MARKET WATCH 31 JULY, 2020

NATIONAL

INTERNATIONAL

PM Narendra Modi meets financial regulators; discusses measures to revive COVID-hit economy

New Delhi: Prime Minister Narendra Modi on Thursday held a brainstorming session with financial sector regulators and discussed various measures to revive the economy hit hard by COVID-19 crisis. According to sources, the meeting discussed various steps that regulators, especially the Reserve Bank of India, can take to push economic growth staring at the risk of contraction. RBI Governor Shaktikanta Das, Sebi chairman Ajay Tyagi, Irdai chairman S C Khuntia and PFRDA chairman Supratim Bandyopadhyay were in the meeting, which saw presence of Finance Minister Nirmala Sitharaman, Road Transport Minister Nitin Gadkari, and Commerce and Industry Minister Piyush Goyal, among others. Besides, senior government officials attended the virtual three-hour long meeting. The economy is expected to contract by 4.5 per cent during the current fiscal, as per the IMF latest projection. The meeting also discussed preparedness to deal with the post-COVID world and regulatory measures to help achieve the objective of Atmanirbhar Bharat.  It is to be noted that the RBI since February took various measures, including liquidity infusion and moderation of interest rate to record low in its bid to maintain financial stability and support growth. Nearly 40 per cent of Rs 20.97 lakh crore economic package comprised of several liquidity measures undertaken by the RBI. The Reserve Bank of India (RBI) eased the monetary policy, reduced reserve requirements and introduced liquidity in the economy to the extent of almost 3.9 per cent of GDP. Besides, Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority of India (Irdai) and Pension Fund Regulatory and Development Authority also took measures to provide relief to industry and individuals. The challenges before the regulators during the post-COVID world also came up for discussion, the sources said.  The meeting also came at a time when the government is considering another round of fiscal stimulus to boost demand in the economy. The International Monetary Fund (IMF) on Wednesday said India has space for both fiscal and monetary measures, but it needs to quickly contain the spread of COVID-19 to make economic recovery sustainable. IMF also said while monetising fiscal deficit may be inevitable, India should chart a credible fiscal consolidation roadmap to ensure regulatory independence. Emphasising on the crucial role of the financial sector in supporting the economy, Modi on Wednesday asked bankers to relook at their practices to ensure stable credit growth and not to turn down bankable proposals on apprehensions of prospective bad loans. During a three-hour long virtual meeting with CEOs of large public and private sector banks along with heads of non-banking financial companies (NBFCs), the Prime Minister assured them that the government is ready to take all steps to support the financial sector. Modi exhorted bankers to motivate small entrepreneurs, self-help groups and farmers to use institutional credit in order to grow. "Each bank needs to introspect and take a relook at its practices to ensure stable credit growth. Banks should not treat all proposals with the same yardstick and need to distinguish and identify bankable proposals and to ensure that these don't suffer in the name of past NPAs," he had said.

Source: Economic Times

Back to top

Govt working on production-linked incentives for 12 major sectors

The government is working on production-linked incentives for 12 major sectors like Active Pharmaceutical Ingredients and electronics, Commerce and Industry Minister Piyush Goyal said on Thursday. “Plan is to expand the horizon to as many as 20 sectors." He also promised a soft launch of the Land Bank Portal soon. With six states on board, it will showcase 500,000 hectares of land that has already been identified.

Source: Business Standard

Back to top

Cut in export benefits: In talks with finance ministry to resolve MEIS issue early, says Piyush Goyal

Commerce and industry minister Piyush Goyal on Thursday said he is in talks with the finance ministry for an “early resolution” of the issue of a massive cut in benefits under the Merchandise Export From India scheme (MEIS) by the revenue department. Speaking at a CII webinar, Goyal said: “We are in dialogue with the requisite authorities. MEIS is not going anywhere. It is a cash flow issue. We are trying for an early resolution which is a win-win for everyone.” He was responding to a request by CII president-designate and Tata Steel chief executive TV Narendran to see if “something can be done about it”. The revenue department has capped the outlay for the MEIS at just Rs 9,000 crore for the April-December period, which means exporters may be deprived of over two-thirds of the benefits they usually get under this scheme. The MEIS outgo was about Rs 40,000 crore in FY19 and Rs 45,000 crore in FY20. For this fiscal, the budgetary allocation was to the tune of Rs 27,000-30,000 crore, according to industry sources, although there is no official word on it. The finance ministry, tackling a difficult fiscal situation, is believed to hold the view that while the scope of MEIS continued to widen over the last five years, leading to higher outgo from the exchequer, it hasn’t resulted in any tangible growth in exports. For their part, exporters argue that they firm up contracts, factoring in MEIS benefits, and any retrospective suspension or reduction of the incentives will only erode their cash flows at a time when they are battered by the pandemic. As such, any retrospective order adds to policy uncertainties. Also, subdued export growth is a result of the absence of both structural reforms and adequate incentives to improve competitiveness, they contend. Fearing a shortage of funds following the revenue department’s decision, the commerce ministry has, for the time being, blocked the online module for claiming such benefits since July 23. Already, in a letter to finance Minister Nirmala Sitharaman on July 21, Goyal sought a review of the revenue department’s decision. Goyal also said exports, so far in July, are down only 12% from a year before and a contraction in imports have narrowed to 25%. However, services exports have more or less held up, despite the pandemic, he added. Merchandise exports witnessed a record 60% crash year-on-year in April, although the contraction narrowed to 37% in May and 12% in June, as lockdown curbs were lifted last month. However, in June, imports were still down by almost 48%. “Business is bouncing back,” Goyal said, adding that the export restrictions on ventilators will soon be done away with. He also highlighted that the Centre is working with states for easier labour law, soft launch of land bank portal and a real single-window clearance for investments. The MEIS would remain valid until December this year and is to be replaced with a more WTO-compatible scheme, RoDTEP, which reimburses all levies (that are not subsumed by GST) paid on inputs consumed in exports.

Source: Financial Express

Back to top

Govt favours diverting MEIS funds to PLI schemes in select sectors

Instead of extending the Merchandise Exports of India Scheme (MEIS), which cost Rs 43,500 crore in 2019-20, the finance ministry and the NITI Aayog have called for putting financial resources into new Production-Linked Incentive (PLI) schemes in select sectors with core competency and potential for global exports. The revenue department argued against continuing the MEIS, calling it inefficient and wasteful. It pointed to the runaway cost of maintaining the scheme, despite exports not growing at all. Senior government sources say public tax liability under the MEIS ballooned from Rs ….

Source: Business Standard

Back to top

Government starts process to identify customs duty exemptions that can be scrapped

In this context, suggestions are invited in respect of review of existing Customs exemption notifications,” the Central Board of Indirect Taxes and Customs (CBIC) said in notice to stakeholders. Suggestions have been invited through the mygov.in portal. The government has begun an exercise to identify exemptions under the customs duty law that need to be weeded out. It has sought suggestions from industry and other stakeholders on phasing out exemptions and simplifying customs procedures. The crowdsourcing exercise, which is not limited to only a few notications or sectors, will go on till August 21. Finance minister Nirmala Sitharaman had announced in her budget speech a review of existing customs exemption notifications to identify those which may have outlived their utility or have become outdated. “In this context, suggestions are invited in respect of review of existing customs exemption notications,” the Central Board of Indirect Taes and Customs said in a notice to stakeholders. Suggestions have been invited through the mygov.in portal. For removing exemptions, review of a particular notication, amendment to the notication for bringing clarity, consolidation of similar entries and extent of use of the notication will be looked into, among other issues. However, change in duty rates – usually part of the Budget proposals – will not be covered under this review exercise. “Merit-based change of duty rates need not be furnished,” the government has said. Suggestions have also been sought for review of customs laws and procedures, so as to “align them with the needs of changing times and ease of doing business”, it has said.

Source:   Economic Times

Back to top

Rating models for MSMEs need to be revisited amid Covid-19 crisis: Experts

The credit rating models for micro, small and medium enterprises should be revisited in the wake of the coronavirus crisis as these companies are currently facing the problem of capital erosion, financial experts said on Thursday. Speaking at a webinar organised by Indian Chamber of Commerce, credit information company TransUnion CIBIL managing director and CEO Rajesh Kumar said the MSMEs play an important role in the economy and their rating models should be looked into afresh. "All rating models have to be revisited in the present scenario arising out of the pandemic. This is more so because capital erosion of the entities has taken place," Kumar said. He also called for the availability of data from the GST system and payment history of the MSMEs, which would help the rating firms to estimate the probability of defaults. According to him, access to GST database will be helpful in getting the invoices and understanding the production cycles, supplies, cash flows and bank statements. "All this information will help estimate the probability of default," he said. Of the 50 million MSMEs in India, only ten million are registered with the GST system, he said. CIBIL has already come up with MSME rankings, Kumar said. Central Bank of India managing director and chief executive officer Pallav Mohapatra said rating parameters should undergo change due to the coronavirus pandemic. "When there is no realisation of sales proceeds by the MSMEs, their cash flows get affected. In such a case, the parameters used for ratings during the pre-COVID period and now should not be the same," he said. Mohapatra said the working capital cycles of MSMEs are shorter than that of the large companies and they rely largely on borrowed funds. Tata Capital MD Rajiv Sabharwal said that the MSMEs have been adversely impacted and they need fund for their businesses. He said Tata Capital is also lending to these entities but the cost of funds is not cheap as compared to banks.

Source: Business Standard

Back to top

India's economic recovery: A report card on the performance of key sectors in July

There’s some good news in a section of the job market. But from retail to real estate, autos to cement, ride-hailing to electricity consumption, the narrative is either a small rise or a decline. ET’s reporting on key sectors shows that, with a few exceptions, demand this month has been lower or barely higher than in June. Some macro data are small positives. There’s some good news in a section of the job market. But from retail to real estate, autos to cement, ride…………..

Source: Economic Times

State govt working on global supply chain policy

UP government is working on a policy to develop UP into a global supply chain. MSME minister Sidharth Nath Singh said: “As per the directions of chief minister Yogi Adityanath, we are working towards making UP into a global supply chain. For this, a new export policy will be finalised soon. The policy will have two parts, one will be short term where manufacturing of textiles, garments, footwear, machinery parts, carpets, handloom and handicrafts will be encouraged. In the long term, export of electronics, food processing, chemicals.” Singh said that due to political upheaval in the world, there was a possibility that China’s market share would reduce. The goods that China exports are also manufactured in UP, he said, adding that if China’s share decreased, UP could take advantage of the situation to increase its own market share.

Source: Times of India

Back to top

Businesses expect recovery by June 2021: PwC Survey

PwC India surveyed 225 CXOs across industries between June 17 and July 10 to assess the impact of Covid-19, the challenges it poses, new paradigms and interventions being considered by business leaders. They attribute this resilience to operational flexibility, robust crisis management and process/product innovation. For many, this is a result of work done in the pre Covid-19 era, he added. The report suggests that infrastructure, real estate, industrials, retail, hospitality and media & entertainment suffered significant revenue decline due to the crisis. Collapse in demand, supply chain disruptions and liquidity constraints were the top reasons for decline. Sectors like IT, healthcare, pharma, telecom, utilities and consumer essentials were somewhat resilient. Crisis management and agility to adapt to the changing market were the key for resilience, it added. An overwhelming 77% of respondents would like to accelerate digital enablement. Other significant interventions anticipated include localisation of manufacturing/supply chains, development of newer logistics models, collaboration to add capabilities & navigate bottlenecks and development of newer products & services centred on emerging themes & affordability. Encouragingly, for 45% of the respondents, the current crisis presents opportunities to consolidate. These opportunities may not be sector-specific, as consolidation has been a buzzword over the last few years, driven by favourable policy actions such as the Insolvency Code. “CXOs were asked about their definition of success out of Covid-19. Here 34% would like their organisation to be more resilient followed by 19% who wanted to gain/ protect market share and 19% who wanted to achieve break even cash flows,” the report revealed. “In this tougher business environment, digital enablement has become key for remaining competitive and resilient. We also expect a higher level of collaborations across the value chain. Value creation has become even more critical and deal-making is going to be an important lever. The crisis has brought resilience to the fore and we expect boardrooms to take due cognisance of it,” Krishan said.

Source: Financial Express

Back to top

Textile companies launch 'Anti-Corona' fabric that protects against COVID19

Textile players like Donear, Siyaram, Welspun, Arvind, and D’ Decor in partnership with international Anti-Viral tech companies have launched anti-viral fabrics that claim 99.99% protection against COVID-19. Cashing in on the coronavirus scare, the textiles industry has now started marketing 'AntiCorona fabric'. Several big players in the industry have launched fabrics and clothing that they claim can provide protection against the COVID-19 virus. An ad for popular men's clothing brand Zodiac claims their anti-corona fabric can kill 99% of the COVID-19 virus. Textile players such as Donear Industries, Welspun India, Arvind, Vardhman Textiles and D’ Decor in partnership with international Anti-Viral tech companies have launched antiviral fabrics for apparel as well as home furnishing products that claim to effectively combat COVID-19. One such tech company is Swiss-based HeiQ Group. The company claims that their product 'Viroblock' technology has proven effective against the human coronavirus 229E and SARS-CoV-2, causing COVID-19, with a 99.99% reduction of the virus in 30 minutes. Rajendra Agarwal, managing director of Donear Industries explained how the fabric provides protection against Covid-19. "After weaving of the Fabric, when you take it for dyeing and finishing, it is treated with chemicals with 'antibacterial' & 'anti-viral' properties. After curing if any virus sits on the fabric, it gets immediately killed." The company, he said, is seeing a huge demand for the Anti-Corona fabric which accounted for 50% of the sales during June & July. Donear Industries also said that while the anti-viral tech has been tested and proven effective against Covid-19 by several international labs in the UK and Australia, no tests are currently available in India that can claim the same. Another textile company, Zodiac said that while the fabric is safe and has been tested by HeiQ it is not a medical device & for use only as a shirt and does not guarantee against infections and is not a cure. It was recently pulled up by Advertising Dr Somdutta Singh, a Serial Entrepreneur, who has launched her own line of made in India COVID protection merchandise in the country said that while these tech solutions may provide a degree of protection, they cannot kill the virus. "Anybody claiming their Anti-Viral fabric can kill the coronavirus is untrue," she added. Talking specifically about the HeiQ Viroblock Technology, she further explained, "When they claim 99.99% protection, they are not claiming it for the fabric but for the solution that is applied to fabrics." As per media reports, the Textile and Health Ministry does not have any guidelines for such products. Medical experts called these claims marketing gimmicks that could be potentially dangerous. Dr Sanjeev Bagai, Chairman, Nephron Healthcare said that claims such as these could be misleading and provide a false sense of security. He said, "Technologies need to be vigorously tested and scientifically verified. Companies should publish research material in the public domain and should be cautious of making such claims."

Source:   Times Now

Back to top

Skilled India – The driver for GDP growth

From several initiatives in recent years to many in the pipeline with new strategies, skill development has now become the focus for the Government as well as the industry. The Government is supporting MSMEs (Micro, Small and Medium Enterprises) in various ways, be it changing the definition of MSME or presenting upfront initiatives like setting up the Rs. 20,000 crore subordinate debt for stressed MSMEs and equity infusion of Rs. 50,000 crore through a Fund of Funds. Around 70 per cent of Indian textile and apparel units are in the MSME sector. The Ministry of MSME has also launched initiatives like Entrepreneurship and Skill Development Programmes, Assistance to Training Institutions (ATI), etc. In this scenario, skill development has emerged as a strong support for the MSME sector, as they have limited resources, and thus, need trained workforce to employ. Overall, MSME sector contributes to around 37.54 per cent to the GDP of India and offers employment to 120 million people of the country, and skilling these people is one of the most important aspects for the overall growth of the industries and the country. During the last few years, India’s initiatives for skill development have played an integral role for various industries, and apparel manufacturing sector has gained a lot from the same. Few such initiatives include the formation of a dedicated Ministry for Skill Development and Entrepreneurship (MSDE), the concept of Sector Skill Councils (SSCs) and the introduction of National Skills Qualification Framework (NSQF). However, somehow the results have not been as per the efforts. The fact of the matter is that the Union as well as the State Governments still continue to work aggressively in this regard. Now when everyone is passing through disruption owing to the COVID-19 pandemic, certain measures need to be focused on to get the maximum benefits for every stakeholder of the industry. The World Youth Skills Day and the fifth anniversary of ‘Skill India’ mission were celebrated on 15 July. Indian Prime Minister Narendra Modi insisted all to skill, reskill and upskill to remain relevant in the ever-changing market scenario. Mahendra Nath Pandey, Minister of Skill Development and Entrepreneurship, also highlighted that skill development activities will be the backbone of Atmanirbhar Bharat and Garib Kalyan Rozgar Abhiyaan. All the above-mentioned recent developments and initiatives attract the apparel manufacturing sector also, as it is the highest employment generator that creates maximum jobs under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a flagship scheme of the MSDE. Moving forward, the third phase of the PMKVY is likely to be implemented soon. It will involve industries more and will be highly friendly towards employers. At the same time, the focus will be on latest tech concepts like Industry 4.0. To bring the entire skill ecosystem on a common web portal and work as an aggregator for demand and supply of skilled workforce, the Government is also working on Skill Management Information System. All this is the need of the hour, as reskilling and multi-skilling are now must for everyone from blue-collar to white-collar workers, as opportunities as well as salaries and wages are less. Even when the conditions will improve, there are thick chances that new working methodologies and work culture are going to dominate. The Indian apparel manufacturing industry is anticipating the lack of proper skilled workforce in future. And so, initiatives for skill development by the Government create a hope for the industry. But learning from the recent experiences and minutely observing the current unprecedented situation, some specific changes for skill development in the apparel industry are must. Experts believe that in the garment industry, the automation and non-sewing applications will pick up rapid speed, the labour and supervisory workforce will be rationalised, and the flab and non-value-adding people will be replaced with productive workforce across organisations. Apparel Training & Design Centre (ATDC) is leading for skills in apparel manufacturing across India with its impressive wide network. Dr. Darlie Koshy, DG & CEO, ATDC, believes that about 30 to 40 per cent of migrant workers will return, but at higher wages. So one of the major challenges is to reskill and upskill them to get them transformed into multi-skilled workers to give them better wages in urban and other manufacturing clusters where they are lured back to work. For doing this, the garment manufacturers need to make more margins, and higher productivity can also lead to higher margins.   As a lot of buzz is already going around skill mapping also, the courses for apparel manufacturing will have to be recalibrated by putting on a scale the level of skill intensity of each course, so that the theoretical contents and skills like digital pattern making which can be taught remotely through online learning and such other courses can be offered on hybrid and online platforms. “The MSDE and National Skill Development Council (NSDC) and State Skill Missions have to accept the realities and change policies. With the contraction of fashion market as predicted by many, the manufacturing will reach a plateau, and hence, the placement benchmark will have to be revised to a maximum of 50 per cent in about 14-15 clusters and in other smaller hubs maybe 35 per cent or so for the next 12-18 months, if skill development programmes have to be realistic,” says Dr. Koshy. He also insists on following the ‘Go local and Go digital’ strategy going forward. At different levels, the staff and workforce need to acquire completely new skills including soft skills of a higher level, as the competitive dynamics and the consumer predilection are changing and agility and speed to market and direct to consumer will decide the new competitiveness dimensions in global supply chains. “Both export strategies and skilling strategies will have to be aligned going forward, and a lot more emphasis needs to be given to different levels of RUN (Reskilling, Upskilling and New skilling) at all levels,” he adds. Here it is pertinent to mention the role of SSCs, as currently 38 SSCs are working under NSDC and MSDE – imparting training to lakhs of youth across the country every year. In the past 6 years, standards of thousands of job roles have been developed by the SSCs which are known as ‘Qualification Packs’. Right from the setting of standards in each sector, to the formation of protocols related to training and assessments, including training of trainer (TOT) and training of assessor (TOA) are some of the major roles as well as achievements of the SSCs. Dr. Roopak Vasishtha, CEO, Apparel Made-ups & Home Furnishing Sector Skill Council (AMH SSC), believes that all the developments in the recent years including the formation of SSCs have shown impressive results, as apart from providing skilled workforce in factories, thousands of youth are getting skilled under various job roles such as ‘self-employed tailors’, leading to start their own small units. AMH SSC has created standards for 45 job roles and has certified more than 10,000 trainers and more than 3,000 assessors. It has over 4,500 training partners/centres affiliated to it through which the training is imparted. Till now, more than 12 lakh people have been certified by the AMH SSC, and there is a plan to increase the number so that the industry gets skilled manpower. “I would urge the industry to start hiring workforce which has been skilled under the ‘Skill India’ mission, so that the system would get further motivated to skill even a larger number of people,” he says. Apart from Government funded agencies, there are a lot of private organisations in the country that are playing an integral role in working for skill development at various levels. Few of them believe that some relaxations in policies are required for the time being. Shalabh Srivastava, Director, Gunina Solutions, Gurugram, is an expert in skill development for the apparel industry. “Skill initiatives need to reach small villages across the nation. Along with that, policies need to be flexible, so that various schemes can be implemented effectively. It will help to bring fresh but skilled workers in the apparel industry, and it is important as migration has taken place in the recent months,” he shares. Things are quite positive, and so should be the outcome. But for this, for all the existing and upcoming projects, industry’s need and availability of skilled/unskilled workforce require better coordination with each other and transparency to gain maximum benefits. Just creating huge numbers of skilled workforce and not serving the industry’s purpose will not bring prosperity to the industry or to the workers. Hope all the ‘partners’ in skill development will keep this as their main focus during the implementation of any policy or project.

Source:   Apparel Resources

Back to top

Raymond, India’s top suit-fabric maker, cuts jobs as people work from home

Raymond Ltd., one of the world’s biggest producers of worsted wool fabric used to make quality suits, is cutting costs by more than a third as people shelter at home from the coronavirus outbreak. The Mumbai-based company is reducing jobs, rents, and marketing costs to decrease expenses by as much as 35% for the nancial year started April 1, Chairman Gautam Hari Singhania said in a virtual interview last week. It has also sought to freeze loan repayments under a one-time program oered by the central bank. “Raymond has taken this as an opportunity to re-set,” Singhania said. “What we know is this is a crisis and we will stand strong.” The shift to online engagements has slammed demand for business clothing worldwide, tipping the two-century-old Brooks Brothers Group Inc. into bankruptcy this month. Raymond, itself almost a century old having started in 1925 with a small wool mill on the outskirts of what was then Bombay, has seen its shares suer the biggest loss among global peers this year as the virus outbreak intensied. India went on lockdown March 25, and shops and oices in parts of the country are still shuttered. Raymond has deferred its capital expenditure such as store openings, renovations and technology upgrades, according to the company’s annual report. Key Numbers: Sales fell 29% in April-March; excluding the impact of the pandemic and a correction in Raymond inventory, revenue dropped 1% compared with the same period a year earlier Company has re-opened 1,332 out of 1,638 stores as of July 2 and is seeing about 45% of pre-pandemic sales, Antique Stock Broking Ltd. says in a note to clients citing a call with Raymond management Antique maintains its buy rating on the stock with a target price of 427 rupees, versus 245.2 rupees on Tuesday For now, Raymond is using its Bengaluru factory to manufacture personal protective equipment for health workers, Singhania said. He added that the company oers a range of products unlike bespoke suit makers he competes with in other parts of the world. “When you are a strong brand, recession always plays in your favor,” Singhania said. “Brooks Brothers provides a very specie and formal range of clothing, unlike us, so it doesn’t bother us much.”

Source:  Economic Times

Back to top

Govt establishes authority to protect and enforce consumer rights

The government has established the Central Consumer Protection Authority to promote, protect and enforce the rights of consumers. The Consumer Protection Act that came into force from July 20 has a provision for setting up the authority. The authority will be empowered to conduct investigations into violations of consumer rights and file complaints, prosecute, and order recall of unsafe goods and services. It is also empowered to order discontinuation of unfair trade practices and misleading advertisements. The additional secretary in the Department of Consumer Affairs, Nidihi Khare, has been given the charge of chief commissioner. The new Act also covers e-commerce platforms.

Source: Business Standard

Back to top

Global Textile Raw Material Price 31-07-2020

Item

Price

Unit

Fluctuation

Date

PSF

763.66

USD/Ton

0%

31-07-2020

VSF

1184.74

USD/Ton

0%

31-07-2020

ASF

1685.76

USD/Ton

0%

31-07-2020

Polyester    POY

715.13

USD/Ton

0.50%

31-07-2020

Nylon    FDY

1948.40

USD/Ton

-0.36%

31-07-2020

40D    Spandex

3968.17

USD/Ton

-0.36%

31-07-2020

Nylon    POY

927.81

USD/Ton

0%

31-07-2020

Acrylic    Top 3D

1798.52

USD/Ton

-0.79%

31-07-2020

Polyester    FDY

1855.62

USD/Ton

0%

31-07-2020

Nylon    DTY

892.13

USD/Ton

0%

31-07-2020

Viscose    Long Filament

2191.06

USD/Ton

0%

31-07-2020

Polyester    DTY

5138.64

USD/Ton

0%

31-07-2020

30S    Spun Rayon Yarn

1677.20

USD/Ton

0%

31-07-2020

32S    Polyester Yarn

1320.35

USD/Ton

0%

31-07-2020

45S T/C    Yarn

2148.24

USD/Ton

0%

31-07-2020

40S    Rayon Yarn

1827.07

USD/Ton

-0.78%

31-07-2020

T/R    Yarn 65/35 32S

1662.92

USD/Ton

0%

31-07-2020

45S    Polyester Yarn

1484.50

USD/Ton

0%

31-07-2020

T/C    Yarn 65/35 32S

2026.91

USD/Ton

0%

31-07-2020

10S    Denim Fabric

1.13

USD/Meter

0%

31-07-2020

32S    Twill Fabric

0.64

USD/Meter

-0.22%

31-07-2020

40S    Combed Poplin

0.92

USD/Meter

-0.15%

31-07-2020

30S    Rayon Fabric

0.47

USD/Meter

0%

31-07-2020

45S    T/C Fabric

0.65

USD/Meter

0%

31-07-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14274 USD dtd. 31/07/2020). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Higher import tax in Morocco on Turkish textile products

Morocco recently decided to impose 36 per cent import tax instead of the earlier 27 per cent on Turkish textile and clothing products. The measure, aimed at supporting the domestic textile industry, came into effect on July 27. The tax was part of the amended 2020 Finance Bill, approved by the Moroccan government and parliament earlier this month. Morocco’s administration of customs and indirect taxes under the ministry of economy announced the new tax rate in a statement. Morocco and Turkey signed a free trade agreement (FTA) in 2004. The agreement took effect two years later in 2006. Since then, Morocco’s trade balance with Turkey has been largely in deficit. Minister of industry Moulay Hafid Elalamy recently said Morocco loses $2 billion annually in its trade deal with Turkey. The Turkish textile industry also caused Morocco a loss of around 44,000 jobs in 2017 alone, Elalamy revealed. Early this year, Rabat and Ankara started negotiations to review their FTA. The negotiations were, however, suspended due to the COVID-19 pandemic. Some of the Turkish companies that the new tax rate will directly affect include clothing brands LC Waikiki, Koton, and DeFacto, and retail company Bim, according to media reports in Morocco.

Source: Fibre2Fashion

Back to top

Egypt's president opens new textile industrial complex

Egyptian President Abdel-Fattah El-Sisi recently inaugurated the first stage of a new industrial complex built by the Egyptian National Company for Industrial Development in Sharqiya governorate's 10th of Ramadan City. El-Sisi inaugurated a cotton textile complex comprising six factories in Robeiki industrial city, an official statement said. The inaugural event was attended by parliament speaker Ali Abdel-Aal and Prime Minister Mostafa Madbouly. The company is part of the Egyptian Armed Forces' National Public Service Projects Organisation. The new complex, built over nearly 30 months, aims at exploiting the full value of Egyptian cotton and to avoid exporting it in raw form, according to Egyptian media reports. The project, in its first stage, will offer direct jobs to 1,350 and indirect jobs to 12,000. El-Sisi said that the government has embarked on the execution of an ambitious plan to develop the country's textile industry, which involves replacement of factories over the next two years.

Source: Fibre2Fashion

Back to top

Primark launches new UK in-store recycling scheme

Primark is rolling out a nationwide recycling initiative in the UK, inviting customers to donate their pre-loved clothes, textiles, footwear and bags from any brand to be “reused, recycled or repurposed” via its in-store recycling boxes to ensure nothing goes to landfill. The ‘Re-loved’ collection boxes will be available in Primark’s 190 stores across the UK and has been launched to help make recycling more convenient for shoppers, following calls from the non-profit WRAP (Waste and Resources Action Programme) for people to protect charity shops from the influx of donations expected as lockdown eases WRAP found in recent research that more than a third of the population have had a clear out of unwanted textiles and clothing while at home on lockdown and it is encouraging   the public to use other donation options, including in-store collections like Primark’s new scheme which it states are an often underused route for recycling clothing, but do prevent clothing and textiles going to landfill. Peter Maddox, director at WRAP said in a statement: “Our research shows most people prefer to donate or recycle their unwanted clothes, and often opt for charity shops as their favoured route. With shops just beginning to reopen, that can risk overwhelming charities with an influx of donations. “Passing on clothes through retail stores is an effective, and often underused way to donate clothes. Primark is a signatory of the Sustainable Clothing Action Plan, and this new in-store recycling scheme for clothes gives people even more options, and will help make recycling clothes easier with drop off boxes in stores on high streets and retail hubs across the UK.” All profits from the scheme will go to UNICEF, Primark’s global charity partner, in support of its education programmes for vulnerable children around the world. Primark has partnered with Yellow Octopus, a recycling specialist with a ‘no landfill’ policy across the 21 countries it operates in, to implement its recycling scheme. Yellow Octopus diverts around one million garments from landfill every month and aims for as many donations as possible to be worn again, with the remainder being repurposed into new products such as insulation, toy stuffing and mattress fillers. Katharine Stewart, ethical trade and environmental sustainability director at Primark added: “We know people don’t always find it easy to recycle their clothes, textiles and shoes. And we know people have had big clear-outs during lockdown. Now is the perfect time to be launching our in-store recycling programme, making it convenient for customers to give a second life to items from their wardrobe that they no longer need. "This will reduce waste going to landfill and help our customers to help the environment. With the profits going to UNICEF’s important childhood education programmes we are also supporting our global charity partner in their work.”

Source:  Fashion United

Back to top

China Has Amassed $1 Billion Glut of U.S. Cotton It Doesn’t Need

China has bought more than $1 billion worth of American cotton in the past three months. And it doesn’t even need it. The purchases -- made as part of the phase one trade deal between Washington and Beijing -- are hitting just as the pandemic shuts down clothing stores, decimating demand. That means China’s state-run companies are stashing away the cotton they bought, dimming the outlook for furt “Recent Chinese purchases have not been correlated with downstream demand,” said Jon Devine, chief economist for Cary, North Carolina-based researcher Cotton Inc. “Much of that cotton is believed to be destined for the Chinese reserve system. If it moves into storage, it can be used against future demand and offset future purchases.” The spread of Covid-19 has caused havoc in the global cotton in………….

Source: Bloomberg Quint

Back to top

Subscribe to SRTEPC mailing list

Exchange Rates