Finance Minister Nirmala Sitharaman's on Wednesday shared the details of the Rs. 20 Lakh crore economic relief package- equivalent to 10 per cent of India's GDP -- announced by Prime Minister Narendra Modi to soften and to support the economy badly hit by the 50-day lockdown to fight the spread of coronavirus. Sitharaman's press conference comes a day after Prime Minister Narendra Modi announced USD 265 billion fiscal stimulus to deal with COVID-19 situation in the country. The package is the second largest in Asia after Japan.
The focus on the economic package is to save jobs in the MSME sector and help it to get back on track; the labour-intensive sectors like textile and food processing industries; services sector that have been badly hit by COVID-19 and assistance for the poor.
In a televised address to the nation on Tuesday evening, The Prime Minister had announced the Aatma Nirbhar Bharat package that will focus on making India self-reliant. The package includes Reserve Bank of India (RBI)'s assistance and a Rs 1.74 lakh crore fund announced earlier, days after the country went into lockdown to slow the spread of coronavirus.during his national address on Tuesday.
Source: India TV
Textile industry and micro, small and medium-scale enterprises (MSMEs) in Coimbatore and Tiruppur districts have welcomed the announcements by Union Finance Minister Nirmala Sitharaman on Wednesday. Coimbatore District Small Industries’ Association president R. Ramamurthy said most of the demands of the associations in Coimbatore are met, especially related to definition for MSMEs. The industries can start buying raw materials and can commence operations with confidence. According to V. Krishna Kumar, president of Southern India Engineering Manufacturers’ Association, the decision to give priority to products made in the country and opening some tenders only to domestic industries are welcome measures. But, the loans announced by the government should be available at lower interest rates. President of Coimbatore and Tirupur District Tiny and Micro Enterprises’ Association C. Sivakumar welcomed the announcements and said the micro units can start operations and depending on need seek further support from the government. The government should look at waiver of loans for micro units, he said. J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, added that the micro sector, which is peculiar to Coimbatore region, needs more focus. There should also be clarity on how the announcements will be implemented. In the textile sector, Confederation of Indian Textile Industry chairman T. Rajkumar said the move to redefine MSMEs will benefit the sector. The ₹ 30,000-crore special liquidity scheme will supplement the measures announced by the RBI Governor to augment liquidity. Chairman of Apparel Export Promotion Council A. Sakthivel said the measures announced will give more money in hands of people and factories and spur economic growth. Disallowing global tenders will give opportunities to local industries. According to Ashwin Chandran, Chairman of Southern India Mills’ Association, 60 % of the textile industry in the country are MSMEs and these will benefit. There should be a special package for exports. Tiruppur Exporters’ Association president Raja M. Shanmugham welcomed continuance of Pradhan Mantri Garib Kalyan package and payment of 12 % of employer and 12 % employee contributions into EPF accounts of eligible establishments for another three months to salary months of June, July and August 2020 also. S. Nagarajan, president of Dyers’ Association of Tiruppur, while welcoming the announcements said industries abroad get loans at lower interest rates. The units in India should get loans at the international rates.
Source: The Hindu
Prime Minister Narendra Modi Tuesday brought up the importance of local manufacturing and consumption of locally produced goods, stating that Indians needed to become “vocal for local”. He hinted that the government would need to undertake major reforms in order for the Indian industry to play a major role in the global supply chain. Yet, how self reliant are India’s industries currently and how soon can they step up?
What sectors heavily depend on imports right now and cannot immediately scale up production domestically?
Electrical equipment such as smartphones and computers are a key part of India’s import bill. The value addition in India’s electronics industry is limited to mostly assembly, while the country depends on imports to access most of the primary and critical components used to make them, including printed circuit boards (PCBs). For instance, around 88 per cent of the components used by the mobile handsets industry are imported from countries like China, according to the Confederation of Indian Industry. Over 60 per cent of the country’s medical devices are imported as well. Other products heavily imported into the country are cells and modules used by the country’s solar power industry.
What sectors partially depend on imports to make their finished products?
India’s pharmaceutical industry is capable of making finished formulations, and also has domestic manufacturers of several key ingredients used to make them. However, the industry also imports some key ingredients for antibiotics and vitamins currently not manufactured in India. The country is currently trying to encourage domestic firms to make these key ingredients, known as fermentation-based APIs. However, this may take a few years. India imported around Rs 249 billion worth of key ingredients, including fermentation-based ingredients, in FY19, and this accounted for approximately 40 per cent of the overall domestic consumption, according to CII. Medical devices like ventilators also rely on imports of several crucial components like solenoid valves and pressure sensors. Some auto manufacturers depend on imports for various components, while the country’s electric vehicles industry is dependent, “to a large extent” on Chinese imports for chemicals used to make cathodes and battery cells, it said. Local dyestuff units in India are also heavily dependent on imports of several raw materials, while specialty chemicals for textiles like denim are also imported, according to CII. For instance, when China initiated its lockdown of Wuhan earlier this year during the COVID-19 pandemic, nearly 20 per cent of India’s dyes and dyestuff industry production was hit due to a disruption in raw material. Are there any sectors that are already self-reliant, have minimal dependence on imports or have the capacity to immediately scale up production here?
According to trade experts like JNU professor Biswajit Dhar, India is not as dependent on imports for some textile components like yarn. “Although the domestic industry argues that China is a major threat, if you look at the global scenario, India’s share in textiles has been going up,” he said. While technology transfer is required for more advanced and critical medical devices, the country does have the capacity to domestically make products like hot water bottles, mercury thermometers, hypodermic needles, wheelchairs and patient monitoring display units, according to some industry executives. “Many items, even what was made here in the past, are not made now by manufacturers as they prefer to import and market,” said Rajiv Nath, Forum Coordinator, Association of Indian Medical Devices Industry (AIMED).
What are the issues with scaling up production in import dependent sectors?
The manufacture of some of the key products that India imports such as semiconductors, displays and other very capital intensive electrical equipment may not be possible soon as manufacturing these requires large, stable sources of clean water and electricity. They also need a high degree of policy certainty as these require high upfront investments. Indian firms can however begin producing less sophisticated components if certain policy measures are taken. The Indian industry faces much higher costs in inputs such as electricity and much higher logistics costs than Chinese firms. Vinod Sharma, MD of Deki Electronics, said it costs Rs 4/kg for a shipment of cable to arrive at Mumbai from a city 300 km away from Shanghai but it costs around Rs 14/kg for that shipment to be transported from Mumbai to a factory in Noida. This is also true for fermentation based APIs, which Indian pharma executives claimed the country became less competitive in when China began receiving infrastructure and logistic support to produce and sell them at cheaper rates.
What policy measure does industry need for greater local production?
A key issue holding back manufacturing in the country and a lack of flexibility in labour laws, high costs and low availability of land and high cost of electricity. Some states including UP and Madhya Pradesh have relaxed some labour laws with Karnataka likely to follow suit. “You have to work on making the industry efficient first. For this you have to have policies to ensure (these industries) actually grow. You need an industrial policy, you need an innovation policy and you need to look at what the industries need in terms of making their infrastructure more efficient,” added JNU’s Dhar.
Source: Indian Express
Surat: The surging cases in Limbayat, a major coronavirus hotspot, has put a big question mark on the reopening of the country’s largest man-made fabric (MMF) sector worth Rs 50,000 crore. The reason being, nearly 90% of the textile markets, housing more than 55,000 shops, are located in Limbayat zone. Not only the markets, even 35% of the powerloom weaving units and 40% of the embroidery units too are located there. With 361 active Covid-19 cases, out of the total 927 cases in Surat city —Limbayat accounts for about 45% of the total. Also, with the area classified under red zone, re-opening of the textile markets looks a distant dream as of now. Surat’s MMF sector contributes to about 45% of the demand in the country. Secretary of Federation of Surat Textile Traders Association (FOSTTA), Champalal Bothra said, “Had the textile markets not been in Limbayat, the MMF sector would have commenced operation. About 90% markets are in Limbayat and we are not allowed to reopen the shops as the Covid-19 cases are on the rise.” FOSTTA has urged the Ministry of Home Affairs (MHA) and the district administration to allow the traders to open their shops for three hours a day starting from May 18 by issuing fresh lockdown guidelines.
Dhiraj Shah, vice-chairman of Synthetic and Rayon Textile Export Promotion Council (SRTEPC) told TOI, “In other states including UP and Delhi, the textile business has commenced, but they are waiting for the supply of fabrics from Surat. Reopening of textile markets is very crucial in ensuring the normal working of the entire textile chain.”
Jitendra Vakharia, president of South Gujarat Textile Processors Association told TOI, “The textile chain can’t operate without textile markets as processors get job work from the traders. With majority of the textile markets are in red zone, chances of commencing textile processing also look bleak.”
Source: Times of India
New Delhi: India may impose anti-dumping duty on import of a certain variety of fibre board, used in furniture and other related industries, as the Commerce Ministry has initiated a probe for alleged dumping of the product from a Vietnamese company. The probe follows a complaint by domestic manufacturers -- Greenply Industries, Greenpanel Industries, Century Plyboards, and Rushil Decor. The companies filed an application before the ministry's Directorate General of Trade Remedies (DGTR) for initiation of anti-dumping investigations on imports of plain medium density fibre board having thickness of 6 mm and above produced by Kim Tin MDF Joint Stock Company, Vietnam. The manufacturers have alleged that they are being impacted due to dumped imports from the company. The DGTR, in a notification, said that on the basis of prima facie evidence submitted by these domestic firms, "the authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping" of the product by this Vietnam-based firm. The directorate would recommend imposition of anti-dumping duty if the probe concludes that there is dumping of the product.
The Revenue Department takes the final decision to impose the duty.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts price of the product in importing country, hitting margins and profits of manufacturing firms. According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and Vietnam are members of the Geneva-based organisation, which deals with global trade norms. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.
Source: Economic Times
Mumbai: Maharashtra is seeking to attract investment from companies by enhancing ease of doing business in the state while deciding against relaxing labour laws, unlike Uttar Pradesh and Madhya Pradesh, in the wake of the restrictions forced by Covid-19. State industry minister Subhash Desai said on Wednesday that companies investing in Maharashtra will not have to run around to get permissions but will get a single 'mega permission' to invest in the state, adding that the government is also looking to unveil a financial package for industries in the state. The move means industries would no longer have to seek separate clearances for power, water and other requirements. A state government official said that once given the nod industries can start work while the rest of the clearances would be done in due course. He said this scheme was only for non-polluting industries. Desai said the state would also create a labour bureau which woould compile a list of workers and grade them as per their skills. The graded list would have skilled, semi-skilled and unskilled workers. Maharashtra has decided to appoint senior IAS officer Bhushan Gagrani as a 'sherpa', as private banks do, to interact with companies and help facilitate their investment and address their issues. Gagrani's task would be to prepare a blue print for government in order to attract more FDI from Japan, US, Korea and Germany. However, unlike Uttar Pradesh and Madhya Pradesh, which have relaxed labour laws, Maharashtra is not considering this option. “We need to have a balance between industrial growth and labour reforms,” said an official on condition of anonymity.
Source: Economic Times
Wholesale textile dealers and beauticians appealed to the District Collector to permit them to operate their businesses. On Tuesday, members of All India Hair and Beauty Association petitioned the Collector that the industry had been severely affected due to lockdown and the business would not revive immediately even after the lockdown. The petitioners said they were already operating in hygienic conditions and requested the government assistance to take the business forward. They demanded that the government should provide them relief of ₹15,000, power and rental bill relief for six months, extension of loan instalments by six months and reduction of GST from 18% to 5%. They also sought health insurance. Similarly, members of wholesale textile traders association requested the Collector to let them operate their business within the Corporation limits. The petitioners said that they would oblige by all safety protocols advised by the government.
Source: The Hindu
Surat: Union minister of state for shipping, fertilisers and chemical, Mansukh Mandaviya has said that the global pandemic has destabilised the Indian economy but that the recovery is expected within two months with the central government announcing slew of measures on Wednesday. Mandaviya was speaking at a webinar that was being organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) on Wednesday. He said, his ministry has identified about 43 active pharmaceutical ingredients (APIs) for the production linked incentive scheme. “The fermentation based raw material production will get 20% incentive, while the chemical based raw material will get 10% incentive” Mandaviya added, “Textile is the focus sector for the world and India, especially Surat has the capability to divert business from China, Bangladesh and other countries. We have advised the Container freight stations (CFS) for not levying penal charges arising from the delay in clearing containers owing to the lockdown restrictions.” On being asked about the mass exodus of migrants from Gujarat and severe workforce shortage, Mandaviya said, “The exodus of migrants is obvious due to lockdown and coronavirus. I remember, former late textile minister, Kashiram Rana had gone to Odisha in special train to convince Oriya workers to return back to Surat. We will have to repeat the same to bring the workers back to Surat once things are normal.”
Source: Times of India
Loan instalments to be paid by MSMEs should be deferred for 3 months, says Ajay Mehra
Industry and Lockdown
Ajay Mehra, managing director of Varinda Knitters Private Ltd, established about 20 years ago, has been manufacturing net and lace fabrics, which are used in fashion fabric garments, dupattas and lehengas. It is multi-use fabric, which is used in a range of products, including upholstery of cars, home, textiles, travelling accessories, men and women wears. He has been supplying the fabrics to various places, including Kolkata, Delhi, Mumbai and Surat and garment exporting units. Ajay, who is also the president of the Amritsar Warp Knitting Association, discusses the impact of the lockdown on the warp-knitting industry in an interview with Neeraj Bagga. Excerpts:
How has the lockdown impacted your warp-knitting business?
The demand has vanished with markets being closed due to the lockdown imposed to contain the spread of Covid-19. The state government has allowed the functioning of the unit with a rider to maintain social distancing and making lodging arrangements for labourers on the premises. In a labour-intensive industry, it is not possible to abide by such regulations. So, I decided not to resume the manufacturing work as it may jeopardise the health of workers. All payments are struck and under the given circumstances, we are apprehensive of getting back. The entire sale rests on credit and raw material comes from Maharashtra and Gujarat where companies sell yarn on cash or ask 18 per cent above its rate. Stocks of raw and finished material are lying in factory godowns.
Do you expect resumption of your business in near future?
It will take a long time to revive the business. It is not possible by lifting the curfew in a district or some packets. Since manufacturing and trading depend on inter-state movement, the nationwide lockdown must be lifted. There were many expansion and technology upgrade plans, but they have been put on hold for now. Our first priority will be to collect the funds scattered in the market and request the Ministry of Textile to reimburse the 10 per cent subsidy. Around five years ago, knitting machines were imported from Germany under the ministry’s Technology Upgradation Fund (TUF).
How are you dealing with the issue of paying salaries to workers?
All employees have been paid their March salary. But, they are yet to be paid for April. We are figuring out how to pay the salaries. A large number of semi-skilled and unskilled labourers are involved in the manufacturing work. They include both migrants and locals.
What is the share of online trading in your profession?
There is no share of online trading. In fabric, a buyer wishes to have a look at the product before purchasing it. So, samples are dispatched to the prospective customers and final orders come subsequently.
Do you consider the current crisis as a challenge or an opportunity?
It is more a challenge. Survival has become important as the lockdown offers a tough time to the business. Some people think that investors may pull out of China and India may be lucky to host them. However, it seems be a remote possibility as the Chinese government provides vast support to its industry and over the years, massive infrastructure has been built, which is hard to beat.
What are your expectations from the government?
We pay taxes, but there is no support from the government. It can collect higher taxes, but it should at least ensure pension after retirement. The government should pay salaries out of the ESI and EPF funds. It should come up with a package for the MSME units in general and the warp knitters in particular. Loan installments to be paid by the MSME units should be deferred for the next three months without any interest. At present, the government is only prolonging the pay-back time of loans and cash credit limits extended to industries.
Source: The Tribune
New Delhi: Finance Secretary Ajay Bhushan Pandey on Wednesday said the clear picture regarding GST collections for April would emerge only by June 30 -- the deadline by which businesses with up to Rs 5 crore turnover can file returns without any late fee and interest. The government had in March extended the deadline to file GST returns for taxpayers with turnover of over Rs 5 crore by 15 days till May 5 from the due date of April 20 without payment of any late fee and interest. However, a reduced rate of 9 per cent interest will be levied if the return is filed after May 5 till June 30. For taxpayers with turnover up to Rs 5 crore, there would be no interest and late fee would be waived if filed within the stipulated deadline set in June. Conventionally, the government releases GST revenue mop up numbers on the basis of collections in a particular month. Hence, the collection in April was due to be released on May 1. To a query on why the April GST number has not been released, Pandey said, "You know that the GST filing dates has been extended. If it will be extended, we have said that returns can be filed till June, people who have turnover of more than Rs 5 crore they also got more time." "So after giving these extensions, a clear picture about the revenue collection we will get only by June 30. That's why we have not yet released the figure. People who are able to file returns have paid GST and rest have time till June 30. It is only after June 30 that we will have a clear idea of the revenue collected," he said. In the 2019-20 fiscal, the Goods and Services Tax (GST) collection remained above the key Rs 1 lakh crore-mark for seven months out of 12. The collection stood at Rs 97,597 crore in March. The real impact of the coronavirus lockdown on GST revenue will be reflected in the revenue collections of May (for business activity in April) as the country was in complete lockdown last month with only essential services permitted. Experts said the GST mop up in May would mainly come from sectors like telecom, FMCG, food processing and pharma. Pandey, who is also the revenue secretary, further said about Rs 11,000 crore GST refunds have been issued during April. The Central Board of Indirect Taxes and Customs (CBIC) had launched a Special Refund Drive in April to clear pending GST and drawback refunds to help businesses tide over the liquidity crunch amid the COVID-19 crisis.
Source: Economic Times
As Prime Minister Narendra Modi announced on Tuesday that the contours of the fourth stage of lockdown from May 18 would be "completely different" from the previous three phases, Union home ministry officials said the new guidelines would most likely be issued on May 15. The new rules would provide relief to several sectors and rely on the feedback received from the chief ministers, officials said. “Lockdown 4 will not be the same. It will be different from before with new rules,” the prime minister said. The home ministry officials said social distancing, hygiene and sanitation protocols would be the same. “It will be ensured that individuals are made responsible for ensuring these measures. This will lead to better surveillance and use of technology like Aarogya Setu app. With many states well-prepared to deal with Covid-19 cases, we are in a position to ensure better healthcare facilities,” a senior home ministry official said. At the six-hour videoconference with chief ministers on Monday on the road ahead after May 17, the prime minister hinted that the lockdown, extended twice, would continue but with fewer restrictions. “Details will be shared after suggestion from states, before May 18,” he said during his address to the nation. “Corona will be with us for a long time but our lives cannot revolve around it. We will wear masks, we will follow doh gaj doori (six-foot distance) but we won’t let it derail our targets,” he said. Officials said fresh guidelines are being finalised in consultation with states and are likely to be released by May 15. “States can impose stricter rules to control the pandemic,” another official added.
Source: Economic Times
Details of the package will be revealed in phases by FM Nirmala Sitharaman, but the PM's speech gives a clear indication of its immediate beneficiaries - farmers, cottage industry, MSMEs, labourers and migrants. Not much of big industry's wishlist may find place in Prime Minister Narendra Modi government's Rs 20 lakh crore economic stimulus. True, details of the package will be revealed in phases by Finance Minister Nirmala Sitharaman beginning May 13, but the PM's speech gives a clear indication of who all will be the immediate beneficiaries of the package. It includes farmers, cottage industry, Micro Small and Medium Enterprises, labourers and migrants, and for the right reasons, while others will benefit from indirect measures meant to jump-start the economy as a whole. "The thrust on labour, MSME and farmers is welcome. It will be a great help to labour reeling in misery, especially in the informal sector", says Saji Narayanan, national president, Bharatiya Mazdoor Sangh (BMS). Union Minister for MSMEs Nitin Gadkari was also among the first to congratulate the PM for the sector specific package that is about to be unveiled. The Prime Minister's mention of industries, employees from organised and unorganised sectors and the middle class offers some hope, but these measures are likely to be more general in nature, than to address any specific problems. The PM has also blended the government's immediate response to the economic emergency caused by the COVID-19 with medium term measures it intends to take to promote local manufacturing, and self-reliance. The thrust on local markets, local supply chains and local manufacturing will be more of a policy stimulus than an economic stimulus. Big industry, however, can be happy for the PM's assertion that the package will also focus on land, labour, liquidity and laws. Not much of that would also mean direct funding support from the government, but law amendments - like the relaxation in labour law and the land acquisition norms by some states - will be extremely industry friendly. "We appreciate the Prime Minister spoke about land, labour, liquidity and simplification of laws which are key challenges of the economy", says Chandrajit Banerjee, Director General, CII. Supply chain reforms for agriculture, a rational tax system, simple and clear laws, capable human resource and a strong financial system - all of which find mention in the PM's speech - are long pending and recurring demands from Indian businesses. The argument always has been that reforms will promote business, attract investment, and further strengthen Make in India. Implementation has remained patchy, and one has to see how the COVID package will change the narrative. As the PM said, the Finance Minister will start sharing details of the contours of the package starting tomorrow, but economic resurgence will depend on how fast, to what extent and in how large a geography, the lockdown gets lifted.
Source: Business Today
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
803.00 |
USD/Ton |
0% |
14-05-2020 |
|
VSF |
1240.80 |
USD/Ton |
0% |
14-05-2020 |
|
ASF |
1582.73 |
USD/Ton |
0% |
14-05-2020 |
|
Polyester POY |
728.97 |
USD/Ton |
-1.15% |
14-05-2020 |
|
Nylon FDY |
1945.80 |
USD/Ton |
0% |
14-05-2020 |
|
40D Spandex |
4018.50 |
USD/Ton |
0% |
14-05-2020 |
|
Nylon POY |
5188.80 |
USD/Ton |
0% |
14-05-2020 |
|
Acrylic Top 3D |
965.85 |
USD/Ton |
-0.72% |
14-05-2020 |
|
Polyester FDY |
1847.10 |
USD/Ton |
0% |
14-05-2020 |
|
Nylon DTY |
1748.40 |
USD/Ton |
0% |
14-05-2020 |
|
Viscose Long Filament |
930.60 |
USD/Ton |
0% |
14-05-2020 |
|
Polyester DTY |
2270.10 |
USD/Ton |
0% |
14-05-2020 |
|
30S Spun Rayon Yarn |
1734.30 |
USD/Ton |
0% |
14-05-2020 |
|
32S Polyester Yarn |
1360.65 |
USD/Ton |
0.52% |
14-05-2020 |
|
45S T/C Yarn |
2115.00 |
USD/Ton |
-1.96% |
14-05-2020 |
|
40S Rayon Yarn |
1903.50 |
USD/Ton |
0% |
14-05-2020 |
|
T/R Yarn 65/35 32S |
1649.70 |
USD/Ton |
0% |
14-05-2020 |
|
45S Polyester Yarn |
1551.00 |
USD/Ton |
0% |
14-05-2020 |
|
T/C Yarn 65/35 32S |
2016.30 |
USD/Ton |
0% |
14-05-2020 |
|
10S Denim Fabric |
1.12 |
USD/Meter |
0% |
14-05-2020 |
|
32S Twill Fabric |
0.64 |
USD/Meter |
0% |
14-05-2020 |
|
40S Combed Poplin |
0.93 |
USD/Meter |
0% |
14-05-2020 |
|
30S Rayon Fabric |
0.49 |
USD/Meter |
0% |
14-05-2020 |
|
45S T/C Fabric |
0.64 |
USD/Meter |
0% |
14-05-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14100 USD dtd. 14/05/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The global trade of synthetic staple fibres, not carded, combed or otherwise processes for spinning of polyesters have shown a sharp decline in 2019. Total trade fell 1.18 per cent from 2017 to 2019, according to data from TexPro. The global trade of synthetic staple fibres of polyesters was $8,697.46 million in 2017, declined to $8,594.73 million in 2019. The total trade of synthetic staple fibres of polyesters decreased 14.86 per cent in 2019 over the previous year and is anticipated to drop to $8,443.13 million in 2022 with a rate of 1.76 per cent from 2019, according to Fibre2Fashion's market analysis tool TexPro. The global export of synthetic staple fibres of polyesters was $4,260.65 million in 2017, which was slightly down 0.79 per cent to $4,226.82 million in 2019. Total exports slipped 15.17 per cent in 2019 over the previous year and is expected to decrease to $4,176.58 million in 2022 with a rate of 1.19 per cent from 2019. The global import value of synthetic staple fibres of Polyesters was $4,436.82 million in 2017, which reduced 1.55 per cent to $4,367.91 million in 2019. Total imports decreased 14.56 per cent in 2019 over the previous year and is expected to decrease to $4,266.54 million in 2022 with a rate of 2.32 per cent from 2019. China ($1,043.16 million), South Korea ($881.41 million), Thailand ($370.25 million), Taiwan ($363.49 million) and India ($295.11 million) were the key exporters of synthetic staple fibres of Polyesters across the globe in 2019, together comprising 69.87 per cent of total export. These were followed by Indonesia ($282.30 million), Ireland ($211.67 million) and Malaysia ($144.72 million). From 2016 to 2019, the most notable rate of growth in terms of export value, amongst the main exporting countries, was attained by Thailand (43.00 per cent) and India (39.19 per cent). US ($521.38 million), Germany ($272.46 million), Italy ($268.56 million) and Turkey ($264.26 million) were the key importers of synthetic staple fibres of Polyesters across the globe in 2019, together comprising 30.37 per cent of total import. These were followed by UK ($243.50 million), China ($242.41 million) and Spain ($225.49 million).From 2016 to 2019, the most notable rate of growth in terms of import value, amongst the main importing countries, was attained by Turkey (14.44 per cent).
Source: Fibre2fashion
Bangladesh and Uzbekistan have agreed to form Joint Working Group (JWG) to boost bilateral trade and investment through removing different barriers. Commerce Minister Tipu Munshi gave the information on Tuesday at a view exchange meeting with Uzbekistan’s Deputy Prime Minister and Investment and Foreign Trade Minister Sardor Umurzakov through a videoconference from the secretariat in the city, reports BSS. “Bangladesh is keen to increase trade and cooperation between the two countries. However, there are some complications in trade. It is possible to resolve the complexities by forming a joint working group comprising the experts from both the countries,” he said. Among others, Prime Minister’s Private Industry and Investment Adviser Salman Fazlur Rahman and Textiles and Jute Minister Golam Dastagir Gazi also joined the videoconference. During the meeting, they discussed various issues to enhance the trade and economic relations between the two countries. Based on the discussion, they took decision to form a joint working group to increase trade and economic relations between the two countries.
Source: The Financial Express
Britain plans to begin negotiating a free trade agreement with Japan via video conference shortly, the government said, setting out its negotiating objectives for a deal it hopes will save British exporters millions of pounds a year in tariffs. After decades outsourcing its trade policy to the European Union, Britain is embarking on negotiating free trade agreements with countries around the world, and earlier this month launched formal negotiations with the United States. “Japan is one of our largest trading partners and a new trade deal will help to increase trade, boost investment and create more jobs following the economic challenges caused by coronavirus,” trade minister Liz Truss said in a statement. “Both sides are committed to an ambitious timeline to secure a deal that goes even further than the existing agreement especially in digital and data.” Britain said its negotiating objectives for the deal, to be published on Wednesday, include providing new opportunities for UK businesses and investors, and increasing the resilience of British supply chains by diversifying beyond the EU and China. The government said it expected manufacturers of textiles and clothing, as well as professional and financial services providers would be among the UK industries to benefit most from lowering trade barriers with Japan. The agreement would be based on the existing EU-Japan free trade deal, it said, and would also aim to secure provisions on digital trade and copyright which could benefit the e-commerce sector and the creative industries. Britain said it estimated a trade deal with Japan could increase trade flows between the two countries by 15.2 billion pounds, and that lower or zero tariffs could save UK exporters 33 million pounds a year. Japan was Britain’s fourth biggest non-EU trading partner in 2018, with total trade between the two countries of 29.1 billion pounds, according to government statistics. Britain hopes ultimately to join the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and sees trade talks with Japan as a step towards that end.
Source: Reuters
Hundreds of millions of made-in-Vietnam face masks have been exported abroad, showing an upsurge in the operation and production capacity of Vietnamese garment and textile sector at a time when the country’s economy is struggling to overcome the impacts of the COVID-19 outbreak. However, there are still many things to do to facilitate the sustainable export of face masks. As a major garment and textile business with export revenue reaching hundreds of millions of US dollars, the Garment 10 Corporation Joint Stock Company has also suffered from the COVID-19 economic storm. The corporation has faced difficulties not only in the interruption in the supply of raw clothing materials from China but also in seeking demand for their products. After recognising the increasing demand for face masks amidst the epidemic outbreak, the company found a way to transform the challenges into opportunities by switching to cloth face masks. The company’s director Than Duc Viet said that Garment 10 had received an export order for 400 million medical face masks worth US$52 million, which is planned to be exported this July. The company has also received orders for more than 20 million cloth masks from US and German partners. Face masks made by other Vietnamese garment and textile businesses have also achieved a strong position in export markets. As of April 19, Vietnam has exported over 415 million face masks. Vietnamese businesses’ face mask production capacity is huge. The Ministry of Industry and Trade has stated that domestic producers have a total production capacity of 40 million face masks per day, or about 1.2 billion a month. By working at full capacity, the entire garment and textile sector can even produce 100 million face masks per day, or about 3 billion a month. As estimated by the Vietnam Textile and Apparel Association (VITAS), domestic garment and textile businesses are able to produce around 150 million - 200 million face masks a month, which can absolutely meet domestic demand for epidemic prevention and control besides maintaining exports. The Ministry of Industry and Trade has worked to help Vietnamese businesses connect with foreign partners. Vietnamese trade offices abroad have also shared a helping hand in seeking business partners to export these items to their host countries. Recently, the Government promulgated Resolution No 60/NQ-CP on licences for export of medical face masks, which regulates that medical face masks can be exported without caps on export volume. Deputy head of the Ministry of Industry and Trade's Export-Import Agency Tran Thanh Hai said that the resolution has opened up the door for garment and textile businesses to seize opportunity amidst this difficult period of time.
Attention needed to meet quality standards
However, Vietnamese businesses have faced certain difficulties in meeting mask quality standards from the importing countries. Accordingly, to export masks to the EU and the US, Vietnamese firms must obtain a CE marking and FDA certification, respectively, which indicate that a product meets the appropriate safety and environmental protection standards. In the wake of the pandemic ravaging the globe, and a large demand for face masks, the EU and US may allow the import of these products without CE marking and FDA certification. However, when the epidemic slows down, they will be mandatory for Vietnamese firms to get access into these markets, said Deputy Director Tran Thanh Hai. Dinh Ngoc Long, an expert from the Vietnam Certification Centre (Quarcert), noted that to obtain a CE marking Vietnamese firm must thoroughly understand all relevant EU-wide requirements and make sure that their products meet all these essential requirements. For FDA certification, Tran Anh Tuan, an expert from Quarcert, noted that products must undergo a review of safety and effectiveness by FDA experts and achieve agency approval before they can be marketed. Businesses must prepare adequate documents for FDA to perform a review anytime without prior notice. Experts also noted that mask producers must be well-prepared right from the start of the production process in order to raise their competitiveness and promote their exports in the long term, particularly to demanding markets like the US and EU. Vietnamese businesses will also face competitiveness issues when other countries with success in developing their textile and garment sectors, including China, India and Pakistan, have recovered after the epidemics.
Source: Nhan Dhan Online
s
