The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 08 JAN, 2020

NATIONAL

INTERNATIONAL

India to hit $7 bn in MMF textiles exports in 2020: SRTEPC

Exports of Indian man-made fibre (MMF) textiles is expected to reach $7 billion by the end of fiscal 2020-21, witnessing a growth of at least 10 per cent from the current level, according to Ronak Rughani, chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), which is optimistic about a further momentum in the sector this fiscal. Though the present trend of total MMF textiles exports from India is not encouraging, exports in value-added segments like fabrics witnessed nearly 8 per cent growth during April-October period in 2019-20 as compared to the same period in the previous fiscal, the council said in a press release. SRTEPC has prepared a20-point strategy for the development of MMF fibre textile segment. The points include bringing in fibre neutrality, lowering interest rates, making raw materials to be made available at international price, considering textile job work as manufacturing in the goods and services tax regime, considering textile merchant exporters as manufacturer exporter, branding and WTO-compatible schemes.

Source: Fibre2Fashion

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Govt's mega plan to boost exports: Credit at lower rate for small biz soon

Interest rates will likely fall to 3.15% for export credit in dollar terms and 7.35% in rupee terms. The Union government is working on measures to arrest declining exports. For that, it plans to come up with an export financing scheme in the next couple of weeks, to offer lower interest rates in rupee and dollar terms as well as reduced premium cost for small businesses. Under the Nirvik (Niryat Rin Vikas Yojana) scheme, the interest rates will likely fall to 3.15 per cent for export credit in dollar terms and 7.35 per cent in rupee terms, according to the proposal moved to the Cabinet. Currently, the interest rates are pegged at 3 to 6 per cent for credit in foreign currency and ...

Source: Business Standard

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Govt may link GST refund to remittance for risky exporters

The government is looking at linking the refund of goods and services tax (GST) to "risky and new" exporters with remittance of foreign exchange apart from accessing bank transaction details as part of an exercise to plug revenue leakage. The issues were discussed at a meeting of top tax officers with revenue secretary AB Pandey on Tuesday, where it was decided to put in place a standard operating procedure (SOP) to fix fraudulent refund claims, including those related to sectors where the final product has higher GST than inputs and raw materials. A committee of state and central officers has been tasked with finalising the SOP within a week so that it can be implemented by the end of the month. To ensure better scrutiny of data, the Central Board of Indirect Taxes and Customs (CBIC) will enter into an arrangement to share data with GST Network (GSTN) and Central Board of Direct Taxes (CBDT) on a quarterly basis, instead of the current mechanism of an online exchange, an official release said. This will help in profiling those indulging in frauds. Data analysis has already helped in detecting widespread GST evasion, especially fraudulent refunds by fly-bynight operators. The recent investigation of Integrated GST refunds to exporters has prompted GST officers to look at new ways to protect revenue. One of the suggestions is to mandate a single bank account for foreign remittance receipt and refund disbursement for better tracking, although businesses said that the move was intrusive and would burden the entire industry due to the fault of a few entities. The officers also decided to explore access to banking transactions, including the bank account details by GST system, in consultation with RBI and NPCI. "It was also explored to make GST system aligned with Financial Intelligence Unit for the purpose of getting bank account details and transactions and also PAN-based banking transaction," the statement said. Besides, all major cases of fake tax credit on inputs, export-import frauds and fraudulent refunds will also be probed by investigation wing of the income tax department.

Source: Times of India

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Nine-point plan firmed up to plug GST revenue leaks

A nine-point plan has been firmed up to plug revenue leakages under the goods and services tax regime. It includes setting up a panel with tax officials from Centre and states to draw up a standard operating procedure for tackling refund frauds. The action plan was finalised after a meeting of state and central GST chief commissioners on Tuesday chaired by revenue secretary Ajay Bhushan Pandey. “The committee of Centre and state officers will come out with a detailed standard operating procedure within a week, which may be implemented across the country by January-end,” said a GST Council Secretariat statement. The committee’s aim will be to examine and implement quick measures to curb fraudulent refund claims. Linking foreign exchange remittances with integrated GST refunds may be undertaken to check fraudulent refund claims for new or risky exporters, while a single bank account for remittance receipt and refund disbursement will be created, it said. Further, the GST Network, Central Board of Direct Taxes and Central Board of Indirect Taxes and Customs will share data on a quarterly basis for early identification and checking of fraud cases, the statement said. “A memorandum of understanding will be signed by the agencies. This will ultimately lead to increased revenue collections and at the same time ensure that genuine taxpayers are not harassed,” an official said. Also, CBDT and CBIC will jointly profile fraudsters by sharing data of cases involving evasion and fraudulent refund. Besides sharing of data, access to banking transactions including the bank account details by GST system will be developed in consultation with the Reserve Bank of India and the National Payments Council of India. The GST system will be aligned with Financial Intelligence Unit for getting details of bank accounts, transactions and PAN-based banking transactions. Further, GSTR forms will be amended to include self-assessment declaration in case of closure of businesses, as a means of ease of doing business for companies. Tax experts said the proposed measures should be implemented well. “While these measures cannot be questioned, it needs to be ensured that these are implemented well on the ground, not leading to harrassment for taxpayers,” said Pratik Jain, indirect taxes leader, PwC. Industry needs to be careful in GST filing and should ensure that adequate control is exercised on vendor's compliances, which would anyway be needed with introduction of e-invoicing from April, Jain added.

Source: Economic Times

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Govt taking steps to simplify taxation; curb harassment of taxpayers: FM

Based on suggestions received from various stakeholders, the government is taking steps towards simplification of taxation system, she added. Finance Minister Nirmala Sitharaman on Tuesday said the government is taking various steps to simplify taxation system and eliminate harassment of honest taxpayers. Addressing an event organised by Confederation of All India Traders (CAIT), the finance minister said the government is open to suggestions for the betterment of GST filing system. Based on suggestions received from various stakeholders, the government is taking steps towards simplification of taxation system, she added. In a bid to curb harassment of taxpayers, she said, a faceless e-assessment scheme was launched in October to eliminate interface between an assessing officer and a taxpayer. The tax department has implemented a computer-generated document identification number (DIN) to ensure greater transparency and accountability in tax administration. The DIN system, which became operative from 1 October 2019, will apply to all kind of communications from the income tax department, whether it is related to assessment, appeals, investigation, penalty and rectification, among others. This development will also help taxpayers to detect fake notices and letters as the notice would be verifiable on the department's e-filing portal. Besides, the finance minister said, such cases have to be closed within 30 days. She also said that there would be shopping festival held across the country soon. In a bid to boost trade, Sitharaman had in September last year announced Dubai-like mega shopping festivals in India, starting March 2020. The commerce ministry is working on this and it will provide a big platform for traders to sell their goods. The government is expected to hold these festivals in four Indian cities, and the move is likely to boost textiles, leather industry & promote yoga tourism. The government is planning various themes for these festivals, ranging from gems and jewellery, textiles and leather to yoga.

Source: Business Standard

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First advance estimates pegs GDP growth at 5 per cent for FY20

India on Tuesday forecast 5% growth for the current financial year, the slowest pace in 11 years, which will likely prompt the finance minister to opt for extra fiscal stimulus when she presents the annual budget next month. The government is expected to announce tax concessions for individuals and increase spending on infrastructure after cutting corporate tax rates last year, officials and economists said. Finance Minister Nirmala Sitharaman last week unveiled a plan to invest 102 trillion rupees ($1.4 trillion) in infrastructure over the next five years in a bid to make India a $5 trillion economy by 2025. Annual economic growth slowed to 4.5% in the July-September quarter, the weakest pace since 2013, blamed on weakening demand and private investment, putting pressure on Prime Minister Narendra Modi to speed up reforms as five rate cuts have failed to help. The financial year ends in March. Gross domestic product is estimated to grow 5.0% in 2019/20, slower than the 6.8% growth of 2018/19, the Ministry of Statistics said in a statement. Indian growth had slowed to 3.1% in 2008/09 after the global financial crisis. "The slowdown in economic growth implies the government will have to come up with a fiscal stimulus in the budget," said N.R. Bhanumurthy, economist at National Institute of Public Finance and Policy, a Delhi-based think-tank. He said latest growth numbers would impact revenue estimates and government spending for the next financial year. Growth was likely to be around 6-6.5% in 2020/21, he said, following a steady a recovery. Manufacturing is forecast to grow 2.0% in 2019/20, compared to 6.9% growth in 2018/19, the Ministry of Statistics said. Construction is likely to grow 3.2% in 2019/20, compared to 8.7% the previous year, while the farm sector is forecast to grow 2.8%, compared to 2.9% a year earlier, the statement said. Private economists expect growth to steadily pick up in the next fiscal year. Data so far this year points to a weaker-than expected activity, with global trade tensions and rising crude oil prices posing risks. The unemployment rate rose to 7.7% in December from 7% a year earlier, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed. The statistics ministry will release growth data for the October-December quarter on Feb. 28, along with revised full-year growth estimates.

Source: Economic Times

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India's textile industry faces large growth potential

India's textile industry faces a large growth potential. The industry is set to be valued at $250 billion by end of this year according to management consultancy Intueri, and if a more centralised and technologically advanced supply chain are put into place, growth in the sector could be further propelled on the back of reduced inefficiencies. The sector, which has historically been a key component of India’s economy, has benefitted from significant impetus over recent decades in the form of foreign direct investment (FDI). Between 2000 and last year, India’s textile industry has received FDI inflows in excess of $3 billion, driving projections for the sector up considerably. In a market sizing report, Intueri places the value of the industry at $250 billion. According to the consulting firm, textiles add tremendous economic value for India, both in the form of a 2% contribution to the GDP as well as through substantial employment throughout the country. At a time when India is focusing on domestic manufacturing, the sector also accounts for 7% of the total industry output in the country at present, giving momentum to exports at the same time. Intueri estimates that textiles will account for $82 billion in exports by as early as 2021. While the sector is performing strongly, the researchers warn that it continues to operate below potential. The sector's fundament is built on the back of small, decentralised production units – as many as 80% of textile production units in India are “small operations” with less than 20 machines. Not only does this significantly limit production, it also leads to a lack of overall coherence in the textile supply chain. Smaller production units are in addition slower to adopt technological enhancements to their operations, which means that the sector continues to suffer from considerable inefficiencies. Meanwhile, the sector is calling for change in the same vein as a number of other industries in India that could benefit considerably from technological advancement. Despite these challenges, Intueri reports that India holds tremendous competitive advantage in the global textile market. “India’s leading textiles market allows for easy access to a wide variety of raw materials. Flexibility of supply chain also enables apparel manufacturers to come up with innovative designs.” “India is highly integrated into GVCs of countries such as Bangladesh, South Africa, Sri Lanka, UAE, Belgium, US, Indonesia, Malaysia, UK and Hong Kong, India’s textile industry is at the confluence of favourable quantity and price of raw materials. In addition to cost- competitiveness over China and Brazil, India also boasts diverse supply of raw materials,” the researchers added.

Source: Consultancy.in

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Hyderabad attracting retail brands despite economic slowdown

In addition to global retail players such as Ikea and Danube Home, UK-based global apparel retail brand Islamic Design House opens its store in city. Global economy has been seeing headwinds and so is the domestic economy. However, cities such as Hyderabad are showing stability and resilience. Hyderabad in particular and Telangana as a State has recently attracted major investments in the retail and apparel manufacturing space (to cater to retail demand). $1.75 billion South Korean textiles and apparel major Youngone Corporation last month announced setting up a unit in Kakatiya Mega Textile Park (KMTP) in Warangal, with an investment of about Rs 900 crore, followed by the lifestyle retail brand Shoppers Stop signing an MoU with the State government on January 3 to establish its apparel manufacturing unit at Sircilla Apparel Park in Telangana. While these investments are happening that will feed the retail sector, pure retail investments are also on the rise that indicate availability of quality high-street and mall retail space. Hyderabad that attracted global retail players such as Ikea and Danube Home has seen a new addition with the UK-based global apparel retail brand Islamic Design House opening its retail store in the city (at City Centre Mall, Banjara Hills) on Tuesday, making it the second in India and first in the city. IDH franchise owner Rahmath Unnisa told Telangana Today, “The ease of doing business in Telangana and the government’s boost to entrepreneurship led the apparel brand to set up the store in Hyderabad. The government made the clearances seamless with the help of digital platforms.”

Growth market

“Hyderabad is a big and dynamic market. There is a demand for quality apparel and retail experience. Places such as Banjara Hills offer competitive advantage and there are many more potential locations in the city that we will explore in near future where we will create more IDH stores to offer Islamic fashion. We could also look at Warangal and Nizamabad in future as these markets are already showing good online demand,” IDH franchise co-owner Mir Israr Ali Khan said. The British brand has been widely focusing on markets such as Egypt, Kuwait, Saudi Arabia, UAE, Palestine, Jordan, UAE, South Africa and Mozambique. Jewellery and lifestyle brand BlueStone has opened its third store at Sarath City Capital Mall in Hyderabad on Tuesday, which is its 16th store pan-India. The company has earlier set up stores in Madhapur and Jubilee Hills in the city. Gaurav Singh Kushwaha, founder & CEO, BlueStone, said, “By March 2021, we plan to have 10-12 stores in Hyderabad, being a vast and potential city. We plan to have 100 stores across India by then. We will be setting up stores mostly through the franchise route. Majority of the stores in Hyderabad will be high-street stores. Each store typically attracts an investment of Rs 2 crore. The city has contributed a lot to the nation in the evolution of jewellery sector and new designs, and is a key hub for retail.”

Source: Telangana Today

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Power sector’s NPAs worth Rs one lakh crore may land in bankruptcy courts

The banks signed inter-creditor agreements (ICAs) to resolve power companies under Reserve Bank of India's June 7 circular. As the January 7 deadline to resolve non-performing assets (NPAs) in the power sector has passed, around Rs 1 lakh crore of bad debt in the sector remains unresolved, according to banking sources. FE has learnt that banks may refer Coastal Energen, Rattan India (Nashik), Emco Energy, GVK Power (Goindwal Sahib), Simhapuri Thermal and Jaiprakash Power Ventures to the National Company Law Tribunal (NCLT). Lenders have already referred KSK Mahanadi and Meenakshi Energy to NCLT. The banks signed inter-creditor agreements (ICAs) to resolve power companies under Reserve Bank of India’s June 7 circular. However, only three power companies- Prayagraj Power, Rattan India (Amravati) and GMR Chhattisgarh were able to reach an out of court settlement. As per the June 7 circular of the RBI, banks had to mandatorily make additional provisioning of 20% or refer companies to insolvency courts to avoid provisioning. Interestingly, banks have also written to the Reserve Bank of India asking it to extend the deadline for signing ICAs by another three months to buy some more time for resolution. The resolutions in some cases have been stalled because some banks have not yet signed the ICA and disagreed on the terms. The banks have made several attempts to find resolution of power companies where ICAs were signed. For instance, the State Bank of India (SBI)-led consortium of lenders to Coastal Energen, which owes them Rs 8,176 crore sought bids twice for the stressed power plant from companies, funds and private equity investors. However, despite extension of bids, the resolution could not be reached. After the successful resolution of Rattan India (Amravati), banks were hoping to close deal for Rattan India (Nashik) as well. However, no resolution could be finalised due to lack of attractive deal for lenders. Rattan India (Nashik) owes Rs 7,107 crore to lenders. Earlier, a consortium of lenders, led by Power Finance Corporation (PFC), had agreed to take a 38% haircut against their exposure of Rs 6,575 crore to Rattan India Power’s 1,350-MW Amravati plant. On January 2, JSW Energy informed the exchanges that it had entered into an agreement to restructure the outstanding principal amount owed by Jai Prakash Power Ventures. Jaiprakash Power owes a principal amount of Rs 751.77 crore to JSW Energy and will convert Rs 351.77 crore of this debt into equity shares at par value of Rs 10 each, the two companies said in stock-exchange filings. However, the exposure of Rs 13,288 crore that JP Power owes to other lenders still remains unresolved. Some banks are also looking to sell their exposure in power NPAs. Union Bank has invited bids to sell its exposure of Rs 444 crore in GVK Power Goindwal Saheb. This plant is a subsidiary of GVK Power and Infrastructure, the holding company. The subsidiary was unable to run the plant at optimal capacity during 2017-18 and 2018-19, primarily on account of low availability of fuel and, hence, defaulted on the repayment of dues to lenders.

Source: Financial Express

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Next Ease of Biz ranking of states likely in March

The Commerce and Industry Ministry is likely to release the next index to rank states and union territories (UTs) in terms of ease of doing business in March, a senior official said. "It will be released in February end or March. Due to elections, the release got delayed," the official said. The exercise is aimed at triggering competition among states to improve business climate in order to attract domestic and global investors. State governments are taking several steps such as setting up single window system for approvals to improve ease of doing business. The parameters include construction permit, labour regulation, environmental registration, access to information, land availability and single window system. The Department for Promotion of Industry and Internal Trade (DPIIT) in collaboration with the World Bank conducts an annual reform exercise for all states/UTs under the Business Reform Action Plan (BRAP).

Source: Economic Times

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India-Iran trade dips 79.4 per cent in April-Nov; may fall further

India-Iran trade declined a sharp 79.4 per cent in the first eight months of the current fiscal to $3.5 billion from $17 billion in the comparable period last year after the lapse of the oil sanction waiver extended by the US to India. Escalating tension between Iran and the US after the recent killing of Iranian general Qasem Soleimani in a US drone attack could hurt trade further as India’s exports to Iran, which have sustained despite the economic sanctions, could now take a hit. This is true especially with the balance in the rupee-rial account running out, fear exporters. “The threats and counter-threats exchanged by Iran and the US after the killing of the Iranian general has created an atmosphere of uncertainty for Indian exporters. Exporters are cautious about their long-term orders. This is especially because the balance in the rupee-rial account is drying up. Once the amount in the balance is over, there is no clarity about how exporters would be paid,” said Ajay Sahai, Director-General, Federation of Indian Export Organisations (FIEO). Iran has been an important trade partner for India with bilateral trade in 2018-19 posting a 23.7 per cent growth to $17.03 billion. Of this, mineral oil and fuel imports were key, accounting for $12.3 billion. While imports from Iran declined by 90.3 per cent in the April-November 2019-20 period to $1.29 billion because of reduction of petroleum imports to zero, the fall in exports was lower at 36 per cent to $2.23 billion.

Exporters face uncertainty

Exports of cereals, including basmati, in the first eight months of the current fiscal, were valued at $648 million compared to $1.58 billion in the same period last year, while tea, coffee and spices exports were worth $164 million compared to $189 million in the same period of the previous fiscal. Tea exporters, so far, have been optimistic about their trade with Iran as the country bought a record 50 million kg of tea in the January-December 2019 period but are uncertain about the future. “We are very happy with the Iranian market so far but the recent war-like situation has us worried. We were planning a delegation to Iran in February this year, but are now not sure if that would be possible. We have written to the Commerce Ministry about it and are waiting for directions,” said Sujit Patra, Secretary, Indian Tea Association. Basmati exporters, too, are cautious about what the future holds. “We are managing to export basmati to Iran despite some payment problems. But once the balance in the rupee-rial account gets exhausted, payments may stop. We are apprehensive that the increase in tension between Iran and the US could also affect transportation of shipments,” said a Delhi-based rice exporter. The rupee-rial payment mechanism is a barter-like arrangement by the two countries to carry out trade without using international currencies like the dollar. Through this mechanism, payment for Iranian goods is deposited in an account in the UCO Bank in rupees and this money is used to pay exporters who supply goods to Iran.

Payment mechanism

With India forced by the US to stop purchase of oil from Iran since April this year, the balance in the rupee-rial account is drying up as oil was the chief item of import from the country. “The balance in the rupee-rial account is not likely to pay for Indian exports to Iran beyond 3-4 months. The two governments have to look for alternative mechanisms to sustain trade and exports,” said Sahai.

Source: The Hindu Business Line

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Global Textile Raw Material Price 08-01-2020

Item

Price

Unit

Fluctuation

Date

PSF

1007.88

USD/Ton

0%

1/8/2020

VSF

1359.67

USD/Ton

0%

1/8/2020

ASF

2014.32

USD/Ton

0%

1/8/2020

Polyester    POY

1038.81

USD/Ton

1.33%

1/8/2020

Nylon    FDY

2186.98

USD/Ton

0.33%

1/8/2020

40D    Spandex

4129.36

USD/Ton

0%

1/8/2020

Nylon    POY

1287.73

USD/Ton

0.56%

1/8/2020

Acrylic    Top 3D

2028.71

USD/Ton

0.71%

1/8/2020

Polyester    FDY

2201.36

USD/Ton

0%

1/8/2020

Nylon    DTY

1187.01

USD/Ton

1.23%

1/8/2020

Viscose    Long Filament

2402.80

USD/Ton

0%

1/8/2020

Polyester    DTY

5395.50

USD/Ton

0%

1/8/2020

30S    Spun Rayon Yarn

2007.13

USD/Ton

0%

1/8/2020

32S    Polyester Yarn

1633.04

USD/Ton

0.44%

1/8/2020

45S    T/C Yarn

2417.18

USD/Ton

0%

1/8/2020

40S    Rayon Yarn

2172.59

USD/Ton

0%

1/8/2020

T/R    Yarn 65/35 32S

1942.38

USD/Ton

0.75%

1/8/2020

45S    Polyester Yarn

1769.72

USD/Ton

0%

1/8/2020

T/C    Yarn 65/35 32S

2215.75

USD/Ton

0.65%

1/8/2020

10S    Denim Fabric

1.27

USD/Meter

0%

1/8/2020

32S    Twill Fabric

0.69

USD/Meter

0%

1/8/2020

40S    Combed Poplin

0.97

USD/Meter

0%

1/8/2020

30S    Rayon Fabric

0.54

USD/Meter

0%

1/8/2020

45S    T/C Fabric

0.67

USD/Meter

0%

1/8/2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14388 USD dtd. 08/01/2020). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Tunisia: The Textile industry aims to reduce its carbon footprint

The Tunisian Textile and Clothing Federation (FTTH) has recently organised a seminar on the recovery and recycling of post-industrial waste in the clothing sector. It was also the occasion to launch the "Med TestIII", an initiative that proposes to promote clean industries in the southern Mediterranean. Stakeholders of the Tunisian textile sector want to reduce the environmental impact of their activity. A seminar was held in Tunis on November 26, 2019, on the theme “promoting circular value chains for a competitive and sustainable textile industry”. Organised by the Tunisian Textile and Clothing Federation (FTTH), the meeting was designed to introduce textile operators to a green economy approach, where chemical waste from factories is recycled or valorised. Textiles, which is a pillar of the Tunisian economy, contributes more than 20% to the GDP, with 1,600 companies, 160,000 jobs and €2.2 billion in export sales, and exerts a strong pressure on the environment. Textile production consumes a lot of resources and generates a lot of waste. According to the World Wildlife Foundation (WWF), global cotton production alone consumes 25% of the insecticides and 10% of the herbicides used in the world. In addition, the air pollution it generates exceeds that generated by emissions from shipping and air traffic combined. Emissions of greenhouse gases are estimated at 1.2 billion tons of CO² equivalent in 2015. The eco-responsibility of Tunisian textiles is further reinforced by the “MedTestIII” initiative. It aims at developing circular textile value chains, recovering textile waste, and was launched during the Tunis seminar. Funded by the European Union (EU) and implemented by the United Nations Industrial Development Organization (UNIDO), this programme is also expected to be implemented in two other North African countries: Morocco and Egypt. “More and more international brands are setting up collection and recycling units for used clothing. We must not miss this train which is the key to the durability and sustainability of the national textile and clothing sector,” said Hosni Boufaden, FTTH President. Concretely, Med TestIII will strengthen local infrastructure, technical expertise and know-how to promote the appropriate classification, efficient collection, sorting and recycling of post-industrial and pre-consumer textile waste.

Source: Afrik 21

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Latest China tariff exclusions include some textiles

The United States Trade Representative has announced more retroactive exclusions from List 3 tariffs. And some might be interest to members of the Home Fashion Products Association (HFPA), noted the organization’s legal counsel Robert Leo. In his first email to HFPA members in 2020, Leo shared a list. Each item leads with USTR’s number for the exclusion, as listed in the Federal Register:

  • 7: Woven fabric of 100% textured polyester filaments, dyed, weighing more than 170 g/m2, measuring not more than 310 cm in width (described in statistical reporting number 5407.52.2060)
  • 8: Woven fabric of synthetic filament yarn containing 85% or more by weight of textured polyester filaments, dyed, measuring 249 cm in width, weighing more than 170 g/m2 (described in statistical reporting number 5407.52.2060)
  • 9: Woven dupioni fabric wholly of non-textured dyed polyester filaments, weighing not more than 170 g/m2, measuring not more than 310 cm in width (described in statistical reporting number 5407.61.9930)
  • 10: Woven fabric wholly of polyester, dyed, not flat, containing non-textured polyester filaments, weighing not more than 170 g/m2, measuring not over 310 cm in width (described in statistical reporting number 5407.61.9930)
  • 11: Woven fabric wholly of polyester, dyed, containing non-textured polyester filaments, weighing more than 170 g/m2, measuring not over 310 cm in width (described in statistical reporting number 5407.61.9935)
  • 12: Woven fabric containing by weight 47% of nylon and 53%of polyester, dyed, containing textured filaments, weighing not more than 170 g/m2, measuring greater than 274 cm in width (described in statistical reporting number 5407.72.0015)
  • 13: Woven dyed fabrics wholly of spun polyester, weighing more than 240 g/m2 and measuring not more than 310 cm in width (described in statistical reporting number 5512.19.0090)
  • 14: Woven dyed three-thread twill fabrics containing by weight 65% of polyester and 35% of cotton staple fibers, not napped, weighing more than 200 g/m² and
  • exceeding 310 cm in width (described in statistical reporting number 5514.22.0020)
  • 16: Woven dyed embroidery fabrics containing by weight 55% of polyester and 45% of nylon, weighing less than 115 g/m2 and measuring 289 cm in width (described in statistical reporting number 5810.92.9080)
  • 34: Hand pumps (other than for fuel or lubricants, not fitted or designed to be fitted with a metering device), each used to dispense a metered quantity of liquid soap or sanitizer (described in statistical reporting number 8413.20.0000)
  • 66: Baby crib liners, each composed of two pieces of multi-layer warp polyester knit mesh without any padding, one measuring no more than 29 cm by 283 cm and the other measuring no more than 29 cm by 210 cm (described in statistical reporting number 9403.90.6005)

These exclusions are retroactive to Sept. 24, 2018, and are in effect until Aug. 7, 2020.

Source: Home Textiles Today

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Taiwan firms see risks, benefits from trade war

Textile exporters of Taiwan have welcomed a US ruling on dumping of polyester textured yarn by Chinese and Indian companies, but those operating in Vietnam see risks instead of new business opportunities as a result of the US-China trade war. As Taiwanese textile exporters welcomed a November 2019 US ruling that is expected to benefit them, the past year witnessed Taiwanese firms operating in Vietnam foreseeing risks instead of new business opportunities while State-run oil supplier CPC Corp opened an office in New Delhi as part of its plans to set up a plant in India and forge ties with the petrochemicals industry there. The biggest development of the year for industry came in the form of a far-reaching November 14 ruling by the US department of commerce that said exporters from China and India had been dumping polyester textured yarn (PTY) in the US market at margins ranging from 76.07 per cent to 77.15 per cent and 17.62 per cent to 47.51 per cent respectively. Textile exporters of Taiwan perceived this as a chance to compete in a fair market. The investigations were launched after Nan Ya Plastics Cor. America, a subsidiary of Taiwan's Nan Ya Plastics Corp, and US-based Unifi Manufacturing, Inc. filed a petition against Chinese and Indian exporters. As things stand, Chinese firms that face heavy US tariffs are likely to sell their products in the domestic market, which would tighten the competition for Taiwanese companies operating in China. But, a group of Taiwanese firms that have operated in Vietnam long before the US-China trade war foresees risks instead of new business opportunities. According to Shen Hsien-yu, president of the Council of Taiwanese Chambers of Commerce in Vietnam, Taiwanese firms there have supply chains and partners to meet orders from existing customers. As a result, they do not have the capacity to take on new orders from companies shifting away from China-based manufacturers.

Ventures abroad

The State-run oil supplier CPC Corp opened an office in New Delhi in December as part of its plans to set up a plant in India and forge ties with the nation's petrochemicals industry. At the opening ceremony, CPC president Lee Shun-chin said the step symbolised efforts for a presence in India to back Prime Minister Narendra Modi's Make in India initiative. Lee said CPC's decision also reflected the government's new south-bound policy that promotes exchanges with the Association of Southeast Asian Nations (ASEAN), South Asian countries, Australia and New Zealand to reduce Taiwan's economic reliance on China. CPC is negotiating with the Indian Oil Corporation (IOC) to jointly set up a $800 million plant in India to produce propylene derivatives. Meanwhile, leading Taiwan-based curtain manufacturer and seller Nien Made Enterprise Co Ltd in August announced plans to expand in Cambodia to avoid the fallout from the US-China trade war. The firm will expand its production line in Southeast Asia and shift orders for finished products from China to Cambodia. Currently, about one-third of the company's readymade products are made in China, but it plans to gradually shift the bulk of its operations to Cambodia over the next few years. Taiwan's Eclat Textile Co too is planning to invest $170 million-in Indonesia to expand production, diversify risk and boost capacity. A board meeting in September approved the decision to route funds into Indonesia in three stages beginning October. The first phase investment will be over by 2020-end and build a garment factory to produce a million units per month. It aims to roll out products for the Association of Southeast Asian Nations (ASEAN) market and China. The second stage will start in 2021 and build another plant, with a monthly capacity of 1 million units. The third stage will involve building of a weaving mill with a monthly capacity of a million kilograms. To address a lack of capacity and labour in Vietnam this year, Eclat has found new outsourcing factories and will ramp up its own capacity by 15 per cent next year. The firm is expected to face a capacity shortfall of 1.8-2.2 million pieces per month next year against rising orders from its major brand clients. So, the company plans to raise its monthly garment output to more than 10 million pieces next year, from an estimated 8.5-8.8 million pieces this year. Eclat plans to lift its capacity utilisation rate from 80 per cent to 95 per cent at factories in southern Vietnam, which should generate an additional 800,000 pieces per month. Eclat operates in Taiwan, Vietnam and Cambodia. Another Taiwanese firm, Chromuch, an innovator in sustainable, colour-rich and developer-friendly synthetic fibres, announced in June its entry into the US market with its brand launch at Outdoor Retailer Summer Market in Denver. Chromuch fibres are made from recycled plastic bottles and use absolutely no water in the dyeing process. Also, Formosa Taffeta Co (FTC), a textile affiliate of Taiwan's Formosa Plastics Group (FPG), announced plans to invest up to $40.55 million in Switzerland's Schoeller Textil AG in 2020 to deepen its cooperation with the latter and raise its market share of high-end products. FTC's board of directors approved acquiring a 50 per cent stake in Schoeller Textil in March. Myanmar's Htantabin Technology Park, led by Taipei-based lace maker Wedtex Industrial Corporation's Golden Myanmar Investment Co., announced its intention to create 150,000 jobs and attract over $330 million in investments over the next eight years. The backers of the project estimate that the figure will rise to $840 million in 15 years.

Technological progress

US firm Applied DNA Sciences, a leader in PCR-based DNA manufacturing for product authenticity and traceability solutions, is working with Taiwan's Tex-Ray Industrial Co, a pioneer in performance fabric and smart clothing for modern active lifestyles. The two signed an agreement in January to create a Centre of Excellence in Taiwan, the industry-acknowledged hub for textiles innovation to integrate Applied DNA's CertainT tag, test and track authentication platform into new product development of yarns, finishes and fabrics for designing streamlined supply chain processes to reduce time-to-market for Applied DNA products and services and to grow capabilities in marketing, sales and support for servicing global customers. Taiwan's Industrial Technology Research Institute (ITRI) and functional fabrics firm Everest Textile jointly developed an automated multi-tasking system for garment production that can cut manual operation by 70 per cent with ITRI's 3D smart vision sensing technology. It can shorten textile sample proofing time to 1-3 days from 7-10 days. It can help Taiwan's textile and garment industry to adopt semi-automatic production. Up to 70 per cent of functional fabrics now come from Taiwan.

Source: Fibre2Fashion

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Trade union urges Nigerian govt to create textile ministry

The National Union of Textiles, Garment and Tailoring Workers of Nigeria (NUTGTWN) recently urged the government to create a textiles ministry to address the industry’s woes and revive the sector. Textiles workers also said they would demand from the government a directive for strong patronage for fabrics manufactured by domestic companies this year. In a New Year message, union national president John Adaji and Secretary Issa Aremu said the creation of the ministry should be taken up as a priority. “The objective of the proposed ministry would be to regularly upgrade the textile value chains, improve labour productivity, maximise value addition and formulate strategies and programme to enable the textile sector meet the challenges to attain global competitiveness,” Nigerian media reports quoted the message as saying.

Source: Fibre2Fashion

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Textile trade fair stresses sustainability as it celebrates 50th anniversary

The International Trade Fair for Home and Contract Textiles, or Heimtextil, opened Tuesday in the German city of Frankfurt, celebrating its 50th anniversary with a focus on sustainability. First started in 1971 with 679 exhibitors, the trade fair has grown into a leading event in the textiles industry and attracted nearly 3,000 companies from 65 countries and regions this year. More than 600 Chinese companies from various sub sectors are attending the fair, which runs from Tuesday to Friday. The home and household textiles industry has seen sales falling in the previous two years, mainly due to the sluggish economy, according to research institute IFH Cologne, but the sector does not cease to explore measures to achieve sustainability. This year's Heimtextil includes a new area of "Future Materials Library", which showcases innovative and even progressive choices of raw materials for textile. In this section, textiles made from pineapple leaf, seaweed and even PET bottles and human hairs were exhibited, attracting numerous visitors.

CHINESE PRESENCE

Charming Hometex, based in east China's Shandong province, joined this year's Green Directory, a list of 200-plus sustainable producers attending the trade fair. The company has decades-long expertise working with importers and buyers across the globe, and has obtained the Oeko-Tex certification, a high industry standard certifying that textiles are free of harmful chemicals and are safe for human use, Zhang Yueya, a sales manager, told Xinhua. Zhang admitted that the textile sector has become very competitive over the years, especially among Asian peers, but she believed Chinese companies have their own strengths, particular in design and fabric research and development. While many Chinese exhibitors at the fair are manufacturers, Chinese design studios also started to have a bigger presence at Heimtextil. Ranger Art Design Co. Ltd., a fabric design company in Hangzhou, the capital of east China's Zhejiang province, came to Heimtextil as an exhibitor for the first time, although the company has been a veteran player in the domestic market for many years. Lu Shasha, its design director, said their company has a good understanding of the market and has been quick and flexible in giving follow-up customization options, thanks to years of experience working with domestic manufacturers. The studio has successfully sold their original fabric designs to buyers from the United States, Germany, and Turkey since they arrived at the exhibition, according to Lu. Domestic design trends used to lag behind the global ones, but the situation is different now, Lu added. "The two trends are almost synced now...In some areas we even go faster. The Chinese-style designs we brought here could not be found anywhere else and are sold out," she noted.

Source: Xinhua

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Scientists develop energy-free personal cooling device

USA: Researchers at the University of Missouri are developing an on-skin electronic device which can passively cool human bodies by around 6ºC without consuming any energy. In addition to its potential for preventing heat stroke or exhaustion in vulnerable people, the scientists involved say that this multifunctional device could also be used to monitor blood pressure, electrical activity of the heart and the level of skin hydration. It is thought that such on-skin electronics could serve as the basis for future multifunctional smart textiles with passive-cooling functionalities. The passive cooling process uses no electrical devices such as a fan or pump, which researchers believe allows for minimal discomfort to the user. “Our device can reflect sunlight away from the human body to minimise heat absorption, while simultaneously allowing the body to dissipate body heat, thereby allowing us to achieve around 11ºF of cooling to the human body during the daytime hours,” said corresponding author Zheng Yan, an assistant professor in the University of Missouri’s College of Engineering. “We believe this is one of the first demonstrations of this capability in the emerging field of on-skin electronics.” Currently, the device is a small wired patch, and researchers say it will take one to two years to design a wireless version. They also hope to one day take their technology and apply it to ‘smart’ clothing.  “Eventually, we would like to take this technology and apply it to the development of smart textiles,” Yan said. “That would allow for the device’s cooling capabilities to be delivered across the whole body. Right now, the cooling is only concentrated in a specific area where the patch is located. We believe this could potentially help reduce electricity usage and also help with global warming.” The findings are detailed in the journal Proceedings of the National Academy of Sciences.

Source: Cooling Post

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UKFT to continue supporting UK fashion & textile industry

The strength of UK brands continue to grow due to their creativity, quality, heritage and innovation. UKFT’s latest figures show that value of UK fashion and textile exports have reached almost £10 billion representing an increase of 66 per cent in a decade. Thus in 2020 and beyond, UKFT will continue uniting the industry to address some of its big challenges. Growing awareness of provenance, quality, supply chain transparency, flexibility and speed to market is breathing new life into the UK manufacturing industry, which suffered for so many years as companies chased low-cost labour around the world. That is now changing. Now new companies are entering the industry, responding to demand for fashion and textiles made here in the UK, while heritage companies have reinvented themselves to compete on a global stage. Changing consumer behaviour is drastically reshaping the industry and also opening up opportunities for brands to reach their customers, for new questions to be asked around sustainability and how products are made. There is still a long way to go but UKFT is uniting the industry to address these challenges. In just over two years as Sector Skills Body for the industry, UKFT has consulted with businesses in England, Scotland, Northern Ireland and Wales to assess what the key skills and training priorities are and is now working to address them. UKFT has created a new portfolio of apprenticeships, reviewed and updated a series of National Occupational Standards, and developed a new Scottish Vocational Qualification for bespoke cutting and tailoring. This year it will be stepping up its skills activity, with some really exciting projects coming on stream to help promote careers in the industry and ensure design graduate from UK universities leave with a better understanding of how to work with our UK manufacturing industry. UKFT will also deliver new apprenticeships for roles including knitting technician and materials cutter, bringing the total number of fashion and textile-specific apprenticeships available in England to 16. Industrial sewing skills are in demand. Last year, saw UKFT develop its own ‘train the sewing machinist trainer’ course which has been successfully delivered at a major UK brand. It plans to roll this out to other companies throughout the year. UKFT will continue to work closely with the UK manufacturers to help raise the profile of this sector and is working on an ambitious project to develop a leather making hub in London. UKFT will also be highlighting the strength of the manufacturing sector to overseas designers, brands and retailers through the relaunched ‘Lets Make It Here’ database, available in seven different languages including Japanese, Korean, Mandarin, French, Spanish and Italian.  The company will once again be able to offer textile companies training grants to help meet the costs of training young textile technicians to ensure our industry can continue to thrive. UKFT will continue to work closely with the industry to help companies grow their exports to the EU and the rest of the world. As well as taking hundreds of companies to the key fashion and textile shows and distributing export grants, UKFT will also be undertaking a new project to promote the fantastic capabilities of UK textile manufactures at the key textile trade shows of Première Vision, Milano Unica and Intertextile Shanghai. Last year saw Textiles Scotland become part of UKFT and this year UKFT will continue to work closely with the industry in Scotland by launching a Scottish Fashion & Textiles Export Strategy and a Scottish Skills Strategy, together with an increased focus on innovation. UKFT will also continue to develop its work in Wales and Northern Ireland helping to maintain its position as the largest network of fashion and textile businesses in the UK. To ensure new businesses can enter, grow and thrive within the industry, UKFT is relaunching UKFT Rise this month as a supportive community for UK fashion and textile entrepreneurs who have been in the business less than three years. The first event is on January 30 in London.

Source: Fibre2Fashion

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