The Finance Ministry and the NITI Aayog considers the Merchandise Exports of India Scheme (MEIS), which is one of the industry-supporting initiative to boost exports, an inefficient and wasteful approach. The policy makers are considering putting financial resources into new production linked incentive (PLI) schemes in select sectors with core competency and potential for global exports. The Department of Commerce has, therefore, issued an Office Memorandum (dated. 27 July 2020), which intimates that due to non-allocation of additional fund by Dept. of Revenue for MEIS for FY 2020-21 beyond the already marked Rs 9000 crore, the online MEIS module has been blocked on July 23 from accepting new application for shipping bills with LEO (Let Export Order) dated 1st April 2020 onwards to limit the issuance of any more scrips. The office memo says that MEIS scrips worth Rs 422.4 crore have already been issued to exporters with LEO since April. The MEIS cost the government Rs 43,500 crore in FY 2019-20.
Ronak Rughani, Chairman, SRTEPC.
Reacting to the order, Ronak Rughani, Chairman, SRTEPC said that the sudden blockage of the online module to apply for MEIS on 23rd July is a shock for the exporters and it is a discouraging message in these difficult times of Covid-19 pandemic. He informed that blockage and discontinuation of the incentives under the MEIS would severely hit exports from the country which have already been bleeding because of Covid-19 pandemic. He further stated that MEIS was designed by the Government under the Foreign Trade Policy 2015-20 to provide relief to exporters to offset infrastructural inefficiencies and associated costs. Since currently infrastructural inefficiencies and associated costs have multiplied due to lockdown, paralysed economic activities, created labour shortage, etc. in the aftermath of the Covid-19 pandemic, the incentives and support of the MEIS are extremely important. “Our exports are already facing fierce price competition globally against exports from China and if the MEIS is also stopped, then the Indian manufacturers and exporters will be completely thrown out of international markets. Hence, to cushion the exports, Government should not cap the MEIS benefits. It is urgent and crucial for the government to restore the MEIS benefits till the RoDTEP is activated,” Rughani added.
Source: Textile Excellence
NEW DELHI: Delhi and Mumbai Customs will begin faceless assessment of certain imported goods beginning Monday, the Central Board of Indirect Taxes and Customs (CBIC) has said. On June 8, 2020, the CBIC had rolled out in Bengaluru and Chennai the first phase of "faceless assessment" scheme for imported goods, as it prepared for pan-India roll out by January 1, 2021. "Board has decided to begin the 2nd phase of All India rollout of faceless assessment w.e.f. August 3, 2020, by including Delhi and Mumbai Customs Zones and extending the scope of Faceless Assessment at Chennai and Bangalore Customs Zones," the CBIC said in a letter to Principal Chief Commissioners of Customs and Central Tax. The CBIC said it has reviewed the first phase of faceless assessment at Bengaluru and Chennai and resolved few technical and administrative issues that arose. The board also noted that faceless assessment ushered in a smooth and faster clearance process with uniformity in assessment. Imports of items under Chapter 84, 85 of the Customs Tariff Act were covered under the faceless assessment scheme in the first phase in Bengaluru and Chennai customs zones. In the second phase, Delhi will also be included. Chapter 84 and 85 relates to certain machines and electrical equipment. In the second phase, items under Chapters 89 to 92 and 50 to 71 will also be covered and Bengaluru, Chennai and Delhi customs will clear imported goods based on faceless assessment. Chapters 89 to 92 relate to ship, boats, musical instruments, clocks and watches, and photographic, cinematographic, medical or surgical instruments and apparatus; parts and accessories thereof. Chapter 50-71 include textile items, carpet, footwear, headgear, umbrella, ceramic products, glass items and pearls, precious or semi-precious stones, imitation jewellery, among others. Mumbai Customs would undertake faceless assessment of items covered under Chapter 29. This chapter relates to organic chemicals. Faceless assessment enables an assessing officer, who is physically located in a particular jurisdiction, to assess a Bill of Entry pertaining to imports made at a different Customs station, whenever such a Bill of Entry has been assigned to him in the Customs automated system. To ensure speedy and uniform assessment, the CBIC has nominated Principal Commissioner or Commissioner Customs, including in airports, to monitor the same.
Source: Times of India
Textile units in the region have welcomed the Central government announcement raising the ceiling of outstanding loan limit and turnover for companies to avail of the benefits under the Emergency Credit Line Guarantee Scheme (ECLGS). Chairman of Apparel Export Promotion Council A. Sakthivel said, “We welcome the decision of the government to increase the outstanding loan limit from ₹ 25 crore to ₹ 50 crore and for raising the turnover criteria from ₹ 100 crore to ₹ 250 crore for availing ECLGS.” Mr. Sakthivel added that, “While more than half of the targeted additional funding is yet to be sanctioned, there are many medium scale industrialists who are bereft of the special financial assistance. The need of the hour is to expand the outstanding loan limit to ₹ 100 crore and there should be no turnover criteria for exporters.” He said that while the turnover of garment exporters may seem large due to foreign exchange rate fluctuations, the thin margin on which they and the seasonal nature of the products make these exporters vulnerable to changes in export orders and delay in shipment, which is clearly evident during the ongoing crisis. They should be able to benefit from the scheme, he said. According to Prabhu Dhamodharan, convener of the Indian Texpreneurs Federation, it had appealed last month for this much needed change in the scheme. “With this calibrated intervention, many of the medium-sized units in textile sector will get much needed liquidity support. Being a capital intensive industry , many of our spinning sector companies will be covered under the ECLGS scheme,” he said.
Source: The Hindu
Coimbatore, Aug 2 (PTI) The Indian Texpreneurs Federation (ITF), a textile industry body, on Sunday thanked the Finance Ministry for increasing the annual turnover ceiling of companies to take loans under the Emergency Credit Line Guarantee Scheme (ECLGS). The Ministry had raised the ceiling to Rs 250 crore from the present Rs 100 crore. "With this calibrated intervention, many of the medium- sized units in the textile sector will get the much needed liquidity support," ITF convenor Prabhu Dhamodharan said in a statement here. Being a capital-intensive industry, many of the spinning sector companies would be covered under the scheme, he said. ITF had appealed for this much-needed change in the scheme last month, Prabhu said.
Source: Outlook India
Unable to tap opportunities in international markets’ With export incentives getting delayed under various schemes, textile and clothing exporters say they are unable to tap opportunities in the international markets, and revival is taking time. According to industry sources here, the Central government offered incentives under two major schemes last year — the Rebate of State Levies (ROSL) Scheme and the Merchandise Exports from India Scheme (MEIS). In mid-2019, the government replaced ROSL and MEIS with the Rebate of State and Central Taxes and Levies (ROSCTL) Scheme. It also offered an ad hoc, one-time special incentive of 1% till December. With sluggishness in textile and clothing exports and yarn and fabric exports not covered under the new scheme, exporters sought the continuation of MEIS and ROSCTL. The government allocated ₹9,000 crore for ROSCTL. However, reportedly owing to inadequate funds, the portal does not accept applications under the ROSCTL Scheme since April this year, say sources. Recently, the government introduced a new scheme called, Remission of Duties and Taxes on Export Products (RODTEP). This is supposed to be a comprehensive scheme for exporters. But rates are yet to be fixed. Currently, the industry gets only the duty drawback benefit. It should allocate adequate funds for ROSCTL or launch RODTEP at the earliest, says Raja M. Shanmugham, president of Tiruppur Exporters’ Association. The industry has been facing several hardships. Without the export incentives, revival takes time and the exporters are unable to tap into the opportunities, he adds. Ashwin Chandran, Chairman of Southern India Mills’ Association, says the export benefits should be extended to yarn. Pollachi Member of Parliament K. Shanmuga Sundaram said in a release that the government should immediately allocate funds for ROSCTL and continue the ad hoc, onetime incentive. “Textile industry is facing an acute financial crunch owing to the COVID19 effect. Thereby the industry was forced to diversify its operations and also retain the garment manufacturing operation. The industry requires support from the Central government,” he said.
Source: The Hindu
NEW DELHI: India needs to grow much faster over the next 10 years with the use of technology and reforms in order to become an important global player, 15th Finance Commission Chairman N K Singh said on Sunday. To achieve the potential growth rate of 7-8 per cent, India has to improve factor productivity and reduce incremental capital output ratio, he said.Singh said technology, coupled with significant reforms in areas like health, education and maintenance of infrastructure, can make a decisive difference. "If we wish to become important global player, we have to obviously grow much faster over the next 10 years than we did in the past decade," he said at IIT Jodhpur Foundation Day event. Only technology solutions can enable the realisation of 'Aatmanirbhar Bharat', he added. Singh said the coronavirus pandemic has exposed several fault lines in the country's public health care system. In 2018-19, public health expenditure in India was 0.96 per cent of GDP. This is one of the lowest among peer group countries. Out of this, about 70 per cent of the expenditure on health is undertaken by the states, while only 30 per cent is spent by the union government. "It has become evidently clear with the current pandemic that investment on health is not just social sector spending, but a great investment in India's economic growth and development. Investment in technology can ameliorate these issues in the health sector," he said. Singh suggested use of e-learning, electronic medical records, electronic systems for disease surveillance, radiological assessments and readings, and laboratory and pharmacy information systems to significantly reduce inefficiencies and lack of resources for affordable access to healthcare. Talking about use of technology in education sector, he said that in the coming years there would be need for a creative mix or a hybrid between online and offline education. "Technology must determine the optimum mix of this hybrid," he added.
Source: Economic Times
NEW DELHI: The country's merchandise exports will further revive in the coming months as order books are showing signs of improvement, even as the industry is still facing labour shortage, according to exporters. Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said there is no problem oforders in the shorter run, but exporters are still not getting long-term orders. "We are expecting that the situation will improve further as the order book situation is improving. Orders are mainly coming from the US and European countries," Sahai said. On labour shortage, he said that factories are still not running at full capacity, but the situation will improve in the next few months. Council for Leather Exports Chairman P R Aqeel Ahmed said the sector is doing well as "our order books are improving". Sharing similar views, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said there is a positive sentiment for Indian goods and this is helping in pushing the outbound shipments. "Orders are coming. This year we are hoping that we will be able to signicantly increase our exports. Factories are running at about 60 per cent capacity. By November, we will be able to reach the pre-Covid level," Sakthivel said. "But we are facing problems because of labour shortage. Still only 50 per cent of the workers are coming to factories and due to this, we are not able to ramp up our production," he said. Ralhan hoped that after the ood water recedes in states like Bihar, labour movement would start. Export Promotion Council for Handicrafts (EPCH) Executive Director Rakesh Kumar said that orders are coming, but due to shortage of workers, there is a problem in boosting production. "Labours are not coming in full shifts," he said. Kumar also urged the government to address issues related to merchandise export from India scheme (MEIS) as exporters are not able to x the prices on their products. "MEIS helps in increasing price competitiveness of exporters, but due to the uncertainty over the scheme, exporters are in confusion over xing the price of new orders," he added. India’s exports fell for the fourth straight month in June as shipments of key segments like petroleum and textilesdeclined but the country's trade turned surplus for the rst time in 18 years as imports dropped by a steeper 47.59 per cent. Export sectors which recorded negative growth in June include gems and jewellery (-50 per cent), leather (-40.5 per cent), petroleum products (-31.65 per cent), engineering goods (-7.5 per cent), ready-made garments (RMG) of all textiles (-34.84per cent), and cashew (-27 per cent).Import segments which recorded negative growth include gold, silver, transport equipment, coal, fertiliser, machinery and machine tools. However, exports of oil seeds, coee, rice, tobacco, spices, pharma, and chemicals reported positive growth in June. Indian Oilseeds and Produce Export Promotion Council (IOPEPC) Chairman Khushwant Jain said that oil seed exportsare recording growth on account of healthy output and steps taken by the government to promote shipments. During April-June 2020, exports fell by 36.71 per cent to USD 51.32 billion while imports shrank by 52.43 per cent to USD 60.44 billion. The trade decit stood at USD 9.12 billion during April-June.
Source: Economic Times
The government collected goods and services tax (GST) of Rs 87,422 crore for July,
lower than that collected in June, indicating a stability in collections, analysts said. "During the previous month, a large number of tapayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to COVID-19," the Finance ministry said in a statement Saturday. “Taxpayers with turnover less than Rs 5 core continue to enjoy relaxation in ling of returns till September 2020," the ministry added. The revenues for July 2020 are 86% of the GST revenues in the same month last year. During the month, the revenues from import of goods were 84% and the revenues from domestic transaction (including import of services) were 96% of the revenues from these sources during the same month last year."A collection approximate to 86% of last year does showcase quite a signicant economic recovery from the pandemic though a bit of it could be on account of pent up demand. With economic activities increasing, the collections should hopefully witness aligning with estimates soon," said Abhishek Jain, Tax Partner, EY. Of the total collections in July, Central GST is Rs 16,147crore, State GST is Rs 21,418 crore, Integrated GST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and Cess is Rs 7,265 crore (including Rs 807 crore collected on import of goods). total revenue earned by Central Government and the State Governments after regular settlement in the month of July,2020 is Rs 39,467 crore for CGST and Rs 40,256 crore for the SGST.
Source: Economic Times
The South India Textile Research Association (SITRA) here has started conducting viral penetration tests in fabrics that are used to make coveralls. An official at SITRA said it started the viral penetration tests two weeks ago and has got 10 to 15 samples so far. The Association was one of the laboratories in the country that was recognised to conduct blood penetration tests for PPEs to be supplied to the government when COVID-19 spread started. Just two or three samples have passed the viral penetration test. “Even some of the fabrics that had the best results for synthetic blood penetration test are finding it difficult to pass the viral penetration test,” the official said. SITRA tests for viral penetration for both, Indian and European standards. It offers packages, with a series of tests, to manufacturers for coveralls, gowns, masks, etc. It has also applied for government approval to conduct anti-viral tests on fabrics. Sri Venkatalakshmi Spinners at Udumalpet is one of the companies that has developed fabrics - branded as Doctor Shield - that have passed the viral penetration tests done by SITRA. Gopinath Bala, Managing Director of the company, said the fabric can be used to make coveralls and surgical wear. With a capacity to produce fabric that can make 40,000 garments a month, Sri Venkatalakshmi Spinners now plans to tap the opportunity in the domestic and overseas markets. Probably, some buyers abroad may ask for tests again, but, since SITRA is an accredited laboratory, the results of tests done at SITRA will be acceptable, he says. According to one of the leading PPE fabric and mask manufacturer here, SITRA currently tests fabrics for synthetic blood penetration and viral penetration and masks for particle filtration efficiency and and bacterial filtration. The coverall manufacturers will have to get the products tested again even if they use fabrics that are tested and certified. With the emergency situation because of the spread of COVID-19 spread, some countries need coveralls in large quantities and they are likely to accept the SITRA certification.
Source: Times of India
NEW DELHI: Iran's Chabahar Port built with India's support has recently witnessed cargo movement to South Asia and SE Asia notwithstanding slowdown in the global trade due to Covid. The first shipment of Iran’s aquatic products has been shipped to Thailand via Chabahar Port recently, ET has learnt. Director General of Sistan and Baluchestan Ports and Maritime Organization, Behrouz Aghaei has said that the first ship carrying Iran’s aquatic products left the Southeastern Iranian port of Chabahar for Thailand for the first time. Aghaei informed that the shipment of non-edible fishes was sent to the Indian port of Mundra via Chabahar. Aghaei further informed that the forth shipment of Afghanistan’s transit goods has been shipped to India through Shahid Beheshti terminal in Chabahar Port.In 2016, Iran, India, and Afghanistan decided to jointly establish a trade route for land-locked Afghanistan and Central Asian countries. India had also sent a consignment of wheat to Afghanistan through Chabahar Port in the past. Later on, in February 2019, the Afghanistan-Iran-India trade corridor for the trade between the two countries through Chabahar Port was officially inaugurated. On July 25 Iranian Foreign Ministry spokesperson had tweeted, “#Iran has a longstanding policy of maintaining balanced, friendly relations w/ all Eurasian & E/S Asian powers. Our potential long-term cooperation agreements w/ #China & #Russia, & our continued joint work of India in Chabahar prove this. We are determined to uphold this policy”. This came amid firefighting by India and Iran over the past two weeks over Delhi’s participation in the proposed Chabahar-Zahedan railway project. India's problem with Iran has been its insistence to give Chahbahar-Zahedan railway contract to Khatam al-Anbiya, a Revolutionary Guard entity, under US secondary sanctions. However, both sides remain committed to Chabahar Port project.A lease contract for two terminals and five berths at the Shahid Beheshti Port in Chabahar was signed in 2016 between Iran’s Ports and Maritime Organisation (PMO) and Indian Ports Global Limited (IPGL). The Phase-I of the Shahid Beheshti Port was inaugurated in December 2017 by Iranian President Hassan Rouhani. The Chabahar Port was operationalised from December 2018. Iran is planning to increase the capacity of the Chabahar Port from the current 2.5 million tonnes to 8.5 million tonnes.
Source: Economic Times
The Export-Import Bank of India on Saturday clarified that it has no connection with the case in which the Delhi Police last week busted a gang for allegedly stealing licences of eport companies. The cyber cell of the Delhi Police on July 27 said it busted a gang involved in allegedly stealing licences of multiple export companies by fraudulently using their information. “Based on the technical investigation, seven persons have been arrested and two independent modules of fraudsters have been busted. Investigation is in progress to unearth other modules. These modules are spread across the country through a network of EXIM agents," a police had statement said, referring to export-import agents. However, it was erroneously stated in a report dated July 27 that the gang operated through a network of Export-Import Bank of India agents. The reported case has absolutely no connection with the Export-Import Bank of India, according to the bank. The police had initiated a the probe after receiving complaints last year from four different garment export after receiving complaints last year from four different garment export firms alleging that their licences of duty rebate on garment exports (RoSCTL) had been stolen from the Directorate General of Foreign Trade (DGFT) website and transferred to multiple beneficiaries using fake Digital Signature Certificate (DSC) keys, they said.
Source: Economic Times
The presence of a trade agreement facilitates trade, but the absence of an agreement does not necessarily restrict trade. While trade between India and China has been in public focus of late, trade with Pakistan seems to have fallen off the policy charts. The February 2019 Pulwama terrorist attack has further limited the already low level of trade between the two countries. The direct impact of a disruption in border trade is felt most in Punjab, especially among more than 9,000 families in Amritsar dependent on this trade. A handful of Afghan trucks crossing the border are not enough to keep porters and traders near the check-posts economically engaged. Our recent study, Unilateral Decisions, Bilateral Losses, shows that Amritsar’s local economy has suffered a net loss of nearly Rs 30 crore earned every month from this border trade. On July 15, Pakistan re-opened the Wagah-Attari border for Afghanistan’s exports to India, suspended due to the Covid-19 lockdown. The decision seemed timed to coincide with the tenth anniversary of the signing of the Afghanistan Pakistan Transit Trade Agreement (APTTA)which enabled Afghanistan to export to India via the Wagah-Attari border. However, trucks returning to Afghanistan go empty since APTTA does not allow Indian goods to be transported across the border. On a visit to the Attari border, one would generally witness the vibrancy of a border economy—where trucks moved consistently, tea stalls and dhabas remained busy, majority of porters unloaded cement and gypsum off Pakistani trucks and others offloaded dry-fruit from Afghan trucks. As the Pakistani trucks got reloaded and Afghan trucks prepared to return empty, a unique camaraderie amongst Afghans, Indians and Pakistanis would be seen. This was all before February 2019. In February 2019, on one hand, Wagah-Attari saw trade become a casualty of Indo-Pak relations, and on the other, Afghanistan was preparing its first export shipment to India through Iran’s Chabahar Port. The face-off between India and Pakistan in 2019 also included barring each other from respective airspaces, hitting Afghanistan’s exports to India. Trade between India and Afghanistan has remained vulnerable to the volatilities in the region. APTTA has been enwreathed with repeated concerns around its asymmetric nature. The proposals to allow the transit of Afghanistan’s imports from India have been met with resistance from Pakistan, fearing flooding of Indian goods in Pakistani markets affecting its domestic industry. However, studies indicate that restrictions in APTTA have not been able to limit the informal trade between India, Pakistan and Afghanistan. The presence of a trade agreement facilitates trade, but the absence of an agreement does not necessarily restrict trade. Our new report, The Dubai Angled Triangle (2020), provides evidence of informal trade between India and Pakistan. For example, a gap in the mirror data between the UAE’s exports to Afghanistan and Afghanistan’s imports from the UAE, supported by interviews on the ground, shows re-routing of Indian goods into Pakistani markets while they are destined to reach Afghanistan from the UAE. Indirect routes like the UAE and Iran will continue to exist to reroute India’s trade with both Afghanistan and Pakistan. But the border economies in Wagah and Attari are paying the highest price. Facilitating trade—direct and transit—could support the ecosystem of border economies, where people are heavily dependent on trade. The pandemic can perhaps remind us that the payoff from collaborative growth and development will far exceed the stall backs owing to pending political issues between our countries.
Source: Financial Express
Businesses with turnover of Rs 500 crore and above will generate all B2B invoices on a centralised government portal starting October 1. Businesses with turnover of Rs 500 crore and above will generate all B2B invoices on a centralised government portal starting October 1. The Central Board of Indirect Taxes and Customs (CBIC) has noticed the revised format for e-invoice under GST by replacing existing form and also increased the turnover threshold for businesses who have to generate e-invoice for B2B transactions. With this, the e-invoice under Goods and Services Tax (GST) will be applicable for GST-registered businesses having turnover above Rs 500 crore with eect from October 1, 2020. Also, SEZ units have been excluded from e-invoicing. The e-invoice was aimed at curbing GST evasion through issue of fake invoices. Besides, it would make the returns ling process simpler for businesses as invoice data would already be captured by a centralised portal. In November last year, the government had said that from April 1 electronic invoice (e-invoice) would be mandatory for businesses with turnover of Rs 100 crore. Later in March 2020, the GST Council extended the implementation date to October 1. The Council also exempted insurance, banking, financial institutions, NBFCs and passenger transport service from issuing e-invoice. EY Tax Partner Abhishek Jain said: "With only 60 days to this compliance, businesses would need to quickly evaluate the ERP changes needed and plan implementation well to ensure compliance from October 1". AMRG & Associates Senior Partner Rajat Mohan said new formats for an e-invoice has been prescribed eyeing the implementation from October 1, 2020. "Big corporates with turnover of over Rs 500 crores now have only 2 months to implement E-invoice digital module across various technology platforms, which would change the rules of game in Business to Business (B2B) transactions," he said. GSTN will now have access to more real-time data around business transactions giving impetus to high level data analytics, Mohan added.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
766.92 |
USD/Ton |
0% |
02-08-2020 |
|
VSF |
1189.81 |
USD/Ton |
0% |
02-08-2020 |
|
ASF |
1692.96 |
USD/Ton |
0% |
02-08-2020 |
|
Polyester POY |
726.78 |
USD/Ton |
1.20% |
02-08-2020 |
|
Nylon FDY |
1956.73 |
USD/Ton |
0% |
02-08-2020 |
|
40D Spandex |
3985.13 |
USD/Ton |
0% |
02-08-2020 |
|
Nylon POY |
1863.55 |
USD/Ton |
0% |
02-08-2020 |
|
Acrylic Top 3D |
895.94 |
USD/Ton |
0% |
02-08-2020 |
|
Polyester FDY |
2178.92 |
USD/Ton |
-0.98% |
02-08-2020 |
|
Nylon DTY |
5160.60 |
USD/Ton |
0% |
02-08-2020 |
|
Viscose Long Filament |
938.94 |
USD/Ton |
0.77% |
02-08-2020 |
|
Polyester DTY |
1799.04 |
USD/Ton |
-0.40% |
02-08-2020 |
|
30S Spun Rayon Yarn |
1681.50 |
USD/Ton |
-0.17% |
02-08-2020 |
|
32S Polyester Yarn |
1325.99 |
USD/Ton |
0% |
02-08-2020 |
|
45S T/C Yarn |
2157.42 |
USD/Ton |
0% |
02-08-2020 |
|
40S Rayon Yarn |
1834.88 |
USD/Ton |
0% |
02-08-2020 |
|
T/R Yarn 65/35 32S |
1662.86 |
USD/Ton |
-0.43% |
02-08-2020 |
|
45S Polyester Yarn |
1490.84 |
USD/Ton |
0% |
02-08-2020 |
|
T/C Yarn 65/35 32S |
2035.57 |
USD/Ton |
0% |
02-08-2020 |
|
10S Denim Fabric |
1.13 |
USD/Meter |
0% |
02-08-2020 |
|
32S Twill Fabric |
0.64 |
USD/Meter |
-0.22% |
02-08-2020 |
|
40S Combed Poplin |
0.93 |
USD/Meter |
-0.15% |
02-08-2020 |
|
30S Rayon Fabric |
0.47 |
USD/Meter |
0% |
02-08-2020 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
02-08-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14335 USD dtd. 02/08/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
High pressure tactics used by apparel and footwear brands and retailers during cost negotiations are not only impacting suppliers' profitability but also threaten their social and environmental sustainability too, a new survey has found. The latest look at the purchasing practices of brands and retailers also shows new challenges have emerged since the Covid-19 crisis, as buyers change their pricing and ordering strategies amid ongoing caution over consumer demand. But the good news, according to the third in a series of special reports from the Better Buying initiative, which focuses on 'Cost and cost negotiation and the need for new practices,' is that some buyers do appear to be engaging more with their suppliers on pricing. Feedback from 147 suppliers in 30 countries shows one of the strategies with the highest impact on a supplier's profitability is buyers demanding level prices be maintained from year to year, with no consideration for higher raw materials, energy or wage costs. Likewise a "take it or leave it" approach pushes suppliers to meet the target cost or lose the order. Nor surprisingly, a hit to profitability has a knock-on impact when it comes to providing good working conditions and wages, and environmental performance. Better Buying hopes that sharing feedback from suppliers will help to drive industry-wide improvements in retail and brand purchasing practices. Post-pandemic practices Almost all suppliers confirmed buyers have started placing new orders since the onset of Covid-19, but are proceeding cautiously amid ongoing uncertainty around how phased re-openings and the emergence of new outbreaks across the globe will impact consumer demand. The biggest changes are being seen in a drop in order volume compared to previous orders or seasons, smaller volumes at the same price, and lower target prices from previous orders. As for best practices, one-third of suppliers reported increased dialogue with their buyers – a practice Better Buying has advocated for throughout the pandemic. Practices that are helping to lower costs without squeezing suppliers include providing long-range buying plans, listening to suppliers' suggestions for altering product specifications to reduce costs, providing accurate forecasts in advance, and meeting minimum order quantities when placing orders. Suppliers also highlighted the importance of their customers engaging in dialogue rather than using one-way directives. Some also explained how their customers are paying for or making use of cancelled materials by redesigning or developing them into new products to save on fabric costs. "These findings demonstrate the varied ways that cost pressures can be reduced for suppliers" explains Marsha Dickson, president and co-founder of Better Buying. "While in some cases buyers may need to pay more to cover the costs of everything they are asking for, planning and forecasting, design and development, and other practices beyond cost negotiations can help them reduce operational costs and support win-win solutions with their suppliers." The opportunity for the apparel and footwear industry to shape a new standard for purchasing practices was also covered in the survey. The majority of suppliers said they believe there should be minimally acceptable costing practices for buyers. The highest priority practices to implement as standards are providing a reasonable target price, not requesting price reductions after an order is placed or shipped, and avoiding making changes to order details once the price is confirmed. "These priorities are not unreasonable – in fact, it is hard to understand why they aren't already standard practices," says Kelly Allen, strategic "Listening to suppliers and working with them toward win-win solutions can help raise the bar for how costing is carried out, eliminating impossibly low target prices and the high-pressure cost negotiation strategies needed to reach them."
Source: Just Style
High pressure tactics used by apparel and footwear brands and retailers during cost negotiations are not only impacting suppliers' profitability but also threaten their social and environmental sustainability too, a new survey has found. The latest look at the purchasing practices of brands and retailers also shows new challenges have emerged since the Covid-19 crisis, as buyers change their pricing and ordering strategies amid ongoing caution over consumer demand. But the good news, according to the third in a series of special reports from the Better Buying initiative, which focuses on 'Cost and cost negotiation and the need for new practices,' is that some buyers do appear to be engaging more with their suppliers on pricing. Feedback from 147 suppliers in 30 countries shows one of the strategies with the highest impact on a supplier's profitability is buyers demanding level prices be maintained from year to year, with no consideration for higher raw materials, energy or wage costs. Likewise a "take it or leave it" approach pushes suppliers to meet the target cost or lose the order. Nor surprisingly, a hit to profitability has a knock-on impact when it comes to providing good working conditions and wages, and environmental performance. Better Buying hopes that sharing feedback from suppliers will help to drive industry-wide improvements in retail and brand purchasing practices. Post-pandemic practices Almost all suppliers confirmed buyers have started placing new orders since the onset of Covid-19, but are proceeding cautiously amid ongoing uncertainty around how phased re-openings and the emergence of new outbreaks across the globe will impact consumer demand. The biggest changes are being seen in a drop in order volume compared to previous orders or seasons, smaller volumes at the same price, and lower target prices from previous orders. As for best practices, one-third of suppliers reported increased dialogue with their buyers – a practice Better Buying has advocated for throughout the pandemic. Practices that are helping to lower costs without squeezing suppliers include providing long-range buying plans, listening to suppliers' suggestions for altering product specifications to reduce costs, providing accurate forecasts in advance, and meeting minimum order quantities when placing orders. Suppliers also highlighted the importance of their customers engaging in dialogue rather than using one-way directives. Some also explained how their customers are paying for or making use of cancelled materials by redesigning or developing them into new products to save on fabric costs. "These findings demonstrate the varied ways that cost pressures can be reduced for suppliers" explains Marsha Dickson, president and co-founder of Better Buying. "While in some cases buyers may need to pay more to cover the costs of everything they are asking for, planning and forecasting, design and development, and other practices beyond cost negotiations can help them reduce operational costs and support win-win solutions with their suppliers." The opportunity for the apparel and footwear industry to shape a new standard for purchasing practices was also covered in the survey. The majority of suppliers said they believe there should be minimally acceptable costing practices for buyers. The highest priority practices to implement as standards are providing a reasonable target price, not requesting price reductions after an order is placed or shipped, and avoiding making changes to order details once the price is confirmed. "These priorities are not unreasonable – in fact, it is hard to understand why they aren't already standard practices," says Kelly Allen, strategic "Listening to suppliers and working with them toward win-win solutions can help raise the bar for how costing is carried out, eliminating impossibly low target prices and the high-pressure cost negotiation strategies needed to reach them."
Source: Just Style
Today will mark the formal entry into force of the Free Trade Agreement between the EU and Vietnam (EVFTA). After more than 8 years of negotiations, the EU and Vietnam will now benefit from a unique FTA that will gradually eliminate over 99 % of customs duties on goods and bring dynamic growth in their economic relations. The Federation of the European Sporting Goods Industry (FESI) warmly welcomes this crucial agreement, which it says will significantly boost sustainable trade in sporting goods with the ASEAN region. “As the world is currently hit by a global pandemic and protectionism that are affecting all business operations, the entry into force of the EVFTA is now more crucial than ever. Only through free, fair and rules-based trade can we put our economies back on the path to sustainable recovery,” said Neil Narriman, FESI President. “With more than €600 million in annual savings, this FTA is the greatest trade success our industry has ever achieved,” he added. “Vietnam is one of the EU's largest trading partners in the Association of Southeast Asian Nations (ASEAN) and the EVFTA represents the most ambitious FTA that the EU has concluded with an emerging economy. With the entry into force of the agreement, 71% of the tariffs on Vietnamese exports to the EU will be abolished as of tomorrow, while the rest will be gradually removed over a maximum of seven years. By securing an open, predictable, and transparent trading environment, the EVFTA represents a turning point for the textile and footwear industry, which counts more than 4 000 companies in the region. FESI played a crucial role throughout the negotiations by providing both EU and Vietnamese negotiators with key information on the needs and specificities of sporting goods companies in the region,” FESI said. “The sporting goods industry sources athletic footwear and active apparel as well as equipment in Vietnam. The entry into force of this agreement will not only allow for the expansion of our industry but will also generate greater opportunities for the Vietnamese society through more and improved jobs, as well as better services,” commented Jérôme Pero, FESI Secretary General. “Despite the COVID- 19 pandemic, the EVFTA is expected to bring an annual rise of 2.18% to 3.25% of Vietnam's gross domestic product (GDP) by 2023, sharply increasing both EU and Vietnam export,” he added. “The recent Free Trade Agreement signed in 2019 with Singapore is also a good example of what can be expected in terms of benefits for Vietnam. According to the Ministry of Trade and Industry in Brussels, 31 July 2020,” FESI added. “Singapore1, FTAs have helped local companies access overseas markets, clear their goods more quickly and easily, and safeguard their businesses. In addition, more than 400 000 new highly skilled jobs for local workers were created.” “FESI also welcomes Vietnam's consistent efforts to address labour rights and environmental issues throughout the 8-year negotiation process. By ratifying the ILO fundamental conventions on forced labour and the right to organise and collective bargaining, Vietnam has shown strong commitment to an ambitious reform agenda. The inclusion of strict obligations on sustainable development in the EVFTA will further speed up this process and foster cooperation between the EU and Vietnam on all aspects of sustainable development.”
Source: Knitting Industry
The summer editions of Neonyt, Texworld USA and many others held live interviews and digital panel discussions that connected communities and provided information about current industry issues. They gave insights on how trade shows of the future will be phygital - digital tools adding to physical encounters and offering exhibitors & visitors an added value. Between crisis and new opportunities: Covid-19 has disrupted the world's social and economic for many months now. The consequences of the pandemic are affecting the trade show business as well. Many trade shows were postponed, some will not take place at all. As long as get-togethers in person are possible only to a very limited extent, we have to define virtual formats, which can bridge this time of social distancing," said Olaf Schmidt, vice president textiles and textile technologies at Messe Frankfurt. “How is it possible to stay in contact with each other despite the ban on major events? How can the different business sectors get through these difficult times better? Digital solutions help. In Germany, digitalisation has been slow. But the Corona pandemic shows us what the world could look like in the future: business calls instead of business trips, working from home instead of travelling, agility instead of stiffness. The time is ripe to rethink and find new approaches to the way we work.” The virtual summer editions of some trade shows, which have united the different industries, have shown what these new approaches could look - live and in colour, but safe while being at home. Texworld USA, Apparel Sourcing USA and Home Textiles Sourcing Expo offered an online platform from Jul 21-23, 2020. Talks, presentations and seminars allowed participants to connect and provided them with information about current industry issues. An artificially intelligent programme helped online visitors find suppliers of interest and put them in contact with them. Gartex India is keeping interested parties up to date with webinars about sustainability in the clothing and textile industry until its comeback in December. The summer edition of Neonyt, the global hub for fashion, sustainability and innovation, also went digital this year. From July 13-17, Neonyt's social media channels and those of international conference format Fashionsustain turned into a platform for the exchange of information, with live interviews, panel discussions and statements. At "Neonyt on Air", experts discussed business, lifestyle and digitalisation issues and proved once again that lockdowns not necessarily have to stop networking within the fashion industry. Industry masterminds have explained how digital tools can help to transform fashion in the coming years: "Digitalisation will become as common place in the fashion industry as sustainability,” said The Brand Show Circular founder and CEO Saydou Bangoura during a panel discussion at Neonyt on Air. The Brand Show Circular is a B2B marketing and order platform focused on sustainable fashion. Exhibitors and buyers can meet in the digital world and do business independently from time and place. Wholesale and data exchange platform Joor has the same goal. Joor connects 8,600 brands with 2,600 buyers. Together with Premium Group, Joor created virtual showroom Joor Passport, which was presented at Neonyt on Air. "In the face of continued business disruption caused by the COVID-19 pandemic, we saw a great need to bring technology to revolutionize the market and to reimagine the trade show and fashion week model," said Joor CEO Kristin Savilia. Neonyt’s cooperation with The Brand Show Circular and Joor gives exhibitors the opportunity to use all digital services the B2B platforms offer and helps them bridge the time without onsite events until things go back to normal. Online trading sites allow visitors to place orders with exhibitors all year round. This concept replaces manual on-site orders, which cost money and time and leave more time to exchange information. Messe Frankfurt’s Nextrade is a successful example – the digital B2B marketplace for Home and Living consumer goods has been online since October 2019. “The many positive reactions and registrations by suppliers show that we have our finger on the pulse of time,” said Philipp Ferger, general director of media and head of Tendence and Nordstil. With Nextrade, Messe Frankfurt has expanded the offer of Ambiente and Tendence. Both retailers and buyers profit. New digital concepts launched by trade shows as well as new approaches taken by the industry show what the future could look like – it could be flexible, digital and dynamic. Virtual trade show concepts are a good alternative when personal encounters are not possible, but they will not be able to replace on-site events. “Fashion thrives from personalities, presentation and image and inspiration. Digital formats can be a plus, but not a substitute,” said Thimo Schwenzfeuer, show director of Neonyt. The industry’s desire to meet in person is great. The digital formats launched by trade shows can offer many possibilities. Phygital trade shows, meaning trade shows that are both physical and digital, complement the traditional trade show concept. Whether it is the planning, the organisation or the follow-up of trade shows, technical means also make the on-site trade show experience more enjoyable. In the run-up to an event, digital tools help exhibitors and organisers to plan their trade show presence. Online configurations can help exhibitors to improve their stand presentation to the point of being exactly what they have in mind. In addition, match-making tools helping visitors to find suppliers of interest even before the event begin, prove to be a real advantage. The website offers an alignment of interests – exhibitors provide information about their products and target groups on the programme and visitors specify their interests. In a next step, the tool puts the parties into contact. Flyers, leaflets and posters – that was yesterday. Today, digital wayfinding systems help visitors to find their way around the exhibition centre. Displays or apps provide visitors with specific information, which prevents them from getting lost in an information overload while searching for a specific stand. Long queues, missed appointments or stressed trade show visitors are a thing of the past. Virtual Reality (VR) and Augmented Reality (AR) prove to be an asset for an overall trade show experience. VR is an artificial reality created by hardware and software. “Virtual Reality was originally considered as a possible competitor to the trade show as a communication medium,” said Dr Peter Neven, general director of the exhibition and trade show committee of Deutsche Wirtschaft eV. “It has now become clear that trade shows will continue to be an important tool for personal encounters between companies and their target groups in the future. The popularity of trade shows remains high,” Neven continued. By means of AR, an expanded form of reality, visitors can use apps to get additional information about products or take part in digital tours and lectures. At gaming trade shows the use of this kind of software is already common practice.
Source: Fibre2Fashion
