MARKET WATCH 25 FEB, 2019

NATIONAL

INTERNATIONAL

Textile processors mulling hike in job charges

Prices of famous Surti saris and dress material may go up with owners of textile dyeing and printing mills mulling increase in job charges due to 7% hike in rates of colour dyes in local market. Industry sources said chemicals and dye manufacturers in south Gujarat have been importing raw material from China in bulk quantities. Manufacturing of colour dye raw material has been affected after outbreak of coronavirus in China. South Gujarat Textile Processors’ Association (SGTPA) president Jitu Vakhariya told TOI, “Colour dyes are an important content in dyeing and printing of finished fabrics. The prices of colour dyes have gone up by 7% in the last few days due to coronavirus epidemic. This has increased production cost of textile processors in the city. We have called an urgent meeting of textile processors in the next few days to decide on hike in job charges. We may increase job charges by 5-7%.”There are about 350 textile dyeing and printing mills in Sachin, Palsana, Pandesara and Kadodara. About three crore metres of fabrics are processed in dyeing and printing mills per day. Pandesara Textile Processors’ Association (PTPA) president Kamal Vijay Tulsiyan said, “Hike in job charges is imminent as prices of colour dyes is likely to increase further due to coronavirus epidemic in China.” Meanwhile, textile traders are unhappy with price hike to be announced by textile processors. Champalall Bothra, secretary of Federation of Surat Textile Traders’ Association (FOSTTA), said, “The business in domestic market has picked up pace due to marriage season and upcoming Holi festival. In this situation, traders will not be able to adjust to increase in job charges by processors.” Krishna Banka, a textile trader from JJ textile market, said, “The prices of finished fabrics will increase by Rs2 per metre, which will reflect in finished items, including saris and dress material. The job charge hike by textile processors will affect trade.”

Source: Times of India

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Centre to improve growth indicators in 115 districts: Amitabh Kant

The Centre has identified 115 aspirational districts to improve their growth indicators in key areas, according to NITI Aayog CEO Amitabh Kant. “If the country has to grow, we have to make improvements in our standards of education, health and nutrition. In this connection, our corporates also need to work together as an integral part of society,” he said at the inaugural function of a two-day international conference, on ‘Sustainability of Natural Dyes’, organised here by Aranya Natural, Srishti Charitable Trust, supported by Tata Consumer Products Ltd. Kant praised Aranya Natural’s work in creating unique products from waste, which he said are innovative, eco-friendly and fashionable. Aranya has been making a remarkable difference in the lives of differently abled children for the last 25 years, in line with the Tatas’ philosophy of impacting society rather than making a profit, he added. Srishti’s Managing Trustee Ratna Krishnakumar said: “At Aranya Natural, we pride ourselves on being recognised as a brand that is completely natural and organic. Today, these youngsters, although differently abled, are extremely talented and proudly stand independent on their own feet. Their commitment and enthusiasm have made Aranya what it is today and we are very proud of them.” At a conference on ‘Sustainability of Natural Dyes’, the speakers discussed many aspects of natural dyes and their importance in future. Yoshiko Wada, a Japanese textile artist, said it is important that consumers from privileged sections recognise where the materials come from, and the environment and communities in which the products are made. “We need to question whether making things — functional textile or fashion — can be sustained within the fragile network of living organisms and human beings,” she said.  Speaking on circular design (minimising waste, sustainable and continual use of resources), Aditi Shah Aman, textile designer and social-eco entrepreneur, emphasised the importance for designers to address not just the needs of the end users, but also the three dimensions of sustainability — economic development, social progress and development, and environment protection and regeneration.

Source: The Hindu Business Line

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Huge market for natural dyes and organic clothes abroad, says Ratna Krishnakumar

Increased awareness has created a big market abroad for natural dyes and organic cotton clothes, according to Ratna Krishnakumar, founder and managing trustee of Shrishti Trust, and independent body supported by Tata Consumer Products Ltd. and Tata Trusts. Shrishti is the promoter of Aranya Natural, the natural dyed fabrics produced by specially abled associates in Munnar in Kerala. Around 60% of Aranya Natural products are now sold abroad. Though expensive the people especially in Europe feel that the children should be protected from chemicals and prefer such products, ‘’ Ratna Krishnakumar told mediapersons on the occasion of the 25th anniversary of Aranya Natural held at Munnar. Earlier inaugurating the two-day international conference on sustainability of natural dyes in connection with the event Amitabh Kant, CEO of Niti Ayog said the Srishti model of development followed by the women social workers of Munnar is ideal for sustainable long term development of backward districts in the country. "We are working on 49 indicators and tracking it on a minute to minute basis. We are challenging the districts to improve their performance by competing with each other. We have seen some dramatic impact on the lives of people by focusing on specific indicators by bringing in third party tracking. The Srishti model in Munnar is a good example of sustainable development that can be replicated in the 115 backward districts," he said. Various speakers from India and abroad discussed many aspects of the natural dye and its importance to the future of the world. Yoshiko Wada ,Japanese textile artist, curator and author said ‘the most important change needed is the recognition by the consumers of the privileged societies of the ethical dimension and compassionate understanding of where the materials come from and the environment and communities in which the products are made.’’

Source: Economic Times

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Strengthening US-India bilateral ties: Growth is not limited to IT companies or manufacturing sectors

Growth is not limited to companies in IT or manufacturing sectors, but also in tourism, CSR and R&D. The India-US economic engagement is a story of secular growth and mutual job creation. Growing at 10% on a year-to-year basis, bilateral trade reached $160 billion in 2019. Two-way investment between India and the US reached $60 billion in 2018, with the creation of jobs by American companies in India and by Indian companies in the US—about 100 Indian companies have invested almost $18 billion in the US and created over 113,000 jobs. Other areas of collaborative contribution include R&D as well as CSR. Both domestic and foreign investments have risen, there has been increased spending on creating infrastructure, and a steady rise in the demand for consumer durables along with a surge in air travel. While there has been a recent slowdown of India’s economic growth, the country offers investment opportunities for American companies to grow in India. In fact, India is a place where American companies can turn to as they divert supply chains from China. For India, the US has been a large and strategic market. American businesses have taken note of India’s rise in Ease of Doing Business ranking and structural reforms like GST. The converse is equally compelling. Of all foreign companies operating in India, US-based companies are the majority. India can make a difference to most companies’ bottom lines, with its large reserves of talented human resources. Growth is not limited to companies in IT or manufacturing sectors; several US-based companies have significant sales and field operations in India. More opportunities for job creation are on the way; defence and tourism are on top of the list. To boost India’s defence sector, India has finalised two deals worth $3.5 billion with the US, setting the stage for more bilateral progress. The Make in India initiative provides impetus to greater defence cooperation between the two countries that can create defence manufacturing jobs—where the US can benefit from India’s labour and cheaper components, and India can gain from American know-how and technical expertise. The US-India bilateral relationship is also strengthened by tourism. With over 4 million people, Indians form the second largest group in the US, after China, and their contribution to tourism to India is significant. Travel and tourism contributes substantially to India’s GDP; in 2017, it was $234 billion, and has been projected to reach $492.2 billion in 2028. The number of jobs created by the Indian tourism industry in the last four years has been 14.62 million, which is expected to double by 2027. Also, India climbed to the 10th position in arrivals in the US, as travel between the two countries went up 10.3% between 2018 and 2019. In 2018, 1.4 million Indians visited the US, and it is expected 1.9 million Indians will visit the US in 2023. Accordingly, direct air connectivity between the two has increased. Several US-based airlines have started offering non-stop daily flights to different destinations in India from the US. Technology start-ups in India play a significant role in the growth of the tourism sector. In addition to bringing in innovation in services offered by the tourism industry, start-ups are contributing in large measure towards personalising experiences, offering opportunities of technological partnership to US firms. Hospitality, too, is evolving and presents opportunities for both the countries. The past decade has fared well for trade and investment between India and the US, and this pace will only increase. The potential of the Indo-US relationship is enormous both for commercial opportunities and strategic concerns. A forward-looking trade agreement between the countries will facilitate further job creation in both the countries.

Source: Financial Express

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US surpasses China to become India's top trading partner

The US has surpassed China to become India's top trading partner, showing greater economic ties between the two countries. According to the data of the commerce ministry, in 2018-19, the bilateral trade between the US and India stood at USD 87.95 billion. During the period, India's two-way commerce with China aggregated at USD 87.07 billion. Similarly, during April-December 2019-20, the bilateral trade between the US and India stood at USD 68 billion. It stood at USD 64.96 billion with China in the same period. Trade experts believe that the trend will continue in the coming years also as New Delhi and Washington are engaged in further deepening the economic ties. An expert said that if the countries will finalise a free trade agreement (FTA), then the bilateral trade would reach at different levels. "FTA with US will be very beneficial for India as the US is the biggest market for domestic goods and services," Federation of Indian Export organisations Director General Ajay Sahai said. He said that India's exports as well as imports are increasing with the US, while with China both are declining. America is one of the few countries with which India has a trade surplus. On the other hand, India has a huge trade deficit with China. In 2018-19, India has a trade surplus of USD 16.85 billion with America, while it has a deficit of USD 53.56 billion with the neighbouring country. The data showed that China was India's top trading partner since 2013-14 till 2017-18. Before China, UAE was the country's largest trading nation. A top American business advocacy group has said that a free trade agreement between India and the US is a key to resolving their trade disputes as it will cover biggest irritants in ties, including tariffs and mobility of Indian professionals. Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said that India should be a bit cautious while negotiating a trade pact with the US in areas, including agriculture and food products, as America is the world's largest producer and exporter of certain commodities like maize and soybean. "A trade deal between the US and India would further increase the trade between the two countries easing tariff restriction and opening up of bigger market for products. India is a major exporter of steel, steel products and aluminium products with combined exports of USD 22.7 billion last year. "Steel exports to the US have continued to decline and it went down from USD 372 million in 2017-18 to USD 247 million last year. This is only 2.5 per cent of our overall USD 9.74 billion steel export to the world," Pawan Gupta, the Founder and CEO of online trade platform Connect2India observed. Commenting on trade with China, Gupta said despite the fall in volume exports to the Asian neighbour increased 25 per cent last year to USD 16.7 billion while imports decreased by around 8 per cent to USD 70.3 billion last year. The major reduction in imports from India has been on electrical machinery, equipment and apparatus category, the CEO said. India and the US were negotiating a limited trade pact, which now has a bleak chance to be signed during the two-day visit of US President Donald Trump, beginning February 24. India is demanding cut in visa fees, exemption from high duties imposed by the US on certain steel and aluminium products, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products. The US has also raised concerns over high trade deficit with India.

Source: Economic Times

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Australia willing to consider bilateral FTA with India on the lines of RCEP

Australia is willing to consider a bilateral free trade agreement with India on the lines of the proposed Regional Comprehensive Economic Partnership (RCEP) agreement, that New Delhi chose to exit in November last year, that would capture the work already done between the two countries while the negotiations were on, the country’s Trade and Tourism Minister Simon Birmingham has said. “Both India and Australia are willing to see if the work we have done bilaterally in relation to RCEP could be captured between the two countries. We have asked our officials to look at that,” Birmingham said in a select media briefing on Tuesday. The Australian Minister met his Indian counterpart Piyush Goyal on Monday and discussed the future growth path in bilateral trade and investments which included a possible free trade agreement. Birmingham, however, added that his country wanted India to be part of the 16-nation RCEP at some point of time. “We want India to ideally enter RCEP at some stage. We will continue to make sure we hold that door wide open to India and encourage all other RCEP nations to do so as well,” he said. India had decided to quit the RCEP, which also included the ten-member ASEAN, China, Japan, South Korea, Australia and New Zealand, as it involved a gradual elimination in import duties on almost all traded items and would have exposed Indian industry to some very strong competition especially from Chinese products. Birmingham said the RCEP talks could provide a baseline for India and Australia to continue any future negotiations on trade and investment. Business delegation The Australian Minister is in India leading a delegation of over 100 Australian businesses as part of the Australia-India Business Exchange (AIB-X) — a multi-month program of Australian Government activities to generate business opportunities with India. In his four-day visit he will travel to Delhi, Mumbai and Bengaluru. Birmingham said that he and Goyal also looked at market access issues. “We discussed the progress made in terms of Indian goods being able to enter Australian markets such as grapes, mangoes, pomegranates. The importance of continued cooperation in both directions to provide regulatory approvals was also highlighted,” he said.

Source: Business Line

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ITF to guide members to step into integration

The Indian Texpreneurs Federation (ITF) will set up an Advisory Cell with industry and external experts to guide its members to step into integration with the aim of making high value-added products to improve their financial performance. For 2020-21, ITF will also focus on value creation through sustainability, financial restructuring and empowering people. Coimbatore-based ITF is a textile industry association representing the entire value chain of textile manufacturing in Tamil Nadu. To improve the overall business performance of the textile industry in Tamil Nadu, it has identified four core focus areas as the mission for the upcoming financial year that begins on April 1. As per the ITF – CRISIL Research report on 'Financial Performance of Textile Sector' for the past 4 years and 9 months ending December 31, 2019, listed company financials show a clear trend of differentiation in margins between standalone spinning vis-à-vis semi-integrated and integrated companies. "At EBIDTA level, there is a clear difference of 250 to 350 basis points, and 500 basis points difference in ROCE levels between standalone spinning and integrated / semi-integrated companies. Within our member base of 87 lakh spindles, only 20 per cent have built integration as a business model. Therefore, it’s right time for standalone spinning companies to move up the value chain towards the target of making value added finished products," ITF convenor Prabhu Dhamodharan said in a press release. To guide its members to move towards integration, ITF is going to set up an Advisory Cell. "Spinning mills are nowadays selling yarn at 60 days credit due to a changed credit environment, and this integration will help them to use a portion of their own yarn as raw material instead of long credit selling," Dhamodharan added. The textile sector in Tamil Nadu has built all major aspects of sustainability—zero liquid discharge (ZLD) processing, efficient water management, waste reduction, maximum usage of green energy in manufacturing, achieving global benchmark in energy conservation, recycling, and circular economy. ITF is also driving its members to get their GreenCo certification and Higg Index. "We have formed a committee with younger generation entrepreneurs to study all the positive aspects of our sector and brand the sector to position itself as the most sustainable textile cluster of India. We shall be taking up more digital strategies to reach Indian and global brands with this theme," the ITF release said. ITF had submitted CRISIL Research report with a large sample size of 1,800 spinning and RMG companies to the ministry of textiles, requesting financial restructuring package for the needy units. Around 30-40 per cent of ITF member units are facing working capital issues, according to Dhamodharan. "Our textiles ministry assured support in taking the issue forward to the ministry of finance. We will focus on this subject to resolve working capital issues to turnaround and improve efficiencies." ITF initiated ITF Leadership Academy to build a robust leadership ecosystem in the textile sector. Unleashing people power, the Academy had trained 400 managers and supervisors over the past one year through a 9-month unique programme. "After witnessing a great transformation, ITF has now decided to extend the leadership series and is aiming for imparting leadership training to 1,000 managerial and supervisory employees from the textile industry to create more happy workplaces," the release added.

Source: Fibre2fashion

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3 years of IBC: 7 charts offer insights into how the system has evolved

The amount recovered by financial creditors has varied, and does not show a clear improvement. The Insolvency and Bankruptcy Code (IBC) has completed more than three years in operation, and the data is available now. An analysis of the Insolvency and Bankruptcy Board of India (IBBI) data gives insights into how the system has evolved. The amount recovered by financial creditors has varied, and does not show a clear improvement. In fact, the recovery rate was just 12 per cent in the quarter ending December 2019, the lowest in at least two years (Chart 1). Further, the IBBI data processed by EY India shows that bigger cases — with higher claims by financial creditors — take more time to get resolved (Chart 2). Also, the average recovery rate rises with time, but only till the upper limit of 330 days (Chart 3). After the 330-day period, there is no clear trend as to how fast or efficiently the cases get resolved, aside from this important fact: The most delayed cases are the ones with the higher claims. Due to such cases, the average time taken for resolution, and even liquidation, is slowly rising (Chart 4). The data also shows that it is better to admit a company in the IBC process while its in operation, as the recovery rate is better (Chart 5A). A third of the companies not resulting in resolution were already defunct, shows Chart 5B. Among manufacturing companies that went to the National Company Law Tribunal (NCLT), chemicals and metal firms witnessed more resolutions. Companies in the labour intensive (employment friendly) leather and textile sectors mostly get liquidated (Chart 6). In services, companies in the real estate and construction sector go for appeal or review the most (Chart 7).

Source: Business Standard

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Exporters to participate international fairs to explore biz opportunities: AEPC

The apparel sector is the largest employment provider after agriculture and employs 12.90 million workers, of which 65-70 per cent are women, Sakthivel said, adding that the sector holds the key to Prime Minister Narendra Modi's call for skill development and job generation. Exporters will participate in a series of international fairs in countries like Japan and the US to explore business opportunities this year, AEPC said on Sunday. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said members will participate in international fairs such as 'India Tex Trend Fair' in Tokyo; Pure London in UK; Magic Fair in Las Vegas; and Apparel Textile Sourcing in Canada. Besides, the exporters will also participate in 'Who's Next' in Paris and 'Australia International Sourcing Fair' in Melbourne this year. Sakthivel said that though India's readymade garment exports showed a marginal increase in April 2019-January 2020, exporters are confident of capturing a larger market share due to the support of the government. "While the government has prepared the ground for growth of man-made fibre production in the country with its removal of anti-dumping duty on PTA (purified terephthalic acid), the council has planned to participate in mega exhibitions across the world to showcase Indian apparel," he said. AEPC has celebrated its 42nd Foundation Day under Sakthivel, who recently took over the responsibility for the fourth time in the council's four decade journey. It has a countrywide presence with 12 offices and a 8,000 membership constitution of almost all large production houses, trading houses and small and medium scale units, the chairman added. The apparel sector is the largest employment provider after agriculture and employs 12.90 million workers, of which 65-70 per cent are women, Sakthivel said, adding that the sector holds the key to Prime Minister Narendra Modi's call for skill development and job generation.

Source: ET Retail

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Melania Trump pays tribute to Indian textiles with breezy white jumpsuit & gold embroidered sash

Accessorising her white jumpsuit with a green silk and gold embroidered sash, US First Lady Melania Trump doffed her hat to Indian textile heritage on Monday when she landed here for the first leg of the US presidential visit. The breezy white jumpsuit, by French-American costume designer Herve Pierre, was cinched at the waist with the moss green and golden metallic thread sash that was discovered by the designer in an early 20th century Indian textile documents given to him by his friends. While her husband, US president Donald Trump paired his dark suit with a buttercup yellow tie, Melania opted for crepe and silk in keeping with the weather. Her white ensemble is part of the label's Atelier Caito for Herve Pierre range. "Arriving in India, the First Lady #flotus is wearing a white jumpsuit from @atelier_caito_for_herve_pierre in creme crepe. The sash was cut in an early XX century Indian textile documents I found in Paris through very good friends who are collectors. "The sash is made out of green silk and gold metallic thread. We used the border which was the most Interesting piece we could use as it was a vintage piece," Pierre posted on Instagram alongside the photograph of the sketch of the outfit. Melania kept her hair loose and make up subtle for her first appearance in India. Pierre has previously created clothes for former first ladies Laura Bush, Hillary Clinton and Michelle Obama. After landing in the country, the Trumps visited Sabarmati Ashram with Prime Minister Narendra Modi before heading to the Motera stadium for the 'Namaste Trump' event. The US president's daughter Ivanka Trump and her husband Jared Kushner are also accompanying him on the 36-hour India visit. She chose a powder blue midi-dress with red floral prints by US-based label Proenza Schouler. The Trumps will go to Agra to see the Taj Mahal before heading to New Delhi. The trip ends on Tuesday night.

Source: Economic Times

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Anti-dumping duty withdrawal on PTA breather for man-made textiles

In addition, the removal of the duty would lead to higher imports, thereby reducing supplier concentration and improving the bargaining power of downstream producers. The Union government’s decision to withdraw the anti-dumping duty on purified terephthalic acid (PTA) would improve the affordability of man-made textiles, giving it an advantage over cotton. With the abolition of the duty, the PTA spread of Rs 7-Rs 8 per kg (import landed price over domestic) will reduce over the near term, with landed PTA being cheaper by Rs 4-Rs 6 per kg. This would lead to the prices of finished products falling by Rs 3- Rs 5 per kg, which would give a boost to demand, said India Ratings and Research (Ind-Ra), in its study. In addition, the removal of the duty would lead to higher imports, thereby reducing supplier concentration and improving the bargaining power of downstream producers. Consequently, there would be an improvement in the profitability and credit metrics of sector companies, the study said. However, the abolition of ADD would adversely impact the profitability of PTA players. There are only four suppliers of PTA in India — Reliance Industries (RIL), MCPI, Indian Oil Corporation (IOCL) and JBF Industries (JBF). India had imposed ADD of $85-$160 per tonne in 2014, and had extended the same in 2016.

Source: Financial Express

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Global Textile Raw Material Price 25-02-2020

Item

Price

Unit

Fluctuation

Date

PSF

924.30

USD/Ton

-0.76%

2/25/2020

VSF

1365.12

USD/Ton

0.21%

2/25/2020

ASF

1997.91

USD/Ton

0%

2/25/2020

Polyester    POY

998.96

USD/Ton

-0.35%

2/25/2020

Nylon    FDY

2182.77

USD/Ton

-0.97%

2/25/2020

40D    Spandex

4081.14

USD/Ton

0%

2/25/2020

Nylon POY

1237.14

USD/Ton

-0.57%

2/25/2020

Acrylic    Top 3D

2019.24

USD/Ton

-1.05%

2/25/2020

Polyester    FDY

2090.34

USD/Ton

-3.92%

2/25/2020

Nylon    DTY

1137.60

USD/Ton

-0.31%

2/25/2020

Viscose    Long Filament

2417.40

USD/Ton

-0.87%

2/25/2020

Polyester    DTY

5332.50

USD/Ton

0%

2/25/2020

30S    Spun Rayon Yarn

2012.13

USD/Ton

0.35%

2/25/2020

32S    Polyester Yarn

1606.86

USD/Ton

0%

2/25/2020

45S    T/C Yarn

2396.07

USD/Ton

0.30%

2/25/2020

40S    Rayon Yarn

2147.22

USD/Ton

0%

2/25/2020

T/R    Yarn 65/35 32S

1941.03

USD/Ton

0.37%

2/25/2020

45S    Polyester Yarn

1763.28

USD/Ton

0%

2/25/2020

T/C    Yarn 65/35 32S

2260.98

USD/Ton

0%

2/25/2020

10S    Denim Fabric

1.26

USD/Meter

0%

2/25/2020

32S    Twill Fabric

0.68

USD/Meter

0%

2/25/2020

40S    Combed Poplin

0.96

USD/Meter

0%

2/25/2020

30S    Rayon Fabric

0.53

USD/Meter

0%

2/25/2020

45S    T/C Fabric

0.67

USD/Meter

0%

2/25/2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14220 SD dtd. 25/02/2020). 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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Pakistan's textile sector jumps to full capacity production

The textile manufacturing sector – the single largest export-oriented sector of Pakistan – has spiked to full-capacity production after the government withdrew duties and taxes on import of the raw cotton in January. Besides, Islamabad is getting higher export orders for textiles since China, the single largest textile exporter at world across, is lying closed to fight against the deadly coronavirus for the past couple of months. “Pakistan (textile sector) is working on full capacity,” All Pakistan Textile Mills Association (Aptma) former chairman Asif Inam told The Express Tribune on Saturday. “If all goes well, the developments in textile industry support…the government to achieve the set export target of $24-25 billion this fiscal year (July-2019 to June 2020),” he said. “We don’t have the capacity to take additional export orders these days. We have entered into the capacity constraint zone,” he said. He said there is a 26% volumetric growth in textiles export. “This (26%) was the capacity in surplus till recent months. The government has fully utilised that,” Inam same. State Bank of Pakistan Governor Reza Baqir said the other day there was up to 40% volumetric growth in textile exports. Besides, the export of finished goods is on the rise, while export of raw material, including cotton and yarn are on a downward trend, which are positive developments for Pakistan’s economy. Pakistan has continued to receive good export orders, including in the downstream industry. “The world textile buyers have diverted their purchasing orders to Pakistan since China (70-80% production) is closed to fight against spread of the coronavirus,” Inam said. The virus has disrupted the world. A significant number of countries have been affected by the virus, as over 2,300 people have died and over 75,000 people got infected. The official claimed that the textile exports could be doubled over the next five year if the government overcomes the high energy pricing, gas connection and tax refund issues. The Aptma has demanded a long-term five-year textile policy from the government. “Once the government announces the policy, the textile exports will start growing at 10-15% per annum over the next five years,” he added.

Cotton import

He said Pakistan is estimated to import around 7.5-8 million bales (of 170 kilogram each) this fiscal year after local production came almost half of the required 15 million bales in FY20. They will be record high import in Pakistan. Pakistan has produced around 7.5-8 million bales so far, which comes to around half of the domestic requirement. “We have so far imported around one-third of the total required quantity of imported cotton at 7.5-8 million bales. We will import around 70% of that over the next two-three months and remaining in the rest of the period of FY20,” he said. High energy, water costs may push Pakistan’s apparel industry towards crisis. The import of cotton paced up following the government withdrew 3% regulatory duty, 2% additional customs duty and 5% sales tax on import of cotton from January 15, 2020. The imposition of the duty and taxes on cotton import by the previous government in the centre had put the textile industry in danger. “The withdrawal of duty and taxes has fully mitigated the risk of decline in cotton consumption in Pakistan. USAID has recently anticipated increase in consumption of cotton at textile industries in Pakistan. We will use at least 15 million bales this year (FY20),” Aptma former chairman said.

Source: The Tribune

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Bangladesh: Imports from China tumble 21pc for coronavirus

Imports from China slumped 21 per cent year-on-year in volume in the one and a half months to February 15 amid supply disruption caused by the coronavirus pandemic, official data showed. Businesses imported 36 lakh tonnes of products in the first seven months of fiscal 2019-20, down 19 per cent from a year earlier, according to the National Board of Revenue (NBR). In monetary terms, imports also declined this year compared with the same period a year ago, said the revenue administration in a report on the possible impact of the coronavirus outbreak in the world's second largest economy. Bangladesh's main export earner apparel and textile industry is highly dependent on China for cotton yarn and fabrics, textile fabrics and garments accessories. "Alternative sources should be actively considered to import the raw materials of garments if the coronavirus outbreak disrupts supply from China," the report said. It also suggested considering alternative sources to import parts of mobile phones to support the budding mobile handset assembling sector. China is the biggest trading partner of Bangladesh and the biggest source for imports. The world's second largest economy accounted for more than a fifth of the country's imports of $56 billion in fiscal 2018-19, Bangladesh Bank data showed. The NBR report comes amid growing concerns among businesses about potential supply disruption of raw materials, intermediate goods and other materials brought about by the coronavirus outbreak in December last year. The deadly disease has already claimed more than 2,500 lives. The NBR report assessed the possible effects of the coronavirus pandemic on export and imports by taking seven top-ranked inbound and outbound items to and from China. Cotton yarn and woven textile fabrics top the list of the items coming to Bangladesh from China, followed by woven textile fabrics, knit textile fabrics and garment accessories. Bangladesh imported nearly $3 billion worth of the items in fiscal 2018-19 from China, the report said. These products are used as raw materials by the $34 billion garment industry, which represents 84 per cent of the national export receipts. The import from China was 41 per cent of the total import of cotton, cotton yarn/thread and cotton fabrics valued at $7 billion in the last fiscal year, BB data showed. Of the four products, yarn is used in textile mills to make fabrics, while woven fabrics are used to make garments. Manufacturers brought in $1.2 billion worth of cotton yarn in fiscal 2018-19 and half of last year's total imports already reached Bangladesh between the months of July last year and January this year, the report said. In the seven months since July, businesses also imported half of the total woven textile and knit textile fabrics they had brought in in the last fiscal year. The picture is also the same for garment accessory imports from China. However, the import of mobile parts, which soared last year, may suffer as 27 per cent of last fiscal year's total imports amounting to $505 million came in the last seven months. Bangladesh is importing ginger, garlic and cinnamon from Myanmar, Vietnam, Thailand, Indonesia and Egypt, lowering the possibility of supply shortfall of the essential cooking ingredients, the NBR said. In case of exports, garment is the main item shipped to China, followed by jute and jute goods as well as fishes, including crab and eel. China is increasingly emerging as an export market for Bangladesh and half of the main exportable items destined for the country were shipped in the July-January period, the NBR said. "Given the trend, there is no big risk to exports to China," the NBR said.

Source: The Daily Star

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Indonesia: Jokowi officiates Asia Pacific Rayon plant in Riau

President Joko “Jokowi” Widodo officiated on Friday a fiber manufacturer PT Asia Pacific Rayon (APR) plant in Pelalawan regency, Riau -- a site expected to improve the nation’s textile sector and the Industry 4.0 road map. In his speech, the President claimed he was surprised to learn that wood could be used as primary material to make textile products. “The plant also has its own nursery with a total capacity of 300 million seeds. Where in the world could we find a manufacturing plant with such a huge capacity other than in Pelalawan?” Jokowi said on Friday. The plant can produce around 240,000 tons of rayon annually. It can also produce 10,000 tons of yarn every year. The APR, an affiliate of major pulp and paper producer Asia Pacific Resources International Holdings, is expected to increase the production capacity to 600,000 ton per year. “We should appreciate this technology. Stop thinking that [advanced] technology only exists in Europe, such as in Germany or Scandinavian countries. We also have one too in Indonesia; it’s located right here, in Pelalawan regency,” said Jokowi. APR’s capability to turn wood into fabrics and garments, the President added, had showed that Indonesia could compete with European countries or the United States. “The competition is no longer between regencies or provinces [within Indonesia] but with other countries. It’s not about rich countries defeating poor ones but about those that can outpace the slowpokes,” the President went on to say. Jokowi also appreciated APR’s investment in the regency since it contributed positively to the region’s economic growth and people’s welfare. The director of APR’s holding company, PT Royal Golden Eagle (RGE), Anderson Tanoto, said the total investment allocated to build the viscose factory had reached up to Rp 15 trillion (US$1.1 billion). He added that the plant in Pelalawan was capable of producing 240,000 tons of rayon fiber every year. “We also opened up 1,200 jobs in the region,” Anderson said. The plan could also generate up to US$131 billion of foreign exchange earnings every year and reduce the country’s dependency on imported raw materials valued at up to $149 million annually. The RGE would invest Rp 20 trillion in the plant for the next three years to support its product downstreaming program in Indonesia, Anderson went on to say. The manufacturing company had exported its goods to 14 countries, including Pakistan, Bangladesh, Brazil and several countries across Europe. “We also hope to grow in supporting the domestic market with the support of the Industry Ministry. We hope the government will aid us in supporting the local textile market through the modernization and improvement of machinery,” said Anderson.

Source: The Jakarta Post

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Chinese-built industrial parks help propel Ethiopia's economic growth, competitiveness

Meseret Alemu, a college graduate in north-central Ethiopia's Kombolcha town, is busy processing women's clothing in a textile factory located inside the Kombolcha Industrial Park (KIP). Alemu, 22, is one of the thousands of young Ethiopians working in factories inside the Chinese-built KIP, located about 380km northeast of the Ethiopian capital, Addis Ababa. The KIP now hosts six international companies from China, South Korea and Italy specializing in manufacturing export-oriented textile and garment products, the park's general manager, Ahmed Seid, told Xinhua in a recent interview. The six firms have created more than 2,000 job opportunities, and the park expects to hire up 20,000 people when planned expansion projects are completed, Seid said. The KIP, built by China Civil Engineering Construction Corporation (CCECC) and inaugurated in July 2017, is part of the Ethiopian government's greater economic ambition of transforming the country into the manufacturing powerhouse of Africa. As Ethiopia aspires to build and commission more than 30 industrial parks by 2025 across the country to realize its ambition of becoming a light manufacturing hub, Chinese engagement has injected a crucial impetus in helping the east African country to boost economic growth and enhance international competitiveness. Hawassa Industrial Park, which the Ethiopian government considers as its flagship industrial park, was also built by the CCECC. It was completed in 2016. Fitsum Ketema, general manager of Hawassa Industrial Park, said all the park's 52 factory sheds have been transferred to 21 international companies, some of which have started operation there. In addition to creating jobs and attracting foreign direct investment and technology transfer, Ketema said, the park has also indirectly benefited Hawassa city and its surroundings. The industrial park, located some 275km south of Addis Ababa, has so far created 27,000 direct job opportunities for local youth, a number bound to surge when operation at all the 52 factory sheds goes into full swing. Hawassa Industrial Park has adopted some state-of-the-art technologies, including one involving zero-liquid discharge technology, which treats 11 million liters of wastewater a day and recovers water for recycled use, Ketema said. In addition to industrial parks in Kombolcha and Hawassa, the Chinese construction giant CCECC has also built industrial parks in Bahir Dar, Adama, and Dire Dawa. China Communications Construction Company (CCCC), another Chinese construction firm, built Mekelle Industrial Park in northern Ethiopia. Mekelle was also designed to attract textile and apparel producing companies. Kilinto pharmaceutical industrial park, a World Bank-funded project on the outskirts of the capital, is being built by China Tiesiju Civil Engineering Group. Last December, the Ethiopian Investment Commission (EIC) said the country earned more than 47 million U.S. dollars in export value from industrial parks during the first quarter of the Ethiopian fiscal year that started on July 8, 2019. Total export by Ethiopia in the 2018-2019 fiscal year, which ended on July 7, 2019, was about 142 million dollars. Deputy EIC Commissioner Hana Arayaselassie said the commissioning of the Chinese-built Ethiopia-Djibouti electrified rail line, in January 2018, has contributed to boosting landlocked Ethiopia's export ambitions, by enhancing the speed and efficiency of cargo transport from industrial parks in mainland Ethiopia to ports in Djibouti. Nine of the industrial parks are located near the 756km Ethiopia-Djibouti rail line.

Source: Xinhua

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‘Unjustified tariff’: APTMA announces countrywide closure of textile mills

The All Pakistan Textile Mills Association (APTMA) has decided to close down all textile mills across the country’s in protest to the Ministry of Energy’s (Power Division) decision to charge surcharges over the concessionary rate of Rs7.5cents/kWh with retrospective effect from January 2019. As per details, after Monday’s hearing in the Lahore High Court, Justice Ayesha A. Malik did not give interim relief (stay order) to the 50 textile exporters who had last week moved the court against a power distribution company (LESCO) for charging arrears with retrospective effect. It is pertinent to mention that the Power Division, in contrast to the federal cabinet’s decisions, had last month increased electricity tariff to almost 13cents/Kwh for the export-oriented sector through inefficiency surcharges, including financial cost (FC) surcharge, Neelum Jhelum (NJ) surcharge, taxes, fixed charges and positive fuel adjustments (PFA) etc., applied retrospectively from January 1, 2019. On Monday, Justice Malik adjourned the case against the retrospective charging of surcharges till 4th March 2020 and issued notices to all the concerned parties in this regard. Talking to this scribe, a senior APTMA official, who did not wish to be named, said, “Unfortunately, our electricity cases are being heard by only one judge [in the country] and she is against giving any stay order… we feel that the honourable high court judge has not served us with justice.” He said the industry in Punjab would suffer badly if the Power Division did not take back its Jan 13th letter, which was written to power distribution companies (DISCOS), asking them to charge power tariff surcharges to the export sector over and above the competitive rate of Rs7.5cents/kWh. “Textile mills in Sindh are getting stays but mills in Punjab are not getting the same from LHC,” the APTMA official deplored. “Since the PTI government is not fulfilling its promises, it seems that strike is the only way forward.” He said that earlier today, APTMA had written a letter to Prime Minister Imran Khan, warning him against Special Assistant to PM on Petroleum Nadeem Babar and Power Minister Omer Ayub Khan. “We have appealed the prime minister to save the exports sector, which is on the verge of collapse. If the decision regarding retrospective arrears is not reversed, then the country will witness massive unemployment. Besides, it will also have an adverse impact on the country’s shrinking trade deficit which was registered in FY20.” He maintained that the textile millers cannot pay the arrears with retrospective effect from January 2019 and that they have decided to close their mills “since it was not feasible to work under these circumstances”. “The government is expecting us to pay arrears against past or closed transactions and this is not possible for us. We cannot pay billions of rupees in arrears for the mismanagement on part of the Power Division.”

Source: Pakistan Today

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