The textile industry has pitched for a one-time loan restructuring, citing a 25- 50% drop in overall demand in FY21 due to the Covid-19 pandemic. The Confederation of Indian Textile Industry has written to Reserve Bank of India governor Shaktikanta Das, saying 25% of the textile mills and garment units might witness permanent closure in the current situation, throwing several lakhs of people out of jobs. “Impact of Covid-19 has broken the back of the textile industry as it is a low-margin, capital-intensive industry,” it said in a letter seen by ET. Presently, the industry is under great financial stress due to heavy losses suffered since the onset of Covid-19, it said. The plea comes in the backdrop of the banking sector making a strong case for such onetime loan restructuring, apprehensive of a rise in non-performing assets due to Covid19- induced stress. Some policymakers have also backed the restructuring scheme for sectors worst hit by the pandemic, including hospitality, tourism, aviation and construction. CITI lamented that textiles was not part of this list. The size of India’s textile and clothing industry was estimated at $162 billion in FY19, including about $37 billion in exports. The industry has the potential to reach $350 billion including $125 billion in exports and create additional jobs for 30 million people by 2024-25, according to CITI. As per the letter, the textile industry has struggled for more than three years and is likely to shrink for the next two years.
Source: Economic Times
As the country grapples with the Covid-19 pandemic, anti-viral fabric seems to have become the buzzword in the textile industry here. Players say anti-viral fabrics combat the spread and transmission of harmful viruses through textiles, basing their claims on international test standards, but there are no Indian government guidelines for such products. Companies such as Donear Industries, Welspun India Ltd, RSWM Ltd (Mayur), Arvind Ltd, Vardhman Textiles and D’ Decor, among others, have launched anti-viral fabrics for apparel and home furnishing products, in partnership with international textile technology players. And they don’t come cheap; they are priced about 15-20 per cent higher than the average products. Despite the marked growth in companies launching fabric supposedly resistant to bacteria, viruses and fungi, there are no guidelines yet for such items from the ministries of Health or Textiles. “There is no standard product in the name of ‘anti-microbial’ or ‘anti-viral’ textiles. Various manufacturers have their own versions based either on their own marketing initiatives or on customer requirements,” a government official said. Officials said that while anti-microbial fabrics could slow down the growth of microbes to some extent, they would not offer any protection against the Covid-19 virus, as such material will not be able to stop its penetration through the fabric to the body, especially at the seams. “If the fabric cannot stop penetration of the virus, then it is not very helpful against Covid19. The World Health Organisation also does not recognise such fabric,” another official said. Recently, Zodiac Clothing Co. Ltd was questioned by social media users on the claims of the launch of its anti-viral shirt under the brand name Securo, priced at ₹2,499. In fact, some wanted the Advertising Standards Council of India to look into their claims. In a statement on Wednesday, the company said Donear does the finishing of the fabric used in the Securo range of shirts and it is certified by Swiss company HeiQ. It said the products are not a cure and do not guarantee against infections. Industry players said that technology for anti-viral or anti-microbial textiles existed even before the Covid-19 pandemic and was being used largely by doctors and health workers in hospital settings. Take, for instance, Donear Industries, which has partnered with Swiss company HeiQ to launch the Neo Tech anti-viral fabrics, which includes suiting and worsted fabrics. It is selling these products in the B2C segment, as well as supplying them to B2B customers, such as apparel makers. Rajendra Agarwal, MD, Donear Industries, said that the company has been in the business of anti-viral fabrics for the US market for the past three years. “With the spread of Covid-19, we felt this was the right to launch this product in the Indian market. We decided to partner with Swiss company HeiQ as the HeiQ Viroblock NPJ03 is among the first textile technologies to be proven and certified to be effective against SARS-CoV-2,” he added. “We have invested nearly ₹10 crore to modify our manufacturing capabilities to produce these fabrics. I think consumers will like to have some anti-viral products in their wardrobe as the focus on health and hygiene has increased,” Agarwal said. Swiss company HeiQ, which has also partnered with other Indian players, in its statement said HeiQ Viroblock has been tested and certified by various international labs, including ISO 18184 rapid test. A spokesperson for Arvind said that the company has partnered with HeiQ Materials AG to introduce anti-viral fabrics under the ‘Intellifabrix’ brand in the Indian market. “Fabrics treated with HeiQ Viroblock actively inhibit viruses and kill them upon contact, helping minimise the potential for re-transmission of pathogens through clothing,” the spokesperson added. Other international textile technology companies, such as HealthGuard Corporation, have also partnered with Indian players for anti-viral fabrics with claims based on international test standards.
Source: The Hindu Business Line
Move is in line with govt's 'Atmanirbhar Bharat' objective The government is considering import restrictions on more than 350 items, including electronic goods, toys, furniture, and textiles, by putting in place non-tariff barriers to support domestic industry. Steps such as introducing an import-monitoring system for some and mandatory licensing requirements for others are being examined. The move is in line with the “Atmanirbhar Bharat” objective, to cut import dependence, and encourage production and demand for locally made goods. Departments and ministries including finance; commerce; micro, small, and medium enterprises ..
Source: Business Standard
Minister of State for Finance Anurag Singh Thakur on Friday exhorted the industry to come forward and invest as Indian economy remains structurally strong. Highlighting a series of reforms, including moderation in corporate tax rate, announced by the government in the last six tears to encourage investment, the minister said that the investment by local companies would instil confidence into foreign companies to put money into India. "We used to talk about the lower corporate tax rates in certain countries. Last year we brought it down. That was the historic corporate tax rate cuts from 30 per cent to only 15 per cent. "Now it is up to the Indian industry and Indian corporates to show to the world and come and invest. I think the first investment should start at home by Indian industries that will bring more confidence into the foreign companies to invest in India. The Prime Minister addressed all of us yesterday and he invited people to invest in India," Thakur said while addressing members of CII via a webinar. "Modi government's intent is to transform the economy, out of 'command and control' mode and take it towards the 'plug and play' mode," Thakur said. There are many possibilities and opportunities in various greenfield, brownfield and sunrise sectors in India, he stated, adding "We are bullish about reviving growth, because we believe in India Inc." Private investment has remained muted in the last few years as industry has shied away from capital formation. Talking about steps taken by the government to promote investment in this difficult time, he said as many as 58 sections of the companies law have been decriminalised while threshold limit of invoking bankruptcy proceedings raised from Rs 1 lakh to Rs 1 crore. The government has also suspended the insolvency proceedings in this pandemic time, he added. As far as reforms are concerned, Thakur said foreign direct investment ceiling has been liberalised to 74 per cent for defence production while private sector players have been allowed for commercial mining of coal. More than 1,400 people have shown interest in the last 15 days for commercial mining of coal, he said, adding that it will help bring down import by 60 per cent in the coal sector only. Earlier this week, the Cabinet approved an investment close to Rs 1 lakh crore in the agriculture sector which has huge potential for growth. "If you look at this, the two decades of reforms were undertaken in the span of two weeks...India means business in a world where business is no longer as usual," he said. With regard to the economy, the minister said, "India remains structurally strong, and the reforms undertaken in the last six years have built a strong foundation. For us reforms are systematic and provide synergy to help Indian industry achieve size and scale. Our reforms are integrated, interconnected and targeted so that India Inc and the Indian economy is future ready." On the robustness of the financial sector, he said, the government has infused more than Rs 5 lakh crore for recapitalisation of public sector banks (PSBs). The mega consolidation has brought down the number of public sector banks to 12 with most of them now out of the RBI's PCA framework, he said.
Source: Economic Times
The India-US CEOs Forum is also expected to hold a meet on July 14 to further bolster their engagement, said the source. India and the US will likely hold a meeting on July 14 to deepen bilateral trade, with commerce and industry minister Piyush Goyal and US commerce secretary Wilbur Ross scheduled to join in for talks through a video conference, a source told FE. While an announcement of a limited trade deal, which has been in the works for a few months now, is unlikely at this stage as both the countries are still busy fighting the Covid19 pandemic, the meeting comes at a crucial time when India is firming up a comprehensive strategy to target “non-essential” and sub-standard imports, particularly from China. Before the pandemic, India had planned to wrap up the “limited” deal with the US first and then explore the feasibility of a broader free trade agreement (FTA) after the American presidential elections in November, sources had said earlier. But the pandemic seems to have delayed the plan. The India-US CEOs Forum is also expected to hold a meet on July 14 to further bolster their engagement, said the source. While there has been no official word on the meeting yet, Goyal recently said he could meet his American counterpart in the middle of July. The meeting also comes close on the heels of the US launching a probe against India and nine others, including the EU and the UK, for imposing or considering a 2% digital services tax (equalisation levey) with potential to hurt American companies. India is also finalising a draft e-commerce policy, an area of immense interest to the US. Softening its stance on mandatory local data storage proposed in an earlier draft policy, the new draft policy has suggested a comprehensive, periodic audit of the storage locations of players like Amazon, Flipkart and those that store Indian users’ data abroad, said the source. However, these players will have to build in adequate safeguards at the specified storage locations as well to ensure privacy of the user isn’t compromised. The US had earlier raised concerns over mandatory local storage, among others. The US recently moved to suspend the issuance of new non-immigrant visas, especially for skilled professionals until December 31. The US has been impressing on India to reduce its “high” tariffs on a range of products, including high-end mobiles phones and bikes. It’s seeking greater and easier access to the Indian markets in agricutlure, dairy, medical equipment, among others. For its part, India is pitching for an exemption from the extra duty imposed by the US on steel and aluminium, resumption of duty-free export benefits for some Indian goods under the so-called Generalised System of Preferences (GSP) as well as greater market access for its products in sectors ranging from agriculture, automobile and auto components to engineering. India’s exports to the US, its largest market, touched $52.4 billion in 2018-19, while imports were to the tune of $35.5 billion. Its trade surplus with the US has been shrinking in recent years, as it has stated importing oil and gas from the largest economy, something that India has been highlighting in bilateral talks. According to the US government data, New Delhi’s trade surplus with Washington eased to $21.3 billion in 2018 from $22.9 billion in 2017. In contrast, China’s trade surplus with the US widened further to a record $419.2 billion last year from $375.6 billion in 2017, despite the tariff war between the top two economies.
Source: Financial Express
Finance minister Nirmala Sitharaman takes stock of the implementation of key announcements by the ministries of finance and corporate affairs as part of the Rs 20 lakh crore Covid19 relief package. ET takes a look:
Insolvency & bankruptcy code changes for ease of business:
Local procurement:
No cost/ penalty imposed on contractors
Performance security returned to contractor/suppliers proportional to work done
Support to states:
Credit to MSMEs:
Tax relief measures:
Relief for MFIs/HFCs/NBFCs:
Source: Economic Times
NEW DELHI: The government is working on a special resolution plan to rescue bankrupt micro, small and medium enterprises (MSMEs), an official statement said. The corporate affairs ministry is finalizing the plan under the Insolvency and Bankruptcy Code (IBC), and it will be notified soon, said the statement, which was issued after finance and corporate affairs minister Nirmala Sitharaman reviewed measures to support the pandemic-hit economy. The scheme, to be notified under section 240A of the IBC, will specify a modified version of the bankruptcy scheme for small businesses. This section empowers the government to customize the requirements of bankruptcy resolution for MSMEs. One major exemption to SMEs will be from section 29A of the code, which says that major shareholders of companies in default cannot participate in the resolution scheme unless the default is rectified. For small businesses, there may not be much interest from other investors to take charge of a company, and excluding the promoter from resolution may not be a good idea. In June, the Centre had suspended operation of the code for at least six months so that businesses are not dragged to tribunals by lenders for defaults made after 25 March, when India entered a stringent nationwide lockdown. As part of the regulatory relief to businesses struggling with the impact of the pandemic, the government has extended due dates under various laws, including the Income Tax Act and the Companies Act. On the ₹30,000 crore special liquidity scheme for non-banking financial companies (NBFCs) and housing finance companies (HFCs), investment bank and project adviser SBICAP has received 24 applications for ₹9,875 crore within a week of launch on 1 July, the ministry said. The first application has received approval while the rest are being considered. The scheme was announced as a part of the Atmanirbhar Bharat package.In May, Sitharaman had announced several measures to support the poor, farmers and small businesses hit by the coronavirus-induced lockdown.
Source: Live Mint
‘Graded pick-up’ recorded in May after 57.6% plunge recorded in April The index of industrial production (IIP) plunged to 88.4 in May from 135.4 a year before, according to official data released on Friday. This represented a 34.7% contraction, but government sources cautioned against making the year-on-year comparison, saying the May 2020 index may undergo significant revision, including more inputs. The year-on-year contraction in output was recorded at 57.6% (revised) in April. The government, however, said the May IIP data indicated “a graded pickup in industrial activity in the economy. Industrial production had shrunk 18.3% y-o-y in March when the lockdown was announced, but it was only in April when the first full-month impact of it was experienced by industry. The IIP is expected to recover substantially in June, as lockdown-related curbs were lifted, facilitating the resumption of manufacturing. The government didn’t announce the rate of IIP contraction and just released the index reading for May. Senior government officials also highlighted that any comparison with the (year-on-year) growth rates for earlier months would be inappropriate, given the exceptional circumstances. Analysts, too, cautioned against reading too much into the latest data. In May last year, industrial output had risen 4.5%. In a statement on Friday, the National Statistical Office highlighted: “In view of the preventive measures and announcement of nation-wide lockdown by the government to contain spread of Covid-19 pandemic, majority of the industrial sector establishments were not operating from the end of March, 2020 onwards. This has had an impact on the items being produced by the establishments during the period of lockdown and the subsequent periods of conditional relaxations in restrictions.” Not surprisingly, consumer durables saw a 68.5% slide in May and capital goods output was down by 64.3%. Consumer non-durables, however, witnessed only a 11.7% fall in May, thanks to the easing of curbs on the supply of essential items. Manufacturing contracted 39.3% in May, while mining dropped by 21% and electricity by 15.4%. Before the pandemic started to spread, however, industrial production growth scaled a 16-month peak of 5.2% (revised) in February, suggesting a fragile industrial recovery. But two critical segments — capital goods and consumer durables — had still continued to contract. Rahul Bajoria, chief India economist at Barclays, said: “We continue to expect the economy to experience a rough patch through Q2 (April-June), though signs of green shoots, especially in the rural economy, are starting to appear as we enter July. The monsoon season has been above par, boosting kharif (summer) crop, which is off to a very strong start. Tractor sales have been robust, expanding by 20% yoy in June.” That said, the pick-up in rural activity is at best a mitigating factor, and GDP growth could clock a contraction of 22.2% y-o-y in the June quarter, he added.
Source: Financial Express
E-commerce firms, manufacturers and marketing agencies of imported packaged items face fines of up to Rs 1 lakh and one year jail, if they don’t display the “country of origin” of such products. In its bid to rein in such violators and those falling foul of other provisions of the Consumer Protection Act such as unfair trade practices, the consumer affairs ministry has set up the central consumer protection authority (CCPA), which can take up these cases suo motu or on a direction from the central government. The ministry has designated its additional secretary as the chief commissioner and BIS director general as the investigating officer. Union minister Ram Vilas Paswan said they have written to all e-commerce companies and state governments to strictly implement the mandatory mentioning of “country on origin” on the products under Packaged Commodities Rules. “If a manufacturer or marketing firm fails to comply with this, it will be fined with Rs 25,000 for first offence, Rs 50,000 for second and Rs 1 lakh for subsequent offence or one year jail or both where the items are sold through shops. This will be applicable for e-commerce firms, if they don’t display the details on their website,” said consumer affairs secretary Leena Nandan. Officials said the provision of declaration of “country of origin” has been in place since January 2018 for all manufacturers, importers, packers and e-commerce players. The secretary said the issue was discussed with e-commerce players at a meeting called by DPIIT under commerce ministry. “We are on the same page on its implementation. If e-commerce firms display the details as maintained in the law, consumers can make an informed decision,” she said.
Source: Economic Times
In an endeavour to improve the information flow and bridge the demand-supply gap in the skilled workforce market, the Ministry of Skill Development and Entrepreneurship (MSDE) today launched ‘Aatamanirbhar Skilled Employee Employer Mapping (ASEEM)’ portal to help skilled people find sustainable livelihood opportunities. Apart from recruiting a skilled workforce that spurs business competitiveness and economic growth, the Artificial Intelligence-based platform has been envisioned to strengthen their career pathways by handholding them through their journeys to attain industry-relevant skills and explore emerging job opportunities especially in the post COVID era. Envisaging the rapidly changing nature of work and how it impacts the workforce is crucial in restructuring the skilling ecosystem with the new normal settling postpandemic. Besides identifying major skills gap in the sectors and providing review of global best practices, ASEEM will provide employers a platform to assess the availability of skilled workforce and formulate their hiring plans. Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) refers to all the data, trends and analytics which describe the workforce market and map demand of skilled workforce to supply. It will provide realtime granular information by identifying relevant skilling requirements and employment prospects. Announcing the launch of the ASEEM portal, Dr. Mahendra Nath Pandey, Hon’ble Minister of Skill Development & Entrepreneurship, said “Driven by Hon’ble Prime Minister Shri Narendra Modi’s vision of ‘Aatamanirbhar Bharat’ and his assertion of ‘India as a talent powerhouse’ at the India Global Week 2020 Summit,, the ASEEM portal has been envisioned to give a huge impetus to our persistent efforts to bridge the demand-supply gap for skilled workforce across sectors, bringing limitless and infinite opportunities for the nation’s youth. The initiative aims to accelerate India’s journey towards recovery by mapping skilled workforce and connecting them with relevant livelihood opportunities in their local communities especially in the post COVID era. With the increasing use of technology and e-management systems which assist in bringing in processes and intelligent tools to drive demand driven and outcome-based skill development programs, this platform will ensure we bring in close convergence and coordination across various schemes and programs operating in the skill ecosystem. This will also ensure that we monitor any sort of duplication of data and further re-engineer the vocational training landscape in the country ensuring a skilling, up-skilling and re-skilling in a more organised set up.” Highlighting how ASEEM will bridge the demand supply gap in the skilled workforce market, Shri AM Naik, Chairman, NSDC and Group Chairman, Larsen & Toubro Limited said, “Migrant labour has been severely impacted by the socio-economic fallout of the COVID pandemic. In the current context, NSDC has taken up the responsibility of mapping the dispersed migrant population around the country and providing them the means to re-build their livelihood by matching their skill-sets to available employment opportunities. The launch of ASEEM is the first step on that journey. I am confident that the real-time information ASEEM provides to both employer and employee will add value to the labour ecosystem and contribute to building the trust among the workforce, which is essential for the recovery of the economy.” ASEEM https://smis.nsdcindia.org/, also available as an APP, is developed and managed by National Skill Development Corporation (NSDC) in collaboration with Bengalurubased company Betterplace, specialising in blue collar employee management.. ASEEM portal aims at supporting decision and policymaking via trends and analytics generated by the system for programmatic purposes. ASEEM shall help in providing real-time data analytics to NSDC and its Sector Skill Councils about the demand and supply patterns including - industry requirements, skill gap analysis, demand per district/ state/cluster, key workforce suppliers, key consumers, migration patterns and multiple potential career prospects for candidates. The portal consists of three IT based interfaces - · Employer Portal – Employer onboarding, Demand Aggregation, candidate selection · Dashboard – Reports, Trends, analytics, and highlight gaps · Candidate Application – Create & Track candidate profile, share job suggestion ASEEM will be used as a match-making engine to map skilled workers with the jobs available. The portal and App will have provision for registration and data upload for workers across job roles, sectors and geographies. The skilled workforce can register their profiles on the app and can search for employment opportunities in their neighbourhood. Through ASEEM, employers, agencies and job aggregators looking for skilled workforce in specific sectors will also have the required details at their fingertips. It will also enable policymakers take more objective view of various sectors.
Source: PIB
The govt must take a cue from Japan, on aligning industrial policy to International trade goals. This is what South Korea did, and China too India’s approach to development in the last 2-3 decades has been service sector-led and has undermined manufacturing; at the same time, China has made rapid strides in ER manufacturing. This has resulted in an uneven balance between the two in their development stages. China has developed capacities across a wide spectrum in applied engineering and chemical processes and has attempted to capture global markets. India on the other hand is stuck with various low-end services, many of which are of “bodyshopping”, the scope for which is rapidly declining. It has begun to lose abilities in manufacturing, even in fields where it still has some presence, e.g., pharmaceuticals (68% dependence on China, for active ingredients) and auto-industry (15-20% dependence on China for electricals, electronics and fuel injection), to name two. The list of items on which India depends on Chinese imports include solar panels, metal-ware, cloth-ware, industrial machinery, a range of consumer electronics like mobile phones and TVs, and even low-end products like furniture, kitchenware, toys, kites or incense. The annual trade-deficit between the two countries, of over $50 billion, is unsustainable for more than one reason. First, most Indian exports are raw materials or in that genre (low-tech and low employment, like ores, rare earths, chemicals), while the imports are in manufacturing (high-tech). Such a trade pattern inevitably results in unequal terms of trade in time (“I can do without your products but you can’t without mine – case, Chinese manufactures vs Australian barley and beef”). Next, as stated earlier, even in areas where India has some competence, critical inputs are imported from China. Third, a sustained current account deficit has led India to multilaterals for loans even for undertaking earthworks, and then use the foreign exchange to balance the current account. Since most multilaterals require global tendering for awarding contracts, Chinese companies creepin through (at times) questionable routes to dig tunnels or make railroads in India, making Indian industries functionally further unfit. India is thus progressively exporting meaningful jobs to China, draining precious foreign exchange, and losing prowess in modern technologies and manufacturing. Trade is advantageous to all when the trading countries have equal wares to share and that there is a shared vision of mutual welfare. The present dynamic, however, suggests that China quotes low prices to obliterate industries in unsuspecting countries, manipulates currency, follows few labour standards to cut costs, undermines IPRs, and inundates other countries with large loans, eventually landing them in a debt trap (Sri Lankas’ ceding of Habantota Port, with more to follow through BRI). They practice hostile takeover of companies and countries through any means including gunboat diplomacy— a 18th/19th century approach of European colonisers (China-India or China-Vietnam border threats). India’s approach to development—following an Indian version of the Washington Consensus since the last three decades—has to change in favour of manufacturing if a total surrender is to be forestalled. There would be short-term financial losses to consumers, traders and domestic manufacturers for up to 2-3 years by not being able to import inexpensive auto- and machine/electrical parts or active ingredients in pharma from China, but this will gradually reduce. Lower imports from China would also imply better overall terms of trade and therefore, stabilisation of the rupee, resulting in lower rupee value of petroleum products. Thus, even if the price of a motorbike, car, or bus goes up, the cost of imported transport fuel correspondingly falls, evening out the said price increase in the former. Next, a near ban on imports of low-end products and consumer goods will create more jobs, and further stabilise trade deficits/rupee. Business analysis at Bloomberg believes that up to 3,000 imported (Chinese) items (toys, watches, plastic products) could be substituted by local supplies. This is not reversion to the importsubstitution model of yesteryears: there is a clear difference between strengthening local companies to become globally competitive (proposed) and companies producing under license for captive markets (earlier). Also, there is more than economics here: Earlier, local industries could not grow in size due to controls, now they can; and earlier, they were psychologically not prepared to face international markets, now they are. Also, the approach proposed here is not to fully substitute imports but to reduce unnecessary imports for saving foreign exchange and jobs, along with weaving the Indian industry into the international division of labour. This would necessarily imply a great deal of imports, but which would also boost exports, local competence and jobs. The present government, while making the right statements through the ‘Make in India’ campaign, has no manufacturing strategy. The share of manufacturing in GDP and employment has stagnated since economic reforms began in 1991 and manufacturing employment actually fell after 2014. India needs a strong industrial policy for development, employment and facing a belligerent China. There are at least five components of a proposed policy: · · Government and industry need to work closely and create mutual trust for promoting industries through tariffs, subsidies, land and labour law easing, infrastructure, etc. Like the MITI of yesteryears in Japan or South Korea more recently, the government must help national companies to grow and become internationally competitive. That is what China did. · Approaches to gain economies of scale need to be put in place to overcome India’s shortcoming of having 66 million MSMEs. A “one-state/district-one product approach” can bring together SMEs to form a single giant unit. Again, the state needs to initiate this process by means of planning. · Need to invest heavily in targeted R&D, for which private-public sector partnership is essential. Indian government and defence labs along with R&D Departments of private and public sectors require joining hands for this. Expenditure on R&D should rise 3-4 times from 0.7% of GDP at present. · Investment in education, training, and human capital formation should rise from the current 3% to 6% of GDP, with greater industry-based training, focus on quality, and emphasis on STEM. · Contain brain-drain out of India (from top engineering and medical colleges) to foreign shores. Partnerships with the best universities in the West is one approach to provide quality education here. Acharya is Delhi Chair professor at Institute of Human Development, and Mehrotra is professor of economics, Jawaharlal Nehru University.
Source: Financial Express
Cross-border trade between India and China will not take place through the 15,490ft high Shipkila mountain pass in Himachal Pradesh’s Kinnaur district this year for the first time in 26 years, due to the Covid-19 pandemic and rising tension triggered by the Galwan valley clash with the neighbouring country. The Shipkila trade route, which connects Kinnaur to the Tibetan Autonomous Region in China, is an ancient one and business through this route was resumed in 1994. Trade across the border is allowed with prior permission from June 1 to November 30. As initial three months are consumed in completing formalities, actual trade takes places in September, October and November. Traders have to get a border trade pass, which is issued only after security clearance. Trade between India and China is conducted through land customs station at Namgia Shipki-la in Pooh sub-division of Kinnaur. As of date, the number of commodities freely importable and exportable are 20 and 36, respectively. Traders mostly from border villages of Kinnaur district, including Namgia, Pooh, Chango, Hango, Chuling, Sumra, Shalkhar, Leo and Spillo carry stocks on mules to China. While Indian traders carry items like agricultural implements, blankets, copper products, clothes, textiles, cycles, coffee, tea, barley, rice, flour, dry fruit, dry and fresh vegetables, vegetable oil, gur and tobacco, they return with items like jackets, shoes, crockery and flasks. Kinnaur Indo-China Trade Association via Shipkila president Hishey Negi said not a single trader registered this time. He said earlier, as a result of standoff between two countries at Doklam in 2017, crossborder trade had remained low, but this time traders were not crossing the China border due to Covid-19 pandemic and tension with China. Negi asked the administration to speed up the process to set up a trade centre at Chupan near Namgia, as trade was not taking place this year. Kinnaur deputy commissioner Gopal Chand, who is the trade authority for Indo-China border trade via Shipki La, said due to Covid-19 pandemic, teh district administration had earlier recommended to the state government to not to resume trade activity this year and then the clash between India and China took place at Galwan valley in Ladakh. He said traders had also refused for cross border this time.
Source: Times of India
New Delhi: Arvind Fashions Ltd is in talks with Reliance Retail to sell two denim brands -- Newport and Ruf & Tuff, three people familiar with the development said. It is also, separately, in talks with value retailer V-Mart to sell its unlimited department store chain. Arvind Fashions has been restructuring its businesses for about a year, by trimming its global brands portfolio and pruning unviable outlets. Last year, it exited marketing arrangements with loss-making global labels including Izod, Gant, Nautica and Ed Hardy to focus on US Polo, Gap, Aeropostale, Flying Machine, and other labels. The Bengaluru-based retailer also shuttered a substantial number of its Unlimited stores and virtually exited markets in north India. “We do not comment on market speculations,” said an Arvind spokesperson when asked about plans to sell the Newport, Ruff & Tuff and Unlimited brands. Lalit Agarwal, managing director of V-Mart, declined to comment. A Reliance Retail spokesperson said in an email, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.” V-Mart was to ink a deal to fully acquire the Unlimited store chain in March, but the nationwide lockdown in end-March has delayed it, one of the sources said. Arvind Fashions was hoping to bring its business on track this year when Covid-19 pandemic hit sales at its offline stores, just like many of the fashion retailers globally. In May, the retailer of brands such as Gap, US Polo, Sephora, Aeropostale and Flying Machine, deferred payments to staff owing to reduced sales and depleting cash flow amid the lockdown. Earlier this week, Walmart-owned Flipkart picked up a substantial minority stake in Arvind Fashions’ subsidiary Arvind Youth Brands for Rs 260 crore as part of the home-grown e-commerce company’s plans to strengthen its mid-market fashion portfolio. Arvind Fashions reported a consolidated net loss of Rs 208 crore for the quarter ended March 31, compared to a net profit of Rs 21.30 crore a year earlier. During the quarter, its gross debt ballooned to Rs 1,210 crore, a 53% jump over financial year 2018-19.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
780.40 |
USD/Ton |
-1.26% |
12-07-2020 |
|
VSF |
1236.65 |
USD/Ton |
-0.46% |
12-07-2020 |
|
ASF |
1686.47 |
USD/Ton |
0% |
12-07-2020 |
|
Polyester POY |
705.43 |
USD/Ton |
-0.20% |
12-07-2020 |
|
Nylon FDY |
2020.62 |
USD/Ton |
-1.39% |
12-07-2020 |
|
40D Spandex |
3998.40 |
USD/Ton |
0% |
12-07-2020 |
|
Nylon POY |
5140.80 |
USD/Ton |
0% |
12-07-2020 |
|
Acrylic Top 3D |
942.48 |
USD/Ton |
0% |
12-07-2020 |
|
Polyester FDY |
1899.24 |
USD/Ton |
-0.75% |
12-07-2020 |
|
Nylon DTY |
1856.40 |
USD/Ton |
0% |
12-07-2020 |
|
Viscose Long Filament |
878.22 |
USD/Ton |
-0.81% |
12-07-2020 |
|
Polyester DTY |
2284.80 |
USD/Ton |
0% |
12-07-2020 |
|
30S Spun Rayon Yarn |
1720.74 |
USD/Ton |
-0.41% |
12-07-2020 |
|
32S Polyester Yarn |
1378.02 |
USD/Ton |
-1.53% |
12-07-2020 |
|
45S T/C Yarn |
2177.70 |
USD/Ton |
-0.33% |
12-07-2020 |
|
40S Rayon Yarn |
1570.80 |
USD/Ton |
0% |
12-07-2020 |
|
T/R Yarn 65/35 32S |
2042.04 |
USD/Ton |
0% |
12-07-2020 |
|
45S Polyester Yarn |
1884.96 |
USD/Ton |
-0.75% |
12-07-2020 |
|
T/C Yarn 65/35 32S |
1670.76 |
USD/Ton |
0% |
12-07-2020 |
|
10S Denim Fabric |
1.13 |
USD/Meter |
0% |
12-07-2020 |
|
32S Twill Fabric |
0.64 |
USD/Meter |
0% |
12-07-2020 |
|
40S Combed Poplin |
0.93 |
USD/Meter |
0% |
12-07-2020 |
|
30S Rayon Fabric |
0.48 |
USD/Meter |
-0.30% |
12-07-2020 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
12-07-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14280 USD dtd. 12/07/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
United States (US) President Donald Trump has for the time being ruled out a second phase trade deal with China, saying the relationship between the two countries has been severely damaged with Beijing’s handling of the coronavirus outbreak. The relationship with China has been severely damaged. I don’t think about it now, Trump told reporters on Friday from Air Force One when asked about the trade deal. Earlier in the year, the Trump adminstration had signed a mega phase one deal with China, after intense negotiations between the two countries. Relations between Washington and Beijing have spiralled downward since the outbreak of the novel coronavirus. US President Donald Trump has questioned the Asian powerhouse’s handling of the Covid-19 pandemic. The two countries have also sparred over China imposing a new national security law in Hong Kong, restrictions on American journalists, treatment of Uyghurs Muslims and security measures in Tibet. Relationship with China has been severely damaged. They could have stopped the plague, they could have stopped it, (but) they didn’t stop it. They stopped it from going into the remaining portions of China from Wuhan province. They could have stopped the plague, they didn’t,” Trump said. The coronavirus, which first emerged in China’s Wuhan city, has claimed over 1,30,000 lives in the US with 3.1 million confirmed cases. The virus toll in China stands at 4,641 with nearly 85,000 confirmed infections.
Source: The Business Line
The trade of carpets and other floor coverings has been declining over the years. The global export of carpets and other floor coverings was $18,077.10 million in 2017, which declined 7.93 per cent to $16,643.01 million in 2019, according to data from TexPro. Total exports diminished 11.39 per cent in 2019 compared to the previous year. Further, the trade is expected to drop to $14,702.34 million in 2022 with a rate of 11.66 per cent from 2019, according to Fibre2Fashion's market analysis tool TexPro. The global import value of carpets and other floor coverings was $12,488.47 million in 2017, which decreased 7.70 per cent to $11,526.24 million in 2019. Total imports diminished 14.27 per cent in 2019 over the previous year and is expected to decrease to $10,220.09 million in 2022 with a rate of 11.33 per cent from 2019. China ($4,747.86 million), Turkey ($2,553.26 million), India ($1,714.23 million), Belgium ($1,610.94 million) and Netherlands ($1,204.65 million) were the key exporters of carpets and other floor coverings across the globe in 2019, together comprising 71.09 per cent of total export. These were followed by the US ($909.48 million), Germany ($601.27 million) and the UK ($352.12 million). From 2016 to 2019, the most notable rate of growth in terms of export value, amongst the main exporting countries, was attained by Turkey (34.10 per cent) and the Netherlands (13.42 per cent). The US ($1,487.55 million), Germany ($1,192.25 million), UK ($1,142.80 million) and Canada ($744.81 million) were the key importers of carpets and other floor coverings across the globe in 2019, together comprising 39.63 per cent of total import. These were followed by Japan ($612.20 million), France ($514.17 million) and Netherlands ($387.59 million). From 2016 to 2019, the most notable rate of growth in terms of export value, amongst the main importing countries, was attained by Canada (0.45 per cent).
Source: Fibre2Fashion
The implications for a country like Bangladesh of the COVID-19 outbreak are devastating, where the economy and the generation of jobs rely mainly on textile production and exports. As major contract cancels by global buyers have created chaos and the majority of apparel factories shut down their operations, BGMEA made every effort to save the industry. In the last couple of months around 419 garment manufacturing units remain closed due to the large scale of order cancellations by the western buyers and lack of new work order. The more alarming is that 100 have now shut down operations permanently out of these 419 units. In such a scenario, BGMEA under the leadership of Rubana Huq issued an official letter to British billionaire Philip Day’s Edinburgh Woollen Mill (EWM) group, demanding to pay up for clothes shipped before 25 March. It has taken the stand of blacklisting specific buyers and has begun with EWM. According to the Bangladeshi factory owners, they had singled out Edinburgh Woollen Mill asking for large discounts that violated local laws, international standards and defied the principles of ethical sourcing. In addition to working closely with the Government of Bangladesh and its foreign missions to facilitate parallel agreements with foreign buyers and governments, BGMEA has started to engage numerous international rights organizations in order to ensure that multinational distributors and brands pay to the local suppliers.
Source: Textile Focus
The initial support will include cash assistance for food, medication, and other necessities, health care and Covid-19 testing, hygiene materials, handwashing facilities and other H&M Foundation, an initiative of the Swedish fashion giant H&M Group, is initiating a long-term project to support women garment workers in Bangladesh with a primary fund of $1.3 million, starting with their urgent needs connected to Covid-19. “As a first step, $1.3 million (12 million Swedish Krona ) is donated to WaterAid, CARE and Save the Children to provide around 76,000 young women, their families, and community members in around Dhaka with emergency relief, also reaching 1 million people with messages on Covid-19 and hygiene practices,” said a statement of H&M Foundation on Thursday. The initial support will, for example, include cash assistance for food, medication, and other necessities, health care and Covid-19 testing, hygiene materials and handwashing facilities, and work on awareness-raising, support to families where gender-based violence increases as an effect of the crisis, child protection and child education focusing on disadvantaged children. “We will directly support women and their families with, for example, cash assistance for food, medication and other necessities, provide Covid-19 awareness-raising and testing, hygiene materials and handwashing facilities. We hope to see more donors show their support in different ways," said Carola Tembe, program manager of H&M Foundation. “Together with the H&M Foundation we will address the immediate needs of improved hygiene in the fight against Covid-19 while building towards long term sustainable improvements in water, sanitation and hygiene services,” says Cecilia Chatterjee Martinsen, CEO of WaterAid Sweden. The emergency relief efforts are carried out from May to December 2020 with the aim of having positive effects well beyond that. “We will provide vulnerable women with subsistence allowance and access to health and gender-based violence support, also reaching thousands of community members. The donation from the H&M Foundation will support women and their communities in this time of great need,” says Merlijn van Waas, head of sustainable development at CARE Nederland. The initiative also includes Save the Children, whose efforts will target children of female garment workers affected by Covid-19 securing their child protection and education rights. “We will support them with solutions that they can use to ensure their children’s education and protection from violence or abuse. Ultimately helping these children to build a better life”, says Onno van Manen, country director of Save the Children in Bangladesh. In addition to the Covid-19 related emergency relief donation, H&M Foundation is also taking on a long-term commitment, starting in the autumn of 2020, involving important players from different sectors to achieve systemic long-lasting change, equipping women garment workers in Bangladesh for a future where work is defined by automation and digitalization. “Together with different partners we will make upskilling, re-skilling, digital literacy efforts and entrepreneurship available to women garment workers with the aim to increase their future employability”, says Carola Tembe, Program Manager, H&M Foundation. According to Bangladeshi suppliers, in the year 2019 the Swedish retailer, the largest buyer of Bangladeshi apparel products bought about $3.5 billion worth of clothing products from its 235 Bangladeshi garment suppliers.
Source: Dhaka Tribune
Turkey's protective clothing and mask exports hit $573.4 million in the first half of this year amid the novel coronavirus pandemic, according to head of Istanbul Apparel Exporters' Association (IHKIB) Mustafa Gültepe, who recently said the country witnessed a record high year-on-year (YoY) growth of 986 per cent between January and June. The country exported $144.7 million worth of masks and $428.7 worth of protective clothing in the first six months of this year, he said. The share of these items in Turkey's total readymade garment exports reached 8.2 per cent, according to Turkish media reports. Gültepe said readymade garment exports surged 25 per cent annually in June after a three-month decline. Despite the rise in June, exports shrank 19.8 per cent to $7 billion in the six months, he noted. "If we do not face a second wave [of the coronavirus], we can recover rapidly after September," he said. He underlined that the bounce back in the last quarter will not be enough to offset the loss. "We may close the year with 15-20 per cent shrinkage," Gültepe added.
Source: Fibre2Fashion
Only four listed textile companies witnessed profit growth in the July, 2019-March, 2020 period due mainly to a decline in product prices, increased production cost, and global coronavirus outbreak, sector people said. Of the 42 listed textile companies that have declared financial results recently, four were able to post profit rise while 10 declared losses and the rest 28 witnessed a sharp fall in profits in the nine months compared with that in the corresponding period in the previous year, according to Dhaka Stock Exchange data. Fourteen out of the 56 listed textile companies are yet to declare financial results for the third quarter. Seven of the 15 companies have kept their factory shut while five others made significant profit decline during the July-December period last year and there is a slim possibility that the companies would make profits in the July 2019- March 2020 period, sector people said. Textile company officials said that the profits decreased due mainly to a decrease in sale prices and collections from turnover, and an increase in production expenses in the period. The cost of utility bills including gas and electricity has also been on the rise that raised production cost of the companies, adding that a shortage of gas supply to the factories hindered production, the officials said. Factory owners claimed that the new wage structure raised expenses of their companies as the latest RMG wage board set the minimum wage at Tk 8,000 and implemented the wage structure in December, 2018. Despite all the investments made in workplace safety, compliance, implementation of new wage structure and green industrialisation, the foreign buyers kept the unit price significantly low, they said. Lending rates to businesses in Bangladesh were also high during the period in terms of international standards that subsequently increased cost, they said. The government, however, implemented 9-per cent lending rate from April 1 this year. The exchange rate of the taka against the dollar has remained high for a long time while the competing countries have devalued their currencies to gain share on the international market. Bangladesh Textile Mills Association president Mohammad Ali Khokon, also the managing director of Maksons Spinning Mills Limited, told New Age that the cost for raw materials significantly rose while the sales plunged during the period. He, however, expected that the situation would improve from September this year. Besides, the COVID-19 pandemic, which began in China in December last year, spread to the other countries including Bangladesh, and disrupted the global supply chain. Experts and exporters said that the impact of lockdowns in China, the United States and countries in Europe from January weighed heavily on the country’s export data. Export earnings from readymade garments in July-March of FY20 fell by 7.12 per cent to $24.10 billion from $25.95 billion in the same period of FY19. Many RMG factories have been closed down and many workers have lost their jobs due to the current business situation in the sector. The companies which saw profit growth during July, 2019–March, 2020 are Kattali Textile, Matin Spinning Mills, ML Dyeing and Paramount Textiles. On the other hand, Metro Spinning, Nurani Dyeing, RN Spinning, Safko Spinning Mills, Toshrifa Industries, Zaheen Spinning, Alltex Industries, Dulamia Cotton, MozaffarHossain Spinning Mills and Zaheen Textile witnessed losses during the July, 2019-March, 2020 period compared with the same period in the previous year. The rest 27 companies including Rahim Textile Mills, Shasha Denims, Pacific Denims, Desh Garments, Evince Textiles and Malek Spinning Mills faced a significant profit fall during the period. Shares of 15 listed textile companies were trading under the ‘Z’ category which groups low-profile and junk shares on the stock exchange due to their poor business performance. Out of 56 listed textile companies, 22 were trading below the face value of Tk 10 a share.
Source: New Age Business
Bureau Veritas, a leading Testing, Inspection and Certification provider for the consumer goods and healthcare industry announces its Katubedda, Sri Lanka laboratory has obtained ISO/IEC 17025 accreditation for new scope related to medical/surgical face masks. The new accreditation enables face mask buyers and suppliers worldwide to test medical masks, including full EU market entry scope, in the one location. With market estimates putting face mask annual growth over 20% every year1, the need for additional trusted full service laboratories continues to grow. With this latest development, Sri Lanka is the first full service medical mask lab in Bureau Veritas’ network. In addition to this capability, Sri Lanka is also one of 10+ Bureau Veritas laboratories worldwide who can test fashion masks against regulatory and performance requirements. Newly accredited capability includes packages for the EU Market – EN 14683:2019 Type
I / II and Type IIR with the following accredited tests:
Niraj Singh, Director, Softlines & Analytical – Asia (Global Technical Services) for Bureau Veritas Consumer Products Services, commented, “We are seeing increasing demands for a faster and more complete service from our clients, from both buyers and suppliers. I am therefore delighted that we have a comprehensive testing capability worldwide, with our specialist test center in Sri Lanka, however, we also have full capability to deliver knowledge management, supplier selection and product approval. Product inspection, supplier audit, document review, regulatory awareness and ISO 13485 management system certification services are additionally available worldwide.” This accreditation is the latest development in Bureau Veritas Sri Lanka’s rapid expansion and evolution. As well as a full range of analytical and safety/performance testing, inspection and audit services for apparel/textiles, cosmetics, packaging and healthcare; Bureau Veritas Sri Lanka can also carry out biodegradability analysis, environmental studies on air, water and soil; drinking and processed water quality testing as well as a full range of testing services for the food and agriculture industry.
Source: Textile World
Cambodia’s trade minister Pan Sorasak has recently urged Adidas and H&M to start ordering the country’s fashion products. The call was made during a recent meeting between the Minister and Adidas representatives headed by Matthew Armstrong and Christer Horn af Aminne, the development manager responsible for Cambodia and Vietnam at H&M. According to Cambodian media sources, 121 of the 706 garment factories in Phnom Penh were temporarily halted due to a shortage of raw materials and production setbacks faced in the midst of the COVID-19 crisis during a press conference at the council of ministers’ office, municipal labor department director Choun Vuthy said. The suspended factories left lakhs of workers unemployed and affected millions of families. The government has provided $40 in wage support for unemployed workers. Meanwhile, Better Factories Cambodia (BFC) has launched a hotline to provide information to workers in the garment, footwear, travel goods and bag industries regarding measures that help prevent the spread of COVID-19. The hotline, part of the ‘COVID-19: Worker Safety’ program, uses interactive voice response (IVR) technology. The service’s content is drawn from guidance and recommendations from the World Health Organization and the Ministry of Health and will be revised periodically in accordance with the current official advice.
Source: Textile Focus
