Earlier this week, RBI Governor Shaktikanta Das had said the government has taken a number of measures to boost the economy in three phases and indicated that more steps are likely. The finance ministry is working on one more booster dose to give a leg-up to the economy that has hit over six-year low of 5 per cent, a senior finance ministry official said. The blue print for the stimulus is ready that would be announced by Finance Minister Nirmala Sitharaman in the next few days, the official said without giving further details. The government announced a slew of measures in three dosages which include a special window for real estate, export incentives, bank consolidation and sops for micro, small and medium enterprises (MSMEs) and the automobile sector. Earlier this week, RBI Governor Shaktikanta Das had said the government has taken a number of measures to boost the economy in three phases and indicated that more steps are likely. "I think with right measures taken, things should improve. It's a positive trend that the government is responding fast and I don't think we have heard the last from the government with regard to dealing with the current economic situation... My expectation is that it will be a continuous process and they would definitely be dealing with other challenges," he had said. The first set of announcements was made on August 23 that included rollback of the enhanced surcharge imposed on foreign portfolio and domestic investors in Budget 2019-20. Sitharaman had in her maiden Budget raised the surcharge on income tax paid by super-rich individuals. The surcharge, levied on top of the applicable income tax rate, was hiked from 15 per cent to 25 per cent for those with a taxable income of Rs 2-5 crore, and to 37 per cent for those earning more than Rs 5 crore. This increased the effective tax rate for these two groups by 3.12 per cent and 7 per cent to 39 per cent and 42.74 per cent, respectively. Some 40 per cent of foreign portfolio investors (FPIs) automatically came under the higher tax rate as they have been investing as a non-corporate entity, such as trust or association of persons (AOPs), which in the income tax law is classified as an individual for the purpose of taxation. It was followed by announcement with regard to consolidation of 10 public sector banks (PSBs) into four on August 30. According to the consolidation exercise, United Bank of India and Oriental Bank of Commerce are to be merged with Punjab National Bank, making the proposed entity the second-largest PSB. Syndicate Bank is to be merged with Canara Bank. Allahabad Bank will be merged with Indian Bank. Andhra Bank will be amalgamated with Corporation Bank and Union Bank of India. This would be the second round of consolidation of PSBs. Earlier this year, State Bank of India had absorbed its five associate banks and the Bharatiya Mahila Bank to form the biggest public sector lender. In another merger, Bank of Baroda had taken over Dena Bank and Vijaya Bank. Last week, the government announced a slew of measures to boost exports and the real estate sector. During the week, the finance minister will chair the 37th meeting of the GST Council, which is expected to discuss rate revisions for various sectors, including automobiles, fast-moving consumer goods, and hotels. Besides, she will meet heads of the PSBs to discuss issues, including following up on transmission of monetary policy rates.
Source: Business Standard
The mega Regional Comprehensive Economic Partnership (RCEP) pact being negotiated by India with 15 countries, including the ASEAN and China, will be defended and decided upon by primarily trade merits and not diplomacy, Minister of External Affairs S Jaishankar has said. “RCEP is a trade agreement. A trade agreement must be defended and decided upon by trade merits. There are diplomatic aspects, consequences, handling etc involved. But the primary justification of a trade agreement can’t be diplomacy. It has to be trade,” Jaishankar said at a press conference on Tuesday when asked if saying no to the RCEP agreement will be acceptable from a diplomatic point of view. A number of industrial sectors ranging from steel, engineering goods and automobiles to leather goods and textiles have raised concerns on increased competition in the domestic market, especially from China, once the RCEP pact is finalised. The agricultural sector and the dairy industry, too, have expressed their apprehensions about the proposed agreement. The other countries in the grouping are South Korea, Japan, Australia and New Zealand. On the trade tussle going on between the US and India in a number of sectors, Jaishankar said that trade problems happened with the closest partners as the level of bilateral trade was high. “My expectations is that some of the sharper edges will be addressed in some form in the not too distant future. Exactly which ones is the Commerce Minister’s domain,” he said making no direct reference to the possibility of a trade deal being announced when Prime Minister Narendra Modi meets US President Donald Trump in the US later this week. The Foreign Minister added that he would prefer to look at the 90 per cent of the glass that was full and not the 10 per cent that was empty. “I will look at all the business deals that have taken place (between India and the US) and take that as the state of our relationship,” he added. He added that US President Donald Trump’s decision to attend with Prime Minister Narendra Modi the event organised in Houston on September 22 was a great achievement for the Indian-Americans and was an indication of the height the community had reached. Replying to a question on what India’s stand would be on purchasing oil from Iran in the near future, Jaishankar said that India’s interest was in an affordable and predictable supply of oil. “In Iran the situation is not a standing situation. There are a lot of conversations and moving parts to the issue some of which surfaced at the G-7 meeting on the sidelines. Let us see where it goes,” he said. New Delhi stopped all purchases of oil from Iran earlier this year following implementation of US economic sanctions against the Islamic Republic’s nuclear programme.
Source: The Hindu Business Line
New Delhi: Indo-US relations have been on an upward trajectory and they are in a very good health, External Affairs Minister S Jaishankar said on Tuesday. Addressing the 100-day press conference of the Ministry of External Affairs, he said the "trajectory" of the relationship between India and the US has been "upwards" amid various administrations in Washington, be it Bush, Obama and now Trump. Responding to a question on commerce, he said the trade problem between the two countries is "normal". "As relationship grows, there will be problems ... the only way you don't have trade problems is when you do not trade," he said referring to the trade relations between the two nations. Prime Minister Narendra Modi will be on a six-day visit to the US, beginning September 22. Jaishankar said in partnership with the Indian diaspora, Modi addressed events in San Jose in 2015 and Madison Square in New York in 2014, and the September 22 event at Houston will be the third. He said the Indo-US relations are in very good health. "There is no facet of the relationship today which has not gone upward over the period of 20 years," he said. Referring to the decision of US President Donald Trump to attend the 'Howdy Modi' event, Jaishankar said, "I regard this as a great achievement of the Indo-US community." "If you have someone like the President (of the US) coming there, this shows where the community has reached, how it is regarded in the US ... it is a matter of great honour and we will welcome him (Trump) in the warmest possible manner," he said. Responding to a question on the message the presence of Trump at the Modi event will send to Pakistan, he said it is up to Islamabad to read
Source: Economic Times
The World Bank estimates Bangladesh–India bilateral trade potential to be US$16.4 billion. The actual trade figure for the 2018 fiscal year was US$9.5 billion. This gap captures the prevailing economic relationship between the two countries and represents what could be if the attendant challenges were adequately addressed. Many commentators are concerned about Bangladesh’s significant bilateral trade deficit with India of US$8.6 billion in fiscal year 2018. The deficit has been on a steady rise. Bangladeshi traders often complain about non-tariff barriers (NTBs) when exporting to India. India has imposed anti-dumping duties and countervailing duties on Bangladeshi exports. These have had a detrimental impact on Bangladesh’s exports to India. A lack of adequate trade facilitation is the most important NTB for operators on both sides. Imports from India are mostly raw materials for Bangladesh’s export-oriented sectors, particularly the apparel industry which produces ready-made garments (RMG) for export. Notably, 87 per cent of Bangladesh’s exports to the US market are RMG items which are, in part, made of cotton, yarn and fabrics imported from India. Thanks to this, Bangladesh has a significant trade surplus with the United States — US$6.1 billion in 2018. But reducing the bilateral trade deficit with India remains a major point of contention in Bangladeshi policy circles and public opinion. Bangladesh has not been able to take advantage of India’s growing import market. Indian imports exceeded US$400 billion in 2018. India is importing many items from the global market but not from Bangladesh. Bangladesh is exporting these same items to the global market but not to India. Policymakers must remove the obstacles that impede higher bilateral trade flows through appropriate policies. About 50 per cent of the bilateral trade between Bangladesh and India takes place through land ports. The border points are not crossing points — they are control and checkpoints. Goods need to be unloaded and reloaded in ‘no man’s land’ leading to delays and cost-escalation. In the absence of mutual recognition agreements, goods wait for several days until inspection results come from laboratory facilities in distant testing centres. The costs of transporting goods from Dhaka to Delhi are significantly higher than those from Dhaka to European and US ports. The efficiency of trade connectivity depends on how effective transport, investment and logistics connectivity are. As part of the South Asia Free Trade Area (SAFTA) agreement, India has offered duty-free and quota-free (DF-QF) market access to Bangladesh. But Bangladesh has not been able to take advantage of this. Several new initiatives are being implemented to improve trade facilitation at the border. Infrastructure at land customs stations and at the two customs authorities is being improved and documentation reduced. The Bangladesh, Bhutan, India and Nepal Motor Vehicle Agreement (BBIN-MVA) signed in 2015 is expected to allow cargo-carrying vehicles to move across borders and lead to a significant reduction in costs. Bangladesh has also allowed India to move goods between its western and north-eastern states through Bangladeshi territory. Through the EXIM Bank, India has provided Bangladesh with three lines of credit (LOCs) worth US$8 billion. The loans are being used to build transport networks in Bangladesh and improve border crossings. The first LOC was used to construct a bridge over the Padma river. Along with the rail link, the bridge will facilitate bilateral trade with India. Bangladesh has also started to import electricity from India. This will be critical for addressing the energy deficit that has deterred foreign direct investment flows into Bangladesh from India and other countries. Bangladesh has offered two special economic zones (SEZs) for investment by private Indian companies in Bheramara, Kushtia and the coastal Mongla belt in Bagerhat. Reliance Power has signed an agreement to invest US$3 billion to set up a 3000 MW power plant and a floating liquefied natural gas import terminal in Bangladesh. The improved infrastructure, better trade facilitation, dedicated SEZs, efficient transport connectivity and higher energy security may incentivise investment. The regulatory regime will have to be appropriately streamlined and the dispute settlement mechanism strengthened. At the border, single window and electronic data interchange mechanisms will need to be put in place. These will ensure that customs clearances on both sides of the border are synchronised through common data platforms and cargo vehicles are issued permission to cross the border efficiently. These measures will ensure that vehicular movement, as envisaged under the BBIN-MVA, is hassle-free. Mutual recognition agreements relating to certification, laboratory testing, sanitary and phytosanitary measures and technical standards will need to be signed and backed by adequate capacity building in the form of national standardisation and certification institutions. Bangladesh’s bilateral trade with China could have implications for Dhaka’s bilateral ties with Delhi. Bangladesh–China bilateral trade was US$12.4 billion in 2017–18 with a trade deficit of US$11 billion — higher than that with India. China’s presence in Bangladesh as a trading partner, as an important FDI source and a key player in infrastructure development will likely increase in future. Bangladesh’s policymakers must develop a comprehensive strategy to leverage and draw synergies between the emerging economic ties with both India and China. Overall, the Bangladesh–India bilateral relationship is showing early signs of developing positively over the long term. But there is a long way to go if Dhaka wants to fully reap the potential benefits of deeper Bangladesh–India bilateral ties. Mustafizur Rahman is Distinguished Fellow at the Centre for Policy Dialogue, an independent economic think tank in Dhaka, Bangladesh.
Source: East Asia Forum
Textile major Welspun’s new mass brand has an aggressive distribution strategy and Amitabh Bachchan to unlock the potential in Indian bedrooms and bathsWelspun has Queen-size bed plans for the Indian market. The company is one of the largest suppliers of home textiles to global giants like Walmart and Target. Now the homegrown major has set its sights firmly on the great Indian middle class. The mission - To change the way Indians use their linen, mainly towels and bedsheets. In an exclusive chat with Brand Equity, Dipali Goenka, managing director and chief executive officer, Welspun India, says, “This is the market that the world is looking at and after supplying to more than 50 countries in the world, we are ready to cater to the mass market of this country.” Currently, for the Welspun textile business, the US continues to be the single-largest revenue contributor at 70% of total revenues. “Now we want to move up the needle for the Indian market, by investing in the largest middle-class economy,” adds Goenka. The company has launched a mass brand eponymously called Welspun, backed by a differentiated go-to-market strategy and a low-inventory business model to reach sales targets faster. On the branding and communications front, if it’s instant mass-appeal that you are after, then the only solution in the Indian marketer’s playbook is a six-foot tall, 76-year-old Indian man with the country’s most recognizable baritone. Meet Welspun’s new brand ambassador - Bollywood legend Amitabh Bachchan. Bachchan leads Welspun’s launch to mass, as the company introduces a new line of towels, bedsheets, carpets and even floor tiles under the brand. The ad campaign created by Leo Burnett with the tagline ‘Badal Dalo’ kicked off with two films starring the new face of the brand. Welspun operates in an interesting category, with high penetration but very low on involvement, and highly unorganized with numerous regional players. In fact, the leading research agency Nielsen does not track the category, we are told, because no manufacturer has stepped up to create any national brands or build awareness for the category. Shares Dheeraj Sinha, managing director - India & CSO - South Asia, Leo Burnett, “It’s almost that Indians have gotten far ahead in many other categories, in terms of exercising choice, but have lagged behind when it comes to changing their behaviour when it comes to towels and bedsheets.” The situation is different in the premium segment where involvement is much higher, but that segment is a meagre 3% of the Rs 25,000 crore market. The other brand in the company’s portfolio, Spaces, operates in the mass premium and premium segment. “The company was thus sure that the mass market is the sweet spot, where with Welspun’s existing prowess in technology and manufacturing we are well-placed to make a play and create a mass-brand,” says Manjari Upadhye, CEO, domestic business, Welspun India. Products have a strong convenience and ease-of-use pitch, for instance, reversible two-in-one bedsheets priced at Rs799. Consumer research was conducted across several Tier 1 and Tier 2 towns and included Mumbai and Delhi. On the distribution strategy, says Upadhye, “We are reaching out to all the places where the consumer may think of buying a towel, even hosiery stores.” Similarly, the bedsheets range is available in home furnishing outlets across the country. The company claims to cover about 2500 outlets, across 35 cities, with plans to cover 100 towns in a year’s time. Leo Burnett’s Sinha shares, “The brief was to force consumers to re-look at their towel and bedsheet buying behaviour.” The target for Welspun is to be a Rs 500 crore brand by 2023, informs Upadhye. As per Anisha Motwani, managing partner, StormTheNorm Ventures, who is also an independent director on Welspun India Board, “One can truly unlock the potential of this category by applying the rules of commodity branding. Usually, the most important concern when branding commodities, is making sure the price is right.” In her view, consumers typically buy commodities based on price - premium items are meant to be expensive, whereas basic items should be priced attractively. So far, most brands have treated this category with premium and luxury marketing codes, but the category is as mass as it gets. After all, everyone needs a towel and a sheet. And that could translate into a huge business potential when unlocked with a sound business model and an attractive offering. Sleep on that thought. CEO’s Tough Calls - Dipali Goenka, MD & CEO, Welspun India
What’s in a name? - On calling the new mass brand, Welspun
“We debated a lot and finally concluded that rather than creating and investing in building a new brand, it makes better sense to drive synergies between the existing businesses. Also, right now, when you look at Welspun Group brand, it’s in bits and pieces - there is the steel business, the textile business, the infrastructure business and so on. One of the things we did was to lay out a strategy at the group level to make it into a conglomerate brand. This B2C foray is a step in that direction.”
Fear Big B fatigue? – On India’s most prolific brand ambassador
“Mr Bachchan does so many ads – almost every third ad is his - and yet the fact is that what he brings to the table is far more than the clutter that surrounds him. We needed a source of credibility that only he could give to the brand. The fact remains that his fan following among the masses is massive. The challenge, of course, was around how to break through that ad clutter. That was essentially the brief for the creative agency.”
Source: ET Brand Equity
Indian rupee (INR) moved higher today against US dollar (USD), tracking gains in other emerging-market currencies, as oil prices dropped after as Saudi Arabia partially restored production at damaged oil plant. The rupee rose to 71.43 a dollar at day's high as compared to previous close of 71.78 a dollar. Opening at 71.49 a dollar, the rupee traded between 71.43 and 71.51 so far during the day. The rupee had declined sharply for a second day on Tuesday as surging oil prices and geopolitical tensions, triggered by drone attacks on Saudi oil facility, prompted investors to shun riskier assets. At 11:02 am, the rupee was trading at 71.48 a dollar.
Five things to know about rupee-dollar rate today:
1) Rupee traders will be focused today on announcement from US Federal Reserve later today. "While a 25 bps cut is factored in, what will be important to see is how dots and economic projections change," says forex advisory firm IFA Global.
2) USD-INR pair has near-term support at 70.96 and resistance between 72.10 to 72.40, HDFC Securities said in a note. Some profit-taking could be seen in the USD-INR pair near resistance of 72.10, the brokerage added.
3) The rupee is down about 2.5% so far this year against the US dollar as outflows from Indian equity markets weigh on the Indian currency. Foreign institutional investors (FIIs) remained net sellers in Indian capital market, pulling out ₹808.29 crore on Tuesday. After a two-day selloff, Indian market traded higher today but pared most of the early gains.
4) The rupee market will also take cues from developments on deputy-level US-China trade talks, scheduled to start in Washington on Thursday, followed by higher level talks that are slated to begin in October. Both the countries have announced trade concessions ahead high-level talks in October.
5) Higher oil prices put pressure on India's current and fiscal deficits and the rupee as well. A sharp spike in oil prices also increases inflationary concerns but analysts say that may it may materialise only if there is prolonged supply disruption. Brent crude, the international global benchmark, fell today to $64.40, extending losses from the previous session, after Saudi Arabia's energy minister said the kingdom will restore lost oil production by the end of the month. But investors remained cautious about Middle East tension after the United States said it believes the attacks that crippled Saudi Arabian oil facilities last weekend originated in southwestern Iran. Iran has denied involvement in the strikes.
Source: Live Mint
A host of consumer-facing sectors are in focus in the runup to Friday’s GST Council meeting, where the indirect tax panel may announce some reduction in levies on cars, biscuits and some other consumer goods to spur demand ahead of the festive season. Sectors such as hotels, cement and textiles are also hoping for some GST relief. On the other hand, the so-called sin stocks could be at the receiving end, as the council may try to partly cover the revenue losses for states by raising the cess on sin goods such as tobacco products. Analysts said many sectors are facing a cyclical slowdown, and it may not be easy to reverse it. This is something Bajaj Auto MD Rajiv Bajaj has also said about the auto sector recently. Maruti Chairman RC Bhargava also admitted that a temporary GST rate cut won’t make much of a difference, as higher taxes on fuel and a hike in road and registration charges by state governments have created a higher burden on car buyers. That said, investors may still welcome any tax cuts ahead of the festive season, said analyst. “If the GST rate on cars is reduced to 18 per cent from 28 per cent, it can create demand in the near term,” said Prayesh Jain, Lead Analyst for Institutional Equities at YES Securities. “But if the cut is only till March 31, 2020, FY21 could see another slowdown when BS-VI price hike comes up, leading to a sharp rise in car prices. A longer-term approach is required. Two-wheelers below 150cc and CVs are not luxury items, and hence, they can attract lower GST rates,” he said. UBS analyst Sonal Gupta in a note said demand for two wheelers could improve with modest rate cuts, but its impact on car and truck demand is less certain. If these rate cuts are only for a limited period, it can advance buying, but unlikely to create a sustainable cycle. On Tuesday, shares of India’s largest car maker Maruti Suzuki NSE 0.68 % traded 0.72 per cent lower at Rs 6,366. The stock is down 15 per cent year-to-date (YTD). Mahindra & Mahindra traded 1.4 per cent lower at Rs 529.70, down 34 per cent YTD. Tata Motors NSE 0.78 % declined 1.12 per cent on Tuesday and 26 per cent YTD. Tyre stocks were trading mixed on Tuesday. Year to date, JK Tyre (down 33 per cent), CEAT (down 29 per cent), Apollo Tyres (24 per cent), (MRF (down 12 per cent) have all seen sharp falls. In case of biscuits, the sector is demanding a 5 per cent GST rate against 18 per cent at present with a price tag of Rs 100 per kg or below. Mayank Shah of Parle says biscuits below Rs 100 per kg are being subjected to higher GST rate at 18 per cent, even though this category of biscuits was actually exempted from excise under the earlier tax regime. “These are the biscuits consumed by the middle class and lower middle class. Substitutes like rusk are all subject to 5 per cent GST, even though the MRP is much higher. Rusk is typically sold at Rs 150 a kg, whereas biscuits cost Rs 100 per kg,” Shah told ETNOW in an August interview. In the case of hotels, states are open to a GST cut on hotel tariffs of Rs 7,500 and more to 18 per cent from 28 per cent or to raise the threshold for the higher tax bracket, a government official told ET. Goa and Rajasthan, which generate substantial revenue from tourism, have been pushing for relief on this front. “We are expecting GST cuts for hotel industry and auto. There are demands for GST cuts from across sectors, but other than these two, I see little chances of relief for others. I expect some ‘cess’ hike tobacco products, as the Centre will have to compensate states somehow,” said G Chokkalingam, founder of Equinomics Research & Advisory. Most hotel stocks traded with losses on Tuesday. Hotel Leelaventures (down 55 per cent), Lemon Tree (24 per cent) and Taj VVK Hotels (down 16 per cent) are down up to 55 per cent so far this calendar. The GST Council has an arduous task of addressing the macroeconomic issues to fix the economic slowdown and critically evaluate the plea for GST rationalisation, especially for sectors such as automobiles, cement, textile, which have witnessing a consistent slowdown in demand and consequential loss of employment, said Ayush Mehrotra, Tax.
Mehrotra said GST was introduced to widen the tax base and improve tax collection. It would be prudent to ignore the short-term deficit in (revenue) targets due to rate rationalisation, and focus on improving (GST) collections in the long term on account of incremental demand, he said. Some states feel the economic slowdown could be due to cyclical and structural issues and GST rate cut may not lead to higher consumption, said Deepak Jasani, Head Retail Research at HDFC Securities. “Some states are worried that the GST rate cut may not be fully passed on to consumers and even if it is done, prices could be increased after some time. The directorate general of anti-profiteering has so far investigated about 125 cases of alleged profiteering and found 60 per cent of sellers at fault,” Jasani said. Amid a shortfall in tax revenues, a GST rate cuts would force the panel to broaden the base of goods and services on which cess could be levied or increase the cess on some other items, he said. Meanwhile, considering the widespread leakages and evasion in the GST collections, it is likely that a slew of measures may be announced to improve collections and plug the leakages, said Manish Mishra, Partner J Sagar Associates. “Also, the compensation framework for the States may get reviewed due to recurring shortfalls and increasing losses to the States. Review of the new return mechanism set to be launched from October and extension in the due dates for annual compliances for 2018-19 should take place. Fully electronic and automated refund module may be introduced to speed up the Export refunds process,” Mishra said.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1060.80 |
USD/Ton |
2.46% |
9/17/2019 |
|
VSF |
1506.34 |
USD/Ton |
1.24% |
9/17/2019 |
|
ASF |
2170.40 |
USD/Ton |
0% |
9/17/2019 |
|
Polyester POY |
1110.30 |
USD/Ton |
0% |
9/17/2019 |
|
Nylon FDY |
2319.62 |
USD/Ton |
0% |
9/17/2019 |
|
40D Spandex |
4101.76 |
USD/Ton |
0% |
9/17/2019 |
|
Nylon POY |
2305.47 |
USD/Ton |
0% |
9/17/2019 |
|
Acrylic Top 3D |
1244.67 |
USD/Ton |
0% |
9/17/2019 |
|
Polyester FDY |
2574.21 |
USD/Ton |
0% |
9/17/2019 |
|
Nylon DTY |
5346.43 |
USD/Ton |
0% |
9/17/2019 |
|
Viscose Long Filament |
1315.39 |
USD/Ton |
0% |
9/17/2019 |
|
Polyester DTY |
2206.46 |
USD/Ton |
0% |
9/17/2019 |
|
30S Spun Rayon Yarn |
2164.03 |
USD/Ton |
0.33% |
9/17/2019 |
|
32S Polyester Yarn |
1661.92 |
USD/Ton |
0.86% |
9/17/2019 |
|
45S T/C Yarn |
2418.62 |
USD/Ton |
0% |
9/17/2019 |
|
40S Rayon Yarn |
1824.58 |
USD/Ton |
0.78% |
9/17/2019 |
|
T/R Yarn 65/35 32S |
2277.18 |
USD/Ton |
0% |
9/17/2019 |
|
45S Polyester Yarn |
2404.48 |
USD/Ton |
-1.73% |
9/17/2019 |
|
T/C Yarn 65/35 32S |
2050.88 |
USD/Ton |
0.69% |
9/17/2019 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
0% |
9/17/2019 |
|
32S Twill Fabric |
0.70 |
USD/Meter |
0% |
9/17/2019 |
|
40S Combed Poplin |
0.98 |
USD/Meter |
0% |
9/17/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
0% |
9/17/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
9/17/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14144 USD dtd. 17/09/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A bipartisan group of 44 influential lawmakers has urged the Trump administration to reinstate India's designation as a beneficiary developing nation under the key GSP trade programme as part of a potential trade deal between the two countries. The Trump administration terminated India's designation as a beneficiary developing nation under the Generalised System of Preferences or GSP in June. The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. In a letter to US Trade Representative Robert Lighthizer, the House members suggest an "early harvest" approach that "would ensure that long-sought market access gains for US industries are not held up by negotiations over remaining issues".US President Donald Trump and Indian Prime Minister Narendra Modi will meet on September 22 in Houston and the two sides hope to announce a potential deal on longstanding trade issues, including GSP, a media report said. Led by Congressmen Jim Himes and Ron Estes, the letter to Lighthizer has been signed by 26 Democrats and 18 Republicans, showing the strong, bipartisan support for reinstating GSP benefits for imports from India. "Companies are telling Congress about the American costs - both in dollars and jobs - of lost GSP eligibility for India," said Dan Anthony, executive director of the Coalition for GSP on Tuesday. "The letter shows Congress's strong, bipartisan support for swift action to reinstate GSP for India and to help constituents that depend on two-way trade," he said. While GSP often is seen as a benefit to foreign countries, it is American businesses and workers that have suffered most from its termination to date. Despite facing higher tariffs due to lost GSP, imports from India of (previously) GSP-eligible products increased over 40 per cent in June/July 2019 compared to a year earlier, likely the result of companies shifting sourcing away from China, Coalition for GSP said in a statement. "Indian exporters are thriving while American companies are stuck paying USD 1 million a day in new tariffs," said Mr Anthony. The letter notes that costs of GSP termination "are real for our constituents and growing every day". The Coalition for GSP's latest data shows that loss of GSP for India cost American companies about USD 30 million in July. In the letter, the lawmakers said that they have a strong desire to see GSP eligibility for India reinstated. "Should there be progress in negotiations, we hope you will use the tools provided by the GSP statute as warranted, such as partial reinstatement," the letter said. Just as US industries are harmed by lack of fair and reciprocal access to India's market, American companies and workers also are harmed by new tariffs due to GSP termination, the lawmakers wrote. "The costs are real for our constituents and growing every day. We urge you to continue negotiations and consider an early harvest to help American jobs that depend on two-way trade between the United States and India," they said. Observing that the United states has legitimate concerns against India, the lawmakers wrote those policies negatively affect US companies trying to access its market, including a number of longstanding issues that have been subject to intergovernmental talks for years."As you know, several US industries filed petitions under GSP's market access criterion, which were accepted for review in April 2018. Ultimately, failure to make sufficient progress on the issues led to termination of India's GSP eligibility on June 5, 2019," they said. The Congressmen said that they take these complaints seriously and share the US administration's strong desire to see them resolved. "We are encouraged to see continued engagement between the administration and the newly elected Government of India that assumed office in late May, including visits by senior USTR and Indian officials over the summer." "The change in government provides a fresh opportunity to address outstanding concerns, and we hope that new Indian officials will offer concrete solutions that improve market access for American companies and workers," the Congressmen wrote in the letter. Under the GSP programme, nearly 2,000 products including auto components and textile materials can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress. India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with USD 1.7 billion in covered imports, according to a US Congressional Research Service report issued in January. The Trump administration had launched an eligibility review of India's compliance with the GSP market access criterion in April 2018.
Source: The Independent
Sustainability has gained a lot of traction in the textile industry over the last few years. Purchase decisions are no longer only made on the basis of fashion and comfort. Consumers are increasingly demanding more eco-friendly textiles. However, it is difficult for them to make well-informed choices. What exactly should one do when it comes to the use of natural resources such as water and land, production methods, emissions and the overall impact on the environment?Many consumers don’t even know what the garments they wear are made from. They are not aware that synthetic fibres comprise two-thirds of the global fibre market of approximately 100 million tonnes of virgin fibres used in textiles, hygienic and cosmetic products. Most of the fibres such as polyester and polyamide originate from crude oil. Parts of these “plastic” fibres washed out in households or industrial cleaners turn up as microplastics in the oceans and harm fish and human beings. A large portion of the used clothing ends up in landfills or is incinerated. Most people don’t realize that naturally derived fibres of cellulosic origin (cotton, viscose, modal, lyocell) make up only slightly more than one-third of all new fibres produced every year. Cellulose comes from nature and is returned to nature due to its biodegradability, and thus does not aggravate the growing problem of marine litter.
Textile industry has no credible recycling concept
In contrast to paper, aluminum or steel, there is no credible recycling concept for the billions of tonnes of fast fashion items sold every year, mainly from non-biodegradable fibres. Each year about 60 million tonnes of new fibres are used to make garments, and no plausible concept exists on what to do with them when they are no longer needed. As a result, three-quarters of these products are disposed in landfills or incineration plants. The textile industry is a major source of greenhouse gas emissions due to its production technologies and transportation. Studies calculating the sector’s CO2 emissions were first published only recently. The Ellen MacArthur Foundation put global textile industry emissions at 1.2 billion tonnes of CO2 equivalent per-year, close to the level of emissions from the automobile industry. Since the industry started taking its huge ecological footprint seriously, various initiatives emerged: one of these is the Fashion Industry Charter for Climate Action, signed by leading fashion brands, suppliers and other partners under the auspices of the UN's climate change initiative. Signatories, including the Lenzing Group, are committed to a 30% reduction in greenhouse gas emissions by the year 2030. Consumers want brands to disclose origin of apparel offered. Consumers are demanding more detailed data about the origin of the clothes they wear, especially in Europe and the US. Eighty percent of consumers want brands to disclose how their supply chain operates, according to a 2018 survey by IPSOS MORI on European consumer attitudes to sustainability and supply chain transparency in the fashion industry. Sustainability has also slowly begun to gain in importance in other parts of the world, especially Asia. This is important because 2018 was a milestone. For the first time in history, more than half of apparel and footwear sales were generated outside of Europe and North America. If we want to make the textile industry a greener one, we need to support sustainability, especially in emerging markets across Asia-Pacific, Latin America and other regions. Traceability is key to educated purchase decisions. In light of all this, as important players in the textile industry, we are called upon to help consumers make educated purchase decisions. Traceability, whether enabled by tracers or using new digital technologies such as blockchain, is a very important aspect in the effort to create a more eco-friendly industry.
Blockchain enables consumers to identify sustainable clothes
The Lenzing Group, in cooperation with TextileGenesis, is one of the very first companies to offer digital traceability to customers and partners as well as consumers. Blockchain technology enables brands and consumers to identify sustainable wood-based fibres in finished garments or home textiles across each fibre-to-retail production and distribution step. The technology also allows consumers to verify garment composition and the underlying textile supply chain at the point of sale, simply by scanning the barcode with a mobile device. Without true transparency it will be impossible for consumers to make well-informed and responsible decisions. And that is what is needed to accelerate the transformation to a fully sustainable textiles industry.
Source: World Economic Forum
Pak-Uzbek Business Council (PUBC) has doubled bilateral trade during last two years while its volume will cross 300 million dollars very soon, said Shavkat Abdurazakov Mayor of the Namangan City Uzbekistan. Heading a 14-member delegation of businessmen from Uzbekistan that visited Faisalabad Chamber of Commerce and Industry (FCCI) here today, they discussed various matters to explore and strengthen bilateral relations with the private sector of Faisalabad. He told that Uzbekistan is included among best cotton producing countries while Faisalabad has excelled in manufacturing of best quality textile products of international standard. He told that Uzbek President Shavkat Mirziyoyev has successfully introduced liberal economic policies coupled with institutional reforms. "These efforts have yielded positive results and Uzbek economy is now gaining momentum at a steady pace," he said. Regarding his visit to Faisalabad, he told that a MoU has been signed between National Textile University (NTU) Faisalabad and Namangan Institute of Engineering and Technology (NIET) Uzbekistan to give a quantum jump to textile sectors of both countries. "This MoU will also open new avenues of cooperation between the industrial and business community of Faisalabad", he added. Regarding Namangan City, he said that it is globally known for its exotic flowers. "We also organize an international event of our flowers every year", he told and added that next year 60th Annual Flower Exhibition will be organized. He asked Pakistani businessmen to participate in it to enjoy warm Uzbek hospitality in addition to exploring new opportunities to invest in different sectors of economy. He also mentioned 1st International Uzbek Investment Forum and told that as a result of these efforts work on 15 new projects with estimated investment of 150 billion is expected to start very soon. He said that electricity in Uzbekistan is available at less than 1 cent per unit and hence its SME sector is making progress by leaps and bounds that has share of 66.1 % in total Uzbek economy. He told that a large number of new small industrial zones are also being established where foreign investors could start joint ventures or establish independent production units. Furqat Sidiqov, Ambassador of Uzbekistan explained in details the efforts to promote bilateral trade between the two countries and said that he is now focusing on private sectors of both countries after exploiting public sector. He underlined the importance of Punjab province and said that his focus is on promoting bilateral relations between Punjab and Namangan on top priority basis and in this connection he will encourage joint ventures in both countries. Regarding Pak-Uzbek Business Council, he told that initially its offices were established in Islamabad and Karachi while this year trade centers would also be opened in Karachi and Peshawar. He also moved a proposal to declare Faisalabad and Namangan as twin cities so that we could exploit its social and cultural similarities for the economic benefits of two countries. Earlier, Acting President FCCI Mian Tanveer Ahmed in his address of welcome expressed satisfaction over bilateral trade and said that both countries should concentrate on launching joint ventures in Pakistan as well as in Uzbekistan. A comprehensive documentary on Faisalabad was also screened while Mian Tanvir Ahmed and Shabbir Hussain Chawala former President FCCI presented FCCI mementos to Uzbek Ambassador Furqat Sidiqov and Mayor of Namangan City Shavkat Abdurazakov respectively.
Source: Business Recorder
A common cry we hear in global textile supply chains is that near-shoring is a more sustainable, and perhaps ethical, option for apparel brands. In the past couple of years, we have seen evidence—albeit limited—of this, with President Trump talking about bringing manufacturing home, and efforts by the U.K. to redevelop its once burgeoning textile industry. In theory, near-shoring is more sustainable for a couple of reasons. First, its cuts down on CO2 emissions associated with the international transport of textiles and clothing. Second, there is a train of thought (that is far from proven) that local production equals ethical production. The first of these arguments is difficult to dispute. If something is made in the U.S. and sold in the U.S., the greenhouse gas emissions associated with transportation clearly will be smaller than if it were made in Asia and transported to the U.S. The second argument is less clear cut. There are tens of thousands of apparel factories across the world, and while some are ethical, treat their staff well, and pay a fair wage, many, as we are all aware, are not. But the point is that the whereabouts of these factories is random. Asian apparel sourcing hubs do not have a monopoly on poor worker rights. There are good and bad factories in Bangladesh and, indeed, in other sourcing hubs such as China and Vietnam. But there are also good and bad factories in the U.K., in the U.S. and in Eastern Europe. The one common denominator with all of these factories—wherever they are based in the world—is that they face downward pressure on prices from apparel brands. This means there is, in turn, downward pressure on wages for factory workers. This is not a well-paid industry, wherever you operate in the world, and that’s just basic economics. But there is another, perhaps more important factor, to consider in the discussion around near-sourcing. As intimated, there is often an assumption that closer to home equates to “more sustainable.” But what if production techniques in textile supply chains in Asia are better than those in the West? What if they are cleaner, use less water, reduce chemical consumption and create less waste? Actually, textile production techniques are something we all need to consider in the debate about where apparel is made. Brands, policy makers and economists all need to be part of this discussion. As a factory owner myself, I can attest to the huge strides made in apparel production in recent years. The industry in Bangladesh is undergoing a minor revolution. In denim production, for instance, new techniques are being introduced that use far less water than previously was the case, while factories are also becoming much smarter on the issue of water recycling and harvesting rainwater. Wastewater, meanwhile, is managed far better, often cleaned using expensive effluent treatment technology so it can be used again and again. This is an ongoing pattern of continuous improvement, and many factories are in the process of a serious industrial upgrade in this area. New chemicals and processes often create a net result, meaning fewer chemicals are used in clothing production, and the chemicals that are involved in manufacturing are carefully scrutinized to ensure they are not harmful to humans. Coming to grips with this issue has taken years and has been helped enormously by the Zero Discharge of Hazardous Chemicals, which has helped to foster best practice across supply chains. In the case of Bangladesh, we can also factor in that the industry has undergone a huge safety overhaul. Garment factories Bangladesh are cleaner, safer, more efficient and more sustainable than at any time in history, and that’s no exaggeration. Billions of dollars have been spent in a process of industrial and technological upgrading that continues in all garment production hubs in Asia as they battle to win and maintain the business of international brands. How ironic, then, that having reached this current state, there is talk of taking garment production going “back home,” as part of a pattern of near-shoring. In actual fact, there is not a great deal of evidence that near-shoring is happening. The statistics suggest some production has left China for the U.S. or countries nearby but the picture is very mixed. If anything, production and output in the likes of Bangladesh is actually continuing to increase; the country has had a fantastic 12 months in terms of export revenues. Why is this? A personal hunch is that near-shoring is little more than a political slogan for the time being. Brands are demanding their Asian apparel suppliers produce smarter, faster and cleaner. In short, brands need Asian suppliers to produce more sustainably. This has not happened overnight, and it has been a major and hugely expensive learning process for all involved. There is now a level of sustainability learning and expertise in the Bangladesh’s apparel supply chain that would take years to replicate elsewhere. Politicians might like to talk about near-shoring, but for brands, it is action, and not rhetorics that counts when it comes to purchasing sustainably. And on this front, for now at least, Bangladesh’s RMG sector holds the trump cards. Mostafiz Uddin is the Managing Director of Denim Expert Limited. He is also the Founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).
Source: Sourcing Journal
Many companies disagree with a proposal to cut weekly working hours to 44, saying the move would create more problems, not solve them. At a meeting held in Hanoi Monday on draft amendments to the Labor Code, business representatives expressed concerns about a proposal by the Vietnam General Confederation of Labor to cut working hours for laborers by four hours to 44 per week. Under current regulations, workers will not have to work over 48 hours per week. Phan Thi Thanh Xuan, vice chairwoman of the Vietnam Leather, Footwear, and Handbag Association, said the industry she is working in uses 1.5 million laborers and at the moment, is having difficulties recruiting new staff. If the working hours are cut now, companies in the sector will have to hire more employees, and if they don’t, they will have to invest more in equipment and machinery to ensure output. Either way, companies will suffer higher production costs. The association has calculated that at 44 hours per week, footwear firms will have to recruit 10 percent more workers, which is a hard job. Finding new staff for the footwear and leather sectors has become problematic these days. It is common that factories making shoes and bags are now using many workers in their 50s. Xuan agreed that cutting working hours means more time to relax, but unskilled workers are likely to use the extra time drinking or doing extra jobs, like registering as a driver for some ride-hailing firms. Their major source of income, as a result, will drop as their working time decreases. Tran Thi Lan Anh, director of the Bureau for Employers' Activities under the Vietnam Chamber of Commerce and Industry (VCCI), said most countries with 40-44 hour working weeks are developed ones. In developing countries that are in "fierce competition" against Vietnam, like Thailand, India, Bangladesh, Malaysia, the Philippines and Laos, the working hours are all 48 hours per week. A VCCI survey of 18 nations, including ten Southeast Asians and other Asians with socio-economic conditions similar to Vietnam found that six had under 48 working hours per week, 11 had 48 hours per week and South Korea had it at 52. Anh said that even with the existing rule of 48 hours per week, many companies had to ask employees to work overtime to meet market demand. Therefore, if the working time was cut, businesses would not be able to satisfy their customers, which, in turn, would affect their brand name and image. Firms making products for export would be particularly affected, she said. Dao Thi Thu Huyen, representative of the Japanese Chamber of Commerce and Industry in Vietnam, said Vietnam will remain attractive to foreign investors if its workers are skillful and hardworking. If the working time per week is cut, investors could move to other markets, she added. "Japanese people work until they are 67 years old; Vietnamese are already less productive than them and now we want to work even less. We should only take more time to rest when we post higher economic growth and enjoy higher per capita incomes," said Nguyen Xuan Duong, deputy chairman of Vietnam Textile and Apparel Association. Duong said countries around Vietnam allow 600 hours of overtime each year per worker. Japan has it at 700 hours, Malaysia has no limits, but Vietnam limits it to less than 300 hours. When foreign investors find that are likely to violate the overtime rule in Vietnam, they could take their production chains to other markets, he said. Vu Tien Loc, chairman of VCCI, said that a nation whose economic growth relies on many industrial sectors has to make its labor competitive, which means that now was not the right time to cut working hours. Bui Sy Loi, deputy chairman of the Committee on Social Affairs of the legislative National Assembly, said his view was that the working hours should not be cut right now, because the productivity of Vietnamese laborers was still low. He even suggested granting industries such as footwear and textiles the permission to add more working time for its workers to meet export demands. Ngo Duy Hieu, the Vietnam General Confederation of Labor's vice chairman, said cutting working time was a "progressive" move alongside development forces that can ensure increased productivity, met business conditions, and at the same time, offer healthy working conditions for workers. 81 percent of around 1,300 workers in an online survey conducted last week by the confederation voted to cut working hours from 48 to 44 hours per week. Just 19 percent chose to keep the current working hours of 48 hours and six working days per week. Most of the respondents wanted five and a half days of work at the most and one and half days off per week. Dao Ngoc Dung, Minister of Labor, War Invalids and Social Affairs, said the ministry will take the most reasonable proposals to prepare draft amendments. It is possible that it will not incorporate the confederation's proposal on reducing working hours into the Labor Code draft, he added.
Source: Vietnam Express
