Major textile bodies in the region today appealed to the Centre to remove anti-dumping duty on Viscose Staple fibre (VSF) to create a level playing for the entire textile value chain. The removal of the duty will help a big section of MSMEs in their growth and the appeal was perfectly aligned with Aatma Nirbhar Bharat Mission, Indian Texpreneurs Federation (ITF) said in its representation to the Union Textile, Commerce and Finance Ministries. Textile and Apparel constitute not only a complex value chain but have two other serious considerations one is the participation of MSME sector and another its capability of providing large scale employment, ITF said. The Government is taking a series of steps to bring structural changes in the champion sector like textiles to build competitiveness in manufacturing sectors so as to compete in the international markets and the Post-Covid environment in the world’s largest consuming markets like USA is favouring India as one of the preferred alternate destinations in Textile & Apparel sourcing, it said. Stating that many countries like Vietnam also are looking to source more fabrics from India, he said that the biggest volume of business is emerging from Man Made Fibre (MMF) & Blended Fabrics and Apparels and Indian companies need to focus on these products to grow our exports. Presently, out of two of the major raw materials in MMF space -Polyester fibre is available in India at international prices due to structural changes brought out in previous budget with the removal of anti-dumping duty on PTA (purified Terephthalic Acid) and the whole value chain is now improving on the Exports’ front. At the same time, due to anti-dumping duty protection at fibre stage, viscose fibre prices in India are much higher than international prices with a difference of around Rs. 20 to Rs. 23 per kg and this undue protection at basic raw material stage by way of anti-dumping duty affects the entire value chain of textiles, he said. With only one manufacturer for this fibre in India, it’s like monopolising the trade and with higher cost of raw materials, entire value chain is struggling to compete in the global markets, ITF said. Moreover, Indian spinners are also facing huge injury due to multi-fold jump in cheap Chinese yarn imports and the import of VSF spun yarn was 2022 tonnes during the year 2016-17 and got increased to 56,262 tonnes during the year 2019-20. China has been dumping their yarn here and its landing costn is cheaper by Rs. 20 per kg; than the Indian Spinners’ manufacturing cost. If anti-dumping duty on VSF is removed, Indian spinners will have access to fibre at international prices which will be competitive for the Indian Spinners to match yarn imports. The benefits would then flow to the entire value chain including MSME weaving sector, it said. In a release, Southern India Mills Association Chairman, Ashwin Chandran also sought the removal of the duty and said that Indian MMF products account for 20 percent of the total Textile and Clothing (T and C) exports, whereas, in China and other textile exporting countries it is 80 per cent. India is not able to make any progress in MMF T&C exports due to the raw material price disadvantage despite being the second largest producer of MMF in the world. VSF is still given undue protection by way of anti-dumping duty that seriously affects the entire viscose staple fibre textile value chain, he alleged. Removing the duty on VSF will make the domestic VSF prices aligned with Global VSF prices making the entire Indian VSF textile value chain globally competitive and boost production and exports of these products, Aswhin said.
Source: Business Line
Union Commerce and Industry Minister Piyush Goyal have been urged to consider a promotion policy for entrepreneurs of northeast considering the topography of the region. The proposal was shared by Manipur textiles, commerce and industry minister Thongam Biswajit Singh during a video conference with the Union Minister on Thursday. Biswajit was accompanied by Manipur, Food, Industries Corporation Limited Managing Director, Peter Salam accompanied during the video conferencing. Piyush Goyal conducted a Video Conference interaction with Industry Ministers of all States on “One District One Product Initiative” a move towards “AatmaNirbhar” Bharat. As part of the conference, the Union Minister also launched a Geographical Information System online land bank in six States through Video Conferencing which was attended by Commerce and Industry Ministers from across the country. During the event, Biswajit highlighted that due to the geographical location, Manipur and other states of the region face logistics and transportation problems and as such entrepreneurs of the region face problems in competing with others from outside the region. Considering these issues, he apprised the Union Minister to consider a promotion policy for the entrepreneurs of the State as well as others of the northeast. He further highlighted several issues of the State to the Union Minister. He said the state under the present BJP led government has started export of certain products of the State like ginger, turmeric, pineapple, black rice, etc he said that it is believed that the State has a deposit of limestone and other minerals. It may be mentioned that the objective of the interaction is to put in a place an institutional mechanism to propagate “One District One Product” as a movement in the country, with the help of all State governments. Every state and union territory must identify one product per district, based on the potential and strength of a district and national priorities; develop a cluster for that product in the district which is capable of producing a world-class product with quality, scalability and a brand; and provide market linkage.
Source: North East Now
Greater trade with ASEAN will be supportive of the prime ministerial call for greater Indian manufacturing for world markets The statement by the external affairs minister last week, on multilateralism not having risen to the challenge of the pandemic (Business Standard, August 21, 2020), has been evident in the realm of international trade as well. In response to the pandemic, almost 80 countries had by April imposed export restrictions and prohibitions in essential commodity sectors like foodstuffs, medical supplies, and pharmaceuticals. While justified as “temporary” and emergency measures, such unilateral trade restrictive policies further undermine the multilateral trading system, which has ...
Source: Business Standard
New Delhi: Trade ministers of India and 10-member ASEAN countries have instructed their officials to start discussions for determining the scope of review of free trade agreement (FTA) at the earliest with a view to make the pact more user-friendly, simple, and trade facilitative for businesses. The issue was discussed during the 17th ASEAN-India Economic Ministers Consultations meet held virtually on August 29, an official statement said on Sunday. Commerce and Industry Minister Piyush Goyal stated that the review of FTA in goods has been "inordinately delayed", and requested to start the full review before the end of this year. "The ministers from India and ASEAN countries instructed the senior officials to start the discussions to determine the scope of the review at the earliest to, inter-alia, make the free trade agreement more user-friendly, simple, and trade facilitative for businesses," the statement said. The review will make the agreement modern with contemporary trade facilitative practices, and streamlined customs and regulatory procedures, it added. Goyal highlighted that the pact has to be mutually benecial and a win-win for all sides. He also expressed the need to strengthen rules of origin provisions, work towards removal of non-tariff barriers and provide better market access to Indian businesses. Goyal and Tran Tuan Anh, Minister of Industry and Trade of Vietnam, co-chaired the consultations. It was attended by trade ministers of all 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam the Association of Southeast Asian Nations (ASEAN)-India trade in goods agreement was signed on August 13, 2009 and came into force on January 1, 2010.
Source: Economic Times
The US Congressional Caucus on India and Indian Americans has asked US Trade Representative Robert Lighthizer to keep out safe harbour clauses – which limit the liability of internet platforms for third party content – from the proposed India-US trade deal. The US Congressional Caucus on India and Indian Americans has asked US Trade Representative Robert Lighthizer to keep out safe harbour clauses – which limit the liability of internet platforms for third party content – from the proposed India-US trade deal. The US’ trade agreements with Canada and Mexico has safe harbour provisions as per which internet companies cannot be held liable when their customers use their networks and servers to distribute copyright-protected material without licence. It is important to establish new policies to promote greater accountability of social media platforms in the wake of evidence that these platforms have contributed to disinformation, social strife and criminal activity in both countries, the caucus said in a letter to Lighthizer dated August 27.
Source: Economic Times
States may face higher interest rates if they go to market directly; Central bank may not want special window as that would amount to monetisation. The Reserve Bank of India (RBI) is likely to prefer that the Centre borrows and gives money to the states toward goods and services tax (GST) compensation, avoiding the proposed special mechanism for borrowing that would amount to monetisation. The Centre has proposed two mechanisms to meet the GST compensation shortfall, one of which is through a Rs 97,000 crore central bank window. The second option is that states borrow Rs 2.35 lakh crore — the total estimated GST revenue loss due to the Covidinduced slowdown and the GST transition — from markets, facilitated by the Centre and the RBI. The Centre is yet to circulate a formal proposal on the borrowing plan to the states that was presented to them at Thursday's GST Council meeting. An analyst said individual states may face the issue of higher interest rates than the Centre if they go to market. Any monetisation by the RBI reverses an important reform and would set a precedent. The government has held preliminary discussions with the RBI on the options oered to states, said a person familiar with the development. Experts said the central bank would not want the special window.
One Option for All States
“RBI is likely to prefer that the Centre borrows and gives money to states,” Soumya Kanti Ghosh, State Bank ofIndia group chief economic adviser, told ET. HDFC Bank chief economist Abheek Barua echoed this. “RBI would be reluctant to monetise,” he said. “This (special mechanism) would essentially mean private placement of debt with RBI. It would prefer Centre borrowing from the market and giving to states and recovering that later from compensation cess.” Ghosh pointed out that contextually RBI is a banker to all state governments but such an arrangement is purely contractual and cannot be used as a reason for state debt monetisation. “As of now, before the beginning of each scal year, the feasible levels of the market borrowing for Centre and states together is advised to the government by RBI,” he said in the note. However, it does not invest in state government loans either in primary issues or in the secondary market, he said. He is not opposed to the idea of monetisation if it is done through the Centre. “Thus monetisation of state debt is not exactly possible in the current circumstances and it is better if the Centre monetises the debt and gives to states and the RBI will be also comfortable by dealing with the Centre rather than deal with close to 30 sub-national entities,” he said in the note. Barua said the structuring of the kind of bonds that states will be able to issue also needs to be worked out as interest repayments may not be immediately available as compensation cess collections have been hit by the slowdown. Monetisation occurs when the RBI directly purchases government securities in the primary market, which essentially amounts to printing more money. The practice, common in the pre-reforms period, was restricted through government-RBI agreements in 1994 and 1997 and completely stopped from April 2006 with the enactment of the scal responsibility law. Options on the Table States individually will not have the option to pick one of the two GST compensation options oered by the Centre. They will have to collectively pick one or the other option that will be binding on all. The issue will be taken up at the next GST Council meeting. States have been given seven working days to give their views on the proposals. Repayment for these borrowings will be made via the cess fund after ve years. Both the mechanisms cannot run simultaneously as it would create complications in maintaining them separately for so many states, said a person familiar with the deliberations. Finance minister Nirmala Sitharaman had said on Thursday that if a state goes for the special window option, it will borrow less and its compensation entitlement will be protected.
Source: Economic Times
The World Bank had on Thursday announced it was putting on hold the publication of its Doing Business report 2021 as it conducts a “systematic review” to probe data collection irregularities. India’s rank on World Bank’s ease of doing business index may not get impacted by the multilateral agency’s decision to pause publication of Doing Business report this year and review some previous reports due to data irregularities, senior officials said……
Source: Economic Times
Apex exporters body FIEO has expressed concerns over freezing of bank accounts of some exporters by the Enforcement Directorate (ED) without giving any warning, hearing or reasons, and has sought Commerce Ministry's intervention in the matter. In a letter to Commerce Secretary Anup Wadhawan, Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said freezing of bank accounts without any investigation is against the principles of natural justice and is causing irreparable damage to exporters. "I regret to bring to your attention that of late the Enforcement Directorate is freezing the bank account of exporters without giving them any warning, hearing or reasons for freezing the account," Saraf said in the letter. Citing two recent cases, he said it appears that the government of Brazil had sent a message to Indian Ministry of External Affairs (MEA) that they are carrying out some investigation against a former Governor and they suspect that about 67 parties in India could be involved in supporting that Governor in money laundering. Accordingly, he said, the MEA had directed ED to freeze bank accounts of 67 parties and most of them are "established exporters". He added that the MEA neither asked any clarification or details of the case nor did they seek any clarification from the concerned parties."Sudden freezing of bank accounts has seriously affected the business of most of these parties," Saraf said, adding that "our government is taking action against a simple message of foreign government without taking the details or giving the party an opportunity of presenting their case".In another case, Saraf said, a message was received from the government of Saudi Arabia regarding some investigation being done by them and they informed that one of India's reputed export houses has received money as payment of exports which could be proceeds of crime. The ED freezed the bank account of that export house also without any warning or investigation, he said. "By freezing the bank accounts we are only harming our own citizens and national interest without any benefit to us. On the other hand, we have examples of foreign governments not supporting us in case of our investigations and extradition," Saraf said. When asked about the matter, he told PTI that the federation has sought intervention of the Commerce Ministry as such incidents impact exporters at a time when they are battling the COVID-19 pandemic.
Source: Economic Times
Kant also emphasised that Prime Minister Narendra Modi's vision of ease of living for the citizens of India will be the government's focus. His comments come a day after the World Bank announced the decision to pause publication of its global 'Doing Business Report' due to irregularities in reporting of data based on which countries were ranked with regard to their business climate. India’s business climate has been continuously improving and the government will work tirelessly to make India one of the easiest countries to invest and create wealth, Niti Aayog CEO Amitabh Kant said on Friday. Kant also emphasised that Prime Minister Narendra Modi's vision of ease of living for the citizens of India will be the government's focus. His comments come a day after the World Bank announced the decision to pause publication of its global 'Doing Business Report' due to irregularities in reporting of data based on which countries were ranked with regard to their business climate. “India’s business climate has been continuously improving, not for the World Bank's Index (ease of doing business) sake but to make India easy and simple," he told PTI. "All of us in the government will continue to work tirelessly to ensure efficient and effective norms for MSMEs, businesses, start-ups and entrepreneurs and make India one of the easiest countries to invest and create wealth,'' he said. India jumped 14 places to the 63rd position in the World Bank's latest ease of doing business ranking. India has improved its ranking by 79 positions in ve years (2014-19). About the World Bank's decision, Niti Aayog Vice Chairman Rajiv Kumar said the World Bank should be carrying out a serious investigation into the irregularities in reporting of data. "The World Bank should undertake serious investigation into a number of irregularities witnessed in reporting of data in its Doing Business Report and bring out the next report as soon as possible," Kumar told PTI. On Thursday, World Bank said that a number of irregularities have been reported regarding changes to the data in the Doing Business 2018 and Doing Business 2020 reports, published in October 2017 and 2019. The changes in the data were inconsistent with the Doing Business methodology, it said in a statement. The Board of Executive Directors of the World Bank has been briefed on the situation as have the authorities of the countries that were most affected by the data irregularities, the World Bank had said, adding that "publication of the Doing Business report will be paused as we conduct our assessment". The multilateral lending institution will be conducting a systematic review and assessment of data changes that occurred subsequent to the institutional data review process for the last ve Doing Business reports, as per the statement. The rankings are based on a country's performance on 10 indicators. They are starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Source: Economic Times
On Thursday, several commercial establishments in Coimbatore Corporation limits started receiving notices from the civic body saying the workers should be tested for COVID-19 within 24 hours after receiving the communication. This is practically not possible, say business owners across sectors. “No other city or State in the country has such a rule. So, why in Coimbatore?,” asked one of them. The huge cost involved in testing the workers, problems in sending the workers and staff to laboratories, and lack of standard norms to be followed if workers test positive are some of the concerns among them. Some of the association heads plan to meet the District Collector on Friday. There are several practical challenges in testing all the workers, according to J. Ganesh Kumar, chairman of Confederation of Indian Industry, Coimbatore. The government should conduct camps in different localities. Otherwise, it will be difficult to mobilise the workers and send them to the laboratories for testing. If 500 to 1,000 people are working at an industry, how many should be tested ? There should be clarity in the order and the government should conduct testing camps at least two or three days a week at a particular locality, he said. The migrant workers are just returning to work. They will feel uncomfortable and will develop fear if they are tested every 10 days. The workers will not come to Coimbatore and the economy of the district will collapse, say textile mill owners. In the construction sector, workers who stay at the site take precautionary measures. Nearly 50 % of the workers come as daily workers and live across the city. It is not possible to test them as they will move from one work site to another depending on the job available, says Panneerselvam, head of Builders’ Association of India, Coimbatore chapter. B. Muthuvenkatraman, president of Coimbatore Jewellery Manufacturers’ Association, says if the workers in a jewellery shop are tested and they report negative for COVID-19, the next day they will be at the shop meeting customers. “How do we protect them ?” he asks. The jewellery manufacturers suggest that the district administration can instead go in for one week to two weeks complete lockdown, he says. “We are already operating just 50 % of the capacity. The MSMEs will not be able to test all the workers and that too every 10 days because of the costs involved,” says Coimbatore District Small Industries Association president R. Ramamurthy. “A micro unit that employs 10 workers will have to shell out at least ₹10,000 for testing the workers once a month. When business is down and there is no support from the government, this is an additional financial burden to the micro units,” says J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises. Small traders, who employ three to five workers, will just shut down their business. These workers do not stay at the accommodations arranged by the employer. They come to work every day. So there is no point in testing these workers regularly, according to C. Balasubramaniam, vice-president of the Indian Chamber of Commerce and Industry, Coimbatore. Some of the association heads say the officials should discuss with the trade and industry and take their suggestions before announcing such measures. So far, trade and industry have kept their premises largely safe. Making testing mandatory, giving just 24 hours’ time, threatening action, and shutting down the industry or shop only create fear among the workers and the employers, they say. There is no standard norm on how long a shop or industry will be closed if there are just one or two positive cases and whether the rest of the workers will be quarantined. The officials should explain these to the trade and industry, they add.
Source: The Hindu
NEW DELHI: The relation between the Centre and states is not that of 'giver and taker' and the GST Council will have to work out a mid way solution for making good the GST collection shortfall keeping in mind the central government too is bearing huge revenue loss due to COVID-19, Bihar Deputy Chief Minister Sushil Modi has said. Non-BJP ruled states like Punjab, Kerala, Delhi and West Bengal are at loggerheads with the Centre over the nancing of the Rs 2.35 lakh crore Goods and Services Ta (GST) shortfall in the current scal. Of this, about Rs 97,000 crore is on account of GST implementation and rest Rs 1.38 lakh crore is the impact of COVID-19 on states' revenues. The Centre has given two options to the states to borrow either from a special window facilitated by the RBI or from market and has also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022. Talking to PTI, Modi said both the central government and states are stakeholders in GST and instead of playing a 'blame game', states should also consider that apart from the pandemic, the Centre is also facing challenges on the defence side which needs higher spending. "It is not that only states' revenues have been aected, central government's revenue too is constrained and a huge borrowing by the Centre would have macro-economic impact. "The relation between the Centre and states is not that of 'giver and taker', we have to keep the spirit of cooperative federalism in mind and work out a mid way (solution)," said Modi, who also holds the nance portfolio in the coalition government of BJP, JD(U) and LJP in Bihar. The Centre has circulated two options to the states. This include borrowing of Rs 97,000 crore shortfall, which will be repaid by extending the cess beyond 2022. States would get the loan at an interest rate based on prevailing government securities (G-Sec) rate and the interest and the debt will not get reected in their scal decit and balance sheet. Under the second option, states can borrow the entire Rs 2.35 lakh crore from market and hence the interest would be higher. While the states will have to bear the interest burden in full, for repayment of principal only Rs 97,000 crore would be repaid from the cess collection beginning 2022-23 scal. Asked which option would be better for Bihar, Modi said prima facie the rst option of borrowing Rs 97,000 crore looks attractive, but the state would study in detail and then make a nal decision. He said in this option while states can borrow the remaining Rs 1.38 lakh crore to meet their immediate needs, and the principal amount would be repaid later from cess collection. Explaining the option further, Modi said the compensation cess will be continued after the transition period until such time as all arrears of compensation for the transition period are paid to the states. During April-July of current scal, the total compensation requirement of states stand at Rs 1.50 lakh crore. Total GST collection during April-July was Rs 2,72,642 crore, which is 65 per cent of what was collected in same period last year. The payment of GST compensation to states became an issue after revenues from the imposition of cess started dwindling since August 2019. The Centre had to dive into the excess cess amount collected during 2017-18 and 2018-19. The Centre had released over Rs 1.65 lakh crore in 2019-20 as GST compensation. However, the amount of cess collected during 2019-20 was Rs 95,444 crore. The balance Rs 69,556 crore was paid from the excess cess collected in 2017-18 and 2018-19. The compensation payout amount was Rs 69,275 crore in 2018-19 and Rs 41,146 crore in 2017-18
Source: Economic Times
The states have been given two options — either to borrow Rs 97,000 crore with an additional fiscal deficit headroom of 0.5% or Rs 2.35 lakh crore without any FRBM relaxation. Finance ministers of West Bengal and Kerala on Friday said their states won’t be on board with the borrowing plan suggested by the Centre to meet the states’ protected goods and services tax revenue target, unless the Centre offers to raise the loan. Speaking to CNBV TV 18, they said their states are not equipped to borrow at a rate that is available to the Centre. In the GST Council meeting on Thursday, the Centre proposed that states can borrow under a special dispensation which would ensure a G-Sec linked rate of interest. The interest cost would be borne from the proceeds of the compensation cess fund accruing after June 2022. The states have been given two options — either to borrow Rs 97,000 crore with an additional fiscal deficit headroom of 0.5% or Rs 2.35 lakh crore without any FRBM relaxation. “The states do not have the capacity to borrow: some of them aren’t able to pay salaries and even pensions. The Centre has the capacity to borrow because it can monetise its fiscal deficit which means RBI can print money for them. The Centre can borrow at 2% lower rates than what is available for states,” West Bengal FM Amit Mitra said. He added that the proposal to extend the compensation cess fund mechanism beyond five years was reasonable only if the Centre offered to borrow. “Interest and amortisation payment can be done through extended cess beyond five years,” he said. Union finance minister Nirmala Sitharaman had said the Centre would “facilitate’ the borrowing process by talking to the Reserve Bank. She added that all states could be made available the loans at roughly the same interest rate. In the same vein, Kerala finance minister Thomas Isaac said that while the Central government’s proposal was that borrowing Rs 97,000 crore would be covered under an 0.5% headroom in fiscal deficit but his own calculation showed that the amount would require a much higher ceiling. Both the state ministers also said that the Central government’s distinction of categorising revenue shortfall under two different heads — one strictly due to GST implementation and another due to Covid-19 impact — was a ‘red herring’ and ‘unconstitutional’. Explaining the two borrowing options finance secretary Ajay Bhushan Pandey had said that in the absence of the pandemic, revenue shortfall (after cess) due to implementation of GST alone would be Rs 97,000 crore considering a the gap between states’ protected revenue growth of 14% year-on-year and actual GST mop-up growth. The second option for borrowing is Rs 2.35 lakh crore, which is the expected shortfall in states’ entitlement due largely to pandemic-induced economic slowdown and also due to GST implementation issue. The gap between protected revenue and states’ GST earning this fiscal is expected to be Rs 3 lakh crore, a part of which would be met with Rs 65,000 crore of estimated cess collection, leaving a gap of Rs 2.35 lakh crore at the end of the year.
Source: Financial Express
While imports from China reduced, exports to the US suffered as Trump administration cut off India's duty-free access The Covid-19 pandemic that spread across the global from late January, along with sluggish international trade, affected India’s major export markets in the previous financial year, latest official data shows. In 2019-20, India’s trade with South Asia, Asean (Association of Southeast Asian Nations), the Gulf nations, China, and North America reduced. This was primarily because export orders and finalised shipments were cancelled in major segments, such as engineering goods, electronics and textiles, in the prime trading months of January to March. Trade with Asean, ...
Source: Business Standard
Industry stakeholders say that there are several reasons for the general dip in pre-Onam sales this year. Pre-Onam sales in Kerala have been severely hit by the coronavirus pandemic this year, with both the textile and home appliances sectors suffering the most. TNM spoke to stakeholders in both industries in Kerala, who have pegged their loss of revenue at 70 percent, compared to that of 2019. The week before Thiruvonam, one of the biggest festivals celebrated in Kerala, usually witnesses a surge in sale of Kasavu sarees and mundus - the traditional cotton gold bordered handloom textile weaved in Kerala. Festival sales are also big in retail outlets which sell designer saris, Indian wear and Kasavu sarees and Mundum-Neriyathum. However this year, the brick-and-mortar stores of these textile shops have seen negligible footfall. “There is a general dip in retail, whether upmarket or otherwise. Industry experts have said that there is a 70 percent dip in sales. Our shop has been closed since lockdown. But even after we opened, we saw that business was dull as there were practically no visitors to malls, and both my stores are located inside malls” says Shalini James, who owns MANTRA, an upscale designer label which deals with Kasavu. Traditionally, the months of August and September are great for textile sales in Kerala due to the NRI (Non-Resident Indian) population visiting during these months, and also due to Onam and business during the wedding season which begins in August. However, this year, the number and scale of weddings have shrunk and Onam festivities in the state too are minimal. “Since there are no NRI customers coming in, we have seen a shocking dip in the sales this year,” Shalini adds. Anish Rajendran, owner of Karalkada, one of the most renowned Kasavu Saree and Mundu shops in Thiruvananthapuram agrees. He says that the pandemic has robbed them of 40-50 percent of their Onam revenue. “Usually our stocks are over before Onam begins. But this year, we are full on stock and we have not had people visiting our physical store. Some online sales have happened but not as much as the business we do in our physical stores. Compared to the previous years, this year’s sales are definitely dismal,” he adds. For Karalkada, which sells sarees with pure gold zari, business picks up during the Malayalam month of Chingam - right before Onam and goes on till September. “Even last year and the year before, when the floods happened, we had better sales compared to 2020,” Anish says. ES Biju, state secretary of the Kerala Vyapari Vyavasaya Samithi, pegged Onam revenue from the textile and home appliances industries at over Rs 1000 crores each. “Good business in the home appliances sector also means that the state gets high GST revenue, as most products in this space have an 18 percent GST. So a dip in sales also hits the state’s GST returns,” he explains. The home appliances sector in Kerala has seen a 60 percent dip in sales, according to experts. However, with the state government extending the time of doing business from 7 pm to 9 pm, the shops have been able to manage. “Most people have stopped coming in to buy because they have low purchasing power now. Usually Onam means people get bonuses and hikes. But this year, the pandemic has left people jobless or hit by salary cuts. Hence, we can see people spending cautiously,” T Naserudhin, State President of Kerala Vyapari Vyavasaya Samithi told TNM. Other industries including flower sales and food have been partially disrupted due to containment measures by the government. “Most of the flowers come from Tamil Nadu. This year the government has not allowed flowers to be brought in from other states and hence sellers here are in the lurch. With no public Onam celebrations this year, there is a natural dip in the demand for flowers. Pookalams are only going to be made in houses and there is a limit to the demand in such a case,” Naserudhin added. Another line of business severely affected are smaller shops located closer to temples in the state. “All of them are hit as the temples have been shut for months or are now only allowing a restricted number of visitors. There are thousands of such shops in the state which are suffering,’ Biju says.
Source: The News Minute
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
793.19 |
USD/Ton |
0% |
30-08-2020 |
|
VSF |
1234.91 |
USD/Ton |
0.06% |
30-08-2020 |
|
ASF |
1718.83 |
USD/Ton |
0% |
30-08-2020 |
|
Polyester POY |
742.25 |
USD/Ton |
0% |
30-08-2020 |
|
Nylon FDY |
1935.68 |
USD/Ton |
0% |
30-08-2020 |
|
40D Spandex |
4075.12 |
USD/Ton |
0% |
30-08-2020 |
|
Nylon POY |
1826.53 |
USD/Ton |
0.40% |
30-08-2020 |
|
Acrylic Top 3D |
1892.02 |
USD/Ton |
0% |
30-08-2020 |
|
Polyester FDY |
924.18 |
USD/Ton |
-0.78% |
30-08-2020 |
|
Nylon DTY |
2197.65 |
USD/Ton |
0.33% |
30-08-2020 |
|
Viscose Long Filament |
5239.44 |
USD/Ton |
0% |
30-08-2020 |
|
Polyester DTY |
953.29 |
USD/Ton |
0% |
30-08-2020 |
|
30S Spun Rayon Yarn |
1717.37 |
USD/Ton |
0% |
30-08-2020 |
|
32S Polyester Yarn |
1360.80 |
USD/Ton |
0% |
30-08-2020 |
|
45S T/C Yarn |
2190.38 |
USD/Ton |
0% |
30-08-2020 |
|
40S Rayon Yarn |
1877.47 |
USD/Ton |
0.78% |
30-08-2020 |
|
T/R Yarn 65/35 32S |
1695.54 |
USD/Ton |
0% |
30-08-2020 |
|
45S Polyester Yarn |
1528.17 |
USD/Ton |
0% |
30-08-2020 |
|
T/C Yarn 65/35 32S |
2066.67 |
USD/Ton |
0% |
30-08-2020 |
|
10S Denim Fabric |
1.15 |
USD/Meter |
0% |
30-08-2020 |
|
32S Twill Fabric |
0.64 |
USD/Meter |
-0.68% |
30-08-2020 |
|
40S Combed Poplin |
0.93 |
USD/Meter |
-0.31% |
30-08-2020 |
|
30S Rayon Fabric |
0.47 |
USD/Meter |
0.31% |
30-08-2020 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
30-08-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14554 USD dtd. 30/08/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The largest childrenswear retailer in the US has cancelled millions of dollars’ worth of clothing orders from suppliers in Ethiopia because of the coronavirus pandemic, pushing companies into debt and leaving employees facing pay cuts. The Children’s Place (TCP), which has more than 1,000 stores in the US and 90 around the world and had a turnover of $2bn last year, cancelled orders from Ethiopia in March and delayed payments by six months for orders completed in January and February, suppliers told the Guardian. Ethiopian workers are the lowest paid in the global garment supply chain. According to a report by the NYU Stern Center for Business and Human Rights, the minimum wage for Ethiopian garment workers is $26 a month, compared with $95 in Bangladesh and $326 in China. Ethiopian suppliers claim that TCP has demanded retroactive rebates on products that had been shipped before the crisis. The Children’s Place is one of four leading US apparel brands sourcing goods from Ethiopia, alongside PVH, JC Penney and H&M. In its annual report last year, TCP cited Ethiopia as a “key sourcing region”. The Worker Rights Consortium said at least seven factories in Ethiopia were producing clothing for TCP stores, employing about 15,000 workers. In 2016, the Ethiopian government opened its flagship Hawassa Industrial Park to help boost Ethiopia’s economy through tax breaks for business and jobs for its growing population. Most of the country’s garment workers are young women who have migrated from poor rural areas.
Source: The Guardian
Rural women lead the way the global economic slowdown that resulted from the pandemic has affected multiple industries and led to mass unemployment at home and abroad. It is encouraging to learn that during such difficult times, rural women are making biodegradable, reusable Ella masks from garment scraps—a product of ELLA (Eco-friendly low-cost liquid absorbent) Pad, an award-winning social enterprise known for reusing high-quality textile scraps from export-oriented garment factories to produce sanitary napkins for RMG workers at affordable prices. Ella masks are standardised according to World Health Organization (WHO) and Centers for Disease Control and Prevention (CDC) guidelines. In order to provide financial independence, the enterprise connects rural women with different institutional buyers and UN agencies that purchase their masks. With the opportunity to earn Tk 400 per day without any additional hassle, hundreds of women from seven districts—Dhaka, Gazipur, Jamalpur, Kushtia, Magura, Narayanganj and Rajbari—got involved with the project. Many are even earning more than they did previously, and are able to make significant contributions to their household incomes. At a time when unemployment poses a grave threat, it is promising to see how the organisation is trying to ensure the health and well-being of marginalised women to alleviate their sufferings. Overtime, when the demand for masks ease, ELLA Pad aspires to diversify into home textile items so that the women can continue making a living. We hope such initiatives get all the support they need in carrying out their activities so that they can be replicated across the nation and empower women in impoverished communities.
Source: The Daily Star
He said he had decided to step down now to avoid a political vacuum as the country copes with its novel coronavirus outbreak Prime Minister Shinzo Abe, Japan’s longest-serving premier, announced his resignation because of poor health on Friday, ending a stint at the helm of the world’s third-biggest economy in which he sought to revive growth and bolster its defences. “I have decided that I will step down as prime minister, with the belief that I cannot continue being prime minister if I do not have the confidence that I can carry out the job entrusted to me by the people,” Abe, 65, told a news conference. He said he had decided to step down now to avoid a political vacuum as the country copes with its novel coronavirus outbreak. “I apologize from the bottom of my heart that despite all of the support from the Japanese people, I am leaving the post with one full year left in my term and in the midst of various policies and coronavirus,” Abe said. He similarly quit in 2007 after one year as premier, citing illness. It was the second time Abe has resigned as prime minister because of poor health. He has battled the disease ulcerative colitis for years and two recent hospital visits within a week had fanned questions on whether he could stay in the job until the end of his term as ruling party leader, and hence, premier, in September 2021. As news of the resignation spread, Japan's benchmark Nikkei average .N225 fell 2.12% to 22,717.02, while the broader Topix .TOPX shed 1.00% to 1,599.70. The selling wiped $47 billion off Tokyo's $5.7 trillion stock market value, which had more than doubled during Abe's tenure. The resignation will trigger a leadership race in the ruling Liberal Democratic Party (LDP) - most likely in two or three weeks - and the winner must be formally elected in parliament. The new party leader will hold the post for the rest of Abe’s term. Former defence minister Shigeru Ishiba and former foreign minister Fumio Kishida both quickly expressed interest in the top job, media reported. Among others whose names have been floated is Abe’s close aide, Chief Cabinet Secretary Yoshihide Suga. Whoever wins the party poll is likely to keep Abe’s reflationary “Abenomics” policies as Japan struggles with the impact of the novel coronavirus, but may have trouble emulating the political longevity that may be Abe’s biggest legacy. “The broad picture remains in tact. In terms of economic and fiscal policy, the focus remains very much on reflation,” said Jesper Koll, senior adviser to asset manager WisdomTree Investments. “Longevity will be a struggle.” On Monday, Abe surpassed a record for longest consecutive tenure as premier set by his great-uncle Eisaku Sato half a century ago. “As head of the ruling party he worked hard on Abenomics for eight years,” said Naohito Kojima, 55, a brokerage employee. “There were various problems but if someone else had been leader, it’s questionable whether they could have maintained a stable government as long as Mr Abe. He did various diplomatic negotiations and I think the pros outweighed the cons.” Abe’s resignation also comes amid an uncertain geopolitical environment, including an intensifying confrontation between the United States and China and ahead of the U.S. presidential election in November.
Falling Support
The conservative Abe returned as prime minister for a rare second term in December 2012, pledging to revive growth with his “Abenomics” mix of hyper-easy monetary policy, fiscal spending and reforms. He also pledged to beef up Japan’s defences and aimed to revise the pacifist constitution. Under fire for his handling of the coronavirus and scandals among party members, Abe has recently seen his support fall to one of the lowest levels of his nearly eight years in office. Japan has not suffered the explosive surge in virus cases seen elsewhere but Abe had drawn fire for a clumsy early response and what critics see as a lack of leadership as infections spread. In the second quarter, Japan was hit by its biggest economic slump on record as the pandemic emptied shopping malls and crushed demand for cars and other exports, bolstering the case for bolder policy action to avert a deeper recession. Abe kept his promises to strengthen defences, boosting spending on the military after years of declines and expanding its capacity to project power abroad. In a historic shift in 2014, his government re-interpreted the constitution to allow Japanese troops to fight abroad for the first time since World War Two. A year later, Japan adopted laws scrapping a ban on exercising the right of collective selfdefence or defending a friendly country under attack. But Abe proved unable to revise the U.S.-drafted, post-war constitution’s pacifist Article 9, a personal mission that also eluded his grandfather, Nobusuke Kishi, who quit as premier in 1960 because of uproar over a U.S-Japan security pact. Abe resigned from his first stint as prime minister in 2007, citing ill-health after a year plagued by scandals in his cabinet and a huge election loss for his ruling party. He had since kept his illness in check with medicine that was not previously available.
Source: Reuters
The global export of cotton fabrics has decreased 17.95 per cent to $32,990.56 million in the year 2019 compared to $40,206.37 million in 2017. Whereas, total exports slipped 18.17 per cent in 2019 over the previous year. Further, the exports is expected to move up to $34,925.72 million in 2022 with a rate of 5.87 per cent compared to 2019. The global import value of cotton fabrics was $19,189.97 million in 2017, which dropped 13.27 per cent to $16,643.85 million in 2019, according to Fibre2Fashion's market analysis tool TexPro. Total imports plunged 16.48 per cent in 2019 over the previous year and is expected to rise to $17,121.28 million in 2022 with a rate of 2.87 per cent from 2019. China ($20,770.82 million), Pakistan ($2,050.20 million) and India ($1,942.07 million) were the key exporters of cotton fabrics across the globe in 2019, together comprising 75.06 per cent of total export. These were followed by Italy ($1,036.42 million), Turkey ($909.16 million) and Hong Kong ($645.09 million). From 2016 to 2019, the most notable rate of growth in terms of export value, amongst the main exporting countries, was attained by China (47.80 per cent) and India (9.57 per cent). Vietnam ($3,222.64 million), Cambodia ($925.06 million) and Indonesia ($737.76 million) were the key importers of cotton fabrics in the globe in 2019, together comprising 29.35 per cent of total import. These were followed by China ($708.42 million), US ($676.24 million) and Italy ($627.95 million). From 2016 to 2019, the most notable rate of growth in terms of import value, amongst the main importing countries, was attained by Cambodia (73.27 per cent) and Vietnam (39.80 per cent).
Source: Fibre2Fshion
