The Covid-19 pandemic has cut the Indian textile and fashion industry into bits and pieces. While the export orders from the key markets- the US and UK started to dwindle since the beginning of the year, domestic sales were also badly hit by demand sluggishness and closure of retail showrooms across the country due to the lockdown….
Source: The Hindu Business Line
In a bid to push investments to widen the spread of industrial activities in post-Covid situation, the State Government on Saturday held an interactive meeting with senior officers of the Centre. The meeting, chaired by Union Minister for Steel, Petroleum and Natural Gas Dharmendra Pradhan over video conference discussed ways to complete the ongoing industrial projects and grounding investment proposals expeditiously. “Odisha has taken remarkable initiatives for making the State an investment destination. Successful management of cyclones in Odisha itself has opened new avenues of investment,” Pradhan said. Noting that the State is now ready for next higher level of industrial development, he advised the Government to work in tandem with the Centre to sort out problems through sectoral meetings for expeditious implementation of projects. Assuring hassle-free business environment for investors, Chief Secretary Asit Tripathy said the Government has set higher growth trajectories for development of industrial infrastructure. “Sectoral industrial parks with delineated land bank are in ‘ready to move’ condition for the investors. We need to develop more infrastructure and industrial townships around the clusters,” he said. On the competitive advantage of Odisha as an investment destination, Principal Secretary, Industries, Hemant Sharma said the State has developed industry-ready land bank of 505 sq km in different locations. A power surplus State with 17,600 MW of production, it assures quality power supply to investors. There is also natural gas pipeline network across the State. Outlining the policy frameworks for promotion of industries in different sectors like mining and metals, petro-chemicals, chemicals and plastics, textiles and apparel, IT, ITes and electronics manufacturing food processing and tourism, Sharma said the State has abundant availability of skilled manpower in the current scenario. Proposals for facilitating foreign direct investment in focus sectors, participation of Odisha in all industry promotion initiatives and inclusion of Odisha Economic Corridor under Industrial Corridor Development and Implementation Trust (NICDIT) were discussed. Union Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Guru Prasad Mohapatra along with senior officers from Ministries concerned presented various Central schemes and projects aimed at industrial promotion. Secretary, Skill Development & Technical Education and CMD IDCO Sanjay Singh, 5T Secretary VK Pandian, IPICOL MD Nitin Bhanudas Jawale and senior officers from industry department participated in the discussion.
Source: Indian Express
The Finance Ministry is not considering imposition of calamity cess on the GST as businesses are grappling with low sales and declining demand, sources said. Reports had earlier said that the central government is considering a calamity cess on the Goods and Services Tax, similar to flood cess imposed by Kerala in June last year. Ministry sources said that in the present economic scenario during the COVID-19 pandemic, any purported proposal of introducing a calamity cess would be nothing less than an adversity itself. This would prove to be counter-productive, as sales are already at low volume and the industry is facing a deep crisis for want of demand and likely labour challenges, a source said. "Any such measure would further dampen the consumers' sentiment and could weaken markets' strength, especially when the government is endeavouring its best to boost the consumption," the source said. Also internationally, no country has tried such imprudent fiddling with their existing tax regimes during COVID time. None of the countries, developed or developing, have increased taxes to counter economic impact of the pandemic, the source added. Congress leader Kapil Sibal had earlier in the day tweeted: "Even the RBI admits growth this year will be in negative territory. Don't even think of a "calamity cess" on the GST. That will be another "calamity", he said.
Source: Economic Times
Abhas Jha, an Indian economist, has been appointed by the World Bank to a key position on climate change and disaster management in South Asia, the global lender said. Jha's appointment comes at a time when Cyclone Amphan has badly hit West Bengal, Orissa in India and Bangladesh. In his capacity as World Bank's Practice Manager for Climate Change and Disaster Risk Management for South Asia, one of the top priorities of Jha will be to encourage and help the South Asia region (SAR) Disaster Risk Management Climate Change team to connect and collaborate across Global Practice boundaries, the bank said in a statement on Friday. And also to the World Bank to conceive and deliver innovative and high-quality development solutions to respond to client demands and strengthen disaster risk management and climate action in the region, the statement said. Based out of Singapore, Jha will also work closely with other Practice Managers, Global Leads and Global Solutions Groups to incubate, pilot and scale-up innovative and high-quality development solutions, and to promote the generation and flow of global knowledge to serve these countries, the bank said. According to the bank, Jha's mandate is to nurture, lead, inspire and deploy a team of highly qualified professionals to deliver the best solutions for these countries. His most recent assignment is Practice Manager for Urban Development and Disaster Risk Management in the East Asia and Pacific region. His area of jurisdiction includes India, Bangladesh, Pakistan, Afghanistan, Sri Lanka, Nepal and Maldives.
Source: Economic Times
The Central Board of Indirect Taxes (CBIC) on Monday said it has sanctioned GST refund claims worth Rs 11,052 crore in 47 days. In a tweet, the CBIC said it is "committed to ensuring liquidity to GST taxpayers especially MSME sectors during the lockdown". The tweet added that 29,230 refund claims amounting to Rs 11,052 crore disposed of between April 8-May 24, the CBIC added. Refunds have been sanctioned while ensuring work from home, it added. The finance ministry had on April 8 said that to provide relief during the cor it has been decided to issue all pending GST and custom refunds which would benefit around 1 lakh business entities, including MSME. The total refund granted will be approximately Rs 18,000 crore, it had said. The CBIC had earlier asked its field officers to avoid asking for physical submission of documents from entities who are claiming GST and Customs refunds and instead use official email for all communication. The CBIC had said that the decision to process pending refund claims has been taken with a view to providing immediate relief to the taxpayers in these difficult times even though the GST Law provides 15 days for issuing acknowledgment or deficiency memo and total 60 days for disposing of off refund claims without any liability to pay interest. It is to be noted that the government is mulling ways to compensate states for the widening goods and services tax (GST) shortfall, which includes borrowing from the market and extending the cess repayment period further. Raising GST rates or rationalisation of tax slabs may be discussed by the GST Council in the next meeting to be scheduled early next month. Compensating states have become tough with dwindling cess collection in the compensation fund amid a sharp fall in revenue due to the coronavirus pandemic.
Source: Business Standard
Minister of State for Finance Anurag Thakur has exhorted India Inc to take advantage of the recent government initiatives and step up investments to make the country ''Atmanirbhar Bharat''. In these difficult times, local industries should become the flag-bearers in showcasing that India is an attractive investment destination, he told in an interview. As part of the Rs 20.97 lakh crore Atmanirbhar Bharat package, Thakur said the government has announced a slew of long-pending structural reforms concerning the industry, especially land, labour and laws, in a bid to improve investment climate and ease of doing business. Besides, the minister said other bold reforms announced, including easing of limits on foreign direct investment in defence manufacturing, privatisation of six more airports, and allowing private sector in commercial coal mining, provide newer avenues for investment. To take care of liquidity needs, various schemes have been unveiled to provide cash to industries to kickstart their business, he said. "I personally believe that we need more investment from the local industries, Indian industries to showcase to others that India is an attractive destination. We need both investment from the domestic industries, and also from other countries," he said. Talking about new avenues for investment, the minister said, "Agriculture, agro exports, manufacturing of defence equipment within the country and making it a hub for exports. Also, the area of space where you (private players) can get more investment and mining of coal and other mineral sectors could be looked at. So, there could be many sectors." Industry can also think of innovative ways, for example, importing something cheap, doing value addition and then exporting the goods at substantially higher prices so that the export sector gets a push, he added. Stressing that economic reform is a continuous process, Thakur said, "I'll say the year 2020 will be known as the year of reforms." In bold reforms aimed at boosting the coronavirus-hit economy, the government last week announced several reforms including a slew of measures for the agriculture sector, defence manufacturing, civil aviation and mining sector. "The long-pending demand for the change of definition of MSME, taking farmers out of the clutches of the Essential Commodities Act and the APMC Act have been seen as historic steps. "Opening up of the coal mining and mineral sector at the same time has been a very positive step towards self-reliance," he said. "Apart from that, opening up the space sector is not a small reform. Permitting foreign investors to own up to 74 per cent stake in defence manufacturing ventures under the automatic route, from the current 49 per cent limit is another big bold move," he said. Also, the list of weapons that cannot be imported will be expanded to give Make in India a boost and cut down the import bill as well as improve export potential. Asked if the government is considering monetisation of debt as an option to shore up its resources, Thakur said, "We are just in the second month of this fiscal year. It will be too early to say anything." "Nobody knows how this COVID-19 pandemic pans out, what shape it is going to take, what kind of impact it will have on the Indian economy, and globally also no country knows today what lies three months later," he added. As of now, he said, the government has increased the borrowing limit from Rs 7.8 crore to Rs 12 lakh crore, which is Rs 4.2 lakh crore higher than the Budget estimate. "All these things could be taken into consideration, either at the revised estimate stage or maybe after every couple of months. We are willing to take any kind of steps in the interest of the public and the country as the situation arises," he added.
Source: Economic Times
Union Minister for MSME and Road Transport and Highways, Shri Nitin Gadkari today said that the government is exploring new financial lending institutions to support small-scale units in terms of financial support. Shri Gadkari said that government is working towards strengthening the NBFCs which will help small businesses to avail easy credit in the coming time. He was speaking at a meeting via video conferencing with the Members of Calcutta Chamber of Commerce on impact of COVID-19 on MSMEs and the measures taken to address the challenges at hand. Addressing the members, Shri Gadkari re-iterated that these are trying times as we are waging a war against COVID-19 pandemic as well as the economic instability caused by it. He requested all the stakeholders to work in tandem and urged the industry to maintain a positive attitude during this time to tide over this crisis. The Minister also stressed on usage of PPE (masks, sanitizer etc.) and advised to maintain social distancing norms in personal life and at work places. Apprising the representatives of recent announcement on Special Economic Package: Aatmanirbhar Bharat Abhiyan, he explained various support measures which has been announced for MSMEs such as collateral free automatic loan, distress fund etc. He said that all these measures will provide the required support to MSMEs to face the current economic challenges. The Minister also informed them that there has been restructuring of 6 lakh MSMEs till March 2020 and the Ministry is aiming to cover additional 25 lakh until December 2020. He added that the current contribution of MSMEs in export is 48%, which may be increased to 60%. He further shared that currently 11 crore jobs have been created through MSMEs and this to be increased to 5 crores. The Union Minister mentioned that special focus towards export enhancement is the need of the hour. He further added that there is need to reduce our cost on production, logistics etc. to become economically viable. The Minister shared that the Ministry of MSME is working on two booklets to cover details about last three year’s export and import. Some of the questions asked and the suggestions given included: issue of delayed payment needs additional thrust to ensure timely payment to MSMEs, interest subvention of 4% should be looked at to provide support to MSMEs and safeguard them from becoming an NPA, how banks can be incentivized for proper implementation of proposed measure etc. Shri Gadkari responded to the questions from representatives and assured all possible help from the government.
Source: PIB
Industrial activities in Bhilwara have started gaining momentum, as all nine mega textile units have resumed production, state industry minister Parsadi Lal Meena said on Sunday. Apart from textile units, production in 250 MSME units has also started in Bhilwara, he added. Bhilwara is known as the textile city. "Lockdown-4 is being taken as Opening-1 in the state. Efforts have been accelerated to bring industrial activities to a normal level in the state. The industrial activities in the state have increased, which is a good sign,” he said. Meena said the department has made it easy to start most of the industrial activities in permitted category and opened industrial areas, SEZ etc. Production work has started with less number of workers to ensure compliance of advisories of the Centre and state government, health protocol and social distancing norms, he added. Additional Chief Secretary Subodh Agarwal informed that the units of cement, edible oil, flour-pulse-gram, pharma, electronics, IT, among others have started functioning. "In the textile sector, there is a chain of spinning, weaving and processing, and these works in MSME sector has also started," he said. The officer informed that 25 per cent of the textile industries have started production in Balotra (Barmer) and 50 units in Pali. He also said that production is being done in 34 cement units of the state, while edible oils are being produced in 700 oil mills.
Source: The Week
Surat: Faced with severe liquidity crisis amid the closure of the majority of the textile markets in the city, traders in country’s largest man-made fabric (MMF) wholesale market are pinning their hopes on their counterparts in other states to infuse liquidity by releasing payments against the goods dispatched before the national lockdown came into force. The Federation of Surat Textile Traders Association (FOSTTA), apex body of the traders’ fraternity, has started the exercise of writing letters to their counterparts in the wholesale fabric markets in Delhi, Punjab, Bihar, Maharashtra, Uttar Pradesh, Kolkata, Chennai etc. to release payments due to the traders in Surat to infuse much-needed liquidity. In a letter, the FOSTTA office-bearers stated that the wholesale textile trade in Surat lost business to the tune of over Rs 10,000 crore in the last 60 days, mainly due to the national lockdown to contain the spread of coronavirus. Further, the markets are not likely to reopen any time soon as Covid-19 cases were on the rise. In such circumstances, the traders are drained of their working capital and were facing severe liquidity crunch to restart the textile trade in near future. Champalal Bothra, secretary, FOSTTA said, “Payments worth more than Rs 5,000 crore against the supply of saris, dress material, lenghas, choli and home furnishing material is due to the traders in Surat.”
Source: Times of India
There is a need to convert development into mass movement, and India should aspire to become second or third largest economy in the world by 2047, Niti Aayog Vice Chairman Rajiv Kumar said on Sunday. Addressing a webinar organised by Bharatiya Shikshan Mandal, Kumar pointed out that private sector investment is necessary for the economic growth of India. "Today we need to convert development into Jan Andolan (mass movement)... India should aspire to become second or third largest economy by 2047," Niti Aayog Vice Chairman said. Presently, India is the fifth largest economy in the world. Kumar also said if India generates enough employment opportunities then economic growth will happen. He pointed out that COVID-19 pandemic has shown weaknesses of Indian society. "80 per cent of our workers are below the radar, we don't have data about them. "We will have to go back to the drawing board and business as usual will not do," Kumar noted. Referring to rising protectionism across the world, he said for a very long time, India will have to import technology because the country has lost lots of time. Kumar also stressed on removing mistrust between the government and entrepreneurs.
Source: Economic Times
The Maharashtra government will soon come out with a package to help small businesses and artisans, Rural Development Minister Hasan Mushrif said on Saturday. Opposition BJP has demanded that the Shiv Sena-NCP- Congress government offer a package on the lines of the Centre to help those hit by the lockdown to contain coronavirus. "Ministers have been demanding that Chief Minister Uddhav Thackeray and Deputy Chief Minister Ajit Pawar announce a package for the `Bara Balutedar'," he said. Bara Balutedar was a term originally used for various constituents of the village economy, including artisans. "We are sure the Maharashtra government will soon declare a package which will stun the opposition," Mushrif told PTI over phone. It will help small traders, rickshaw drivers, barbers, fruit vendors and others "who could not do business and whose dreams were destroyed in the past two months", said the NCP leader. "The chief minister and deputy chief minister have started working on it," he added. Speaking to reporters earlier in the day, Mushrif dismissed the Centre's Rs 20 lakh crore package. "They declared Rs 3 lakh crore loan facility for MSMEs. Will banks give them money? Nobody gives money to them. There is a big difference between spending and lending. This is nothing but loan facility, people are not going to benefit," he claimed. State BJP chief Chandrakant Patil had on Friday demanded a Rs 50,000 crore package for those affected by the lockdown.
Source: Economic Times
The Clothing Manufacturers Association of India (CMAI), representing the interests of close to 4,000 members and servicing over 20,000 retailers, has written to the Minister of Textiles Smriti Zubin Irani, and the Minister of Commerce and Industry Piyush Goyal, and has submitted a representation to the Government to consider levying a temporary additional COVID Duty on all imports of apparel and readymade garments, including on those garments imported from countries with whom India has a Free Trade Agreement, especially Bangladesh. CMAI has for long been drawing the Government’s attention to the dangers posed by the duty-free imports of garments from Bangladesh, and with it the back-door entry of Chinese fabrics into India – and its consequent impact on the MSME dominated domestic garment industry. The significant rate of growth of these imports is well documented, and needs no repetition, except to state that the surge continues unabated, as the following table would highlight:
The Government has in several of CMAI’s discussions and interactions pointed out to the various treaties signed with Bangladesh and other SAFTA countries, and that it would be difficult, if not impossible, to dilute the agreements. However, CMAI has urged the Government to consider the dramatically changed circumstances prevailing today, in the aftermath of the COVID 19 disaster. The Indian textile industry has been hit hard by COVID-19 that has impacted exports as well as sales of apparel products in the domestic market. Based on a recent study done by CMAI, it is estimated that will be more than 40 percent drop in domestic demand of apparel due to the lockdown and the reduced demand as a result of COVID-19. It is also estimated that more than 20 percent of the domestic units may face closure, being unable to survive the current crisis. The reduction in demand and revenue levels will lead to downsizing of operations, closure of units and job losses in Indian textile and apparel industry to the tune of 1 crore across the entire textile value chain. In this crisis situation, it is important to think of innovative ideas and policies to support the industry to survive in the immediate term. With this in view, CMAI has urged the Textiles Ministry to levy such an import duty on imports of garments and fabrics from all countries, including those with whom India has FTAs or Zero Duty Agreements. Such an additional duty will result in a level playing field for the domestic manufacturers, and help them compete with the Bangladesh garment industry, which has currently at least 15 percent cheaper production cost. This will have great positive impact on the Domestic Industry and will result in the quick recovery of hundreds of MSMEs who are today on the verge of collapse, and the possible savings of hundreds of thousands of jobs. Additionally this will enable the Government to collect approximately US$ 100-150 million for its fight against COVID-19 (depending on the quantum of duty imposed). Being fully cognisant of the Government’s constraints, CMAI has suggested that such a measure may be undertaken only for a limited period of time of 12 months, after which they can go back to their current agreements in force.
Source: India Retailing
A senior State Bank of India executive said the moratorium is apt for small and medium enterprises whose cash flows have been impacted severely. The extension of moratorium by three months beyond May is likely to expose lenders to the risk of some borrowers having the capability to pay skipping repayments, fear bankers. The move is also expected to nudge lenders to extend this leeway to borrowers like some finance companies who were not beneficiaries earlier. A senior State Bank of India executive said the moratorium is apt for small and medium enterprises whose cash flows have been impacted severely. But that is not the case with retail borrowers (mostly salaried). Few have lost jobs, but the number is less. This segment may pose a challenge to resuming normal payments. Consequently, banks may end up with higher delinquencies during hard days, the executive said. A top executive of public sector bank said some able borrowers might miss payments and request for more relaxations. The accumulated interest during the moratorium period would add to burden of repayments. “Lenders are alive to such tendency which may add to pool of bad loans,” he added. Krishnan Sitaraman, senior director at CRISIL Ratings, said the lender will have to monitor borrower’s behaviour pertaining to payment discipline once the moratorium is lifted. A six-month of continuous non-payment of debt obligations can result in some element of credit indiscipline creeping in for certain borrowers.
Source: Business Standard
The transfers to the underprivileged and most vulnerable segments and investments in projects for employment generation will trigger the benefits of potential markets and resources. At last, the much-awaited stimulus has arrived! A whopping 10 per cent of India’s GDP is indeed large enough to pump prime the economy. The common notion which was doing the rounds among many economists, industrialists and even academicians was that the Indian economy is beginning to slip into a deep crisis. It had already been on a slow growth path even before the coronavirus showed up. The poor implementation of demonetization and GST and then the deepening financial market woes represented by mounting NPAs were portrayed to be villains of the India growth story. Some sectors led by the auto sector were already heading downhill. With these grave pre-existing growth inhibitors, the pandemic is likely to create a very long term economic downturn. Such grave pessimism was also evident in sentiments surrounding the impending stimulus package. Though at first there may appear to be adequate merit in leaning towards this view, it is important to wear an optimist’s hat for once. The government’s stance of converting diversity into an opportunity is a move in the right direction. There are ample reasons to believe that with this stimulus package, India is still better off as compared to most economies of the world and will be in a better position to wither the economic crisis created by the pandemic. India’s internal market is an opportunity to capitalize on. The famous demographic dividend argument emphasizes immense opportunity in India’s growing middle-income group. But one might argue that with dwindling or no incomes how would this potential be realized? That is where the government’s role as an income and livelihood enabler comes in. The transfers to the underprivileged and most vulnerable segments and investments in projects for employment generation will trigger the benefits of potential markets and resources. The development of agricultural infrastructure is also a suitable candidate for investment. It would not only help to reduce food wastages but also the resultant food inflation. According to the UNDP about 40 per cent of food produced in India is wasted because it doesn’t reach the market at all or on time. Besides solving this long term structural problem, such investments can also help achieve the short-term objective of rural employment generation. This is more relevant now given that rural unemployment is expected to increase in the near term on account of the return of a large number of migrant workers from cities. Such a large government stimulus comes with its own obvious trade-off of a high fiscal deficit and government debt. In recent times, the government has been overcautious about mounting fiscal deficits, guided not only by the resurrected FRBM targets in 2016 but also by the fear that any further escalation of the high debt to GDP ratio of 70 per cent can prove detrimental to the already fragile financial markets. According to the IMF, India’s government borrowing is estimated at 8.5 per cent of GDP if some off-budget finances relating to government enterprises and low tiers of government (state governments) are considered. The question about available fiscal space and related market turmoil is therefore inevitable in this context. One possible solution for want of a better option during these rare and extreme times is for the government to provide for transparency on its stance relating to the fiscal stimulus and make timely disclosures of information about public enterprises. This will help salvage credibility in financial markets, according to the IMF. Another related concern is the possibility of the twin deficit problem. With a higher fiscal deficit, will the Current account deficit be unsustainable? Given the fall in the oil prices in the international markets and a dip in India’s gold demand, the import side of the current account is well contained. Besides, with the weakening Chinese position in exports and inward FDI, India stands to benefit from being a close alternative for many countries in the world. For this India needs to focus on improving its export competitiveness. The Commerce Ministry has already announced a two-phase export promotion plan in sectors such as electronics, medical textiles, gems and jewellery, auto components and pharma. In order to do so a great amount of funds would be required for capacity building and promotion activities. On the other hand, though India’s capital account openness has been increasing over the last few decades, it is still lower than in many countries in the world. As per IMF’s fiscal monitor, the index of capital account openness is 0.14 when the median for low income developing countries is 0.43 and for high-income countries is 0.86. This index measures the extent to which inflows into the country are freely possible or unrestricted on major asset classes (1 indicates fully liberalized). The index of capital account openness on outflows is 0for India whereas the median for low income developing countries is 0.07 and for high-income countries is 0.89. This points to a comparatively lesser vulnerability of India’s external account to a shattered global economy. A low integration to international financial markets is what saved India at the time of the US Financial Crisis of 2008 and will save us even now. Added to these, a more focused path towards overall structural reforms including infrastructure development and amendment of land and labour laws will attract more foreign direct investment into the country. It’s time to be positive and look forward to better days ahead. Dr Preeta George is the Professor of Economics at the Bhavan’s S.P. Jain Institute of Management and Research.
Source: Financial Express
Decides to pay money to them under Netannaku Cheyutha well in advance. The State government has decided to pay money to weavers under Netannaku Cheyutha well in advance of the completion of the scheme, said IT, Industries and Textiles Minister KT Rama Rao. At a review meeting here on Saturday, the Minister said the government was taking special measures to protect the interests of the weavers in the State. The decision to pay them money is to help them tide over the present crisis caused by the Covid-19 outbreak and the subsequent lockdown. As part of the Netannaku Cheyutha, the handloom weavers have to contribute eight per cent towards the savings scheme, while the government would pay 16 per cent. The lock-in period for the thrift scheme is three years and so far, the weavers have contributed `31 crore, while the government has contributed `62 crore. As the government has decided to pay the amount to the weavers well before the completion of the lock-in period, around 26,500 weavers in the State would get `93 crore. “Each weaver will get between `50,000 and `1.25 lakh,” the Minister said. Besides, another `1.18 crore would be paid to those weavers whose tenure of the scheme has been completed recently. This would benefit about 2,337 weavers. “We have allocated money to weavers in the budget and have always supported them. We have also taken up several initiatives to help them during the lockdown period,” Rama Rao said. Meanwhile, Rama Rao reviewed the work on making Bathukamma sarees and Kakatiya Mega Textile Park. TSIIC Chairman G Balamallu, IT and Industries Principal Secretary Jayesh Ranjan, Handlooms and Textiles Director Shailaja Ramaiyer were present.
Source: Indian Express
Textile brand in men's fashion Siyaram's on Monday said Textile Mahakumbh attracted over 50,000 retailers across the country, and entered Guinness World Records for 'most viewers for a retail management YouTube live stream' at the peak viewership of 11,214 viewers. Textile Mahakumbh was organised to bring together retailers from across the country to address the challenges faced by the industry during COVID-19 crisis, Siyaram's said in a statement. "We are proud to have hosted the 'Textile Mahakumbh' and set a world record by bringing the textile retail community across India together on a single-platform. "The need of the hour today is of working together as an industry and rise above the difficulties in businesses faced by smaller retailers due to the outbreak of COVID-19 in India," Siyaram Silk Mills CMD Ramesh Poddar said.
Source: India TV News
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
823.03 |
USD/Ton |
0.34% |
|
VSF |
1239.80 |
USD/Ton |
-0.56% |
|
ASF |
1593.52 |
USD/Ton |
1.34% |
|
Polyester POY |
764.89 |
USD/Ton |
-0.18% |
|
Nylon FDY |
1961.26 |
USD/Ton |
0% |
|
40D Spandex |
3992.57 |
USD/Ton |
0% |
|
Nylon POY |
5155.31 |
USD/Ton |
0% |
|
Acrylic Top 3D |
994.64 |
USD/Ton |
0% |
|
Polyester FDY |
1821.17 |
USD/Ton |
0% |
|
Nylon DTY |
1737.12 |
USD/Ton |
0% |
|
Viscose Long Filament |
980.63 |
USD/Ton |
0% |
|
Polyester DTY |
2255.45 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
1723.11 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1372.88 |
USD/Ton |
0% |
|
45S T/C Yarn |
2101.35 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2003.29 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
1891.22 |
USD/Ton |
0% |
|
45S Polyester Yarn |
1639.05 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
1555.00 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.12 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.64 |
USD/Meter |
0% |
|
40S Combed Poplin |
0.93 |
USD/Meter |
0.30% |
|
30S Rayon Fabric |
0.48 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.63 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14009 USD dtd. 26/05/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Turkey’s restrictions on imports, announced last week by Finance Minister Berat Albayrak, signal a return to a closed economy for the country, according to Kürşat Tüzmen, who served as economy minister and minister for foreign commerce in previous Justice and Development Party (AKP) governments. On May 20, Albayrak said Turkey would make it harder to import goods except for strategic products and those that cannot be produced domestically, after Ankara imposed additional tariffs on hundreds of products. The announcement arrives as a steep decline in Turkey's exports during the COVID-19 pandemic has lead to renewed concerns about the country's current account deficit. “Turkey is a country that increases its exports through growing its imports,” Tüzmen said. “If you hold commerce too tight, it will run away. If you return to a closed economy, you would be stuck with outdated cars made of tin, like in the past,” he said. Tüzmen told Ahval that Turkey quadrupled its exports during his seven years as the finance minister, an accomplishment that is owed to “allowing and facilitating imports geared towards exports.” Turkey developed good relations with neighbours between 2002 and 2009, seeking to export goods and services and “not its regime” to the world, Tüzmen said. At the time, the government insured that imports would reduce agricultural production or cause a regression in Turkish industries, he said. In contrast, “today almost all doors in agriculture are swung open for imports,” Tüzmen said. Increasing taxes on imports for raw materials, investment goods and manufacturing-oriented machinery and equipment, like Turkey is doing now with the new restrictions put in place, will shoot the country in the foot, and “step on the toes of exporters,” Tüzmen said. Albayrak has defended the rise in customs taxes and the tariff wall, kicking off discussions on whether the country would abandon free trade for state-control, and an economy open to the outside world for a closed, protectionist one. Restrictions on imports will increase costs for exporters, and constrict export markets, Tüzmen said, adding, “Look at years with the highest growth rates, they are all times of high imports.” Economy management and the bureaucracy in Turkey no longer see consultations or competency, and decisions are made without thinking or discussing their results, Tüzmen said. “You can’t run a country or an economy without consulting the industry, publishing decisions in the Official Gazette at midnight,” Tüzmen said. The former economy minister maintains those dealing with Turkey’s economy management “do not understand what the sectors are saying, they don’t listen, and avoid the issues because they do not even know what they are.” One man makes a decision at the very “and then that decision changes several times over,” he said. This is evidenced in discrepancies between presidential decrees and dates of publication on the Official Gazette, said, pointing to a decision by the president in February being published in the May gazette. “Instead of looking at where they went wrong, they sing a song of foreign powers,” the former minister said. “We worked in the same government for years, where were these foreign powers back then?” The Ankara government is struggling to contain a second downturn in the economy and the currency crisis in two years. President Recep Tayyip Erdoğan has repeatedly blamed foreign powers for the country's economic woes, a view that is parroted by pro-government media. Turkey had record growth and exports, and the dollar remained stable at 1.20 to 1.50 against the lira. Earlier this month, the lira fell to a record low of 7.27 per dollar and currently stands around 7. Tüzmen also pointed to Turkey’s per capita income, which rose to $12,000 during his time in office, and now stands at around $6,000. Turkey is in need of urgent structural reforms following detailed consultations with all parties involved and an overall agreement, Tüzmen said. Kemal Derviş, the former World Bank vice president credited with bringing Turkey out of the 2001 crisis after his appointment as economy minister, implemented important structural reforms, Tüzmen said.“Twenty banks were gone, but politics was removed from banking as well. Now politics is again elbow-deep in the banks,” he said. Seventy percent of Turkey’s $436 billion foreign debt belongs to the private sector, Tüzmen said, adding that 66 billion out of this debt was due by the end of the year. Another 110 to 120 billion dollars of foreign debt is due until next March.“The Central Bank has a gross reserve of $80 billion, 30 billion of which is in gold,” Tüzmen said. “The true reserve is in the negative. The short-term foreign currency debt that needs to be paid stands at 2.6 times the reserve. Where will (Turkey) find that money?”Turkey is in the same category as Argentina and Venezuela in the global ranking for 66 developing nations, Tüzmen said.“After the pandemic, many countries are expected to declare a moratorium. How will (Turkey) pay its debts without foreign currency?” he asked. This shortage in foreign currency reserves is one reason for the restriction on imports, Tüzmen said, which makes a recovery afterwards that much harder. Speaking on Turkey’s textile industry, Tüzmen said reduced subsidies for cotton production reduced Turkey’s annual output from 800,000 tonnes to 400,000, while the demand is some 1.6 million tonnes. Turkey currently imports cotton from Greece and Georgia. “If cotton producers, textile industrialists and clothing brands were brought together and consulted when cotton prices are determined,” Tüzmen said, “if the decisions for subsidy premiums, costs, production, sale and all the other matters are made together, the issue would be resolved. When it’s not, farmers don’t plant cotton and production falls.”Giving half of the cost of imports to cotton farmers as subsidy premiums would cause production to double, Tüzmen said, removing a need for import restrictions.The increase in customs taxes will lead to increased costs for imported raw materials, intermediate goods and other inputs, as well as to an increased cost of exports and more difficulty in competition, President of the Istanbul Chamber of Industry (ISO) Tanıl Küçük told Ahval. The 10 percent additional tax on the imports of companies operating under the Inward Processing Regime and import goods on condition of export is later returned, but still results in an increase in costs, Küçük said, while delays in the returns have put companies in a difficult position. “This is the calm before the storm,” Küçük said. “There are almost no small businesses or personal companies left around.” Many companies in several industries will not be able to continue after the pandemic, Küçük said. “It will either take a really long time for them to get back on their feet, or they won’t be able to at all.” Turkey’s Vice President Fuat Oktay had implied previously that economic support packages, and postponing of taxes and loan payments could not continue for much longer. Meanwhile, the government continues to hold onto the excuse of foreign powers attacking Turkey, instead of admitting the effects of mistaken policies on the country’s current situation, and attempts to find a solution through restrictive measures on the banking and finance sector.
Source: Ahval News
Sri Lankan President Gotabaya Rajapaksa has requested India to provide a special USD 1.1 billion currency swap facility to boost the country's draining foreign exchange reserves in view of the economic slowdown due to the coronavirus pandemic. Rajapaksa's office said that the new request is in addition to the USD 400 million amount Sri Lanka has sought from the Indian government under the South Asian Association for Regional Cooperation (SAARC) framework. The Sri Lankan President made the request during his telephonic conversation with Prime Minister Narendra Modi on Saturday, it said. Modi discussed the situation arising out of the COVID-19 crisis with Rajapaksa and said that India will continue to support “our close maritime neighbour” in dealing with the pandemic and its economic impact. The two leaders agreed to accelerate Indian-assisted development projects in the country and also strengthen investment links. Rajapaksa's office said: “If the government of India could provide USD 1.1 billion special SWAP facility to top up USD 400 million under the SAARC facility, it would enormously help Sri Lanka in dealing with our foreign exchange issues”. Sri Lanka had previously asked India for a 400 million dollar foreign exchange swap under the SAARC arrangements. Rajapaksa also asked the prime minister to expedite investments in Colombo port's east terminal. According to the Sri Lankan president's office, Rajapaksa asked Modi to "direct those responsible from India's side to expedite construction of the east terminal of the Colombo port as soon as possible". Facing issues in its foreign exchange during the coronavirus pandemic, Sri Lanka has taken drastic measures to keep its foreign reserves and currency stability. Import restrictions announced are meant to stop the flow of foreign reserves. The Opposition has accused the government of printing money to create liquidity in markets. The deadly coronavirus has claimed nine lives and infected 1,068 people in the country. India has sent four consignments of essential life-saving medicines and medical supplies weighing over 25 tonnes to Sri Lanka in the last few weeks as a goodwill gesture.
Source: Economic Times
Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng said in a statement on Thursday. “Its growth performance is consistently above other economies of its income level. We estimate China’s average real GDP per capita growth over 2014 to 2023 to be close to 5 percent annually,” he said. As the COVID-19 pandemic comes under control, some governments would introduce rules and laws that encourage the production of certain items within their borders, but China would retain its manufacturing prowess, given its competitiveness and its strong domestic demand, S&P said. That should encourage foreign producers to continue to access the Chinese market, the ratings agency said. “In the past few years, the manufacturers that had moved elsewhere owing to rising costs and US-China tensions have not materially slowed China’s real GDP growth,” Tan said. China’s domestic demand is one reason foreign manufacturers might continue to produce in the country and help cushion its economy, S&P said. However, the pandemic exposes the vulnerability of nations that are heavily reliant on China for global sourcing and production, it said. This, along with US-China trade tensions and China’s increasing labor costs, would prompt more China-based multinational companies to reassess manufacturing risks, review their business plans and diversify supply chains in the coming years, DBS Bank Ltd said. The pace of production relocation from China would vary from sector to sector, DBS said in a report on Wednesday. “COVID-19 will likely reinforce the existing trend for [multinational companies] to relocate the low value-added production from China to other emerging markets,” Singapore-based DBS economist Ma Tieying said in the report, referring to the textile and footwear sectors. Ma said that this trend emerged a decade ago due to a rapidly aging population, wage cost increases and structural transitions in the Chinese economy. US tariff hikes have only further squeezed the profit margin of low value-added producers, accelerating the relocation process, she said. The pandemic would also trigger the relocation of sectors that produce “strategic” goods, such as personal protective equipment, medical equipment and pharmaceuticals, from China to end markets, as more countries would find it necessary to increase self-sufficiency and reduce their overreliance on foreign suppliers, DBS said. The COVID-19 crisis is likely to provide another catalyst for China-based tech companies to diversify supply chains and relocate production to other emerging markets or some developed markets, but a complete relocation would be unlikely, Ma said. China remains a competitive base for global technology companies, as its infrastructure, labor, and information and communications technology (ICT) adoption and innovation capability still outperform those of other emerging economies, she said. Compared with developed markets, labor costs in China remain more affordable and it would take time for developed markets to widely adopt and implement industrial automation, she added. More than 100,000 electronics manufacturing firms operating in China contribute as much as 30 percent of global ICT goods exports, which poses another problem for foreign tech companies seeking to completely move out of the country and establish another large-scale electronics cluster and ICT ecosystem any time soon, DBS said. Multinational companies targeting China’s domestic market — in areas such as consumer goods, healthcare, e-commerce, mobile payments and industrial robots — would be least likely to exit the country given its large market scale and post COVID-19 growth opportunities, the bank said. “Overall, we expect more [multinational companies] to adopt a ‘China+1’ strategy in the coming years, maintaining China as a primary production base while increasingly looking for alternative suppliers,” Ma said. “India, Indonesia, Thailand and Vietnam appear to be the Asian economies best positioned to receive the manufacturing work transferred from China,” she added.
Source: Taipei Times
Small Business Development Minister Khumbudzo Ntshavheni has announced the second-wave of coronavirus (Covid-19) pandemic support for informal, micro, and small enterprises, including cooperatives based in townships and villages, in addition to the spaza support scheme, her department said on Saturday. The dedicated support programmes for township and village-based enterprises were in line with the department’s township and rural entrepreneurship programme (TREP) approved by Cabinet in February 2020, the small business development department (DSBD) said in a statement. “With the re-opening of the economy, the township and village economies require special focus if government is to achieve the aspirations of the new economy post-Covid-19 which were clearly articulated by President Cyril Ramaphosa,” Ntshavheni said in the statement. Qualifying entrepreneurs could apply for the small-scale bakeries and confectioneries; informal and small-scale clothing and textile; and the automotive atermarkets support schemes. The small-scale bakeries and confectionaries business support scheme was intended to assist with the purchase of business equipment and provision of working capital. It was a stepped-up access to market through off-take agreements, eg with spazas on the DSBD spaza support scheme; and access to bulk buying facility for raw materials through participating wholesalers. Ntshavheni was committed to ensuring that spaza shops become critical markets for products made by other small businesses as part of a programme to make sure that money circulated longer in townships and villages, thus transforming the shape and form of these economies. The small-scale and micro clothing and textile business support scheme for enterprises located in townships and villages was aimed at supporting small-scale, micro, and informal businesses in the clothing and textile industry to:
Ntshavheni believed "the economic climate will witness either a consolidation of big clothing retailers and manufacturers into fewer players or demise of the same post Covid-19"."Any of these unfortunate consequences will invariably create an opportunity for small players, including cooperatives that at times will be formed by former workers of these giants to participate as owners of their businesses in the sector," she said.The scheme covered the cost of production inputs; access to credit; assistance with compliance and technical skills improvement, eg labelling, industry standards and quality; and business and financial management training, including productivity management. Regarding the automotive aftermarkets support scheme, Ntshavheni "has noted that the prevailing economic conditions in South Africa will increase demand for cheaper motor services and motor body repairs, and thus creating a demand for reliable vehicle service at an affordable rate".The scheme was intended to support qualified motor body repairers (panel beaters) to operate accredited small/independent body repairer centres; support qualified motor mechanics to operate authorised service centres; support small/independent auto-spares shops to serve as distributors of automotive aftermarket spare parts centres; and support informal fitment centres to become micro but formal fitment centres. The support covered, among other things, working capital, facilitating accreditation of the small/micro enterprises, and participation in a Small Enterprise Finance Agency (Sefa)-backed revolving credit facility through participating banks, between participating motor mechanics/motor body repairers, and with participating auto spares shops and fitment centres, she said. Application forms for the schemes would be available online on https://smmesa.gov.za/ from Wednesday, May 27, and more details were available on all the department's websites. She also announce that Standard Bank had also partnered with Sefa on the spaza support scheme, which added to the already existing partnership with Nedbank. “We are resolved not merely to return our economy to where it was before the coronavirus, but to forge a new economy in a new global reality, to restructure the economy and achieve inclusive growth. We will forge a compact for radical economic transformation that advances the economic position of women, youth, and persons with disabilities, and that makes our cities, towns, villages and rural areas vibrant centres of economic activity,” she said.
Source: ANA Reporter
