Textiles minister Smriti Zubin Irani on Thursday told Parliament said textile exports have increased 6.2% post-Goods and Services Tax (GST) as compared with corresponding period pre-GST. “India faces competition from countries like Vietnam, Bangladesh and Sri Lanka which enjoy duty free access to key markets while India faces a duty disadvantage,” she said in reply to a question in Rajya Sabha. Besides, Bangladesh and Vietnam have the benefit of scale in apparel manufacturing and a large and productive labour force. In a separate reply to a question on decline in export of cotton yarn, she said: “There is no information regarding closure of spinning units due to decline in exports of cotton yarn”. Citing data from Directorate General of Commercial Intelligence and Statistics, she said cotton yarn exports from India is reported at 226 million kg during April-September 2019 as compared with 338 million kg during April- September 2018.
Source: Economic Times
The Government is responsible for policy formulation, planning and development of the textile industry by providing a conducive policy environment and creating enabling conditions for promotion of the textile industry all over the country including state of Rajasthan. In order to promote and develop various sectors/ segments of the textiles industry, the Government has been implementing various policy initiatives and schemes which support/ improve the lives and livelihoods of textile weavers through employment generation and promotes production and export competitiveness of the textile industry such as Schemes for the development of the Powerloom Sector(Power-Tex), Schemes for Technical Textiles, Scheme for Integrated Textile Parks (SITP), Scheme for Additional Grant for Apparel Manufacturing Units under SITP (SAGAM), SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS), Jute (ICARE- Improved Cultivation and Advanced Retting Exercise), Integrated Processing Development Scheme (IPDS), National Handloom Development Progarmme, Comprehensive Handloom Cluster Development Scheme (CHCDS), Silk Samagra, Integrated Wool Development Programme (IWDP), North East Region Textiles Promotion Scheme (NERTPS) and Rebate of State and Central Taxes and Levies (ROSCTL). Further, to encourage the domestic apparel sector including Rajasthan to compete in International market, Government announced key reforms under a Special Package that includes additional incentives under the Amended Technology Upgradation Fund (ATUFS), relaxation of Section 80JJAA of Income Tax Act and introduction of fixed term employment for the apparel sector. Under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), Government is providing entire 12% of employer’s contribution. The textile sector schemes mentioned above support the promotion of commercial ventures, setting up of new units as well as expansion of the existing units in the country including Bhilwada, Rajasthan. However, indicative physical targets are allotted to States/implementing agencies including in the State of Rajasthan and funds are released based on viable proposals received and utilization of previous funds. The state-wise data of exports is not maintained. In the state of Rajasthan there are 38 cotton and man-made spinning textile mills (NON-SSI). As per the data available the estimated production of spun yarn and cloth in Rajasthan during last two years is given below: 2017-18 2018-19 Spun Yarn (Mn. Kg) 495 524 Cloth (Mn.Sq.mtr) 281 254. The following activities have been implemented in the State of Rajasthan in the last five years (2014-15 to 2018-19) to promote Handloom sector: -
i) As per 4th All India Handloom Census (2019-20), there are 6446 handlooms, 8687 handloom weavers and 1403 allied workers in Rajasthan.
ii) Rs. 38.00 lakh has been released for one Block Level Cluster covering 554 beneficiaries.
iii) Rs. 99.00 lakh has been released for 4 marketing events covering 5820 beneficiaries.
iv) Loan worth Rs. 66.00 lakh has been disbursed under Weavers’ MUDRA Scheme covering 380 beneficiaries.
v) 10.03 lakh kg of yarn worth Rs. 9.42 crore has been supplied at mill gate price and 9600 kg of yarn worth Rs. 16.71 lakh has been supplied to the weavers of Rajasthan under 10% subsidy scheme of Yarn Supply Scheme (YSS).
vi) 1963 beneficiaries have been enrolled under Mahatma Gandhi Bunkar Bima Yojana (MGBBY) and 18 beneficiaries have been enrolled under Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY)/Pradhan Mantri Surakha Bima Yojana (PMSBY).
This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in written reply in the Rajya Sabha today.
Source: PIB
The panel is also looking at bringing under GST items like foodgrains that faced either value-added tax or purchase tax. The panel for shoring up muted goods and services tax (GST) collection is examining slab restructuring by increasing the 5 per cent rate to 6 per cent to begin with — a move that can result in additional revenues of Rs 1,000 crore per month. The 5 per cent slab covers essential commodities like basic clothing, footwear, and food items. The exercise assumes GST collection of Rs 1 trillion a month. According to the official data, the 5 per cent slab accounts for roughly 5 per cent of GST collection. However, the government’s monthly GST collection target is around Rs 1.18 ...
Source: Business Standard
The ongoing trade war between the US and China was an impetus for India to slash corporate tax rates through an ordinance, and waiting for the FY21 budget was a delay which the government wanted to avoid, Finance Minister Nirmala Sitharaman said on Thursday. Sitharaman had in September announced corporate tax rate cut from an effective 35% (including surcharges and cesses) to an effective 25.17% while the rate for new manufacturing companies reduced to 15% from 25%. The Rajya Sabha on Thursday gave its assent to the Taxation Laws (Amendment) Bill, 2019, replacing an ordinance that was used to slash corporate tax rates to stimulate growth. The Rajya Sabha cleared the legislation with a voice vote without any changes. The Lok Sabhahas already passed the bill. As per rules, the Rajya Sabha cannot amend a money bill but can recommend amendments. “Considering the trade war between the US and China, which was looming large, everybody was speculating, there were several companies which were likely to come out of China even if they kept their operations there, they wanted to shift,” Sitharaman said. The minister said while Southeast Asian countries like Thailand and Vietnam were rolling out tax concessions as the global trade war escalated, India had to respond well in time to attract investments at the earliest. “Should India be waiting for a golden moment to come up with this kind of a concession, instead of getting it sooner rather than later, and drawing these companies to come to India and invest,” Sitharaman said. Clarifying further on the bill, she gave a negative list of activities that did not classify as manufacturing. “Certain activities are not in the nature of manufacturing, such as development of computer software, printing of books, mining, etc shall not be allowed as manufacturing for the purpose of allowing lower taxation regime available to new manufacturing companies,” Sitharaman said. Cutting down the corporate tax rate, is not just good for headline, it is not just good PR, it is not just good atmospherics, it is good reform,” she added. The minister said the government had taken a “conscious call” on the new tax regime applying to fresh investments. “The idea of giving a lower tax rate for new manufacturing companies is because we want fresh investment to come in,” Sitharaman said. “It should not become that the whole lot of existing production capacities and investment just transfer to the new one with no additional investments coming in.” Sitharaman said she had been constantly in touch with trade bodies, industry leaders, to address issues they were facing and responding almost fortnightly with recuperative measures since August this year. Countering the criticism on declining consumption, she said private consumption in the first half of 2019-20 was still 2% higher than that during the UPA-II regime. “Private consumption during UPA-II was 56.2% of GDP. This increased to 59.0% during NDA-1. Even in the first half of 19-20, private consumption is 58.5% of the GDP, still about 2.2% higher than that during UPA-II,” Sitharaman said.
Source: Economic Times
Capacity utilisation in India’s manufacturing sector plummeted to 68.9 per cent in the September quarter (Q2 FY20), its worst-ever level since 2008. It had reached a six-year high of 76 per cent two quarters ago, in March 2019, the Reserve Bank of India’s monetary policy committee (MPC) said in a statement on Thursday. Capacity utilisation had improved gradually from 71 per cent in the aftermath of demonetisation to 76.1 per cent in January-March 2019. “The slowdown in manufacturing activity was also reflected in the decline in capacity utilisation (CU) to 68.9 per cent in Q2FY20 from 73.6 per cent in Q1 in the early results of the Reserve Bank’s order books, inventories, and capacity utilisation survey (OBICUS),” the statement said. This data corroborates the severity of the current slowdown in industry. A sharp drop of 4.7 percentage points, from 73.6 per cent to 68.9 per cent, is also unprecedented. Even the seasonally adjusted CU stood at 69.8 per cent. This indicates that whenever demand picks up from here, companies would first improve capacity use, before investing into new capacity. Industry players said they were indeed seeing a serious fall in capacity usage, though some sectors were seeming to prevent further fall in the overall CU. Cement is one crucial industry segment, that indicates demand for construction and infrastructure — be it roads, highways, or metro projects. For India’s largest cement producer, UltraTech, CU fell to 62 per cent in Q2 from 73 per cent in Q1, the company said. Mahendra Singhi, MD and CEO at Dalmia Bharat, and president of the Cement Manufacturers Association, said there had been “de-growth” in cement demand (sector level) in the last eight months. “For probably the first time, demand for cement from the rural contracted in the first half of FY20. This is an area of great concern,” he told Business Standard. At Dalmia Bharat, capacity utilisation has touched 72 per cent. Experts said that while the cement sector started the year with near-80 per cent capacity utilisation, they estimate it to be close to 67 per cent this fiscal year. This echoes the CU in the manufacturing sector. “Capacity utilisation in the capital goods sector remained in the range 50 and 65 per cent across sub-segments. In normal times, this could have gone up to 80 per cent. We expect Q3 (current quarter ending December) to be worse, with a recovery in Q4,” said MS Unnikrishnan, MD & CEO at Thermax. Jindal Steel and Power, however, said the company held up capacity utilisation. “In the September quarter, our capacity utilisation was 85 per cent and has risen to 100 per cent in current quarter,” VR Sharma, managing director at JSPL, said. When the global financial crisis hit India's economy in 2008, the RBI started surveying the manufacturing sector's capacity utilisation (CU). In Q1 of 2008-09, CU stood at 73.7 per cent, which crossed the 80 per cent mark in 2009-10. “Sentiment in the manufacturing sector remained in pessimism in Q3 due to continuing downbeat sentiments on production, domestic and external demand, and the employment scenario,” the MPC statement said.
Source: Business Standard
A year after his unexpected entry into the Reserve Bank headquarters, governor Shaktikanta Das said the relationship between the government and the central bank had improved and that growth was a “national objective” which was making both work together. Das, while speaking at the postpolicy press conference on Thursday, said at a critical juncture where growth was slacking, it was of paramount importance that monetary policy and fiscal policy work in coordination to achieve the best results in the national endeavour to revive growth. “The government and the RBI will continue to work together to achieve the national objective of reviving growth. It is not one individual authority’s problem,” he said. “Growth is the responsibility of both the government and the RBI and both will continue to work in a coordinated manner. So far, there is good coordination between the fiscal and the monetary authorities. To say that one is looking at the other for growth is wrong. Both are committed towards the revival of growth.” The career bureaucrat entered the RBI headquarters last December, at the most turbulent time in the relationship between the central bank and a government going into election amid sputtering economic growth. Das’ entry was also much talked about, due to the unexpected exit of predecessor Urjit Patel because of the pulls and pressures of the government on several issues ranging from bringing troubled state-run banks out of the prompt corrective action framework to more dividends from the RBI reserves. Das said hopes were pinned on the upcoming budget and a possible stimulus from the government to revive the economy. “With regard to the budget, it is not a question of worry that the fiscal deficit will be high. In fact, I have gone to the extent of saying that in situations like this, when growth itself has fallen, the monetary and the fiscal authorities will continue to work together in greater coordination,” he said. “We would like to have greater clarity with regard to the kind and nature of counter-cyclical fiscal and other measures if any to be announced by the government in the budget. It will give us greater clarity, it’s not a question of worry.”
Source: Economic Times
India led seven countries at the World Trade Organization (WTO) in objecting to some nations trying to bring in rules to erect barriers to services trade and cross-border movement of professionals through qualification and licensing requirements, and technical standards. India teamed up with South Africa, Sri Lanka, Tunisia and Zimbabwe on Tuesday and raised objections to disciplines being built around requirements such as recognition of professional qualifications and professional bodies, among other requirements called domestic regulations in trade parlance. Ecuador and Venezuela joined in expressing their concern. Arguing that the joint initiative of the 59 members of the WTO was “not mandated to and cannot assume the role of making disciplines”, they said that some members were trying to “establish a competing and parallel mechanism to pursue and achieve the same objectives, without the consent of the entire membership”. The European Union, China, Australia, Japan, Korea and Russia are part of the joint initiative, which has proposed rules for services suppliers including those related to gender and seeks to encourage recognition dialogue between the professional bodies of “relevant” WTO members. “These members said that a clear multilateral pathway is already in place, even though those negotiations have not concluded due to disagreement about whether the disciplines are necessary or what parts of the disciplines are necessary,” said an official. The move assumes significance in the wake of the US, the EU, Canada and Australia erecting barriers through domestic regulation conditions to deny market access to short-term services providers from India under the Mode 4 of General Agreement on Trade in Services. Mode 4 or movement of natural persons is one of the four ways through which services can be supplied internationally. It includes movement of natural persons such as independent professionals and is of key interest to India. Questioning the competence of the joint initiative, the group of opposing countries said the Working Party on Domestic Regulation (WPDR) was established in 1999 precisely to put in place those disciplines. India said that the proposal does not include “any of the commercially significant disciplines in the area of Mode 4 and more specifically on qualification requirements and procedures, all of which were integral part of the earlier work done in the WPDR”. A group of 35 WTO members had formed a plurilateral on services domestic regulation at the last ministerial conference in Buenos Aires in 2017 and is trying to get specific commitments at the next ministerial conference in Kazakhstan next year. “These rules and the way they are being sought to be put in place, are against the multilateral rules based system and will tie the hands of developing countries, most of which are service economies,” said a Delhi-based expert.
Source: Economic Times
The interim report is likely to be made public just before or on the day of the Budget. The Fifteenth Finance Commission is believed to have maintained status quo for now, by recommending that the devolution of the divisible tax pool to states be kept at the existing 42 per cent for 2020-21. The Commission (FC) submitted its interim report for the financial year 2020-21 to President Ram Nath Kovind on Thursday, and apprised the President of the recommendations, an official statement said. An official confirmed that the FC had kept the devolution to states unchanged for now. This is even as it uses the extra time it has been given to navigate challenging circumstances like the economic slowdown, unrealistic fiscal and revenue targets by the centre and states, and the status of Jammu and Kashmir as compared to other union territories like Delhi and Puducherry, before the submission of its final report in October 2020. The interim report will now be given by the President to the Finance Ministry, and will enable Finance Minister Nirmala Sitharaman and her bureaucrats to prepare the 2020-21 budget. The interim report is likely to be made public on or just before the day of the budget, when it is tabled in Parliament, another official said. Late last month, the Cabinet had extended extension to the term of 15th FC by eleven months. The commission will submit a full report for fiscal years 2021-22 to 2025-26. This takes the period for which the 15th FC will recommend its award to six fiscal years instead of the usual five. However, this does not fall foul of what has been mandated in the Constitution of India. Article 280 of the Constitution states that the President shall constitute a Finance Commission at the expiration of every fifth year or at such earlier time as the President considers necessary. Simply put, this means that while 15th FC can give recommendations for six years through two reports (2020-21 to 2025-26), when the Sixteenth Finance Commission is set up, it will consider devolution for 2025-26 to 2029-30, and not from 2026-27. This will essentially keep the award period of the 15th FC at five years, since these are just recommendations which the government accepts. The extra time had been given to 15th FC for the new union territories of Jammu and Kashmir and Ladakh. The issues regarding Jammu and Kashmir and Ladakh surround the fact that while technically union territories don’t get a share of the divisible tax pool, and their resources come from the centre’s share of the divisible pool, the Jammu and Kashmir Reorganization Act mandates the 15th FC to consider the Union Territory of Jammu and Kashmir to be paid out of the divisible pool, i.e it should be treated like a state. Ladakh on the other hand, is expected to get funds out of the centre’s share, like any other Union territory.
Source: Business Standard
West Bengal government has decided to set up a 'design bank' to revive the silk sarees produced in the state. This will be done with the help of students of art colleges in the state and other artistes against remuneration that will be provided by the state government. Bengal silk was once famous worldwide. Under the patronage of the nawabs of Murshidabad Bengal silk products reached Europe and were later exported by the British merchants. The quality of Murshidabad silk was premium and the designs were exclusive. However, with time, the Murshidabad silk lost its glory along with Bishnupuri silk. The state chief minister Mamata Banerjee has taken active interest to revive the lost heritage. In order to popularise the silk products manufactured in the state, she has advised the weavers to bring about variations in designs so that they look more modern.The weight of the sarees will also be reduced, sources added.
Source: Economic Times
India's decision to stay out of the Regional Comprehensive Economic Partnership (RCEP) may increase Southeast Asia’s dependence on China, but a recently opened corridor between Thailand and Myanmar could ease those concerns by bringing new business opportunities for five ASEAN countries and India. The new bridge - part of the East-West Economic Corridor between Thailand and Myanmar that opened a few weeks ago will give Cambodia, Laos, Myanmar, Thailand and Vietnam access to the vast Indian market and reduce heavy reliance on China, ET has learnt. The second Thai-Myanmar Friendship Bridge across the Moei River, which connects Myawaddy, a city in Myanmar’s eastern region, and Mae Sot district in western Thailand, was built at a cost of about $140 million, according to the Thai government. Distribution of goods will become smoother on this new highway link. The East-West Corridor is a project to build a large economic bloc along a 1,700-km land route from Vietnam to Myanmar via Laos and Thailand. From there, Southeast Asian states can gain access to India over the Bay of Bengal. India has built a port at Sittwe in Myanmar, which will be linked to Mizoram state in the north via a multi-modal transport network. Besides, a highway connecting India with Thailand via Myanmar could become operational by 2020 and may be expanded to Vietnam. India and Thailand recently signed pacts for port connectivity, adding meat to the Act East Policy and the Indo-Pacific vision. Besides, India is expediting a maritime connectivity link between the Andaman and Nicobar Islands and Aceh in Indonesia, where it will build a port in Sabang. India has major plans to expand its presence in the Ganga-Mekong region, which covers the five ASEAN states. "These initiatives are to be linked with the eastern water grid that the Government of India is planning to develop over the Ganges, Brahmaputra, Brahmani and their tributaries. We should think about a multi-modal connectivity ecosystem in the Bay of Bengal region including encouraging these countries to explore digital connectivity," Bipul Chatterjee, Executive Director, CUTS International, a leading public policy body, told ET. Eastern Myanmar was initially designated as the western end of the East-West Economic Corridor. But it was extended to Yangon, the biggest city in Myanmar, and will be linked to the Thilawa Special Economic Zone, being built in collaboration with Japan, where Toyota Motor Corporation is building a plant. “With completion of GMS's East-West Economic Corridor, regional connectivity between india and Southeast Asia becomes stronger. Trilateral Highway connects GMS's EWEC at Myanmar-Thailand border, further opening up prospects of value chain linkages between Northeast India and CLMV-T. We need to negotiate Motor Vehicle Agreement with Myanmar and Thailand to facilitate seamless movement of cargoes,” according to Prabir De Professor, ASEAN-India Centre (AIC), Research and Information System for Developing Countries (RIS). Following the opening of the bridge, Myanmar and Thailand have begun testing their cross-border transport agreement, which allows passage for vehicles from both sides. The countries will issue licences to logistics companies to directly transport goods between the Thilawa SEZ and Laem Chabang Port, Thailand’s largest maritime port. Construction of an arterial road is also ongoing in Vietnam, Laos and Thailand. In Myanmar, while construction work had been hampered by ethnic conflicts in the border area, there has been some progress. The development of a 90-km section started about two years ago and the Myanmar government expects the road to open in 2021. Thereafter, transportation between Thailand and Myanmar will take less than 24 hours.
Source: Economic Times
Welspun group promoters have acquired a majority stake in One Industrial Space, which is into development of warehousing space, in their personal capacities. One Industrial Space, which was founded in July 2019 by Anshul Singhal, will be re-branded as 'Welspun One Logistics Parks', a company statement said. The deal value has not been disclosed. Singhal will be the managing director of Welspun One. "The promoters of the USD 2.7 billion Welspun Group have acquired a majority stake in One Industrial Spaces, an integrated fund, development and asset management organisation focused on the warehousing sector in India. The investment was made by the promoters in their personal capacity through a closely held family office investment vehicle," it said. The Welspun Group has business interests in line pipes, home textiles, infrastructure, oil & gas, advanced textiles and floorings solutions. "Welspun One will also be the exclusive development manager for a portfolio of ready land assets owned by the promoters in their personal capacity with an estimated value of USD 50 million and development potential of over 5 million square feet of Grade-A industrial or warehousing space," the statement said. This includes around 3 million square feet project in MMR. B K Goenka, chairman, Welspun Group said: "The warehousing sector presents an attractive investment proposition as it provides both development returns as well as stable long-term rental yields." Indian consumers demand same day delivery both online and offline, which has resulted in an increased strategic back-end storage requirement, he said. "We have been looking to enter this space as warehousing demand is poised to grow aggressively," Goenka said. Singhal said: "Currently, a big challenge for existing players in this space is the land acquisition and approvals. As Welspun One, we are uniquely positioned to address these challenges. We can now leverage their deep understanding and experience in buying large land parcels and successfully executing millions of square feet of industrial and infrastructure projects pan India." Welspun One will continue to build its core business of fund, development and asset management, which includes raising funds from domestic and foreign institutional investors to invest in the industrial asset class in India in an organized, transparent and institutional manner.
Source: Times of India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
956.14 |
USD/Ton |
0.52% |
12/5/2019 |
|
VSF |
1423.58 |
USD/Ton |
-0.50% |
12/5/2019 |
|
ASF |
2031.97 |
USD/Ton |
0% |
12/5/2019 |
|
Polyester POY |
971.72 |
USD/Ton |
-1.08% |
12/5/2019 |
|
Nylon FDY |
2068.09 |
USD/Ton |
0% |
12/5/2019 |
|
40D Spandex |
4065.36 |
USD/Ton |
0% |
12/5/2019 |
|
Nylon POY |
1083.62 |
USD/Ton |
0% |
12/5/2019 |
|
Acrylic Top 3D |
2351.39 |
USD/Ton |
0% |
12/5/2019 |
|
Polyester FDY |
5354.37 |
USD/Ton |
0% |
12/5/2019 |
|
Nylon DTY |
1218.19 |
USD/Ton |
0% |
12/5/2019 |
|
Viscose Long Filament |
1954.77 |
USD/Ton |
0% |
12/5/2019 |
|
Polyester DTY |
2167.25 |
USD/Ton |
0% |
12/5/2019 |
|
30S Spun Rayon Yarn |
2011.43 |
USD/Ton |
-0.35% |
12/5/2019 |
|
32S Polyester Yarn |
1551.07 |
USD/Ton |
0.46% |
12/5/2019 |
|
45S T/C Yarn |
2386.80 |
USD/Ton |
-0.30% |
12/5/2019 |
|
40S Rayon Yarn |
1713.97 |
USD/Ton |
-0.82% |
12/5/2019 |
|
T/R Yarn 65/35 32S |
2280.57 |
USD/Ton |
0% |
12/5/2019 |
|
45S Polyester Yarn |
2308.90 |
USD/Ton |
0% |
12/5/2019 |
|
T/C Yarn 65/35 32S |
1898.11 |
USD/Ton |
0% |
12/5/2019 |
|
10S Denim Fabric |
1.25 |
USD/Meter |
0% |
12/5/2019 |
|
32S Twill Fabric |
0.68 |
USD/Meter |
-0.41% |
12/5/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
12/5/2019 |
|
30S Rayon Fabric |
0.54 |
USD/Meter |
-0.26% |
12/5/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
12/5/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14165 USD dtd. 5/12/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan's trade mission in Spain has recommended the textile sector exporters to adopt sustainable business processes and add 'green products' to their range so that they could differentiate themselves from other competitors in the European market. “Fairtrade, organic and/or responsible concepts give a competitive edge in Europe and may ease market entry. In addition to complying with common sustainability standards and certification, this can give access to a promising niche market,” noted a report issued by the commercial section of Pakistan’s Embassy in Madrid. “The European market is highly competitive, characterised by strong buyer power and rivalry. Price sensitivity is high, requiring suppliers to offer quality at a competitive price.” The trade mission officials in the report pointed out the higher market segments were the most promising, as they allowed exporters to distinguish their products. The Madrid commercial office also urged the Trade Development Authority of Pakistan (TDAP) to encourage exporters for creating their own brands as well for catering to specific niche areas in the textile sectors as well like in hospital, hotel textile, and safety/work wear textiles. “We reiterate that TDAP should send a high-level delegation [to Spain] as already asked by this office as soon as possible to sensitise supply chain and also to give more opportunities to our exporters,” the commercial officials said in the report. Having undergone a massive restructuring, the textile in the European Union (EU) had now become more capital-intensive, the report said, adding that trade in this sector was entering a more liberalised and more competitive world. “Therefore, in order to enhance exports, Pakistani manufacturers need to go for modern technology and should emphasise on the quality of finished products. The government should introduce and monitor the global quality standards, ISO 9000 and ISO 14000 in the production of textile products,” the report said. The report predicts Pakistan is likely to continue to confront stiff competition from China, India, Vietnam, Bangladesh, Turkey, Italy, Portugal, and Myanmar. China, India and Vietnam are amongst EU’s major suppliers of textile products, while countries like Turkey, Italy, Portugal, and France have the advantage of being in proximity and assured timely supplies, with minimum financial cost of small inventories. According to the study, there are different subsidies given by various countries to manufacturing sector affecting costs of doing business, also depending on various utilities and labour rates. “Also, our competitors are better in artificial leather. Pakistan needs to develop in terms of value-addition in producing artificial leather clothing, which is more in vogue due to ever changing fashion trends and its more affordable value in the European market,” the report recommended. “Further, we need to inter-alia attract more buying houses to Pakistan, as our competitors have more buying houses established in their countries”. Textile exports edged up 2.95 percent to $3.371 billion in the first quarter of the current fiscal year with outbound shipments of knitwear and readymade garments rising in double digits during the period. Pakistan Bureau of Statistics (PBS) data showed that textile exports amounted to $3.275 billion in the corresponding period a year earlier.
Source: The News
The Philippines garment and textiles industry roadmap sees the Philippines become one of the top ten global players with annual exports growth of 45 percent should it implements some recommendations including elimination of the popular “ukay-ukay” (used imported clothing) that proliferates anywhere in the country and the utilization of natural fibers. At the industry forum and launch of the Textile-Garments Industry Roadmap, the plan covering 2020-2029 was divided into three milestones: short-term (2020-2022), medium term (2023-2025) and long-term (2026-2029). Under the short term milestones, the Philippines should already be among the top 20 garment exporters with annual growth of 12.3 percent in garment exports and 3-5 percent increase in textile exports. This should be made possible with the increase in the utilization of natural and synthetic textile fiber by 5-10 percent. Under this milestone, the government was urged to address smuggling and proliferation of “ukay-ukay” by strictly implementing RA 4653. The government must also reinstate the SGS pre-shipment inspection and to cancel business permits related to trading of used clothing. Incentives to the industry was also pushed in the short term for the innovative product processing that promotes sustainability and green environment. Reduction of the 12 percent value added tax was also pushed. For the short term milestone, the roadmap forecasts the Philippines to improve its world ranking in garment exports into the top 15 largest globally. It is expected to increase its garments by 21.7 percent annually and 10 percent increase in natural and synthetic textile fiber. This milestone has called for government to address infrastructure gaps and logistical bottlenecks. It also urged for production efficiency, transportation , communication and distribution through high-quality infrastructure and logistical services. Export market diversification must also be pursued with more bilateral free trade agreements with emerging markets to reduce dependency on the US and EU markets. Improved R & D must be pursued to come up with innovative products. For the long-term, the roadmap said that an annual 45.8 percent annual increase in the exports of garments is attainable by 2026-2029. This milestone has foreseen the Philippines already at the top ten of the world’s biggest garment exporters. The Philippines is already a unique, well-known affordable and great for everyday wear global brand as the industry has already upgraded to original brand manufacturer with homegrown Filipino labels. The industry has already a textile manufacturing that could fully support garment producers offering a more diverse range of products both for the local and export market.
Source: Manila Times
Coloreel joins the Textile Machinery Association of Sweden (TMAS) and will take part in seminars, trainings, exhibitions, and other events to further develop the business. The company has developed the Coloreel technology, a ground-breaking innovation that enables high-quality colouring of textile thread on demand, opening amazing new design possibilities. “We want to be a forerunner in the textile industry that takes charge and leads the development. We want to increase awareness and spread the word that we are here to start a revolution. Joining TMAS will help Coloreel to further market and network in the best arenas, both in Sweden and globally,” Magnus Hellström, VP sales and marketing at Coloreel said in a press release. “We are happy to welcome Coloreel to our industry and the TMAS association. Coloreel is making important contributions to the industry’s sustainable future with completely new technology on the market. They improve efficiency and quality and reduce waste in their production process, benefits that are in line with the expectations for the textile production of the future,” TMAS secretary general Therese Premler-Andersson said. TMAS was founded in 1997 to support and promote Swedish textile machinery manufacturers. TMAS is made up of the leading Swedish companies within textile technology, automation, and production processes. Coloreel has started delivering Coloreel units to customers all around Europe. World-leading companies in textile, fashion, and sportswear are standing in line to use the revolutionary product.
Source: Fibre2Fashion
With preferential tariffs provided under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Việt Nam has the opportunity to increase exports of garments, footwear, timber products, and beverages to other member countries. But Vietnamese enterprises’ ability to take advantage depends on their preparation, Nguyễn Thị Thu Trang, director of the Việt Nam Chamber of Commerce and Industry’s WTO and Integration Centre, said. Speaking at a conference titled 'Opportunities and Challenges from CPTPP for Việt Nam’s Garment and Textile, Footwear, Timber Products and Beverage Sectors' held in HCM City on December 5, she said: “Our exports of footwear, garment and textile, timber products, and beverages to CPTPP member countries account for 12.5 per cent, 16.04 per cent, 20 per cent and 23.46 per cent of their total exports. “We export a lot to CPTPP member countries, but our market share remains modest, for instance at 2-2.9 per cent of their footwear imports and 0-6 per cent of garment and textile imports. Therefore, there is still much more room for Vietnamese firms to boost exports. “Canada, Mexico and Peru are countries that Việt Nam does not have free trade agreement with, thus CPTPP offers great opportunities for Vietnamese firms to access these markets through preferential tariffs.” But to capitalise on the opportunities, the products must meet the CPTPP’s rules of origin and conform with sanitary and phytosanitary (SPS) requirements and technical barriers to trade (TBT), she said. “If we do not meet their requirements, we cannot utilise the preferential tariffs that CPTPP member countries offer to us.” Japan, Malaysia, Singapore, Australia, New Zealand and Chile are countries that Việt Nam has bilateral or multilateral FTAs with. The CPTPP creates another preferential tariff scheme for businesses, who, depending on which FTA offers more advantages, should choose that to export under, she said. Khưu Thị Thanh Thủy, general secretary of the HCM City Textile and Garment - Embroidery Association, said Vietnamese garment and textile firms have faced difficulty in meeting the CPTPP’s rules of origin since their raw material imports from countries outside the CPTPP remain high. Local and foreign firms are now investing in the underdeveloped textile, dyeing and fabric segments to increase the local content rate, she said. Nguyễn Chánh Phương, deputy chairman of the Handicrafts and Wood Industry Association of HCM City, said: “Meeting the rules of origin is not a difficult task for the wood products sector.” But the sector has not benefited much in terms of tariff duties from the CPTPP because import tariffs on Vietnamese furniture were already very low and even zero in many markets, he said. “Most companies in the timber industry make their products in the form of OEM (according to customers’ orders). Firms mainly wait for buyers to come. With the current good market situation, for example, a strong increase in exports to the US, firms may not find new opportunities.” He said local firms should do market research to appropriately target exports, adding that businesses, especially large ones, need to have market research divisions to discover new opportunities brought by FTAs and changes from competitors. Võ Tân Thành, director of the Việt Nam Chamber of Commerce and Industry’s HCM City branch, said: “Tariff commitments in the CPTPP come with relatively detailed and complex rules of origin, which not all businesses know how to comply with. “Therefore, understanding CPTPP commitments, the conditions required to take advantage of the opportunities, their impacts on market prospects and development trends in these sectors are important for Vietnamese enterprises to take advantage of the exciting opportunities arising from the CPTPP.”
Domestic market
While offering benefits in terms of creating export opportunities and improving incomes for millions of workers, the agreement also creates competitive pressure in the domestic market since Việt Nam has also to lower tariffs on imports from other member countries. Theoretically, CPTPP would bring intense competition in the domestic market, Trang told the media on the sidelines of the conference. “But our competitiveness in these sectors is relatively strong. In addition, at least seven partners in the CPTPP have FTAs with us and we have already opened the market wide to them. Therefore, there has been competition in these sectors after the CPTPP took effect, but it is not a big shock. “We are very successful in exporting these products and account for rather large market shares in many foreign markets. “But firms did not pay much attention to the domestic market. So I hope businesses pay attention to the domestic market since many foreign companies consider our market a delicious piece of cake.” Competing at home would be easier for local firms and so they should tweak their strategy to focus more on the domestic market, she added.
Source: Vietnam News Association
An increase in power tariff through quarterly adjustments has frittered away the initiatives of the government meant for the export sector. These comments came from All Pakistan Textile Mills Association (APTMA) in a letter to the Prime Minister Adviser on Commerce, Industries and Production and Investment, Abdul Razak Dawood. The copies of the letter have also been sent to the Secretary to Prime Minister, Azam Khan, Secretary Commerce and Textile, Chairman Task Force on Textile, Ahsan Bashir and DG, RDA Cell, Ministry of Textile, Kanwar Usman. According to the textile sector, realizing that the power tariffs for industry in Pakistan are well above the regionally prevailing competitive tariffs the government notified a tariff of 7.5 cents/kWh in January 2019. Since July 2019, Discos are charging a quarterly adjustment in addition to 7.5 cents/kWh. “We now understand that it is proposed to charge FPA in addition to these as well which essentially means that the exporter will not be aware of his energy cost and will therefore have to export on a presumptive cost basis which naturally will be higher to cater for unforeseen costs," said Shahid Sattar Executive Director APTMA in his letter. Textile sector maintains that setting tariff in cents was done so that the increase in tariff occurs automatically whenever there is devaluation of the rupee and to provide a stable internationally competitive rate. In this particular case, the per unit additional rate of the zero rated industry has increased by Rs 1.2 from Rs 11.38 per unit. “We can't understand the logic of charging another Rs 4-5 per unit on top of this which will defeat the purpose of a dollar based competitive tariff," Sattar added. APTMA claims that the exporting sector, charged Rs 15 to Rs 16/kWh, would also be subject to continuous change. Power Division is marketing additional power to all and sundry at a fixed price of Rs 11.7/Kwh. The bulk of this use would be competitive rather than being productive. This is inexplicable as the critical need of Pakistan's economy and future is expanding exports for a sustainable balance of payments. Further, 7.4 cents tariff was specially approved by the ECC and the Cabinet. It is surprising that a decision of the government was altered without first getting approval of the ECC and the Cabinet and is now being regularized retrospectively which will lead to unnecessary litigation. Textile sector further contended that Pakistan's exports, which have shown remarkable progress of 30 percent in volume terms and are set to contribute an addition $ 2 billion to the country's export, will lose their competitive edge. “The situation now is that industry is not sure of its costing as energy forms a significant proportion (35 percent) of the conversion cost. Under these uncertain conditions the government instead of facilitating and providing a regionally competitive energy tariff and ease of doing business is actually doing exactly the opposite. The Prime Minister and government's initiatives to facilitate exports are being frittered away," Sattar continued. Textile industry has requested the Adviser to Prime Minister to ensure the continuation of power tariff at 7.5 cents/kWh inclusive of all charges.
Source: Business Recorder
