|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1151.34 |
USD/Ton |
1.43% |
2/4/2015 |
|
VSF |
1829.16 |
USD/Ton |
0% |
2/4/2015 |
|
ASF |
2590.51 |
USD/Ton |
0% |
2/4/2015 |
|
Polyester POY |
1183.77 |
USD/Ton |
1.39% |
2/4/2015 |
|
Nylon FDY |
2951.31 |
USD/Ton |
-0.55% |
2/4/2015 |
|
40D Spandex |
7459.36 |
USD/Ton |
0% |
2/4/2015 |
|
Nylon DTY |
5708.03 |
USD/Ton |
0% |
2/4/2015 |
|
Viscose Long Filament |
1443.22 |
USD/Ton |
0% |
2/4/2015 |
|
Polyester DTY |
2675.64 |
USD/Ton |
0% |
2/4/2015 |
|
Nylon POY |
2740.50 |
USD/Ton |
0% |
2/4/2015 |
|
Acrylic Top 3D |
1386.47 |
USD/Ton |
0% |
2/4/2015 |
|
Polyester FDY |
3275.63 |
USD/Ton |
0% |
2/4/2015 |
|
30S Spun Rayon Yarn |
2529.70 |
USD/Ton |
0% |
2/4/2015 |
|
32S Polyester Yarn |
1832.41 |
USD/Ton |
0% |
2/4/2015 |
|
45S T/C Yarn |
2870.23 |
USD/Ton |
0% |
2/4/2015 |
|
45S Polyester Yarn |
2691.86 |
USD/Ton |
0% |
2/4/2015 |
|
T/C Yarn 65/35 32S |
2594.56 |
USD/Ton |
0% |
2/4/2015 |
|
40S Rayon Yarn |
1994.57 |
USD/Ton |
0% |
2/4/2015 |
|
T/R Yarn 65/35 32S |
2481.05 |
USD/Ton |
0% |
2/4/2015 |
|
10S Denim Fabric |
1.58 |
USD/Meter |
0% |
2/4/2015 |
|
32S Twill Fabric |
0.99 |
USD/Meter |
0% |
2/4/2015 |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
2/4/2015 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
2/4/2015 |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
2/4/2015 |
SOURCE: Global Textiles
Note: The above prices are Chinese Price (1US$=0.16216 CNY dtd. 04/02/2015)
The textile industry holds significant presence in Indian economy. The size of the industry is currently estimated to be over $120 billion. It contributes around 14% in industrial production, 4% of the country’s GDP and 12% of the country’s merchandise exports. Further, the industry which accounts for 21% of the total employment generated in the economy, contributes to around 8% of the total excise revenue collection. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million.
The industry today is challengingly poised at the crossroads of growth. It has grown over the centuries to become the second largest textile manufacturer in the world after China. In terms of raw material, labour and machine productivity and optimizing the cost of production, the Indian textile industry has shown sustained improvement over the last few decades. There are many tailwinds favoring India. Among the major competing nations, China is losing its competitive edge in textiles. This is mainly due to increasing labor cost, appreciating Yuan, rising power cost focus on domestic market and also due to conscious strategy to move towards higher value addition industries.Nevertheless, Indian textile Industry has the potential to double itself in size over the next 6-7 years, if it continues to focus on value addition, improved efficiency, modernization and integrated operations.
Market Size of Indian Textile Industry
The Indian textile and apparel industry was estimated at $108 billion in 2013. It has grown at a compound annual growth rate (CAGR) of 13% from 2008-2013 and is projected to continue to grow at a CAGR of 12% and attain a size of $440 billion by 2025. With an estimated domestic consumption of approximately $68 billion and an export value of roughly $40 billion, it contributes to about 6% of the $1.8 trillion Indian economy and nearly 13% of the country’s total exports basket. It is also the second largest provider of employment after agriculture, providing jobs and an income to around 45 million people directly and indirectly.
The domestic market for textiles, apparel and technical textiles-the new generation of performance textiles is estimated at approximately $68 billion, out of which apparel retail, technical textiles and home textiles contribute $50 billion, $13 billion and $5 billion respectively. The Indian textile and apparel industry which has grown at a compound annual growth rate (CAGR) of 13% over five years is projected to continue to grow at a CAGR of 12% and attain a size of $440 billion by 2025.
Detailed Performance of the Industry
The industry’s total cloth production has increased by 2% during April-November, 2014 as compared to the similar period the previous year, with all the sub-sectors recording growth in production in the range of 1% to 4.5%. However, the segments which have registered de-growth of 4.1% and 2.3% respectively were Manmade Filament Fibre and Hand Loom segment respectively. On the flip side, strong production growth of 4.3% and 2.9% was witnessed in Hosiery and Blended & 100% Non cotton Yarn segment.
Textile Exports
On the back of weaker rupee and firm overseas demand, textile exports summed up to the worth of $15283.85 million in April-August, 2014, up from $13640.36 million in the corresponding period of the previous year, which translated into a growth of 12.05%. Most of segments in the sector registered growth in the range of 10-35%. Readymade garments (RMG), which accounts for nearly half of all textile exports grew by 18.53% at $7083.78 million. However, Fabric Waste and Yarn segment de-grew by 48.77% and 9.16% at $34.96 million and $2357.36 million respectively.
Textile Imports
Textile imports summed up to the worth of $2529.41 million in April-August, 2014, up from $2312.98 million in the corresponding period of the previous year, which translated into a growth of 9.36%. Most of segments in the sector registered growth in the range of 7-25%. However, much of imports belonged to Made-Ups and Fibre Waste segment, which registered growth of over 25% at $169.97 million and $12.02 million respectively.
Positives for the Industry
‘Make in India’ campaign: A ‘Make in India’ campaign covering 25 sectors, including the textile and garment industry, has been unveiled by the Prime Minister in the presence of big names from the corporate world of India and abroad at a ceremony in New Delhi. The ‘Make in India’ scheme also puts in place the logistics and systems to address in a timely manner queries of potential investors. At Present, the Government of India allows 100% foreign direct investment (FDI) under the automatic route in the textile sector, subject to all applicable regulations and laws, which effectively backs the Make in India program for the textile and garment industry.
Under the ‘Make in India’ initiative, investment opportunities for foreign companies and entrepreneurs are available across the entire value chain of synthetics, value-added and speciality fabrics, fabric processing set-ups for all kinds of natural and synthetic textiles, technical textiles, garments, and retail brands.
Technology Upgradation Fund Scheme (TUFS): The Cabinet Committee on Economic Affairs late in August gave its approval for continuing the Technology Upgradation Fund Scheme (TUFS) during the 12th Plan period with a major focus on power looms in accordance with the Budget announcement for the financial year 2013-14.The total budget outlay for continuation of the scheme will be about Rs 11,900 crore, out of which Rs 2,400 crore have been allocated for the financial year 2013-14. The scheme is one of the flagship schemes of the Ministry of Textiles and has helped the industry to garner investments of Rs 2430 crore. The scheme is expected to generate 11.5 % annual growth in volume terms in cloth production and 15% in value exports by increasing domestic value addition and technological depth and by enhancing the global competitiveness of textile products to generate an additional employment to 15.81 million workers.
The major features of the scheme are:
A pilot project for Hire-Purchase of new shuttleless looms shall be introduced with a plan outlay of Rs 300 crore within TUFS to enable poor powerloom weavers, having limited capacity to make capital investments, to upgrade their looms through payment of easy installments
Challenges
Strategy for making India’s textile industry globally competitive by Government
The Union Government, back in August 2014 released a draft of its vision, strategy and action plan for Indian textiles and apparel sector. The government there underscored that India to grow at 20% CAGR in exports should be exporting about $300 billion of textile and apparel by 2024‐25 and envisioned the country to achieve a market share of 20% of the global textile and apparel trade from the present level of 5%.
To achieve full potential the schemes and programmes of the Ministry of Textiles need the Co-operation and support of the State Governments. The initiatives of the Central and State governments need to complement each other for the attainment of the shared national objective. These schemes have so far been useful and have been contributing to the increasing growth and development of the sector. Hence, for the scale and growth momentum that is envisaged in government’s vision, these schemes need to be scaled up substantially and also need re‐engineering and re‐calibration to suit the ambitious goals being adopted.
Outlook:
The outlook for the Indian textile industry looks ‘positive’ for medium to long term, buoyed by both strong domestic consumption as well as export demand. With massive economic development and subsequent rising labour costs coupled with appreciating Yuan, energy costs and domestic focus, China is slowly moving out of driver’s seat vacating a textile trade space of more than $100 billion over next 5-6 years.
This is expected to perfectly match with GoI’s new focus to revive manufacturing industry with textile as key segment in its ‘Make in India’ program. Besides, the growth in Indian middle class, which remain to be target consumers for many companies, provides a great market opportunity for textiles. So, in the medium to long-term perspective, the Indian textile industry is expected to not just benefit from exports but also from huge domestic market.
Nevertheless, to fully tap the growth opportunities, the industry needs to focus on consolidation and modernization of weaving, processing and garmenting capacities to ensure optimum productivity and improved quality. On part of the government, labor laws reforms should be implemented at the earliest to encourage new investments.
SOURCE: The Mint
India, the largest producer of organic cotton (around 70 per cent of world production) and also the largest processing and export market of textiles using organic fibres with the most Global Organic Textile Standards (GOTS) certified facilities worldwide will stage the first ever international GOTS conference on 22 May. The conference aims to raise awareness about organic textiles and provide guidance and technical information about the GOTS standard.
Globally, brands, retailers and consumers are increasingly supporting organic cotton. Merely use of organic fibres is not enough. To make textiles in a sustainable way they need to focus on aspects such as Environment, Social Responsibility and Economy. GOTS serves as a reliable tool to implement and evaluate sustainable practices in textile industry since it efficiently covers all the relevant aspects. The event will cover all issue such as the GOTS Water-Energy Tool, the GOTS audit checklist and methodology, testing nuances including risk assessment, test methods and sampling and industry perspectives on benefits and practical difficulties associated with organic cotton.
Panel discussions will also take place on 'brand expectations from organic textiles' and 'transcending the supply chain for organic textiles. Organic cotton is a highly sustainable fibre. It has been ranked above conventional cotton, viscose bamboo and linen in Higg's Index. When environment friendly processing techniques, coupled with socially responsible practices are used in the processing of organic fibers, the textiles produced are best examples of sustainability. GOTS combines all these aspects in a comprehensive way. GOTS is recognised as the leading processing standard for textiles made from organic fibres worldwide and serves as the credible third party assurance for such textiles.
The conference will be a great opportunity for the players in the textile value chain to directly interact with their suppliers in India- the biggest sourcing destination for organic textiles- and other Asian countries. Apart from providing a great opportunity to remain abreast of the latest technical and commercial trends in the industry, it will also provide excellent networking opportunities on offer to engage with industry peers, supply chain partners and customers alike. The Conference, being the first of its kind as held across the globe, and promoted by GOTS itself, assures one of mileage not only at the event, but also on an international platform.
SOURCE : The YarnsandFibers
At a time when the textiles sector is reeling under liquidity crunch and poor demand, export subsidies for textiles and garments — the fourth-largest product group in India’s outbound shipment basket — could soon be withdrawn if the country heeds concerns raised by nations, including the US and Turkey, at the World Trade Organisation (WTO).
According to the WTO’s Agreement on Subsidies and Countervailing Measures, when the share of a developing country — with per capita income below $1,000 a year — in global exports touches 3.25% in any product category for two straight years, thereby gaining “export competitiveness”, it has to phase out export subsidies for the items eight years from the second year of breach. In case of nations with higher income levels, such subsidies are a strict no-no. Countries like the US contend that India’s “textiles and clothing” (T&C) exports first breached the threshold in 2005 and remained above the level in 2006 also and it should, therefore, end its export subsidies for these items by January 2015. India, however, cites the WTO rule book to counter this and insists it has time until January 2018 as the multilateral trade body asked the country to consider phasing out the subsidies for T&C only in 2010.
The WTO rule book says: “Export competitiveness shall exist either (a) on the basis of notification by the developing country member having reached export competitiveness, or (b) on the basis of a computation undertaken by the (WTO) Secretariat at the request of any member.” India offers export subsidies for T&C under certain heads such as the Focus Market Scheme, Focus Product Scheme (FPS), market-linked FPS, Export Promotion Capital Goods Scheme, interest subvention on pre- and post-shipment export credit as well as tax breaks for special economic zones.
India’s textile and garments sector employ over 35 million people and accounts for over 12% of its total exports. Sources said India has sought clarification from the WTO on the definition of “product” and the “applicable period of phasing out the subsidy” under the agreement. New Delhi believes that although as a category T&C may have exceeded the stipulated trade share level globally, many items within the group may not have attained export competitiveness, and, therefore, need continued support.
However, the sources said the commerce ministry feels since the new foreign trade policy will be applicable for the 2015-20 period, export subsidies for the textile and apparel sectors should be phased out mid-way, and if possible, much before 2018. This is because India is keen on honouring its WTO commitments on subsidies. Meanwhile, the ministry wants the textile and garment sectors be given subsidies to incentivise production, rather than exports.
The WTO prohibits subsidies linked directly to exports, but it does not bar production-based subsidies. However, subsidies for production fall in the “actionable” category where the affected importing country can impose countervailing duties to offset the disadvantage to its local manufacturers due to the cheaper imported item.
However, since the general WTO norms permit import duty neutralisation for exports, the duty drawback scheme available for the sector will not be affected, the sources said. Moreover, schemes such as technology mission on cotton and the technology upgradation fund scheme are also unlikely to be hit as they are ultimately meant for incentivising production. “If the government decides to stop export subsidies completely in 2015 under international pressure, the textile industry will face serious trouble. Already, even with a drop vis-a-vis last year, domestic cotton prices are still higher than the global levels, and producers are facing problems in passing on costs to consumers in many segments, as demand remains subdued,” said DK Nair, secretary-general of the Confederation of the Indian Textile Industry.
Exports in many textile segments have been under pressure (Cotton yarn shipments dropped 16% between April and October from a year before) due to a poor demand from top consumer China, while the growth in cotton garment exports is also slowing.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 54.97 per barrel (bbl) on 04.02.2015. This was higher than the price of US$ 53.83 per bbl on previous publishing day of 03.02.2015.
In rupee terms, the price of Indian Basket increased to Rs 3390.55 per bbl on 04.02.2015 as compared to Rs 3323.46 per bbl on 03.02.2015. Rupee closed stronger at Rs 61.68 per US$ on 04.02.2015 as against Rs 61.74 per US$ on 03.02.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on Feb 04, 2015 (Previous trading day i.e. 03.02.2015) |
Pricing Fortnight for 01.02.2015 (Jan 14 to Jan 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.97 (53.83) |
45.32 |
|
(Rs/bbl |
3390.55 (3323.46) |
2796.24 |
|
|
Exchange Rate |
(Rs/$) |
61.68 (61.74) |
61.70 |
MJPS/Rk/Daily Crude oil price- 05.02.2015
The government is likely to restore Customs duty on crude oil in the coming Budget, a move that might fetch the exchequer around Rs 14,000 crore next financial year and help the government meet its target of reining in the fiscal deficit at 3.6 per cent of gross domestic product (GDP) in 2015-16.
According to sources, the government could re-impose the duty, scrapped in 2011 amid high global oil prices, as crude oil prices have been weakening and there is hope these will soften further. The finance ministry is considering re-imposing the duty on crude oil at a rate of three per cent, sources say.
In 2013-14, India imported 3.86 million barrels a day of crude oil, according to Reuters data. If consumption in 2014-15 remains at the same level, imports will stand at 1,409 million barrels. At $53.83/barrel for the Indian crude oil basket, the country’s total import bill will stand at about $76 billion. Three per cent of that (the likely Customs duty) comes to $2.3 billion, or Rs 14,186 crore at 61.68/dollar.
CASE FOR A DUTY RISE
The government is likely to restore Customs duty on crude oil in the coming Budget, a move that might fetch the exchequer around Rs 14,000 crore next financial year and help the government meet its target of reining in the fiscal deficit at 3.6 per cent of gross domestic product (GDP) in 2015-16.
According to sources, the government could re-impose the duty, scrapped in 2011 amid high global oil prices, as crude oil prices have been weakening and there is hope these will soften further. The finance ministry is considering re-imposing the duty on crude oil at a rate of three per cent, sources say.
In 2013-14, India imported 3.86 million barrels a day of crude oil, according to Reuters data. If consumption in 2014-15 remains at the same level, imports will stand at 1,409 million barrels. At $53.83/barrel for the Indian crude oil basket, the country’s total import bill will stand at about $76 billion. Three per cent of that (the likely Customs duty) comes to $2.3 billion, or Rs 14,186 crore at 61.68/dollar.
SOURCE: The Business Standard
The sharp upward revision of growth for 2013-14 to 6.9% from 4.7% reported earlier due to a change in the way gross domestic product is measured doesn’t necessarily endorse the view that the country’s economy had turned the corner in the last fiscal. “Let’s be clear about it. The index of industrial production (IIP) is the only real measure we have of physical output. The IIP during 2013-14 didn’t show a good performance. What the new set of GDP data reveals is that over the three-year period (through FY14) when the economy didn’t do particularly well, companies became more efficient. And we have been able to capture more of the efficiency,” Pronab Sen, the chairman of the National Statistical Commission, told FE in an interview.
Industrial production contracted 0.1% last fiscal. While the expansion in mining and manufacturing, according to IIP data, was -0.6% and -0.8%, respectively, in 2013-14, the latest data showed the growth in gross value added in mining was 5.5% and 5.3% in manufacturing. Earlier this week, chief economic adviser Arvind Subramanian had said he was puzzled by the high growth rates, given that 2013-14 was a crisis year, marked by import decline, high inflation, monetary tightening and capital outflows, though he didn’t dispute them. RBI governor Raghuram Rajan has said it is “premature to take a strong view” based on the latest GDP numbers and he would wait for the advance estimate of GDP growth.
Asked how the growth could be so high when some key indicators — imports, capital outflows, auto sales, inflation, investment — were not signalling health in 2013-14, Sen said the general productivity of the economy has improved. “When we think of the economy, we are usually thinking in terms of output. The GDP is a measure of value added. So it’s entirely possible theoretically to have a situation when output is completely stagnant but value addition is going up. Now think of this scenario: My production is constant but my efficiency goes up, which means I am using less input to produce the same output. But what it may also reflect is that imports may have come down because I am using less material,” he added.
Moreover, to capture the a clearer picture of the corporate sector, the government is now using the ministry of corporate affairs’ database which gives information on 5 lakh companies, instead of calculating on the basis of the balance sheets of 2,500 companies. “In addition, the MCA database gives us information on limited liability partnerships and not just listed firms,” Sen said. However, even though economic growth rates have been reported higher, the indicators that are expressed as a ratio of GDP are unlikely to witness significant revisions and not much help would be forthcoming for the finance minister in sticking to the fiscal deficit target for the current fiscal. This is because while the nominal GDP for 2013-14, against which the indicators like fiscal and current account deficits are calculated, has been estimated at Rs 1,13,45,056 crore, even lower than Rs 1,13,55,073 crore pegged earlier according to the 2004-05 base year. Sen said the government will revise estimates of GDP growth, quarter-wise, since 2011-12 and also issue the advance projection of the GDP growth for the current fiscal on February 9. “But we don’t know what it’s (forecast for FY15) going to be like because when we change the bases, everything that comes after that also changes.”
SOURCE: The Financial Express
Zubair Ahmed Malik, former president, The Federation of Pakistan Chambers of Commerce & Industry, believes that Prime Minister Narendra Modi’s government will take positive steps to ensure smooth flow of goods between the neighbours. In an interview with Nayanima Basu, he says businessmen on both sides are pushing the governments to normalise bilateral trade. Edited excerpts:
India is now keen to normalise bilateral trading relationship with Pakistan. Prime Minister Narendra Modi gave a massive push to South Asian Association for Regional Cooperation (Saarc) in Kathmandu this time.
Ultimately, they have to do it. I heard him (Modi) there (in Kathmandu). He seems very positive. But the bureaucracy creates some problem or the other. Your former foreign secretary Sujatha Singh came with very harsh statements. I remember confronting her in one of the meetings... and her approach was indifferent.
But she was certainly not taking decisions alone.
Politicians depend a lot on the bureaucrats. I attach a lot of hope with PM Modi’s government. I am sure, under him, things will move. This region is rich in natural resources and we have to exploit it for the benefit of the common man.
PM Modi did invite Pakistan PM Nawaz Sharif for the swearing-in ceremony and both leaders had a successful bilateral meet. Yet, the relationship failed to move in terms of enhancement of trade and investments.
Why do you think that happened? It is because your former foreign secretary made extremely negative statements about Pakistan. It did not help create a congenial atmosphere.
But similar tones are also emanating from your side. Recently, (Pakistan) High Commissioner Abdul Basit indicated that the “most favoured nation” status will not be granted to India unless steps to increase Pakistani imports are undertaken.
Well if you take a hard stand, then what do you expect from Pakistan? If you talk hard, we will do so, too.
What hard stand are you talking about?
I am talking of the tough stand you took when our high commissioner met the Kashmiris prior to the foreign secretary-level talks. I am pleading — please start the stalled dialogue.
Who do you think will take the risk of reviving the stalled bilateral ties?
I think it is a temporary hiccup, which will be overcome. Do not underestimate the power of a businessman.
But both governments have stopped talking. How do you see anything positive emerging?
Let summer come, a lot of ice will melt. They (Modi and Sharif) had a handshake in Nepal. It is we businessmen who finance these politicians, so we insert a certain influence as well. We don’t invest for nothing. We want returns and that is to let the flow of trade to resume.
Are you talking of the composite dialogue?
I am not a political person. I only want to see progress in the bilateral trade of two countries. For me, Kashmir is important from the political side but for businessmen, trade is equally important. Both will now have to take a step back.
You said the visa protocol agreement that was signed in 2013 has not been properly operationalised.
Well, as I said earlier, the old visa regime and the new regime are not much different. Instead of going forward and facilitating visas, we have moved backward. There are still very many restrictions. There are restrictions even on the travel of both (India and Pakistan) high commissioners. For normalising trade, visa has to be liberalised. Let people meet people.
SOURCE: The Business Standard
New textile policy is likely to be approved in the next two weeks, said Commerce Minister Khurram Dastagir Khan while speaking to exporters at a meeting on Wednesday. He further stated that despite all handicaps, Pakistan crossed the target of an additional $1.08 billion exports to the European Union within 10 months (January to October 2014) under the GSP Plus scheme.
The figures are encouraging for value-added textile sector as its exports to the EU have shown 25 per cent growth, the minister said, adding it is a great achievement, despite energy shortage and extremism. Talking about refund payments, the minister stated that the commerce and the textile industry ministries were advocating the case with the finance ministry. Moreover, the commerce ministry, with US collaboration, is organising a business opportunity conference next month in Islamabad.
On the energy issue, the minister said that the government was working on bridging the gap between demand and supply and has come up with a comprehensive energy policy.
Stalled refunds
Earlier, textile exporters sought release of stalled refund payments, and raised other issues faced by them. Speaking on the occasion, Pakistan Textile Exporters Association Chairman Sohail Pasha said that withholding of refunds was proving a major hurdle in growth of exports. Long delays in getting refund payments have created a liquidity crunch, he said.He further stated that withdrawal of zero-rating had affected exports of Pakistan, and was leading to corruption. Cost of doing business in Pakistan had increased and textile exports are at a comparative disadvantage in the region. Pasha said energy crisis was terribly hampering industrial growth. He termed GSP plus a milestone achievement of the government.
Duty on cotton yarn
The value-added textile sector has demanded withdrawal of five per cent import duty on cotton yarn as it increased the cost and rendered products uncompetitive in the world market. Leaders of different segments of value-added sector, including fashion apparel, ready-made garments, hosiery and knitwear sweater exporters, argued that the sector earns $11.49bn through exports, but for incentives the lobby of spinners manages to prevail. They said the same lobby was pushing the government on 5pc additional import duty on cotton yarn. These leaders further said if supply of cheap cotton yarn is not ensured, country’s exports would bear the brunt. They raised question over spinners commitment to free market. “When it comes to cotton yarn imports which is a raw material for value-added sectors, they misguide the government and suggest imposition of duty,” a leader told Dawn. “The current 5pc import duty is making imports of cotton yarn from India difficult. If duty is raised to 10pc, the business will suffer,” he added. These leaders demanded that value-added textile sectors should be allowed duty-free import of raw material and restrictive duty be imposed on export of cotton yarn.
SOURCE: The Dawn
The value-added textile sector has expressed dismay over the proposal of the government to impose an additional import duty on cotton yarn. Pakistan Apparel Forum Chairman M Jawed Bilwani on Wednesday said that instead of removing the already imposed 5% import duty, the government is trying to impose more duty at the behest of large spinners. “Any additional import duty on yarn will significantly hamper the cost of doing business as the value-added textile sector’s exports are now touching $11.49 billion,” he added. He objected to the government’s move that did not take the stakeholders on board before deciding on such crucial matters. He said that the spinners always voiced their support for a free market economy. Now just for their benefit, they are going against the principles of free market economy and are misguiding the government.
“The value-added textile export sector fails to understand why the government wants to give protection to the spinning industry,” he said. “It is actually the producers of finished textile products that need protection as they contribute more than 80% to the total textile exports and employ up to 38% of the total workforce of the country.” “The textile exports of Bangladesh are touching $25 billion despite the fact that they do not grow cotton and produce finished textile products with the imported yarn,” he added.
Different countries all over the world discourage the export of raw material while allowing import of raw material and encourage value addition to earn more foreign exchange, he said, adding that unfortunately, in this country, it is the opposite and essential raw material for value addition is allowed to be exported. He asserted that the value-added textile sector should be allowed duty-free import of raw material without any hurdles. The spinners should endeavour to become more efficient instead of demanding import duty on the import of raw material for the producers of finished textile products.
SOURCE: The Tribune
The Anti-piracy Task Force on Wednesday seized 378 pirated textiles at the Accra Central Market after mounting surveillance in the vicinity. The task force would wait for directives from the Ministry of Trade and Industry to prosecute offenders and burn the textiles.
Mr John Kwesi Amoah, Assistant Manager, in charge of Brand Protection at Akosombo Textiles Limited, said the task force was set up by the Ministry of Trade and Industry in 2010, with representatives from the Environmental Protection Agency, Ghana Standards Board and the Textile Manufacturers and Textile Importers Association of Ghana. The aim is to prevent traders involved in illegal textiles business as well as protect the local industries in the country.
Mr Amoah , who is also a member of the task force said prior to the exercise, the taskforce had educated the traders on the fake goods but yet others were adamant and resort to dealing in pirated goods. He said for the past years, the Textile industry had expressed concerns about the high rate of imported pirated textiles into the country, which was affecting their business and as such there is the need to respond to their plight to ensure sanity in the system.
Mr Amoah stressed that their outfit welcomes competition from the market but that should be done with the dictate of the law and appealed to the traders to be wary of such goods and stay clear from them since the law would take its course when a culprit is arrested. r Nasir Ahmed Yartey, Deputy Communications Manager, Ministry of Trade and Industry said the country has witnessed a significant loss of revenue due to the smuggling of pirated textiles, hence the need for the establishment of the task force to curtail these phenomenon. He said the Ministry under the supervision of Mr Murtala Mohammed, Deputy Minister of Trade and Industry recently supervised the burning of 3,500 pieces of pirated textiles confiscated from traders in various markets in the country at the Kpone Landfill site, near Tema.
Mr Yartey explained that when the goods are confiscated, it goes through series of vetting to identify the fake and the original textiles before the goods are destroyed, and that, the culprits would be processed for court.
SOURCE: The GBC Ghana
Finance Minister AMA Muhith sharply criticised BNP chairperson Begum Khaleda Zia Wednesday for the ongoing 'political violent activities' in the country, as the economy is taking a knock. "Her (Khaleda Zia) actions are completely anti-nation. She does not like progress of the country, and is destroying the future of the nation," he told his business audience at a function.
The finance minister was speaking as chief guest at the inaugural session of a four-day exposition styled 'Dhaka International Textile and Garment Machinery Exhibition (DTG 2015)' at the Bangabandhu International Conference Centre (BICC) in the city. He urged the BNP leaders to persuade Khaleda Zia into staying away from such 'violent' activities.
The finance minister, however, termed the ongoing violent activities 'temporary phenomena', which, he hopes, can be overcome with people's support. Textiles and Jute Minister Emaj Uddin Pramanik was special guest at the DTG2015 opening ceremony, presided over by President of Bangladesh Textile Mills Association (BTMA) Tapan Chowdhury.
President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Kazi Akram Uddin Ahmed, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Atiqul Islam, vice-president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AH Aslam Sani and Tiger Lin, managing director, Yorkers Trade and Marketing Service Co. Ltd, also spoke.
BTMA, Chan Chao International Co Ltd and Yorkers Trade and Marketing Service Co have jointly organised the 12th DTG, which, in the meantime, has cast the brand as 'mini-ITMA' of South and East Asia. The expo brought the local exporters into contact with relevant manufacturers, regional agents and wholesalers to source high-quality machinery, equipment and materials under single roof.
Around 880 exhibitors from about 32 countries and regions are displaying a wide array of state-of-the-art textile and garment technologies, machinery and parts at the exposition. Some 1,060 booths are showcasing world-class leading brands at the fair, the function was told. The textiles and jute minister also said, "The country's textiles industry will be improved technologically and be able to increase the overall production capacity through sharing knowledge and technology at the exposition."
Billing it as the largest showcase in the sector here, FBCCI president Mr Ahmed said that the fair is very significant for sharing knowledge and latest machinery and upgrading the domestic industry. He appreciated the organisers for regularly arranging such a mega-event in the textile sector since 2003. Mentioning tremendous prospects of textile products, Mr Islam said the expo will facilitate exploiting the opportunities, eventually materialising the RMG-export target worth $50 billion by 2021.
The BGMEA leader, however, pointed out 'political stability' as one of five most significant factors needed to be ensured for getting to the export target. The four other dos he cited are proper training to the people, development of the ports, availability of power, and workplace safety. Echoing his views, Mr Aslam Sani said that the main difficulty in moving forward is the political difficulty. He requested all the political leaders concerned to work for the betterment and welfare of the people.
The BGMEA and BKMEA leaders also pledged to work together with the BTMA in order to make the RMG 2021 export target a success. As planned, the expo introduced latest machines and technology to the country's whole textile-and garment industry-supply chain, like spinning, weaving, knitting, dyeing-printing-finishing, testing, washing, embroidery, sewing, and related other equipment.
The countries from where exhibitors are attending the fair include Austria, Bangladesh, Belgium, Brazil, Canada, China, Czech Republic, Denmark, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Korea, Malaysia, the Netherlands, Pakistan, Portugal, Romania, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, the UK, the USA and Vietnam.
SOURCE: The Financial Express Bangladesh
The textile industry in 2014 started growing again in recession-battered Italy, posting 3.8% production gains with revenues exceeding eight billion euros, the Sistema Moda Italia research center said on Wednesday. The data presented during the inauguration of the 20th annual Milano Unica textile trade fair showed the sector was going strong also thanks to the recovery of domestic demand, up 4.4%, which ''interrupted a multiannual cycle of significant drops or stagnation'', said the research center. Exports also recorded a 3% growth to 4.4 billion euros in 2014 and are expected to increase 3-4% in the first semester of this year, said the President of Milano Unica, Silvio Albini.
Textile sales to Europe and the US, up 10%, compensated for a significant drop in acquisitions from China, down 9.6% and Hong Kong, down 11.9%, although together they remained the second-largest market for Italy's exports. Junior Economy Minister Carlo Calenda, speaking at the inauguration of the trade fair, said that 2015 will represent a turning point for exports and the internationalization of Italian companies ''We are aiming for the United States, where we have huge potential for growth and we will concentrate our resources there'', he said. The government this year has pledged 261 million euros for the 'internationalization' of Italian firms including ''40 million for the fashion system'', Calenda added, which is ''eight times more than the average of the past five years''.
SOURCE: The Gazzettadelsud
Italian fabrics have shown to be a driving force promoting general recovery, according to 2014 data on the sector presented here at the opening of the 20th edition of Milano Unica, the Italian Textiles Trade Show, on Wednesday.
Last year's overall sales were above the 8-billion-euro threshold, showing a 3.8 percent increase, the research center of Sistema Moda Italia (SMI), the trade organization for Italian manufacturers of yarns, woven and knitted fabrics, clothing and fashion accessories, said. The result was made possible thanks also to the growing trend of 4.4 percent increase in domestic demand, which interrupted a multi-year cycle characterized by either significant reductions or stagnation, SMI said. This growth trend cut across all segments, except for cotton fabrics, with wool fabrics making for nearly 40 percent of total sales. Manufacturing, net of imported products, posted a 2.9-percent growth.
Exports amounted to 4.4 billion euros, up 3.3 percent, led by knits, followed by wool fabrics (first globally in terms of exports), especially worsteds. SMI said the good results of the United States and Europe broadly compensated for the significant reductions registered in Chinese mainland and Hong Kong, which together represent the second market of reference for Italian exports. Imports exceeded 2 billion euros, posting a 6.5 percent increase. In addition to China and Turkey, which accounted for nearly 50 percent of the total value of fabric imports, an additional rise was also registered in imports from Pakistan. The trade surplus of Italian fabrics, nearly 2.4 billion euros, made for as much as 25 percent of total trade surplus of the textiles/apparel industry, although the overall sales of fabrics stands at 15.3 percent of textiles/apparel industry sales.
Silvio Albini, President of Milano Unica, cited the sub-movements of the exchange rates as an opportunity for the textile industry, which he said was the first to be impacted by globalization but "knows now how to weigh risks and seize all possible occasions." "In the last years we exported over 55 percent of our sales on average, with an artificially strong euro and an excessively high exchange rate that was not in line with European economic conditions," he said.
"Today much has changed with the renewed balance, not only in the U.S. market, which is currently one of the most dynamic worldwide, but also in all the other U.S. dollar-indexed areas. Exports will be favored and imports will become less competitive," Albini added. Milano Unica, which runs on Feb. 4-6 in the Italian fashion capital, showcases the spring/summer 2016 textile collections and accessories of 353 exhibitors, including 64 from other European countries. Milano Unica on March 18-20 will also take place in China's Shanghai. (1 euro = 1.14 U.S. dollars)
SOURCE: The Global Post
The absence of a local textile industry is preventing the Philippines from enjoying the expanded preferential treatment on exports to the European Union (EU). The EU removed tariffs on strategic Philippines exports in December 2014, granting the country's request for inclusion in the EU’s General System of Preferences Plus (GSP+).
Department of Trade and Industry Undersecretary Rafaelita Aldaba said EU GSP+ "is a gift to Filipino people," but there are rules of origin for exports to enter duty-free. She said the requirement is that garments should have 60% local content, which the Philippines cannot comply with because it imports its textiles. This requirement could be waived by the EU as an incentive, Aldaba said. Aldaba said the Philippines will apply for a relaxation of the rules to allow the country to temporarily export to the EU duty-free, while it is building its own textile industry.
Cost-prohibitive
Aldaba noted that costly power prevents companies from investing in the textile industry, which has driven garment makers to rely on imports for their raw materials, inputs, and accessories. Aldaba said that now that JG Summit is operating a naphtha facility that could provide the synthetic raw materials for textile, "we hope we can make use of its products to help develop the [textile] industry." "The aspiration is for the integration like what Luenthai has done," said Aldaba, referring to the multiple facilities of the Chinese firm Luenthai, which makes garments and bags for many American brands. The undersecretary clarified that the country is not aiming to compete with mass-produced garments. “Those are for Laos and Cambodia," Aldaba said.
Bangladesh is also a contender, as its textile industry is a major foreign exchange earner and made the country the world’s leading ready-made garments (RMG) exporter, following China. In January, the Philippines and Bangladesh formed a business council, and the former is hopeful that with the renewed trade relations, particularly in the RMG and textiles, would be mutually beneficial for both countries in the long run. Animal or vegetable fats and oils, prepared foodstuff, textiles and garments, footwear, headwear, umbrellas, and chemical products are among the product sectors that are most likely to benefit from the GSP+ scheme as well. The GSP+ is also seen to help create over 200,000 new jobs in the agriculture and manufacturing sectors in its early years of implementation.
SOURCE: The Rappler
Philippines and Nigeria need to explore several opportunities to produce robust bilateral trade. Nigeria, being Africa’s largest economy and Philippines , second only to China and Southeast Asia’s fastest-growing economy, they need to strengthen ties to boost bilateral trades and explore business prospects, Chairman Miguel B. Varela of Philippine Chamber of Commerce and Industry (PCCI) said during the hosting of Nigerian and Philippine companies by the PCCI in Taguig City on Monday.
Among the areas Nigeria must consider in the Philippines are agriculture, construction, power, energy, tourism, mining and real estate. While Philippines has a lot of room for exporting furniture garment, textiles, food products, construction materials, health and beauty care products to Nigeria. Noting the improved business climate of the Philippines, Ambassador Akinyemi Farounbi said in his presentation Nigeria is seeking business opportunities. There are in Philippines to explore possible tie-ups with local firms. It’s not the first time Nigeria has gone to the Philippines to have an interaction like this.
Between 1997 and 2000, Nigeria Associations of Chambers of Commerce, Industry, Mines and Agriculture participated in fairs throughout Philippines. In 1997, some officials ventured into small-scale industries, SME programs too. Olanipekun Olayinka, director of Nigeria’s Investment Promotion Department, said that Philippine investors can make the most of Nigeria’s stable fiscal policies, large and young market and strong work force.
Nigerian economy has a huge internal and regional market; whatever you bring to Nigeria, they can sell. The market is there. They also have stable macroeconomic and fiscal policies. Nigeria has a privatized power sector and they are serious about corruption.
SOURCE: The YarnsandFibers
The Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA) has lauded the Federal Government policy to revive the cotton, textile and garment industry. The NACCIMA National President, Alhaji Mohammed Abubakar, stated this in a statement issued by the body in Abuja on Monday. Abubakar said the government’s effort would definitely invigorate and boost the growth and development of the cotton, textile and garment industry in the country. He said the government’s policy was a step in the right direction to address the usual bottlenecks retarding the growth and development of the industry in the country.
The NACCIMA boss said the new policy would help the country’s industrial revolution because it shows a clear and integrated approach towards complete revitalisation and growth of the industry across the entire value chain. He called on the Federal Government to give priority attention to the revitalisation of the cotton, textile and garment industry as a result of its huge job creation potentials. Abubakar said the policy should be supported by Nigerians to encourage the patronage of locally made fabrics to boost the growth of the value chain across the entire cotton, textile and garment industry in Nigeria.
Meanwhile, the Director-General of Nigeria Employer Consultative Association (NECA) Mr. Olusegun Oshinowo has commended the government for reviewing the policy on the cotton, textile and garment industry. He stated that the new policy will enable investors to invest in Nigeria and to contribute to the building of a vibrant cotton, textile and garment sector. The NECA DG said Nigeria as Africa’s largest consumer market provides a major boost to the growth of the industry.
SOURCE: The Tide News Online
The international business news is once again dominated by Chinese companies' overseas investment and expansion plans. Chinese textiles group Ningbo Shantex Co Ltd which manufactures and exports textile accessories likely to make a takeover bid for United Kingdom-based apparel chain Phase Eight.
Shantex is already in preliminary talks with Towerbrook, a private equity company that bought Phase Eight in 2011. Phase Eight was established in 1979 by Patsy Seddon in London to offer fashionable clothing to sophisticated young suburban mothers. It designs its clothes in-house. The company has 108 stores and 196 concessions in the UK and 62 more internationally, including in Switzerland, Germany, Sweden, Singapore, Australia and the United Arab Emirates.
Phase Eight posted an operating profit of 18.6 million pounds ($21.2 million) in the year to Feb 1, 2014, up marginally on the 2013 result. The take over of Phase Eight by Shantex would represent its first acquisition of a major overseas retail business, reflecting an increasing trend for Chinese companies from all industrial sectors to pursue offshore takeovers.
Chinese companies announced 79 takeover deals in Europe in 2014. The media have focused on the implications of such moves for foreign companies and markets, but little attention has been paid to the fusion of different business cultures and the benefits this will bring to Chinese industry. The benefits of foreign investment have been well documented; especially the "multiplier effect" of foreign capital on economic growth in the earlier phases of China's opening-up.
In coming years, a "reverse multiplier effect" will be seen, where fast-rising Chinese overseas investment and expansion result in a large injection of international business cultures and styles. They will only expedite the much-needed business modernization process in China which will help ensure a soft landing for the economy as well as a sustainable economic path.
SOURCE: The YarnsandFibers
Global Textile Technology & Engineering Show 2015 of ITME Society had created a landmark event for textile engineering industry in India. The event focused on post spinning sectors attracted exhibitors from 12 countries and visitors from 21 countries.
The first edition proved to be an excellent example of the efforts of the Society to support the textile engineering industry through high quality exhibition, creating fruitful visitor interaction, showcasing new range of technology and developing new markets for exhibitors. Thus it was successful in placing textile and textile engineering Industry of India in the forefront of high standard event globally.
With 282 India and foreign exhibitors, GTTES expo covered an area of 11,500 sq. metres earning the distinction of being the largest textile technology event in India after India ITME Expo series. Many first time products were on display and new technology launched at GTTES-2015. This event was visited by high level government delegation, delegates from Sri Lanka, Ethiopia, Korea and from textile department, Heavy Industry, Govt. of India and industrial delegation from India and overseas creating wide spread excitement and anticipation amongst exhibitors and industry members.
Ambassadors and Consul General from 17 Countries visited the Exhibition highlighting importance of India in Textile sector & the keen interest GTTES generated internationally. GTTES 2015 welcomed Hon. Minister Sri Ramdas Kadam, Cabinet Minister of Environment. Mr. Kadam personally visited each exhibitor and appreciated the display of each machinery and technology. He also encouraged and assured to boost the textile sector and its various requirements wherever applicable. Many exhibitors expressed satisfaction at the quality of exhibition, event management & level of business visitors.
Seema Srivastava, executive director, India ITME Society stated that the first edition of GTTES exhibition has grown in stature and prestige beyond expectation with 282 Exhibitors, 21 countries 19,000 visitors’ footfall, 23 media partners, 5 educations institutions and 15 supporting organizations. Heavy Industry Department and Textile Department, Government of Maharashtra supported the event while Government of India actively participated with officials interacting with Industry members.
SOURCE: The YarnsandFibers
