield on them”. Goyal assured the members that India was well competent to handle the international trade situation. “I would like to submit that the total impact of GSP is under 250-260 million dollars in a year and for a country with a size and strength of India I can assure that it will not have any significant impact,” Goyal added. The US GSP withdrawal came into effect from June 5. In a retaliatory move, India raised tariffs on 28 products exported from the US with effect from June 16. The GSP withdrawal gains significance as Indian financial markets off late have felt the pressure over a possible escalation of India-US trade tension, especially when the GDP growth has been falling for consecutive quarters. Reserve Bank Governor Shaktikanta Das had also pointed at clear evidence of economic activity losing traction while presenting the rationale for a rate cut, as per the minutes of the MPC meeting released by the central bank. On the steps being taken by the government to boost foreign trade, Goyal told the Parliament that exports last year had gone up significantly and in the current year they would grow further. “Obviously in a situation when the world is seeing trade wars across nations, India will come into the cross-fire,” Goyal said. He said that the government has fortified its foreign exchange reserves too and is taking proactive measures to boost exports. “Irrespective of any trade situation that impacts two nations, India is looking at ways to use those opportunities to encash it and boost exports,” Goyal said. “Government of India continues to engage with the US on trade but certainly at no point of time will any such engagement be at the cost of India’s sovereignty,” Goyal said.
Source: Hindustan Times
The GST Council in its 35th meeting today extended the date for filing annual returns under the Goods and Services Tax (GST) regime by two months to August 30. The Council also decided to introduce a new one-form new GST return filing system, which will be applicable from January 1, 2020. Today’s meeting of the Council was its first after the recently concluded general elections. The GST Council, which is headed by the Union Finance Minister Nirmala Sitharaman, also approved an electronic invoicing system and e-ticketing in multiplexes. The GST Council also eased the registration process by allowing the use of Aadhaar by businesses to register with GST-Network. "One of the major changes that we've made is for the ease of GST registration. In the earlier system, people had to give various documents. Now we have decided to use Aadhaar. By using Aadhaar several advantages will occur to the business. The person who is applying can go online, using his Aadhaar number through OTP authentication he can register himself on the GSTN portal and get GSTN registration number," Revenue Secretary Ajay Bhushan Pandey said. Here are the other decisions announced by the GST Council after today's meeting:
-The Council extended the tenure of the anti-profiteering authority by two years. The anti-profiteering authority deals with complaints by consumers against companies for not passing on GST rate cut benefits.
-It also approved imposition of a penalty of up to 10% on entities not passing on benefits of GST rate cuts to consumers.
-The proposal to reduce GST rate on electric vehicles to 5% from the current 12% has been sent to fitment committee
-The fitment committee will also decide on the proposal to bring down the GST rate on electric charger to 12% from 18%
Source: Live Mint
The GST Council on Friday approved the use of Aadhaar Card registration under which a person can register himself on the GSTN portal by applying online just using his Aadhar Card number doing away with the requirements of various other documents. Further, the GST Council has extended the date of annual return upto 30 August. "In the earlier system, people have to give various documents and submit them in physical and scan form. No we have decided the use Aadhaar and several advantages will occur to businesses. The person applying can go online and using his Aadhaar number and OTP authentication can register himself in the GSTN portal and get GSTN registration number," said Revenue Secretary, Ajay Bhushan Pandey, told a briefing after the Council meeting on Friday. He said that GST Council has approved several changes made during the last few months, that includes increasing the GST registration limit threshold, Composition scheme for service provider among others. "The last date for filing the annual return was 30 June however, we have received several representations from trade and business, and thus extended the date by two more months up to 30 Aug 2109," said Pandey. "GST registration limit threshold is increased from Rs 20 Lakh to 40 Lakh. Earlier it was done through a notification and now appropriate changes have been made in the law," he said. "Dealers with turnover upto Rs 5 Crore will be filing quarterly and those above Rs 5 crore will be filing monthly returns. Composition scheme for service providers, a decision which was taken in GST Council a few months back and done through a notification will be made a part of the law," said Pandey. The Secretary further apprised that the GST council has extended the tenure of National Anti-Profiteering Authority (NAA) slated to expire this year by two more years. He further said that in Anti-profiteering cases penalty has been increased. "Also in order to ensure that whatever GST rate cuts are given by GST Council actually pass on to consumer and no anti-profiteering takes place the current provision that only penalty of Rs 25000 is imposed including the profiteering amount, now the change that has been approved is that if the Profiteering amount is not deposited in 30 days, then the penalty to the extent of 10 per cent of profiteering amount will be imposed on the company," he said. GST council has taken the decision to go for a single return every month instead of two as earlier. "GST council has taken the decision to go for a single return every month instead of two as earlier. The new return system will become fully applicable from Jan 1, 2020, after which everyone will file a single return per month," informed the Revenue Secretary. The GST council has also approved an electronic invoicing system where the invoice will act as a return. "We proposed a system, where the invoice can be generated in the portal and will act like an e-way bill because it is on the portal the collection of invoice will become return. GST council has approved this in principle," he saidHe also said that GST council has approved e-ticketing for multiplexes cinema halls. GST council has also proposed cutting GST rate on the sale of electric vehicles from current 12 per cent to 5 per cent and from 18 per cent to 12 per cent on the electric chargers for e-vehicles. "GST Council also proposed reducing GST on leasing of the electric vehicle. We have sent these three proposals to the fitment Committee that will deliberate and come back with its recommendations to us," said Pandey. Finance Minister Nirmala Sitharaman said that Chief Ministers of Karnataka, Mizoram and Telangana were not present in the GST Council meeting due to their prior commitments. She said that these states have sent their representatives.
Source: Business Standard
Tamil Nadu’s Erode Vhisaithari Urimayalargal Sangam (Erode power loom owners association) recently urged the Indian Government not to impose import duty on man-made fibre (MMF) viscose yarn as it will affect the sector. In a letter to textiles minister Smriti Irani, it said it has learnt about plans to raise the import duty on MMF yarns or ban it completely. The power loom industry in the region, spread across Erode, Coimbatore, Tiruppur, Salem and Namakkal districts, has been producing cotton and rayon fabrics and selling to markets in New Delhi, Faridabad, Mumbai, Jaipur, Ahmadabad and Surat. Due to frequent increase in the price of yarn in the domestic market, power loom units started importing rayon and modal yarn from China, Vietnam and Indonesia which was cheaper by ₹15 to ₹20 per kg, a top South Indian newspaper reported citing the letter. Hence, more units started importing the yarn forcing the spinning mills in the domestic market to reduce price, said the letter.
Source: Fibre2Fashion
SIAM also said bringing CBUs under EU FTA would be unfair to automobile companies who have made substantial investments in India. Arguing that free trade agreements (FTAs) with competing countries do not benefit Indian automobile industry, SIAM has called for 28 items, including hybrid, electric cars and three-wheelers to be kept in negative list in all such pacts. Automobile industry body Society of Indian Automobile Manufacturers (SIAM) said "it is extremely concerned about the way India is negotiating FTAs with various nations and groupings", specially with European Union (EU) which has demanded inclusion of import of completely built units to be included in the agreement. "SIAM has consistently submitted that FTAs with competing countries do not benefit Indian automobile industry, it is against the concept of Make in India for local value addition and local employment," it said in a white paper. "Hence, CBUs (Completely Built Unit) of vehicles and engines should be kept in India's Negative List under India-EU FTA, RCEP (Regional Comprehensive Economic Partnership) Agreement," it added. In the paper titled Trade Agreements that may Jeopardize 'Make in India' Programme for Automobiles, SIAM said, "India has signed FTAs with several important partners in the last few years and has witnessed a worsening of trade balance whenever it is with a major manufacturing economy like ASEAN, South Korea, Japan." India-Thailand FTA framework was signed in 2003, India-Korea and India-ASEAN FTA were signed in 2009 and India-Japan FTA was signed in 2011. Today, the above five countries together. attention to "one of the most demanding FTAs being negotiated" by India with the EU, SIAM said it "needs to be negotiated with utmost caution and after reviewing the results of all other FTAs concluded by India and taking onboard all the domestic results of all other FTAs concluded by India and taking onboard all the domestic stakeholders who might get affected due to the signing of the FTA"."...Giving in to the EU's demand of tariff reduction in CBUs will be very detrimental to the Indian automobile industry," it said. It further said the negative fallout will seriously compromise the interests of industry's investment, manufacturing value-add and employment at no obvious gain in trade or economic expansion. "For automobile industry, India-EU FTA will be counter to our 'Make in India' initiative," it added. On FTA with RCEP, which includes China, ASEAN, South Korea, Japan, Australia and New Zealand, SIAM said, "In our FTAs with Japan, Korea and ASEAN, we have not included automobile CBUs and there is no reason why we should include them under RCEP at this stage." India's tariff policy and keeping CBUs in the negative list of all FTAs has helped foreign direct investment (FDI) in automotive sector since global companies wanted to avoid high tariff but at the same time could not ignore the fast-growing market in India. "Reduction of tariff on CBUs under India-EU FTA will be a complete reversal of the policy of high tariffs to force investment, local manufacturing, local value addition and local employment," the industry body said, adding it would jeopardise the entire Automotive Mission Plan 2016-2026 targets of additional employment of 65 million persons for which an investment of Rs 4,50,000 crore to Rs 5,50,000 crore (USD 68-82 billion) would be required. It further said bringing CBUs under EU FTA would be unfair to automobile companies who have made substantial investments in India. SIAM said its list of 28 items, including CBUs of hybrid and electric cars and threewheelers; transport vehicles of ten or more persons and engines, should be kept in India's negative list in all FTAs.
Source: Economic Times
Union Textile Minister Smriti Irani on Friday said the central government announced many "key reforms" such as relaxation of Sections of Income Tax Act and incentives to boost the domestic apparel sector to enable it to compete with multinational brands. "To encourage the domestic apparel sector to compete with multinational brands, government announced key reforms under a special package that includes additional incentives under the Amended Technology Upgradation Fund (ATUFS), relaxation of Section 80JJAA of Income Tax Act and introduction of fixed-term employment for the apparel sector," a press release by the PIB read. The press release added that a written reply submitted by Irani in the Lok Sabha today cited that the government is providing the whole 12 per cent of employer's contribution towards Employee's Provident Fund and Pension Scheme. "Under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), the government is providing entire 12% of employer's contribution towards Employee's Provident Fund (EPF) and Employee's Pension Scheme (EPS). Further, to make the apparel sector competitive, Government is providing a rebate of State and Central taxes/ levies embedded in manufacturing," it read. It went on to add that in India traditional textiles and synthetic materials cater to different segments in the domestic marker and synthetic fabric's import is 30 per cent of the production of traditional textiles. "India's traditional textiles and synthetic materials cater to different domestic market segments. Traditional textiles and fabric are primarily cotton focused and cater to niche markets. In India, import of synthetic fabric is approximately 30% of domestic production of traditional textiles," it read. It said, "The share of imported apparel with respect to domestic apparel market in India is nearly 1.4%.
Source: Business Standard
Modi on Saturday had an interaction with economists and industry experts on India's current economic situation. Think tank Niti Aayog Sunday said that expert panel for macroeconomics and employment came out with suggestions to achieve USD 5-trillion economy target during an interaction with Prime Minister Narendra Modi. Modi on Saturday had an interaction with economists and industry experts on India's current economic situation. "Expert committee for Macroeconomics & Employment presented their suggestions to PM @narendramodi for achieving the $5 Trillion economy target. Improvement of governance in PSU banks, enhancing growth rate of exports & employment generation were some of the key areas identified," the Aayog said in a tweet. During the interactive session, ahead of the presentation of the Union Budget next month, all participants made a case for "single minded pursuit" to achieve growth, according to sources. A release issued by the Prime Minister's Office (PMO) had said that the session organised by Niti Aayog on 'Economic Policy - The Road Ahead' was attended by over 40 economists and sectoral experts. Further opening of banking and insurance sectors for FDI, speeding up disinvestment process and management of water resources were also among the focus areas of Modi's interaction with economists and industry experts, they added. "During the session, participants shared their views, in five distinct groups, on the economic themes of macro economy and employment, agriculture and water resources, exports, education and health," said the release. N Chandrasekaran (Chairman, Tata Sons), T V Narendran (Global CEO and MD, Tata Steel), Anil Agarwal (Chairman, Vedanta Resources), Sanjiv Puri (Chairman and MD, ITC), and Vijay Shekhar Sharma (CEO, Paytm) were among the industry leaders who had put forth their views in the meeting. Among the economists and experts who were present at the meeting were Bimal Jalan (former RBI Governor), Shankar Acharya (former Chief Economic Adviser), Surjit Bhalla (former PMEAC member), Vikram Limay (CEO, NSE), Sonal Varma (Chief Economist, Nomura), Shekhar Shah (DG, NCAER), and Bibek Debroy (Chairman, EAC-PM). The PMO release had said the Prime Minister thanked all participants for their suggestions and observations on various aspects of the economy. The Saturday meeting was also attended by Commerce and Industry Minister Piyush Goyal and Minister of State (independent charge) for Statistics and Programme Implementation Rao Inderjeet Singh. Niti Aayog Vice Chairman Rajiv Kumar, CEO Amitabh Kant and senior government officials were also present. Finance Minister Nirmala Sitharaman will be presenting the full Budget for 2019-20 on July 5 in the Lok Sabha. It will be the first full Budget of the Modi 2.0 government.
Source: Economic Times
The bill on wage code — one of the four codes — had lapsed after the 16th Lok Sabha dissolved last month. Looking to bring in a fresh wave of labour reforms, the Labour Ministry is likely to seek Cabinet approval for the Code on Wages Bill next week as it pushes for its passage in the ongoing Parliament session, a source said. The bill lapsed after the 16th Lok Sabha dissolved last month. Now the ministry would have to seek the Union Cabinet's approval for introducing it in either House of Parliament. "Cabinet can approve the wage code bill next month. The Labour Ministry wants to push the draft law for passage in the current Parliament session," the source said. The bill was introduced in the Lok Sabha on August 10, 2017. It was referred to the Parliamentary Standing Committee on August 21, 2017. The panel had submitted its report on December 18, 2018. The wage code bill is one of four codes envisaged by the government which would subsume 44 labour laws with certain amendments to improve the ease of doing business and attract investment for spurring growth. The four codes will deal with wages, social security, industrial safety and welfare, and industrial relations. The Code on Wages will replace the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. The bill provides that the central government will fix minimum wages for certain sectors, including railways and mines, while the states would be free to set minimum wages for other category of employments. The code also provides for setting of a national minimum wage. The central government can set separate minimum wages for different regions or states. The draft law also says that the minimum wages would be revised every five years. Earlier this month, following an inter-ministerial meeting chaired by Home Minister Amit Shah, Labour Minister Santosh Gangwar had said his ministry would push for the passage of the bill in the current session of Parliament. The meeting was also attended by Finance Minister Nirmala Sitharaman and Commerce and Railway Minister Piyush Goyal.
Source: Economic Times
A delegation of the Confederation of All India Traders (CAIT) will depart for Singapore on Tuesday on a three-day visit with a view to create a pilot for a trade corridor. The delegation is making this visit on the invitation of Monetary Authority of Singapore (MAS) and Infocom Media Development Authority of Singapore (IMDA). "As a part of the visit and with a view to create a pilot for an India Singapore Trade Corridor, MAS and IMDA have invited CAIT, accompanied by GlobalLinker to a three day visit to Singapore as a part of a 'Study Tour'," CAIT stated. The primary objective of the Study Tour is to immerse CAIT officials in the concept of Business Sans Border (BSB) an initiative of MAS and IMDA by leveraging Global Linkers participation and to get the views of the CAIT representatives on the BSB program construct and to secure their participation in the pilot programme. A few other related meetings are also being organised including a meeting with the Singapore India Chamber of Commerce to explore the Singapore India Trade corridor opportunity and with the Singapore Business Federation, the traders' body said. The delegation will be led by CAIT Secretary General Praveen Khandelwal.
Source: Business Standard
Despite government support by way of special package and incentives, the Indian textile industry has hit roadblocks on exports. The likely reasons may be the industry’s focus on select markets/zones — where it has been unable to compete on the price front with FTA countries — rising manufacturing cost, inability to compete with low-cost destinations, or limited exposure to blended apparels. The Indian Texpreneurs’ Federation (ITF) listed 13 possible reasons with a request to its members to list three major reasons for the stagnant growth, based on experience and exposure. A majority of the ITF’s members conceded that they were unable to compete with low-cost countries as the manufacturing costs have spiralled, due to limited market focus and the industry losing manufacturing efficiency. This pressure on the price front pushed the apparel sector to concentrate on retaining the business, rather than on growth or exploring new markets. The ITF survey also revealed that the textile and apparel sector has found it difficult to compete with Vietnam and China, as manmade fibre is expensive here, and the industry is ill-equipped to shift to blends and still relies on cotton. A shift in the textile manufacturing ecosystem is the need of the hour, say industry insiders. “Growth in the apparel sector’s exports will solve India’s twin challenges of job creation and greater participation of women in the textile industry. To meet this, the industry will require investment of ₹500 crore. This will help create 40,000 jobs, and an additional $1 billion in exports will create another 1.5 lakh new jobs,” said Prabhu Dhamodharan, Convenor, ITF.
Solutions for growth
The federation has appealed to Union Textiles Minister Smriti Irani to consider forming a taskforce with representations from regional associations, to identify short- and long-term solutions for export growth. A fibre-neutral policy, single lower GST rate for all textile products, a scheme to promote large-scale apparel manufacture, providing more support to small and medium exporters, and speeding up India’s foreign trade agrrements (FTAs) would go a long way in boosting apparel exports, the ITF noted in its appeal. The Federation has also emphasised the need for branding the sustainability of textiles, particularly in Tamil Nadu, by highlighting the concept of the ‘green process’ (zero-liquid discharge in processing) and green factories across the country. A ‘Cotton Technology Mission’ aimed at achieving 1,000 kg per hectare would help curb the volatility of cotton prices, which are currently at the highest level, say industry sources.
Source: The Hindu Business Line
Japanese textile designers Chiaki Maki and Parva Tanaka have laid deep roots of Japanese tradition in India by collaborating with the Indian artisans and manufacturing traditional hand-woven Japanese outfits in Dehradun, Uttarakhand. Chiaki and Parva started working with the Indian artisans and opened their own work station in 2017, Ganga Maki Textile Studio in Bhogpur, Uttarakhand.Rakesh Singh is the Indian director for their textile studio. Beautiful and distinctive Japanese outfits are manufactured in their studio with the help of hardworking weavers and artisans, putting in their efforts to produce authentic outfits."We have been working with weavers in Delhi for 27 years, in co-operation with Ms Neeru Kumar, one of the most prominent textile designers in India. We distribute our products through Maki Textile Studio Ltd in Tokyo, Japan" Chiaki told ANI. Chiaki met Rakesh, a chef in Delhi and hired him for the Indian Cafe in their textile shop situated in Tokyo. While working there, Rakesh was impressed seeing Chiaki and Parva's Japanese customers admiring their handmade prints and unique designs. Soon he proposed an idea to Chiaki and Parva to build a bridge between India and Japan by teaching Indian artisans the art of handmade Japanese textile printing and designing and manufacturing the authentic outfits in India. Parva and Chiaki started organizing workshops in Athurwala, Uttarakhand in 2010, where they trained local villagers in weaving, hand spinning and naturally dying the fabric. "Our wish is to become a model for villagers to keep their living out of hand work in their village. Currently, there are around 20 families in the villages of Uttarakashi, 10 families in Uttar Pradesh, 10 families in Jharkhand, 20 families in West Bengal, 20 families Chattisgarh and 10 families in Assam, who make handmade yarns for us. " Chiaki said. They started exporting hand-woven fabrics from India to Maki Textile Studio Ltd in Japan.Gradually they constructed a more comfortable workplace for the Indian artisans in Bhogpur, Uttarakhand. The workplace in Bhogpur is constructed using limestones, bricks, mud, bamboo, wood, etc. Gradually they started cultivating their fields to grow materials for natural dyes and fibres. They cultivate natural dye plants such as Indigo, Henna, Marigold, Harshingar, Anar, etc in their own fields. Currently, about 50 workers, including, 10 weavers, five tailors, women workers for various hand-woven tasks, caretakers, and farmers are working at Ganga Maki Textile Studio. Their products range from woollen coats, jackets, silk scarves, silk shawls, silk dresses, bed covers, table clothes, fabrics to rugs and much more. They conduct exhibitions twice a year, displaying their hand-woven outfits for the visitors.
Source: Business Standard
The second edition of Weaves is scheduled to be held in between November 27 and 30 at Texvalley, the integrated textile market in Erode. Deputy Managing Director of Nabard R Amalorpavanathan released the brochure and launched the official website of Weaves 2019 at a function in Erode recently. C Devarajan, Vice-Chairman, Texvalley said Weaves would be a platform to network and connect with global players. Over 45 per cent of the State’s consumption is produced by the cluster in Erode; there are around 5 lakh powerlooms with 6 lakh weavers, producing 15 million metres of fabric daily. Weaves will showcase yarns, fabrics, garments, home-textiles, sustainable clothes and ethnic wear to over 50 international buyers.
Source: The Hindu Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1117.75 |
USD/Ton |
1.59% |
6/23/2019 |
|
VSF |
1615.49 |
USD/Ton |
0% |
6/23/2019 |
|
ASF |
2532.40 |
USD/Ton |
0% |
6/23/2019 |
|
Polyester POY |
1160.68 |
USD/Ton |
0.95% |
6/23/2019 |
|
Nylon FDY |
2343.19 |
USD/Ton |
0% |
6/23/2019 |
|
40D Spandex |
4366.20 |
USD/Ton |
0% |
6/23/2019 |
|
Nylon POY |
1389.91 |
USD/Ton |
1.06% |
6/23/2019 |
|
Acrylic Top 3D |
2212.21 |
USD/Ton |
0% |
6/23/2019 |
|
Polyester FDY |
2692.49 |
USD/Ton |
0% |
6/23/2019 |
|
Nylon DTY |
1309.86 |
USD/Ton |
2.27% |
6/23/2019 |
|
Viscose Long Filament |
2590.61 |
USD/Ton |
0% |
6/23/2019 |
|
Polyester DTY |
5501.41 |
USD/Ton |
0% |
6/23/2019 |
|
10S OE Cotton Yarn |
1986.62 |
USD/Ton |
-0.15% |
6/23/2019 |
|
32S Cotton Carded Yarn |
3073.80 |
USD/Ton |
-0.05% |
6/23/2019 |
|
40S Cotton Combed Yarn |
3577.37 |
USD/Ton |
-0.04% |
6/23/2019 |
|
30S Spun Rayon Yarn |
2357.75 |
USD/Ton |
0% |
6/23/2019 |
|
32S Polyester Yarn |
1739.20 |
USD/Ton |
2.58% |
6/23/2019 |
|
45S T/C Yarn |
2634.27 |
USD/Ton |
0% |
6/23/2019 |
|
40S Rayon Yarn |
2677.94 |
USD/Ton |
0% |
6/23/2019 |
|
T/R Yarn 65/35 32S |
2168.55 |
USD/Ton |
0% |
6/23/2019 |
|
45S Polyester Yarn |
1892.02 |
USD/Ton |
0.78% |
6/23/2019 |
|
T/C Yarn 65/35 32S |
2328.64 |
USD/Ton |
0% |
6/23/2019 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
6/23/2019 |
|
32S Twill Fabric |
0.77 |
USD/Meter |
0% |
6/23/2019 |
|
40S Combed Poplin |
1.04 |
USD/Meter |
0% |
6/23/2019 |
|
30S Rayon Fabric |
0.61 |
USD/Meter |
0% |
6/23/2019 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
6/23/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14554USD dtd. 23/06/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Advisor to Prime Minister for Commerce Abdul Razak Dawood says a free trade agreement has been signed with China and he will visit China to meet Chinese Trade Minister on 15th of next month. Addressing a news conference in Islamabad on Friday, he said Chinese non-government organisation will visit Pakistan next month to provide technical expertise in textile sector. He said Chinese companies intend to manufacture textile products in Pakistan. The Advisor said government's policies for the uplift of economic situation are on right track and economy cannot be strengthened without enhancing exports. Speaking on the occasion, Chinese Ambassador to Pakistan Yao Jing said China has opened its ninety percent market for Pakistani products. He said Pakistani fruit, including mangoes, and fishery have been given duty free access in Chinese markets.Chinese Ambassado said Chinese companies are relocating their supply chain. He said with one percent relocation to Pakistan, the country can expect an investment of 600 million dollars.
Source: Radio Pakistan
Prime Minister Imran Khan on Thursday in a meeting with the leaders of the textile industry told them that the ship on zero rating regime for the textile sector had sailed. The government has withdrawn the zero-rated regime for five sectors — textile, leather, carpets, sports and surgical goods — and imposed a standard sales tax rate of 17pc on all items. The said industry’s have been up in arms over the change, however they have been informed point blank by the Prime Minister that while the government was willing to take up the legitimate concerns of the industry, but that they mus move beyond the question of zero rating. The Federal Board of Revenue (FBR) has said that the withdrawal of the zero rating regime from these five industries could possibly fetch up to an additional Rs 75 billion in government revenues. The premier, he said, informed the delegation that his government was willing to resolve all issues of the industry arising in the post-zero rating regime, but the scheme would not be revived now. The prime minister stressed the need for effective collaboration between the government and business community to overcome the current economic problems. Mr Khan said promotion of business activities and the manufacturing sector was top priority of his government.
Source: Pakistan Today
The threatened 25 percent tariff hike on an additional 300 billion U.S. dollars worth of Chinese imports would make U.S. consumers pay 4.4 billion dollars more each year for apparel, a study released on Friday showed. The study estimates the impacts of proposed tariff increases by the United States on categories including apparel, footwear, toys, household appliances, furniture, travel goods and television. It was commissioned by National Retail Federation (NRF), a renowned U.S. retailer association, and was prepared by the Trade Partnership Worldwide. Low income families would be particularly affected when buying apparel, the study showed. They spend three times as much of their after-tax income on apparel and services as do high-income households. While U.S. apparel manufacturers would see revenues grow by about 620 million dollars, each new dollar of revenue costs consumers more than 7 dollars in new out of pocket expenses. "After accounting for domestic manufacturing gains and new tariff revenue, the result is a net 2.2 billion dollars' loss for the U.S. economy, with the burden carried by U.S. consumers," the report said. Apart from apparel, U.S. consumers would pay 2.5 billion dollars more for footwear, 3.7 billion dollars more for toys and 1.6 billion dollars more for household appliances. The rise in tariffs would also force purchasers of furniture to pay 4.6 billion dollars more, and of travel goods, 1.2 billion dollars more. As for the toy industry, China is the largest supplier. The report said China accounts for more than 88 percent of the supply of toys to the U.S. market while the U.S. producers are estimated to account for less than 1 percent. The total value of toy imports from China is 25 times greater than the total value of toy imports from the next largest foreign source of supply, Mexico, said the report. "Overall U.S. prices for toys generally (from all sources combined) would rise by 17 percent. As a result, U.S. consumers are forced to reduce overall purchases by 32 percent," the report estimated. As part of monthly consumer surveys conducted by Prosper Insights & Analytics, NRF has been tracking the public's growing concern over trade disputes between the United States and its major trading partners. The June survey found 81 percent of consumers are "concerned the ongoing trade war will cause prices to increase," a 12 percent increase since November 2018, according to the federation.
Source: Xinhua
President Uhuru Kenyatta on Friday urged all public servants to wear proudly ‘Made in Kenya’ garments to help boost the local textile industry. Speaking in Eldoret during the commissioning of the ultra-modern textile company, Rivatex, President Kenyatta said that this move was directed at increasing demand for goods produced by the company. “Beyond government, we must create demand for our own products by actively consuming those products ourselves. Towards this objective, let us encourage each other to proudly wear Made in Kenya garments,” said President Kenyatta. “For government to lead by example, I urge all public servants to wear at least one piece of garment made in Kenya on Fridays,” he added. It was also noted that the President was wearing a shirt that was made at Rivatex. While urging Kenyans to create demand for local products by actively choosing to buy local products, President Kenyatta was keen to note that the newly commissioned plant would see at least 3000 youths employed. The revamped firm is also set to benefit the over 500,000 cotton farmers across the country. In a bid to ensure the firm starts on a profitable step, the Head of State further directed the Energy Ministry to implement a 50% waiver on electricity bills to the firm. At the same time, he announced an increased allocation to the area from 33KV to 66KV to ensure stability in power distribution. President Kenyatta also directed the commercialisation of biotechnology cotton that would see a reduction in the importation of the raw material. Rivatex was incorporated on June 19, 1975 and was bought by Moi University in the year 2007. Before going into receivership in 1998 and eventually ceasing operations in the year 2000, the mill used to consume an average of 2,800 tonnes of cotton and 550 tonnes of polyester/viscose resulting in over 15 million metres of fabric per annum.vBefore its collapse, it was the leading textile mill in East Africa, with a reputation of producing the best quality fabrics.
Source: Citizen Digital.
The US must drop all tariffs imposed on China if it wants to negotiate on trade, and only an equal dialogue can resolve the issue and lead to a win-win, the newspaper said China has the strength and patience to withstand the trade war, and will fight to the end if the US administration persists with it, China’s state-run People’s Daily said in an editorial Saturday. The US must drop all tariffs imposed on China if it wants to negotiate on trade, and only an equal dialogue can resolve the issue and lead to a win-win, the newspaper said. The paper, a mouthpiece for China’s ruling Communist Party, said the US had failed to take into account the interests of its own people, and they are paying higher costs due to the trade dispute. “Wielding a big stick of tariffs” also disregards the condition of the US economy and the international economic order, according to the editorial. US President Donald Trump and Chinese President Xi Jinping will meet on the sidelines of the G20 summit in Japan next week to discuss the trade war between their two countries. Trump has repeatedly asserted that tariffs on Chinese imports are paid by China, not US consumers -- in defiance of the consensus of economists. If the US chooses to talk, “then it must show some good faith, take account of key concerns from both sides and cancel all tariffs,” the paper said.
Source: Bloomberg
Two ACIMIT associated textile machinery manufacturers Loptex and Tonello have been awarded the Italian Green Label Award for their commitment to reducing their machinery’s carbon footprint at the press conference held by ACIMIT and the Italian Trade Agency at ITMA in Barcelona. The commitment of textile machinery manufacturers in researching and developing technology solutions capable of improving the energy consumption and/or environmental performance of their machinery is implemented through the Sustainable Technologies project. Promoted by the Association of Italian Textile Machinery Manufacturers (ACIMIT) since 2011, the project’s focus is on the Green Label, through which machinery manufacturers can communicate their engagement. The quantity of carbon dioxide equivalent emissions produced during the operation of the machinery (CFP) is the parameter chosen to give value to the environmental efficiency of the machinery subject to the special labelling. “With the Italian Green Label, ACIMIT intends not just to reward those companies that have been most intensely engaged in our project, but also bears witness to what we have achieved as a sector on the issue of sustainability,” said Alessandro Zucchi, ACIMIT’s President. “I believe that the search for sustainable technology solutions is an indispensable element for textile manufacturers who are intent of providing a response to the market’s needs. And Italian machinery manufacturers are leaders on this issue as well.” Eight years after launching the Sustainable Technologies project, which occurred in Barcelona at the 2011 edition of ITMA, ACIMIT has now instituted the Italian Green Label Award, to reward companies that have shown the most commitment in pursuing the project’s aims. Loptex, a company based in Montano Lucino (CO), specialising in quality control systems in textile fibre, both in the spinning and nonwoven sectors, was awarded a prize as the company that achieved the best results, expressed in terms of percentage reduction in the value of CFP for its machinery. “We’re obviously very pleased to have received this award. The Italian Green Label Award recognizes just how much we have achieved so far on the issue of sustainability. It will to motivate us to do even more, dedicating additional resources to researching and developing sustainable solutions for our customers,” said Renato Gerletti, owner of Loptex. Tonello, of Sarcedo (VI), which manufactures technologies for finishing garments, received the award for showing the most engagement in exploiting all the functionalities of the tool dedicated to generating the Green Label, producing numerous labels for a variety of different machinery and updating them over time, in an effort to communicate continuously up-to-date information on the path to sustainability undertaken. “We have joined the Green Label project since its start. Tonello has always focused on sustainability in building our machinery, and our Research and Development team have always endeavoured to provide innovative, sustainable solutions,” commented Flavio Tonello, CEO of Tonello.
Source: Innovation in Textiles
Wanting to move away from being a dumpyard of used clotings has meant angering Donald Trump's USA. The small east African country is trying to find a way out. An uneasy silence has enveloped over the once-vibrant Kimironko market in Rwanda’s capital town, Kigali. Sitting in a dim corner, Emmanuel Harindintwari listens intently as the other stallholders discuss an incident on the border that now threatens political and social stability in East Africa. On May 24, the Rwandan security force gunned down two people, including a Ugandan national, for trying to smuggle used clothes into the country. Those were hand-me-downs from people living some tens of thousands of kilometres away across the North Atlantic Ocean, or beyond the Mediterranean Sea, which get sold across Africa as cheap garments and are the primary source of clothing across the continent. But the Rwandan government does not want its citizens to sift through piles of cast-offs from wealthier nations. In its attempt to shed the “third world” label and “restore” people’s dignity, the government has been aggressively regulating the entry of used clothes and footwear into the country. Since 2016-17, it has progressively increased taxes on these merchandise, first from $0.20 to $2.50 per kg and then to $4 in the next financial year. Tariff on used footwear has also jumped from $0.20 to $5. Simultaneously, the government has heightened surveillance along the country’s porous borders with Uganda and the Democratic Republic of Congo, which are among the top importers of used clothing in Africa. This has unnerved many of the 22,000 Rwandans engaged in the trade—right from wholesalers, retailers and vendors to those involved in washing, repairing and restyling products to fit the body shapes and sizes of Africans. When asked about his business, Harindintwari points at a less-than-a-metre-wide stall, crowded with neatly folded used trousers, shirts and colourful bedcovers, and says: “These are all legally imported goods. But the raised tariff has made them so pricey that a bale of used clothes now costs $422 compared to $56 two years ago. If we pass this cost on to customers, we risk losing sales. If not, we incur heavy losses.” Earlier, he recalls, these narrow corridors of Kimironko market used to overflow with discarded garments. Customers used to jostle to pull out a fine T-shirt with a famous logo or a high-fashion western dress. “I made a fortune selling those in the past 20 years. Today, I struggle to arrange money for my child’s school fees.” Away from the market, on the outskirts of Kigali, Claudette Nyiraneza, a roadside vendor, explains how the tariff has made decent clothes unaffordable for an average Rwandan. “Earlier, one could buy a second-hand garment for 100 Rwandan franc ($0.11). Now, one has to shell out at least Rwf4,000 ($5) for a piece. This is almost a week’s salary for a farm worker or 10 days’ salary for a domestic help,” says Nyiraneza. According to the World Bank, over 55.5 per cent people in this tiny landlocked country live below the international poverty line of $1.90 a day. OUTSIDE THE COUNTRY, the raised tariff on used clothes has rattled the world’s largest economy — the United States. In early 2017, just weeks after Donald Trump was sworn in as the president and the “America first” foreign policy was brought in, a little-known trade association, the Secondary Materials and Recycled Textiles Association (Smart) appealed to the government against the efforts in East Africa to phase out imports of second-hand clothing. It claims the region accounts for one-fifth of the total US exports of used clothes. A ban would cost the US 40,000 jobs and an annual export earning of $147 million. In response, Trump first issued threats to Rwanda and then suspended its duty-free privileges on domestically made apparel under the African Growth and Opportunity Act (AGOA). The preferential trade agreement between the US and 44 African countries allows the latter to sell 6,400 goods in the US market without paying import tariffs that most countries must pay and without being subject to import quota restrictions. Following Trump’s order, the Rwandan government is now losing an estimated $1.5 million a year in export earnings. This is a huge sum for a country that has few natural resources and heavily depends on trade. But President Kagame has labelled the trade war losses only as “short-term” and his government is adamant on its decision. Leaving behind the shadow of the 1994 genocide, which claimed the lives of 50,000 to 1 million people in just 100 days, the country’s GDP has been steadily growing at an impressive 7 per cent in the past two decades. Today, it is one of Africa’s fastest-growing economies. The government now aims to transform Rwanda into an upper-middle income country by 2035. The government believes removing cheap used clothing and footwear from the domestic market is the only way to protect its local textile and leather manufacturers from unfair competition, and thereby bolster the country’s economy.
A shared plan
This vision was also at the heart of Rwanda’s neighbouring countries, Kenya, Uganda, Tanzania, Burundi and South Sudan, which have in recent years formed the East African Community (EAC) and are emerging as a single market. According to a 2017 report by international non-profit USAID, EAC accounted for 12.5 per cent of the global imports of used clothing, worth $274 million in 2015. In 2016, led by Kagame who is also the chairperson of EAC, these countries prepared a long-term development strategy, Vision 2050, that required them to strengthen their domestic manufacturing sector. Along with Rwanda, rest of the EAC countries pledged to phase out second-hand clothing by 2019, which they believe has dealt a severe blow to their once-thriving textile and leather industries. Consider Kenya. Between 1960s and early 1980s, import of used clothes was banned in the country and the government promoted domestic production of textile and apparel to meet local consumption as well as to protect its cotton industry from foreign competition. In the 1980s, the country allowed second-hand clothes as donations for refugees from neighbouring countries. This gradually led to trade in the merchandise, shows a research done in 2017 by non-profit CUTS International. From the early 1990s, the government lifted the ban on used clothes as it focused on liberalisation and export promotion. By 2000, most of its domestic textile companies in Kenya had collapsed due to, among other factors, increased competition from used clothes. According to Nairobi-based Kenya Association of Manufacturers, before 1990 the country had 52 textile mills and hundreds of garment companies, making its textile sector the second largest employer after public service. The country, at present, has only 17 players in spinning, weaving, knitting and fabric finishing. Only four of them are fully integrated textile mills. Similarly in the late 1960s, Uganda was the largest producer of cotton lint in Sub-Saharan Africa. Most of its produce was consumed locally for producing perfect clothing for the warm, sunny climate. But the market collapsed first due to domestic turmoil in the 1970s and the 1980s and then following economic liberalisation in the 1990s. Today, Uganda produces just a fourth of what it used to produce in the 1970s, shows a 2017 document by the UN Conference on Trade and Development. The dwindling capacity and defunct mills of these countries further increased their dependency on cheap second-hand clothing, creating a vicious cycle. Today, over half the population in Kenya depends on imported cast-offs for affordable clothing. In 2013, the government collected $54 million in tariff revenue on 0.1 million tonnes of imported clothing and the industry employed 65,000 people. Abel Kamau, head of the Kenya Association of Manufacturers, says his country is a major beneficiary of AGOA. Among EAC nations, it is the largest apparel exporter to the US. In 2017, it exported $410 million worth of goods to the US as compared to $43 million by Rwanda. Small wonder, Kenya was the first EAC country to roll back tariffs on used clothes when Trump threatened it with suspension from AGOA benefits. Tanzania and Uganda, which are among the world’s top 15 importers of used clothes, and Burundi followed suit. What’s worse, these countries have been leaders in raw materials required for the textile industry. Rwanda, for instance, is known for its fine silk. Tanzania is still one of Africa’s top cotton producers. But industry experts say most of the cotton produced in EAC goes to Asia where it is spun, converted into apparel and shipped to the US and EU to be worn for two to three years and then shipped back to EAC as used clothing. The EAC region is also endowed with raw materials for footwear. Tanzania has a total of 22.8 million cattle, Kenya 17.5 million, Uganda 12.8 million, Rwanda 0.99 million and Burundi 0.74 million. But these countries can process leather only up to the preliminary wet blue stage, notes the research paper by CUTS International. Some 80 to 90 per cent of the wet blue leather is exported and only 10 per cent is left for processing to finished leather which is then used by artisanal shoemakers. Though there is a significant demand for footwear in the region, 80 per cent of the demand is met through imports out of which 60 per cent are second-hand shoes. Today, Rwanda Stands alone in implementing import restrictions and in its fight against the US. As part of its drive towards establishing self-reliance in clothing, Rwanda launched the Made in Rwanda campaign in 2016 to mobilise support for local entrepreneurs and artisans as well as to encourage companies to improve garment production quality. It is also urging traders to shift from used clothing to Made-in-Rwanda clothing. At present, the Rwandan textile industry relies on imported raw materials such as polyester and cotton, making locally produced clothes expensive. Polyester and cotton make up 40 per cent of the raw materials used in textile manufacturing, according to Ritesh Patel, the managing director of Utexrwa, a Kigali-based textile industry functioning since 1985. “This reliance makes local garments uncomp etitive in the market. A shirt made by Utexrwa sells for $5 in the market, which is still expensive compared to second-hand shirts,” Patel admits. In a bid to reduce the cost of production, the Private Sector Federation (PSF) of Rwanda, dedicated to promote the interests of the business community, is encouraging collective investments in the textile industry. “We have put the manufacturers together when it comes to importing raw materials. When they order collectively, the rate is cheaper than individual imports,” says Eric Kabera, head of communications and marketing at PSF. To benefit from advanced technologies available elsewhere in the world, the Rwandan government in May this year signed an agreement with Chinese firm Pink Mango C&D to establish a modern garment factory in the Kigali Special Economic Zone. Emmanuel Hategeka, deputy chief executive officer of the Rwanda Development Board, responsible for implementing Vision 2035, has said the move would help the country revive its mills by creating 7,500 jobs and reduce the import of used garments. The government is also encouraging civil servants to wear Rwandan designer clothes on the last Friday of every month. But the government must not drop its guard. Rwanda’s market is already stacked with another variety of low-cost clothing — the ones made by China. All the efforts to become an upper-middle income country would go waste if Rwandans find those as suitable alternatives for imported second-hand clothes.These are desperate times. Countries are trying to protect their own companies. AGOA, which initially offered development assistance to the low-income countries, has changed direction under the Trump administration. Writes Garth Frazer, a professor of economic analysis and public policy at the University of Toronto, Canada, who is also a member of the International Growth Centre Trade Research Group, “What is deeply concerning is when the members of EAC decided to increase the restrictions on used-clothes imports, the current US administration responded by threatening to remove AGOA benefits for them.”
Source: Down to Earth
