MUMBAI: During 2018-19 exports of Indian Textiles & Clothing exports were US $ 37.50 billion in which exports of MMF & MMF blended textiles were US $ 6.14 billion as against US $ 6.02 billion in 2017-18 with a growth of around 2%. Share of MMF & MMF blended textiles in total exports of Indian T & C was 16.37% informed Mr. Ronak Rughani Chairman Synthetic & Rayon Textiles Export Promotion Council (SRTEPC). Addressing the 65th annual general meeting of the council Mr. Rughani noted that current export scenario is not encouraging. As per latest data from DGCI&S Exports of Indian MMF textiles during the first quarter (April-June) 2019-20 were US$ 1455.08 million against US$ 1553.52 million achieved in the corresponding period of the previous year witnessing a decline of 6.34%. Exports of yarns have witnessed a decline of 17.07% made-ups have witnessed a decline of 6.21% and fibres (MMF) have also witnessed a decline of 4%. Only Fabrics exports witnessed 5.73% growth during April-June 2019-20 as compared to the same period of the previous year he added. The plausible reasons for such a concerned decline in our exports Mr. Rughani attributed to the difficulties in compliance of the GST system demonetization decreasing Govt. support schemes volatility in raw-material prices increasing fierce global competition so on and so forth. Speaking on global textile trade scenario Mr. Rughani informed that the global textile & clothing trade has grown by 6.21% in 2018 as compared to 2017 and global MMF and MMF blended textiles trade has grown by 6.44% during the year vis-à-vis the previous year. World trade of textile & clothing (T & C) has been growing at a CAGR 4.12% during last 10 years and reached US$ 837.4 bn in 2018. CAGR rate in the clothing segment was 4.28% while in the textile segment last 10 years CAGR was 3.9%. CAGR rate witnessed during the last 10 years was highest in the value added madeups segment at 4.6%. China remains the largest textile exporter in the world with CAGR 5.14% during last ten years he added. In the MMF and MMF blended textiles exports from China Mr. Rughani informed that it has grown over CAGR 9% to reach US$ 70 billion in 2018 whereas exports of MMF and MMF blended textiles India increased by CAGR 6.1% during last ten years to reach US$ 6.2 billion in 2018-19. In 2018 total global fibre production was 111.3 million Indian textile industry projected to increase to $ 350 bn. by 2024-25 Continued from Page 1 Col 6 tons that increased about 10% as compared to the previous year. 12. The share of natural fibers in world fiber production fell from 41% in 2008 to less than 30 per cent in 2018. Global Manmade fibre production was 79. 1 million tons in 2018 witnessing a growth of 11.5% compared to the previous year he said. World production of synthetic filament Mr. Rughani informed is 49.8 million tons of this polyester filament alone is about 45 million tons. Synthetic staple production is 22.4 million tons and production of cellulosic fibers is 6.9 million tons. Indian textile industry 2nd largest after China is projected to increase to US$ 350 bn. by 2024-25. The existing fibre base of 12 bn. kgs will have to be increased to 20 bn. kgs Currently Natural and Manmade fibre consumption ratio globally is 70: 30 (70% Man-made fibre and 30% Natural/Cotton fibre) whereas in India it is 60: 40 (60% Natural fibre/ Cotton fibre and 40% Man-made fibre) he said.
Source: Tecoya Trend
Amid rising clamor among domestic businesses against India’s existing Free Trade Agreements (FTAs), the revenue department has started assessing shortcomings of each deal, which have led to spiraling trade deficit. The Finance Ministry took notice after officials found that India’s major FTAs constituted only 11 per cent of the total trade and up to 23 per cent of trade deficit. While the commerce department would frame the updated trade rules for each FTA, whenever revised, the revenue department has started assessing its scope and nature. Officials have pointed out that India’s trade balance is turning more unfavourable for most FTAs. It has doubled since 2011 to Rs 12.86 trillion in 2018-19. Among the current FTAs with significant trade deficits for India, five are with countries from the 10-nation Association of the Southeast Asian Nations (Asean) bloc. In 2009, India had signed a multilateral FTA with the Asean bloc itself, which has seen imports go up at a much faster clip than exports. Exports to the 10 economies stood at $37.4 billion in 2018-19, up by 9 per cent year on year. On the other hand, imports were higher at $59.31 billion, up by 25 per cent from the previous year's $47.13 billion. Earlier this month, India and the Asean agreed to review the pact amid criticism from the domestic industry.
Low utilisation
As a result of lower import duties that had to be implemented in the deal, revenue foregone has more than doubled to nearly Rs 26,000 crore in 2018-19, the Finance Ministry had said earlier this year. Equally, India has had to forego revenue to the tune of Rs 7,327 crore for its FTA with South Korea and Rs 4,053 crore for the trade deal with Japan. Using the Asean FTA as a model due to its range goods covered and volume of trade, a study by the NITI Aayog has said that utilisation rate of current trade deals by Indian exporters remain very low (between 5 per cent and 25 per cent). Sectors where trade deficit has worsened account for 75 per cent of exports to Asean, while trade surplus sectors have shown only marginal improvement, it had added. “Overall, it can be concluded that India’s quality of trade has not improved under the AIFTA (Asean-India FTA),” it had said. Under the initial agreement, Asean member states and India agreed to open their respective markets by progressively reducing and eliminating import duties on 76.4 per cent of all goods. Back then, India had offered around 9,000 products for complete elimination of tariffs, excluding about 10 per cent of its exports from tariff reduction. Experts have pointed out that Thailand, the Philippines, Myanmar, Brunei, and Vietnam have excluded more of their exports as compared to India.
RCEP fears
On the other hand, the government fears total revenue foregone may hit as high as Rs 60,000 crore for the proposed Regional Comprehensive Economic Partnership (RCEP) deal once it goes live. RCEP is India’s most ambitious trade pact under negotiation. Based on India’s existing FTA with Asean, the RCEP will include New Zealand, Australia, Japan, South Korea, and most importantly, China. Under planning since 2012, the talks have seen little movement since partner nations have been unwilling to concede on crucial issues. This includes the market access for foreign goods and reduction of import duties on them, discussion areas where India is gravely cautious since manufacturing powerhouse China is part of the arrangement. India’s repeated clashes with China, apart from richer nations such as Australia and Japan, on tariff reduction has led to a pushback from the Asean bloc, which has been adamant on deciding the key outline of the pact by the end of 2019. Commerce and industry minister has warned that while the government would strive to protect the interests of a majority of industries, the overall discussion could not be hijacked by one or two sectors.
Source : Business Standard
The Union Government is expected to release new schemes for powerloom sector in April next year and the demands of the industry will be considered in it, said Ravi Capoor, the Textiles Secretary, here recently. The secretary visited some of the powerloom and knitwear clusters in Coimbatore and Tiruppur districts on Wednesday and Thursday and interacted with the stake holders. At Somanur in Coimbatore district, Mr. Capoor visited half a dozen powerloom units, including a modern unit and one that operates on solar power. In his interaction with the weavers, he assured them of addressing their demands in the new textile policy to be released next year, said the weavers in Somanur. The weavers demanded control on fabric imported from Bangladesh, relaxation in varieties reserved for weaving in handlooms, and imposing restrictions on varieties that can be woven in modern looms. The industry representatives also explained the reasons on why the PowerTex India scheme did not take off. They appealed to the Secretary to extend the scheme for two more years so that more powerlooms are modernised and increase in installed capacity to get subsidy for solar panels to be used by powerloom units. In Tiruppur, Mr. Capoor visited garment production and textile processing units, common effluent treatment plant, and NIFT TEA Institute. The industry sought Government support to create infrastructure for workers and have a research facility for knitwear sector. He discussed with the industry representatives the ground realities and challenges faced by the industry, say sources in the sector.
Source: The Hindu
In the recent years, the textile and garment industry in Coimbatore region is seeing a trend of manufacturing companies launching their product ranges in the domestic market under brands. The region has well-known branded textile retail outlets that have expanded their network and in the past has had some well-known branded products too. Though there are challenges in building and sustaining a brand, for the new launches, e-commerce and better awareness among domestic consumers are proving to be an advantage. Both, large groups and smaller companies are launching their own brands for the domestic market and have started selling online. According to Kumar Rajagopalan, CEO of Retailers Association of India, “It does make sense for businesses to brand and sell their products in the domestic market.” In several cases, the brands that are large started in a small way. It is easier now to create a brand as there are several possibilities to sell online. However, to sustain the brand, the promoters should know all the aspects of the branding exercise, where to position the product in the market and target the gap in the market. “If SMEs start without understanding what it is to brand, they can get into trouble. They should know how to differentiate their product , fulfil the gap in the market,” he says. The advantage of having their own brand is industries can create value and get higher realisation. When manufacturers supply to some other brands, the realisation could be relatively less. T. Kumaravel, vice-president (sales and marketing) of Premier Fine Linens, says the Blue Dahlia range of bed linen products were launched about a decade ago. But, it was for a closed group of customers. As customer demand increased, the company decided to have a Blue Dahlia outlet, which was opened here recently. “It is already recognised as a brand on e-commerce and among premium hotels through our institutional sales.” Since the entire range of products are made in-house, it is easier to control quality. “We want to grow steadily. We will open a couple of more stores in another two to three years,” he says. Customers want value addition. For instance, if it is bed linen, they want speciality finishes. Similarly, there is a big demand for organic products. Domestic consumers prefer the branded products that give quality and value addition at affordable price. “When expectations of domestic market is equal to export market, why not serve it,” he says. Managing Director of KPR Mill P. Nataraj says the company launched Faso range of products for men after contemplating about it for five years and market studies. Currently, probably only about 10 % of consumers in the domestic market go in for branded products. But, brand awareness among the younger consumers is growing. “The future is in branding.” Companies that have integrated production facilities have an advantage as they can go in for various special processings and it is possible to monitor production at every stage. Raja Shanmugham, president of Tiruppur Exporters’ Association (TEA), explains that the garment units in Tiruppur are of various categories. Some supply to national and international brands that sell in the domestic market and some are going in for branding. In the last two years, there are efforts of at least 100 garment brands developing. Those who are economically sound are going in for branding. The availability of e-commerce portals has helped businesses brand their products. They need to make minimum investments to launch their brand online. As the domestic market is growing, companies are eyeing the opportunities, he says. “The ultimate success for industries will come from branding,” he adds. The Association is also trying to establish a sustainability tag for garments made in Tiruppur. It involves documenting processes and getting approvals. According to an official source here, there are no special schemes from the Government to support textile and garment companies to brand their products. However, the industry has also not made such a demand. A garment exporter who supplies to a foreign brand that sells in India says there are issues in asking the Government for support to brand products. “Branding a product depends on the growth of an individual company. It is difficult to seek Government support for it. However, with e-commerce growing, small and medium-scale manufacturers can also brand and sell their products online. Branding has become viable to SMEs now,” the exporter says. Textile expert D.K. Nair, says all the stakeholders in the industry understand and agree the need to brand textile and garment products. “Branding is essential and it has scope too in the domestic market. But for manufacturing units to sustain the branding exercise, they need to scale up.” Branding requires optimum investment. The brand should be built to have a value. It needs resources. To float a brand, the company should be large enough. Otherwise, manufacturing units can get into consortiums and develop brands for their products, he says.
Source: The Hindu
Aimed at developing a cadre of indigenous entrepreneurs in the MSMEs, the EDCs will be similar to incubators for start-ups, according to a official documents reviewed by Business Standard Come Diwali, Union micro, small and medium enterprises sector (MSME) minister Nitin Gadkari will launch enterprise development centres (EDCs) that have been in the planning stages for two years now, senior officials said. Aimed at developing a cadre of indigenous entrepreneurs in the MSMEs, the EDCs will be similar to incubators for start-ups, according to a official documents reviewed by Business Standard. “For the first time, an integrated unit will help new and existing businesses develop by providing services such as management training, and office space,” an official.
Source: Business Standard
The DPIIT had initiated the process of formulation of a new industrial policy in May 2017The government will soon constitute a working group on the proposed new industrial policy which is aimed at promoting emerging sectors, reducing regulatory hurdles and making India a manufacturing hub, an official has said. Earlier, the Department for Promotion of Industry and Internal Trade (DPIIT) had prepared the policy and sent it for the Union Cabinet approval, but certain new suggestions have been made with regard to the policy. The working group will rework on it and submit the same to the DPIIT, the official said. The group will have members from different government departments of the Centre and states, as well as from industry chambers, including the Confederation of Indian Industry (CII). This will be the third industrial policy after the first in 1956 and the second in 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payment crisis. The DPIIT had initiated the process of formulation of a new industrial policy in May 2017. The new policy will subsume the National Manufacturing Policy (NMP). A consultative approach had been taken for policy formulation wherein six thematic focus groups had been used to obtain inputs. The six areas include manufacturing and MSME technology and innovation ease of doing business infrastructure, investment, trade and fiscal policy and skills and employability for the future. It was proposed that the new policy would aim at making India a manufacturing hub by promoting Make in India. The department had floated discussion paper on the policy with an aim to create jobs for the next two decades, promote foreign technology transfer and attract $100 billion FDI annually. It had outlined several constraints to industrial growth -- inadequate infrastructure restrictive labour laws complicated business environment slow technology adoption low productivity challenges for trade and inadequate expenditure on R&D and innovation.
Source: Business Standard
The corporate tax cuts prove that the Centre continues to believe the slowdown is due to lack of investment and not a lack of demand. As a result, it continues to work on supply-side economics instead of looking at ways to stoke demand. The Centre's surprise move to cut the corporate tax rate from 30 per cent may have come a year too late, but the announcement of a base rate of 22 per cent-when it had earlier committed to 25 per cent-has thrilled stock markets. Companies will now pay an effective rate of 25.17 per cent, down from 34.94 per cent. Manufacturing companies formed after October 1, 2019 will pay an even lower rate of just 15 per cent-one of the lowest in the world-with an effective tax rate of 17.01 per cent. The anticipation of better corporate profits even triggered a rally of 3,300 points in the Sensex - a gain of over 9 per cent in just two trading sessions. But how rational is this exuberance? The corporate tax cuts prove that the Centre continues to believe the slowdown is due to lack of investment and not a lack of demand. As a result, it continues to work on supply-side economics instead of looking at ways to stoke demand. Finance minister Nirmala Sitharaman's announcements at multiple press conferences in recent weeks have all been aimed at improving the flow of money-enhancing credit for businesses, improving the ease of doing business, restructuring and merging banks, implementing a stressed-asset fund for affordable real estate-hoping these will trigger significant private investment. This is folly. Waiting for the elusive private investment has already cost India three precious quarters while the economy has continued to hurtle downhill. Instead, the Centre should be working on demand-side economics-triggering consumption through GST cuts, ensuring a full transmission of the RBI's rate cuts to borrowers and providing relief on personal income tax. The FM seems surprisingly averse to doing that. To revive economic growth, India needs both higher disposable income in the hands of individuals and higher investible surplus in the hands of corporates. FM Sitharaman's tax cuts only address one end of the problem. That's an incomplete stimulus-it leaves demand unaddressed. The tax cut will cost the Centre Rs 1.45 lakh crore. That's the kind of investment companies need to make in new capacities to trigger growth. But is such an investment likely? Far from it. In the absence of immediate market demand, companies will remain averse to investing in new capacities when their existing capacities remain under-utilised (by around 30-50 per cent across sectors). As a result, the cash surplus arising from the tax cut may only improve corporate bottomlines rather than goading demand. Aiming at supply-side issues without addressing demand is a lost cause. Industries such as automobiles and real estate have been so badly battered that they may not have the wherewithal to trigger demand by offering deep discounts. Consumer confidence is low and liquidity remains tight. As a result, there has been considerable speculation about how this money might instead be utilised. Maruti's RC Bhargava says his firm can, at best, cut prices by 0.5 per cent, though it would rather spend the windfall on research. For others, the 8 percentage point rate cut could boost advertising and marketing in the short run, especially since around 40 per cent of advertising expenditure in India happens during the October-December festival season. Last year, the spending on advertisments in this period was upward of Rs 25,000 crore. This year, it is expected to top Rs 30,000 crore. The 15 per cent rate for new manufacturing firms is aimed at companies looking to move out of China or considering alternatives for their next investment. But Vietnam, Taiwan, Thailand-all at 20 per cent corporate tax-and Singapore, Malaysia and Bangladesh (17, 24 and 25 per cent) remain big challengers. And even if firms do set up shop in India, it will take two to three years for the effect of their investments to show up in the economy. Meanwhile, the half-stimulus will cost the exchequer Rs 1.45 lakh crore. And with no evidence so far of an uptick in tax revenues (collections so far are lagging this fiscal's target by a huge margin), India's fiscal deficit is likely to be the immediate casualty-analysts expect a slippage to 3.8-4 per cent in fiscal 2019-20.
Source: India Today
The trade war between the US and China show no sign of easing despite prolonged negotiations. Chinese companies are facing many difficulties due to trade frictions, Commerce Minister Zhong Shan said on Sunday. The United States and China have been locked in an escalating trade war for over a year. They have levied punitive duties on hundreds of billions of dollars of each other's goods, roiling financial markets and threatening global growth. “Trade faces unprecedented challenges,” Zhong told a news conference in Beijing. “These challenges are both external and internal.” A new round of high-level talks between the world's two largest economies is expected in Washington on October 10-11, led from the Chinese side by President Xi Jinping's top economic adviser, Vice Premier Liu He. “China will expand imports, and measures to stabilise trade will yield positive results,” Zhong added, without giving details. The Trump administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from US stock exchanges. Sources told Reuters on Friday that the move would be part of a broader effort to limit US investments into Chinese companies, in part because of growing security concerns about their activities. The trade war has added to tensions between China and the United States, whose ties are also strained over US criticism of human rights issues in China, including protests in Hong Kong, the disputed South China Sea and US support for Chinese-claimed Taiwan.
Economic slowdown
The Chinese government's top diplomat said on Friday that tariffs and trade disputes could plunge the world into recession and Beijing was committed to resolving them in a “calm, rational and cooperative manner”. The trade war has taken its toll on the Chinese economy. China's exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world's second-largest economy and underlining a pressing need for more stimulus. Beijing is widely expected to announce more support measures in coming months to avert the risk of a sharper economic slowdown as the United States ratchets up trade pressure. Despite a slew of growth measures since last year, China's economy has yet to stabilise. Analysts expect growth could cool further this quarter from a near 30-year low of 6.2 per cent hit in April-June.
Source: Reuters
High expectations of a trade deal were probably misplaced ab initio as there was no bilateral FTA or economic cooperation agreement under negotiation. In a week that has seen India’s diplomatic success with the United States attain new heights, India-US trade talks have been rather muted. This is not surprising, given that even the closest allies of the US have not been spared of President Donald Trump’s hostile trade policy actions. In the last one year, India has been subjected to repeated criticism of its relatively high tariffs, restricted market access, and the general trade environment. While the tariff on imports of Harley Davidson motorbikes has been most often cited by the US President.
Source: Business Standard
The 5th International Textiles and Costume Congress is being organised by the Department of Clothing and Textiles of the Faculty of Family and Community Sciences, Dean Dr Anjali Karolia said. The renowned Maharaja Sayajirao University Baroda here will organise a textile and costume seminar to be attended by over 120 foreign delegates between October 3-5 to mark Gandhi Jayanti, an official said on Sunday. The 5th International Textiles and Costume Congress is being organised by the Department of Clothing and Textiles of the Faculty of Family and Community Sciences, Dean Dr Anjali Karolia said. Karolia said 123 delegates from the United States of America, United Kingdom, Indonesia, South Korea, Thailand, Turkey and China are expected to take part in the seminar, the highlight of which would be a discussion on Khadi. Head of department Madhu Sharma said the ITCC aims to bring together the designer’s concept, the artisan’s capacity and consumer’s preference to boost growth of indigenous textile crafts. Karolia said a garment presentation titled ‘Neev-The Foundation’ will pay tribute to Khadi and will get students to connect with the charkha.
Source: The Hindustan Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1041.62 |
USD/Ton |
-2.11% |
9/29/2019 |
|
VSF |
1504.87 |
USD/Ton |
0.19% |
9/29/2019 |
|
ASF |
2154.13 |
USD/Ton |
0% |
9/29/2019 |
|
Polyester POY |
1101.98 |
USD/Ton |
-0.38% |
9/29/2019 |
|
Nylon FDY |
2351.37 |
USD/Ton |
0% |
9/29/2019 |
|
40D Spandex |
4071.02 |
USD/Ton |
0% |
9/29/2019 |
|
Nylon POY |
2274.16 |
USD/Ton |
-0.61% |
9/29/2019 |
|
Acrylic Top 3D |
1221.31 |
USD/Ton |
-0.57% |
9/29/2019 |
|
Polyester FDY |
2582.99 |
USD/Ton |
0% |
9/29/2019 |
|
Nylon DTY |
5306.36 |
USD/Ton |
0% |
9/29/2019 |
|
Viscose Long Filament |
1298.52 |
USD/Ton |
0% |
9/29/2019 |
|
Polyester DTY |
2203.97 |
USD/Ton |
0% |
9/29/2019 |
|
30S Spun Rayon Yarn |
2147.81 |
USD/Ton |
0% |
9/29/2019 |
|
32S Polyester Yarn |
1670.52 |
USD/Ton |
-0.42% |
9/29/2019 |
|
45S T/C Yarn |
2414.54 |
USD/Ton |
0% |
9/29/2019 |
|
40S Rayon Yarn |
1810.90 |
USD/Ton |
0% |
9/29/2019 |
|
T/R Yarn 65/35 32S |
2260.12 |
USD/Ton |
0% |
9/29/2019 |
|
45S Polyester Yarn |
2414.54 |
USD/Ton |
0% |
9/29/2019 |
|
T/C Yarn 65/35 32S |
2042.53 |
USD/Ton |
0% |
9/29/2019 |
|
10S Denim Fabric |
1.24 |
USD/Meter |
-0.11% |
9/29/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
9/29/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
9/29/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
0% |
9/29/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
9/29/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14038USD dtd. 29/09/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Vietnam reported a trade surplus of roughly US$5.9 billion in the first nine months of 2019, with the export turnover estimated to reach over US$194 billion, up 8.2% compared to the same period last year. According to the General Statistics Office (GSO), the domestic economic sector exported US$59.57 billion worth of goods during the period, representing a year-on-year increase of 16.4% and accounting for 30.7% of the total. Meanwhile, the export revenue of the foreign-invested sector (including crude oil) hit US$134.73 billion, up 5% year on year and making up 69.3% of the total value. As many as 26 products recorded over US$1 billion in export turnover during the January-September period. Phones and parts topped the list with US$38.6 billion, up 5.1% year on year, followed by electronics, computers and components (US$25.4 billion, up 16.9%), garments and textiles (US$24.8 billion, up 10.4%), footwear (US$13.3 billion, up 13.5%), machinery and equipment (US$12.9 billion, up 7.5%) and wood and timber products (US$7.5 billion, up 17%).Vietnam’s nine-month import revenue was estimated to reach US$188.42 billion, up 8.9% from a year ago, with the domestic sector and the foreign invested sector posting respective revenues of US$78.97 billion (up 14%) and US$109.45 billion (up 5.5%).The United States was the largest importer of Vietnamese products during the period with a value of US$44.9 billion (up 28.2% year on year), followed by the European Union (31.1 billion, down 0.7%), China (US$27.8 billion, down 3.8%), ASEAN (US$19.4 billion, up 4.7%), Japan (US$15.1 billion, up 10%) and the Republic of Korea (US$14.5 billion, up 8.1%). Meanwhile, China remained Vietnam’s largest import market with a revenue of US$55.5 billion, up 17.3% over the same period in 2018. The Republic of Korea came second at US$35.4 billion (up 1%), then come ASEAN at US$24.1 billion (up 3.8%), Japan at US$14.1 billion (up 1.8%), the EU at US$11 billion (up 10.3%) and the US at US$10.7 billion (up 12.6%).
Source: Nhan Dhan Online
Yarn consumption doubled over the last six years because of high demand from domestic garment manufacturers and high volume of garment export, according to industry insiders. In fiscal 2012-13, local knitters and weavers consumed 10 lakh to 11 lakh tonnes of yarn. Last year, the amount stood at 22 lakh tonnes, said Monsoor Ahmed, secretary to the Bangladesh Textile Mills Association (BTMA), the platform for the primary textile sector. Between fiscal 2012-13 and 2018-19, Bangladesh’s garment export increased nearly 10 percent. Last fiscal year, apparel shipment from Bangladesh was $34.13 billion, which was $21.51 billion in fiscal 2012-13, according to data from the Export Promotion Bureau. Despite a lot of internal and external shocks, garment shipment from Bangladesh maintained robust growth over the last seven years because of competitive prices and flawless supply of yarn and fabrics, which reduced lead time significantly, exporters said. Internal shocks include the two deadliest industrial accidents including Tazreen Fashions fire in November 2012 and Rana Plaza building collapse in April 2013. The sector also witnessed a setback in shipment because of elections in some major markets, financial crisis in some economies and Brexit. However, the sector could bounce back. On the other hand, there were some sunny sides for the local garment exporters like new export destinations such as Japan, India and China, where Bangladesh’s garment export has been growing at a faster rate in comparison to traditional markets like the EU, the US and Canada. The local garment exporters have been receiving a lot of work orders because of the US-China trade war that compelled many international retailers and brands to come to Bangladesh. The consumption trend of yarn has also changed during this period, especially over the last two years, as imports are increasing for availability of cheaper yarn in India and China, said BTMA’s Ahmed.
“Previously, the import of yarn was not so high.”
Subsequently, spinners have lowered their production capacity to 77 percent from 90 percent over the last six months. Currently, the yarn consumption trend in Bangladesh is a 50-50 mix of imports and local ones. “So the country’s main export earner is depending more on imported raw materials, which is a worry for us. If the situation continues, we will be in trouble,” Ahmed said. Lower production of yarn by local spinners means cotton consumption by Bangladesh also declined. Last fiscal year, Bangladesh imported nearly 7.7 million bales of cotton, which was 8.2 million bales in fiscal 2017-18. A Matin Chowdhury, managing director of Malek Spinning Mills, a leading spinner, mentioned three specific reasons for the losing competitiveness by local spinners to the cheap imported yarn. They are: 50 percent hike in the gas price, 2 percent devaluation of local currency against the greenback and wage hike in the garment sector that put the manufacturers in a tight spot. “Our stockpiling of yarn is increasing every day,” Chowdhury told The Daily Star by phone. The highest consumer of yarn is the knitwear sector in Bangladesh as the local 450 spinners can supply more than 80 percent of the raw materials needed by the manufacturers and exporters. The local knitwear sector consumes more than 16 lakh tonnes of yarn in a year, the spinners said.
Source: The Daily Star
The People's Republic of China is going to celebrate its 70th founding anniversary on Oct. 1, when all its citizens will mark this national auspicious and glorious occasion with festivities. The entire country especially its megacities such as Beijing are already wearing a festive look ahead of the celebrations. The eyes of the world will be on the capital as, through the gala event, China will showcase its numerous great achievements, highlighting the journey from an isolated nation to the second largest economy contributing much to world development. China's development also benefits Bangladesh to meet its people's new aspirations for a better life and to ensure and improve their livelihood through development. Ever since the establishment of diplomatic ties in 1976, China has been the largest trading partner and one of the major development partners of Bangladesh. After the Belt and Road Initiative was proposed, the economy of Bangladesh gained great momentum as its joined the BRI in 2016. Several BRI projects have already been implemented and people are already reaping the dividend. The Bangladesh Power System Upgrade and Expansion Project, costing $165 million, is a successful example of such BRI cooperation. This project has benefited more than 7 million Bangladeshis while helping provide electricity connection to over 2.5 million rural people. Under the BRI cooperation, China has so far pledged almost $38 billion in aid, loans and other assistance to Bangladesh, including infrastructure projects and joint venture initiatives. China is now implementing $10 billion worth of infrastructure developments such as the Karnaphuli Multi-Channel Tunnel Project, the Chinese Economic and Industrial Zone, the Padma Bridge rail link, Payra Power Plant, the eighth China Bangladesh Friendship Bridge and the International Exhibition Center. Every project has created a huge number of jobs, bringing about enormous socio-economic improvements for Bangladesh and enhancing the livelihoods of the people. The China-backed Karnaphuli Multi-Channel Tunnel Project is now underway. The tunnel, estimated to cost $1.7 billion to complete, is seen as a key component among several BRI-related projects in the country. It will connect the port city of Chittagong to the far side of the Karnaphuli River, the site of a new Chinese economic zone. It will shorten travel time from the Chittagong airport to the economic zone from four hours to 20 minutes. Due to be completed in 2020, the tunnel will also slash the travel time between Chittagong and Cox's Bazar, one of the country's leading tourist destinations, and also connect the Korean Export Processing Zone with Chittagong airport. It will also feed into two other projects currently underway – the Asian Highway and the Dhaka-Chittagong-Cox's Bazar Highway. The Special Chinese Economic Zone, another BRI project in the southern part of Bangladesh, will have the capacity to house 150-200 industrial units and will focus on a range of different industrial sectors, including shipbuilding, pharmaceuticals, electronics, agro-business, IT, chemicals, power and textiles. The 750-acre economic zone is set to create more than 75,000 jobs which is big boon considering the huge number of unemployed youths in the country. As part of BRI cooperation, Bangladesh signed a loan deal for nearly $3 billion with China to construct the Padma Bridge rail link. Once opened, it will cut the traveling time from Dhaka to Kolkata, capital of Indian state of West Bengal, by about five hours. It will take just about three hours to get to the southern city of Khulna from the capital Dhaka, a six-hour reduction. The bridge will ease pressure on the country's premier seaport in Chittagong, as it will ensure further development of the country's second largest seaport of Mongla in Bagerhat. This project alone is expected to benefit Bangladesh's economic development, increasing its GDP by an estimated 1%. China is also contributing to the production of electricity by investing huge amounts in different power plants across the country. It is estimated that Bangladesh will need to produce 34,000mW more electricity by 2030 to sustain its current rate of economic growth. In order to meet this need, Bangladesh can benefit from the construction of Chinese-funded power stations under the BRI cooperation because the cost of power produced in the Chinese power plants is cheaper. Md Enamul Hassan is the diplomatic correspondent of the Daily Sun, Bangladesh.
Source: China.org
The Chinese Ambassador to Egypt, Liao Li Chang, said on Sunday that China plans to increase investments in Egypt to US$15 billion, up from seven billion dollars, during the inauguration of activities for the sixth edition of the China-Egypt Trade Fair. Chang added that the Chinese government has taken measures to support Chinese products in Egyptian markets. He said that a delegation of Chinese businessmen will visit Cairo in order to increase cooperation between the two countries. The China-Egypt Trade Fair aims to transfer Chinese technology to Egypt, and allow Egyptian-Chinese traders to sign contracts as part of both nations’ plan to see Egypt become a logistic center and center for exporting Chinese products to Africa and the Middle East. The fair is one of the biggest international fairs in the industries sector in Egypt and the Arab world, and adopts a strategy to support the Egyptian economy and increase foreign investment in Egypt. The fair features clothing, textiles, sanitary tools, electrical appliances, household appliances, construction supplies, electronics, lighting accessories, tools and machinery, production lines, renewable energy, generators, and food and metal industries. Egypt and China have signed a number of agreements since 2017, including the funding of the electric train project between Salam City and the New Administrative Capital, and another agreement that will entail the establishment of Egypt’s second satellite “Egypt Sat Two” with a Chinese grant of 300 million Yuan ($45 million). China will establish the electric train with 11 stops, and provide the wagons with a $740 million loan, to be repaid throughout 15 years, with a grace period of five years, MENA reported back in 2017.
Source: Egypt Independent
Major US stock indexes slipped on the news, which came days before China celebrates the 70th anniversary of the birth of the People's Republic on October 1. President Donald Trump's administration is considering delisting Chinese companies from US stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of US-China trade tensions. The move would be part of a broader effort to limit US investment in Chinese companies, two of the sources said. One said it was motivated by the Trump administ
ration's growing security concerns about the companies' activities. Major US stock indexes slipped on the news, which came days before China celebrates the 70th anniversary of the birth of the People's Republic on Oct. 1, when the world's No. 2 economy will shut down for a week of festivities. Shares of Hangzhou, Zhejiang-based Alibaba ended down 5.15%. JD.com fell 5.95% and Baidu Inc declined 3.67%. The iShares China Large-Cap ETF shed 1.15%.Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88% and shares of Nasdaq Inc declined 1.70%.It was not immediately clear how any delisting would work. In June, US lawmakers from both parties introduced a bill to force Chinese companies listed on American stock exchanges to submit to regulatory oversight, including providing access to audits, or face delisting. Chinese authorities have long been reluctant to let overseas regulators inspect local accounting firms - including member firms of the Big Four international accounting networks - citing national security concerns. "Beijing should no longer be allowed to shield US-listed Chinese companies from complying with American laws and regulations for financial transparency and accountability," Republican Senator Marco Rubio said at the time. One of the sources briefed on the matter said the idea of delisting was the latest salvo in this longstanding dispute. "This is a very high priority for the administration. Chinese companies not complying with the PCAOB (Public Company Accounting Oversight Board) process poses risks to US investors," the source said. Any plan is subject to approval by Trump, who has given the green light to the discussion, Bloomberg reported https://www.bloomberg.com/news/articles/2019-09-27/us-china-trade-war-latest-us-weighs-limits-on-portfolio-inflows, citing a person close to the deliberations. Officials are also examining how the United States could put limits on Chinese companies included in stock indexes managed by US firms, the agency cited three sources as saying. No decision or action is imminent, two sources familiar with the discussions told Reuters. As of February, 156 Chinese companies were listed on the NASDAQ and New York Stock Exchanges, according to US government data, including at least 11 state-owned firms. (https://bit.ly/2nUXQaD) NYSE declined to comment on Friday, while Nasdaq, MSCI, S&P and FTSE Russell did not immediately respond to requests for comment. China's yuan currency, traded in offshore markets , fell against the dollar after the news to trade near its weakest against the greenback in about three weeks.
PLOY?
Trade talks between the United States and China are expected to be held Oct. 10-11 after months of tit-for-tat moves by both sides which have weakened global growth and driven rollercoaster moves in markets. While the idea of delisting could be a manoeuvre ahead of those talks, the main aim was to counteract the civilian-military fusion of Chinese technology firms, the Made in China 2025 industrial development programme targeting key industries for domination and a growing surveillance state in Xinjiang, one of the sources said. The source said there are longstanding concerns about US capital enabling these activities, especially as the lines blur between state-owned and private companies in China. "It's all very disruptive, it just adds to uncertainty and it's a big negative for business investment," said Scott Brown, chief economist at investment bank Raymond James. He noted, however, that both sides have used aggressive moves in the past ahead of talks. "You never know if it's a ploy to get some leverage," he said. Trump on Tuesday criticized Beijing's trade practices in a speech at the United Nations, but the next day stoked hopes that the nearly 15-month standoff could be nearing an end. "They want to make a deal very badly ... It could happen sooner than you think," he told reporters in New York on Wednesday. China says it cannot allow its companies to submit to oversight by PCOAB because of rules prohibiting the storage, processing or transfer of any material considered to be state secrets or national security matters. US hedge fund manager Kyle Bass, a prominent critic of China, said on Friday that Chinese companies should have to play by US rules if they want to sell to US investors. "The US should require any securities sold in the US to adhere to US Securities Laws. Crazy huh?" Bass wrote on Twitter.
Source: Reuters
Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) in collaboration with International Apparel Federation (IAF) will host 35th World Fashion Convention for the first time in Lahore in November 2019. Talking to the media here Sunday, the IAF Regional President and PRGMEA Chief Coordinator Ijaz Khokhar said that mega fashion show expected to attract delegates from over 45 countries, as the PRGMEA was extending invitation to embassies of the leading countries. He added, Pakistan's textile value-chain associations had also been taken onboard to avail maximum opportunity of this mega global summit. The textile associations including All Pakistan Textile Mills Association (APTMA), Pakistan Textile Exporters Association (PTEA), Pakistan Hosiery Manufacturers & Exporters Association (PHMEA), All Pakistan Textile Processing Mills Association (APTPMA), Pakistan Bedwear Exporters Association, Pakistan Cotton Ginners Association (PCGA) and Towel Manufacturers Association of Pakistan (TMA) would participate in the event. The world renowned speakers, well-known fashion designers, buyers, brands and fashion houses would also attend the fashion show featuring panel discussions, lectures and workshops about the textile and garment industry, he mentioned. Ijaz Khokhar said that the main focus was to highlight real and soft image of Pakistan, besides updating the participants about what Pakistan produced, and ensure interaction among Pakistani exporters and international textile chains. The foreign delegates would also visit Pakistani garment and textile factories, and representatives of international designers and companies would also speak at the sessions of the convention. He mentioned that delegates, many of whom would be visiting Pakistan for the first time, would review Pakistani products, and standard of our textile and garment companies. He hoped the event would establish friendship and connections, exchanging of business cards and ideas, making individual relationships grow stronger with rest of the world and its people. Among this year's attendees will be Li & Fung Limited, the Hong Kong-based supply chain giant primarily for US and EU brands, departmental stores and hypermarkets. He said that Li and Fung''s chief operating officer would also be one of the speakers at the event along with several Chinese companies from Hong Kong joining the session. He termed the event as a large scale social networking opportunity for both foreigners and locals. IAF Regional President also announced to hold Global Fashion Awards (GFA) 2019 during 35th World Fashion Convention, claiming that it would be the IAF-PRGMEA's largest sustainable fashion competition in Pakistan, aimed at educating young fashion designers about sustainable design techniques and theories, besides providing a platform in the spotlight for the aspiring designers. The competition, he asserted, would challenge young designers to put their creative powers to the test by proving their ability to transform textile waste into wearable, appealing and commercially viable products. The top ten finalists would be presenting their creations at Gala Dinner of the 35th World Fashion Convention on November 12, 2019.
Source: The News
