MUMBAI OCT. 21— There are green shoots in Indian textile and clothing exports as exports have started picking up slowly but to come back to the pre-COVID level it will definitely take a lot of efforts stated Mr. Ronak Rughani Chairman Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) here. Addressing the 66th annual general meeting of the council on virtual platform recently Mr. Rughani during 2019-20 the exports of Indian textiles and clothing has declined by 6.82% from US$ 37.50 billion to US$ 34.22 billion during 2019-20. Exports of MMF and MMF blended textiles witnessed a decline of 3.89% during 2019- 20 vs 2018-19. The exports of Indian MMF textiles during the first quarter (April-June) 2020- 21 were US$ 577.09 million against US$ 1455.25 million during the same period of the previous year witnessing a decline of 60.34% due to COVID-19 pandemic he added. On COVID-19 pandemic opportunities vs achievements SRTEPC Chairman mentioned that though COVID-19 has given tough times and challenges it has also opened up opportunities for many. In the current COVID – 19 pandemic crisis there have been some breakthrough innovations made by some of Esteemed SRTEPC Members in the fabrics and Medi-tech segments. Regarding interactions with the Government mainly with the Ministry of Textiles Ministry of Commerce & Industry and Minister of Finance some of the major issues that were taken up with the different Ministries were viz. To allow exports of Non-wovens masks PPE Coveralls etc. rationalisation of inverted duty structure in the MMF segment and implementation of Fibre Neutral policy and treat MMF textiles at par with natural fibres inclusion of fibre yarn and fabrics also under RoSCTL continuation of MEIS benefits inclusion of entire MMF textile value chain under the RoDTEP Scheme GST refund on Capital goods import/ domestic procurement to encourage more investment consider job work/ services like weaving knitting processing embroidery and other value additions as manufacturing and allow ITC/ refund support for creation of global Indian textile Brands handholding support to the exporters to establish foothold in new markets and establishment of special textile cells in the Commercial wings of the Indian Missions focus on promoting R & D and innovations conclusion of effective FTAs with major textile consuming countries etc. Mr. Rughani mentioned that some of the issues that have already been addressed in favour are Extension of MEIS benefits till end of December 2020 removal of export ban on nonwovens masks PPE coveralls etc. Regarding export promotion initiatives the SRTEPC head mentioned that SRTEPC has very successfully organised its flagship show Source India 2019 in Mumbai where over 100 Indian textile companies displayed their latest range of Indian textiles items at Bombay Exhibition Centre last year. 170 Foreign buyers from 40 countries visited the Event. Source India 2019 has been the leading manmade fibre textile fair in India. He also mentioned that besides participation in several important international textile fairs SRTEPC also mounted a High-Level Textile Delegation to Uzbekistan in October 2019. The objective of the Delegation was to explore the possibilities of expanding the Indian MMF Textile exports to Uzbekistan mutual cooperation between the countries in MMF textiles and meet the leading importers of Man-Made textiles he added.
Source: Tecoya Trend
Textile manufacturers say move will help them compete in export markets to compete in the fast-growing man-made fibre market globally raw material cost for textile manufacturers in India should come down. This the industry believes can happen only if anti-dumping duty (ADD) on viscose staple fibre (VSF) is scrapped. Due to the ADD on VSF ($0.103/kg to $0.512/kg on imports from Indonesia Thailand and China) there has been large-scale import of viscose spun yarn said spinners from Coimbatore the textile hub of India in a conversation with BusinessLine. Viscose spun yarn (VSY) imports were to the tune of 12 748 tonnes in September a jump of 75 per cent over the same month last year. The average monthly imports of VSY this year is 5 392 tonnes up from 4 875 tonnes last year according to data of Ministry of Commerce and Industry. Given that ADD on Purified Terephthalic Acid (PTA) – the raw material for Polyester Staple Fibre was removed in the budget in February 2020 the textile manufacturing industry is now demanding withdrawal of ADD on VSF to help them stay competitive in the global market.
Benefits to MSMEs
Post withdrawal of ADD on PTA there has been increase in production of polyester spun yarn (PSY) in India and imports have fallen benefitting weavers knitters dyers and other players in the PSF value chain. Additionally polyester fibre prices in India have come down to match China’s – ₹65/kg giving Indian spinners a competitive edge in export market according to market sources. The ADD on VSF was first levied in 2010 and ever since the export competitiveness of players in the value chain have been hit say observers. As per industry data the export of viscose fabric has dropped 25 per cent between 2016-17 and 2019-20; exports of VSF based readymade garments have also fallen. India’s high-cost raw material is the reason why the country is losing out to smaller players from Bangladesh Vietnam Sri Lanka Nepal and Pakistan in the international market according to textile manufacturers. Prabhu Dhamodharan Convenor of Indian Texpreneurs Federation said Viscose’s value chain stakeholders particularly in spinning have invested heavily in ultra-modern technology over the past few years. The massive import of viscose spun yarn coming in at a price that is ₹20 less than the manufacturing cost for the spinners has created a turbulence in the sector. We need to eliminate this business uncertainty by keeping policies favourable for the industry to get raw materials at competitive price.
Competitive prices
Raja M Shanmugam President Tiruppur Exporters’ Association said Protectionism won’t work global markets are connected. Only if textile manufacturers in India get raw materials at competitive price will they be able to compete globally and grab the opportunity that has opened up with anti-China wave across the globe… LKM Suresh President TamilNadu Federation of Powerloom Associations said Due to higher cost of raw material spinning mills are offering their yarn at a higher price compared to imported yarn from China. But imported yarn is also having its own set of challenges including longer lead times and fluctuations in prices. So rather than restricting yarn imports the government should remove ADD on viscose fibre and provide level playing field to spinners who in turn will be able to supply the yarn at internationally-competitive prices that will help SME weavers. In India there is only one manufacturer of VSF. The price of the fibre from this player is ₹115/kg; landed cost of imported VSF without ADD is ₹103/kg. If ADD on VSF is removed the VSF manufacturer will also be compelled to reduce price which will benefit yarn manufacturers say industry veterans.
Source: Business Line
India has abundant supply of manmade fibre (MMF) and yarn but needs MMF fabric at the right price to capture greater share in global apparel trade said Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel. Speaking at a webinar on ‘Increase in Exports of MMF Garments’ hosted by AEPC Reliance Industries Ltd and Alcis Sports Pvt Ltd on Tuesday Dr Sakthivel said the global market for MMF garments is USD 500 billion including USD 170 billion for sportswear. India’s share in global apparel trade is very low. We need to do a lot to match up to the international requirements. We have enough MMF fibre and yarn but we are not having sufficient fabric especially fabric for sportswear and exports Dr Sakthivel said adding that both capacity and right pricing are must to become globally competitive. RD Udeshi President (Polyester Chain) Reliance Industries Ltd (RIL) said that Indian exports have remained constant over the last decade with mere 1 per cent CAGR not a very healthy sign. Textile export of USD 36 billion in 2019 is only 4 per cent of world exports. India has a very low value added end product exports and high share of raw material and intermediate product exports. Inadequate downstream processing capacity could be one of the key reasons for lower exports of value added items Udeshi added. Gunman Sharma CMO (Polyester Division) Reliance Industries Ltd said There are a lot of opportunities to capture in India. Our per capita consumption of synthetics is just about one-third of the global level and only one-fourth of China. Ravish Nanda Co-founder Alcis Sports Pvt Ltd said We don’t have requisite R&D centres in India. We use the best of the yarns made by Reliance even then we have problems in the final fabric and we don’t know how to solve these issues. India lacks a lot in processing. We need help from countries like Taiwan and South Korea to help develop our infrastructure both in terms of technology and manpower. Sudhir Sekhri Chairman (Export Promotion) AEPC said India’s problem is in value chain integration. Reliance has to step in. While Reliance has the capability to do these fabrics we have to see that the price points are right and the capacities are available. Unless Reliance steps in and takes up the initiative not only for value chain integration but also for setting up R&D centres and cooperating with garment exporters to create awareness and to create right fabric we are not going to take off.
Source: KNN India
Mumbai: Trade both exports and imports has been badly impacted over the last few weeks after sea freight charges saw one of the highest ever increases of 60% in recent times. The development came after shipping companies hiked rates substantially. To make matters worse exporters are facing a massive shortage of containers due to lower imports over the last few months. The cost impact is being felt across industries such as engineering auto components chemicals pharma and devices. There has been an increase in freight costs of 20-30% in October alone. Air freight is also up by 30-40% owing to reduced overseas ights due to the pandemic. For importers it’s a double whammy — in the wake of the increased freight rates there is a higher outgo in terms of duties which will impact companies’ margins in future industry experts told TOI. Federation of Indian Export Organisations (FIEO) president Sharad Kumar Saraf told TOI Exports are aected more by sea freight in which there is a 60% increase in rates for main European ports over the last six months. Similarly freight rates to Latin American ports have increased by 50% and for the US it is being increased regularly since February. This is an unprecedented increase and a clear indication of a monopolistic and unfair trade practice.’’ Freight rate for October has risen sharply from $300 to $800 (per 40ft full container load) particularly for Middle East European North and South American ports. Availability of containers has further worsened even at regular ports like Mundra and Nhava Sheva while the situation in inland container depots is worse. There is also a huge hold-up of shipments at ports resulting in inordinate delays and cost-escalation (for industry). Imports are subjected to thorough checks Pharmaceutical Eport Promotion Council ofIndia (Pharmexcil) chairman Dinesh Dua said. The clearance of shipments currently takes 15-20 days as against nearly a week earlier. This is also being attributed to faceless assessment at ports. Raising the issue with the government the industry has sought a regulatory body for shipping companies operating from domestic ports according to a letter to the Directorate General Shipping. The letter a copy of which is with TOI adds Shipping lines are increasing freight (rate) in fortnightly or monthly intervals consistently since July. Besides the increase the shipments are getting delayed as the vessels are going full. Shipping companies are able to increase the freight by forming cartels. Industries across the board are worried. Both air and sea freight have gone up over the last few months which may have an impact on companies Indian Drug Manufacturers’ Association (IDMA) president Mahesh H Doshi said Logistics company Maersk’s MD (South Asia) Steve Felder said Freight rates are a function of demand and supply and they vary based on how these two change. Clearly Equipment shortages impact supply and we are constantly looking to manage it. In recent months we have seen a general shortage of equipment in the market due to an imbalance between imports into and exports out of India. However our goal is to ensure that we can help our customers in enabling their trade. With exports rising from dierent parts of the country we need to position empty containers accordingly across India thus adding up to the overall cost of logistics.
Source: Economic Times
India recorded export growth of 4 per cent in September: UNCTAD
Export growth declined in India in the third quarter of 2020 relative to the same quarter last year but picked up pace in September according to a global trade update by the UN. The UNCTAD’s new global trade update said that global trade recorded a 5 per cent drop in the third quarter of 2020 compared with the same period last year. This marks an improvement on the 19 per cent year-on-year plunge recorded in the second quarter and the United Nations Conference on Trade and Development (UNCTAD) expects the frail recovery to continue in the fourth quarter. India’s export growth saw a decline of 6.1 per cent in the third quarter of 2020 as compared to third quarter of last year. However India recorded export growth of four per cent in September it said. Depending on how the COVID-19 pandemic evolves in the winter months the UN trade and development body expects the value of global trade to contract by 7 per cent to 9 per cent with respect to 2019. The uncertain course of the pandemic will continue aggravating trade prospects in the coming months UNCTAD Secretary-General Mukhisa Kituyi said. Despite some ‘green shoots’ we can’t rule out a slowdown in production in certain regions or sudden increases in restrictive policies. Although a 7 per cent to 9 per cent decrease would be a negative finish for the year Kituyi said it’s a much more positive result than was expected in June when the UNCTAD had projected a 20 per cent year-on-year drop for 2020. Since then trade trends have improved primarily thanks to the earlier-than-expected resumption of economic activities in Europe and east Asia it said. The UNCTAD said the sharp and widespread decline in international trade in Q2 2020 was similar for developing and developed countries. But exports from developing economies appear to be recovering faster. Year-on-year growth of developing nations’ exports improved from -17 per cent in the second quarter to -6 per cent in July while those from developed nations increased from -22 per cent to -14 per cent. South-South trade commerce among developing countries? has shown some resilience with the year-on-year decline sitting at 8 per cent in July up from 16 per cent in the second quarter. The report’s assessment of trade in different sectors said that the pandemic has hit the energy and automotive industries the hardest while mitigation responses including teleworking and personal protection measures have led to strong growth in sectors such as communication equipment office machinery and textiles and apparel. UNCTAD’s analysis gives special attention to COVID-19 medical supplies which include personal protective equipment disinfectants diagnostic kits oxygen respirators and other related hospital equipment. According to the report exports of COVID-19 medical supplies from China the European Union and the United States rose from about USD 25 billion to USD 45 billion per month between January and May 2020. The increase in such trade however has primarily benefited wealthier nations with middle- and low-income countries largely priced out from access to COVID-19 supplies the report says. The UNCTAD warns that if a COVID-19 vaccine becomes available the access divide between residents in wealthy and poor countries could be even more drastic. While some low-income countries have the capacity to locally manufacture some protective equipment this may not be the case for vaccines which require stronger manufacturing and logistics capacities. The report calls on governments the private sector and philanthropic sources to continue mobilizing additional funds to fight the COVID-19 pandemic in developing countries and to support financial mechanisms such as the global COVAX initiative to provide safe and effective COVID-19 vaccines to poor countries.
Source: Financial Express
Former Reserve Bank governor Raghuram Rajan on Wednesday cautioned against import substitution under the 'Aatmanirbhar Bharat' initiative of the government saying the country has gone down this route earlier but could not succeed. If the focus (under Aatmanirbhar Bharat initiative) is on import substitution by erecting taris which we have done lot of in the last few years then I think it is a direction we have tried before and it has failed. I would caution against going in that direction Rajan said. He was addressing a webinar organised by the Centre for Financial Studies at Bhavan's SPJIMR. Rajan said in order to export one needs to be able to import things that go into those exports as cheaply as it can. China's rise as an export power came on the back of assembly. It brought in the stu put it together and exported it out. In order to export you have to import. Don't erect huge taris and focus on creating right environment for production in India he said. According to Rajan targeted spending by the government can be fruitful in the longer term. I think it is good to keep an eye on the overall spending and to be careful. This is not the time to have a free cheque book. But targeted spending can repay a lot if it is done wisely and carefully he said. He further said the country's growth has been significantly hit but it is more important to understand the consequences of that slowdown on the economic system. If a number of rms have shut down never to reopen again the supply side of the economy is affected. If a number of households have stopped sending their kids to school because they can't afford to do so that again inhibits our growth potential for the future as these are going to be poorly educated kids who are going to be capable of much less quality jobs he stated. He said reforms undertaken by identification of real problems are good but the process needs to have consensus of all stakeholders. Asked about the monetary policy Rajan said he does not want to opine on future RBI policy but added that it is very accommodative. The Economic Times People critics opposition parties have some ideas and if you could build more consensus in them... you make sure they are rolled out in a more effective way. I am not saying one needs to debate forever... but it is important in a democracy to build that consensus he emphasised. Rajan said one big impediment to infrastructure development is the land acquisition process and that requires some technical changes including better land mapping and clearer ownership. Some states have moved ahead on this but we need to move ahead across the board he pointed out. Rajan also said xing the financial system is another area where the country needs to improve and there should be a steady process for reforming the sector. It is pathetic that at 50 per cent credit to GDP we still don't have a healthy nancial system. We are failing both in quantity as well as in quality he said. Rajan said retail ination at 7.34 per cent in September is on the higher side. How much of that is temporary and how much of that is longer term is hard to understand and which is why I think the RBI is in wait-and-watch mode he said. Asked about the monetary policy Rajan said he does not want to opine on future RBI policy but added that it is very accommodative.
Source: Economic Times
The government is open to further stimulus measures to boost the coronavirus-hit economy Economic Affairs Secretary Tarun Bajaj said on Wednesday. Finance Minister Nirmala Sitharaman had announced a slew of measures to spur demand and ramp up capital expenditure earlier this month. This was the third stimulus package since the outbreak of the COVID-19 pandemic. The government had announced a Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana (PMGKP) in March to protect the poor and vulnerable sections from the impact of COVID-19 crisis. It was followed by the Aatmanirbhar Bharat Abhiyan package of Rs 20.97 lakh crore in May largely focussed on supply side measures and long-term reforms. So I think with all these efforts and as I said as the finance minister said we are seeing what all other things can be done (to boost economy) Bajaj said while addressing a virtual event organised by CII. Earlier this week Sitharaman had said the option for another stimulus package has not been closed. I have not closed the option for another stimulus package if it comes out to be because every time we announced one it has been after a lot of consideration of inputs which have come from various sections of society. Then we sit and work it out within the ministry and Prime Minister’s Office and then take a final call. So I have not closed the option to come up with one more stimulus Sitharaman had said. Speaking about the capital markets Bajaj said the government has taken lot of measures to deepen the market. Citing an example he said we have undertaken some reforms and it is an ongoing process. In the last Parliament session the Bilateral Netting of Qualified Financial Contracts Bill was converted into an Act after passage of both the houses and the President’s assent was received. As per estimates it would result in capital saving of Rs 50 000-60 000 crore for banks alone in this whole process. I exhort the insurance companies and the regulators in that area to look at credit default swaps now that the netting bill has been passed. And if that happens I think it should assist the bond markets as well he said. Bajaj also said Sebi and the finance ministry are in touch on the ‘backstop facility’. Sebi had earlier said it plans to set up a ‘backstop entity’ to buy illiquid investment-grade corporate bonds from mutual funds. On direct listing of Indian companies on overseas exchanges Bajaj said the Companies Act amendment bill passed by Parliament recently has provisions for this. The regulations and the other guidelines are in the process of reaching a finality. I have personally held very extensive discussions with the players in this area..I think this is also another step which was waiting to happen which will give a fillip to some of our industries and some of our so-called unicorns a chance to actually pick up capital he said. He also emphasised that the players should desist from defrauding investors as regulations in the capital market sector are mostly based on disclosure and ‘buyer beware’ principle. I think we really need to acknowledge that and honour that. Time and again we do see that there are some issues which crop up in the market which takes the confidence of the people away. Obviously because of these regulations there’s flexibility in the design of member-client agreements especially the agreements of portfolio management but there is information asymmetry and we have recently come across a large number (of such cases) he said. He said the industry needs to look inwards and see what can be done besides the steps taken by the stock exchanges and the regulator. For example he said the regulator has come up with some stricter regulations on AT1 bonds. He pointed to some cases of retired citizens being cajoled to buy AT1 bonds or senior citizens being pushed for insurance products which are not conducive for their age and risk profile. So I think these are also issues that are important for the capital market to have a look at he added.
Source: Financial Express
The Regional Comprehensive Economic Partnership (RCEP) is expected to be signed next month at the 4th RCEP Summit during the 37th Association of Southeast Asian Nations (ASEAN) Summit in Vietnam in mid-November according to Cambodian minister of commerce Pan Sorasak who recently attended the 11th RCEP Inter-sessional Ministerial Meeting held via virtually. [We] agreed to have it [the RCEP] signed by the end of the year in hopes that it will create a more modernised broader and more highly efficient partnership framework that provides economic interests to each member through the expanding regional trade and investment the minister was quoted as saying by a Cambodian newspaper report. Fifteen countries except India which withdrew in November last year will sign the deal. The members have not yet responded to India’s concerns regarding its trade deficit with many of the countries. Besides the 10 ASEAN member states the other five partners are China Japan South Korea Australia and New Zealand. Even without India RCEP will cover more than 2.2 billion people or 30 per cent of the world population a total gross domestic product (GDP) of more than $25.6 trillion (29.3 per cent of world GDP) and trade value of more than $10.4 trillion (27.4 per cent of global trade).
Source : Fibre2fashion
As part of promoting the district as an export hub seven products were identified with export potentials and the Central and State governments will be extending all support for it said Collector C. Kathiravan here. Union Finance Minister Nirmala Sitharaman had in the Union Budget 2020-21 announced that each district should develop an export hub and a District Export Plan (DEP) should be framed. The DEP will include the support required by the local industry in boosting their manufacturing and exports various incentives provided by both the governments to exporters will be disseminated to the industry and potential exporters and also include strategy to enhance logistics and infrastructure at the district level. Products identified in the district that has export potentials were handloom and powerloom products value added textile items paper and paper-related items egg powder turmeric tapioca and its related products and motor vehicle spare parts. The District Level Export Promotion Committee had met through video conferencing recently in which the Joint Director General of Foreign Trade Coimbatore General Manager of District Industries Centre Lead Bank Manager officials from Micro Small and Medium Enterprises (MSME) Coimbatore Powerloom Development and Export Promotion Council Handloom Export Promotion Council Engineering Export Promotion Council of India and officials from various departments participated. Issues related to supporting manufacturing solving problems in export obtaining bank loans subsidies and grants provided by governments were discussed. Mr. Kathiravan said that the seven products were identified in the district and officials were asked to take necessary steps to promote these products for exports. He said that meetings will be held every quarterly.
Source: Fibre2fashion
Exporters fear cancellation of orders ahead of the holiday season due to India’s inability to fulfil export orders on account of unavailability of shipping containers and an almost 60 per cent hike in freight cost since July. Currently facing a 20-day delay in shipments the apex exporters body has estimated that the current delays could wipe out nearly a month’s worth of the country’s exports in the current fiscal year. Besides the roll-out of faceless assessment in Customs to end physical interface is causing further delay in clearance of consignments. The ...
Source: Business Standard
The Indian economy will suer its deepest contraction on record this scal year and recent government stimulus does not go far enough to signicantly boost activity depressed by the coronavirus pandemic according to economists polled by Reuters. With over 7.6 million coronavirus infections India is the second worst hit country in the world after the United States and the spread shows no signs of abating. While the government has removed most restrictions imposed on businesses to slow the spread of the virus the Reserve Bank of India issued gloomy economic forecasts earlier this month but kept interest rates unchanged citing rising ination. That puts the onus on the government which last week announced another round of scal stimulus to boost demand by $10 billion. But the Oct. 13-21 poll of 55 economists showed they were more pessimistic about this scal year's outlook than just two months ago. Nearly 90% of economists 34 of 39 who responded to an additional question said the latest government stimulus was not enough to boost the economy signicantly. While the measures introduced to push consumer spending and capital expenditure are clearly innovative within the connes of scal prudence they do little to move the needle signicantly in terms of the growth outlook this (scal) year said Sakshi Gupta senior economist at HDFC Bank. After shrinking a record 23.9% in the April-June quarter the Indian economy was forecast to contract 10.4% and 5.0% in the third and fourth quarter respectively and merely stabilize in the rst three months of 2021. That compares with contractions of 8.1% and 1.0% respectively and 3.0% growth forecast in August. For the current scal year ending March 31 Asia's third-largest economy was predicted to shrink 9.8% more than the RBI's latest 9.5% projection and 26 of 55 economists saw a contraction of 10% or more for the year. The poll marks the seventh consecutive downgrade to this year's outlook and if conrmed would be the weakest annual economic performance since records began six decades ago. Although the economy was expected to grow 9.0% and 5.7% next scal year and in FY 2022-23 respectively all but one of 36 economists with a view said it would take at least a year for Indian GDP to reach pre-COVID-19 levels. Despite higher ination projections economists expect the central bank to be more concerned about reviving growth than price pressures driven by supply-side disruptions and to cut interest rates next quarter. The problem is we are unlikely to have any immediate assessment of the extent of durable damage to the supply chains in the economy. On the demand side job losses and salary cuts mean lower demand for longer said Indranil Pan chief economist at IDFC First Bank. Any onset of a second wave (of coronavirus) as is being witnessed elsewhere could derail the normalization process and put the projections in jeopardy.
Source: Economic Times
The good news that came in a year ago may not hold good for long. Due to a severe contraction in gross domestic product India is set to lose its gradually improving position in global gross domestic product (GDP). The International Monetary Fund (IMF) data shows that India became the world’s fifth-largest economy in 2019 surpassing the UK and France. The latest IMF data however puts India back in the sixth position in 2020 and further down to No 7 in 2021. India’s share in the global GDP is seen to be shrinking from 3.3 per cent of the pie in 2017 to an estimated 3.1 ...
Source: Economic Times
The commerce ministry has recommended for continuation of anti-dumping duty on a Chinese synthetic rubber for five more years with a view to guard domestic players from cheap imports. In a notification the ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has said there is a likelihood of continuation of dumping of Fluoroelastomer and injury to domestic players if the existing anti-dumping duties are allowed to cease. The authority recommends imposition of definitive anti-dumping duty for five years it has said. The directorate has recommended the duty in the range of USD 1.04 per Kg and USD 8.86 per kg. The finance ministry takes the final decision to impose this duty. In its probe the DGTR has concluded that there is sufficient evidence to indicate that the cessation of the duty at this stage will lead to continuation of dumping and injury to the domestic industry. The revenue department had imposed the duty in January last year for 18 months till July 2020. It was further extended till October 27 this year. Gujarat Fluorochemicals had filed an application on behalf of the domestic industry for sunset review of existing duties on imports of the product from China. Following this the DGTR had conducted the probe. Fluoroelastomers is a kind of synthetic rubber. It is also called as rubber king. It is used in hydraulic seals check valve balls electrical connectors automotive use in shaft seals manifold gaskets and fuel tank bladder. In international trade parlance dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts the price of that product in the importing country hitting margins and profits of manufacturing firms. The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and China are members of this Geneva-based organisation which deals with global trade norms. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.
Source: Financial Express
New Delhi: Indian currently has no plans to launch talks with Taiwan for a trade deal contrary to speculations that Delhi may launch trade dialogue with Taipei that drew sharp reaction from China. The Modi government is currently considering no proposal to launch dialogue on trade deal with Taiwan ET has reliably gathered. Reports regarding Delhi launching trade talks with Taipei at this moment are speculative and baseless highly placed sources told ET. In fact there is no such proposal on the table a source quipped. Sources indicated Taiwan is interested in a trade deal with USA but that too has not made any progress. There are recent reports trade deal with Taiwan would help India’s goal of seeking greater investments in technology and electronics. Earlier this month the Modi government gave approval to firms including Taiwan’s Foxconn Technology Group Wistron Corp. and Pegatron Corp. to attract investment worth more than 10.5 trillion rupees ($143 billion) for smartphone production over five years. In 2018 India and Taiwan signed an updated bilateral investment agreement to expand economic ties. Trade between them grew 18% to $7.2 billion in 2019 according to Department of Commerce. China reacted sharply to reports that India could launch trade talks with Taiwan. India should remain committed to the One China principle and approach Taiwan-related issues prudently and properly Chinese Foreign Ministry spokesman Zhao Lijian told a daily briefing in Beijing on Tuesday. There is only one China in the world and Taiwan is an inalienable part of China. One China Principle is a universal consensus of the international community India included. Interestingly reports about trade talks emerged close on heels of controversy over Taiwan National Day. President Tsai Ing-wen’s government of Taiwan has raised its profile here in recent weeks after China issued a statement giving diktat to Indian media houses not to refer to Taiwan as a country when reporting on its October 10 National Day celebrations. Netizens in India slammed China and praised Taiwan and made the hashtag #TaiwanNationalDay go viral. India and Taiwan do not have formal diplomatic relations but since 1995 both sides have maintained representative offices in each other’s capital. Recently there has been warming of ties. In May 2020 two members of the Indian Parliamentvirtually attended the newly reelected President Tsai’s swearing ceremony. Major Indian exports to Taiwan include waste oil naptha cereals cotton organic chemicals copper aluminum and food residues. In 2019 India - Taiwan trade volume was US$7 billion growing at a rate of 20% YoY. Major Taiwanese exports to India include integrated circuits machinery and other electronic products. India is also keen to attract Taiwanese investment particularly in hi-tech and labour-intensive industries. More than 80 Taiwanese companies and entities currently have a presence in India. Effective 15 August 2015 Republic of China or Taiwan passport holders can avail of India's e-Tourist Visa facility.
Source: Economic Times
KPR Mill stock has gone up 57% in the last 3 months but what makes its our what the story candidate is not only the stock price but how the company has transformed from volatile yarn player to profitable garment player & has become India’s largest vertically integrated companies. KPR is transforming itself from a volatile yarn business to a profitable armenting company. The contribution of garmenting revenues has gone up to 43% in FY2020 from 23% in FY2015. KPR has a strong clientele of 55 top international brands including H&M TESCO Decathlon etc. With a robust balance sheet good corporate governance and strong growth prospects KPR is one of the better plays in the textile space.
Source: Times Now
Apparel Export Promotion Council (AEPC) on Wednesday said that the United Arab Emirates (UAE) is an important market for Indian apparels as there is huge untapped potential for increasing exports. Speaking at the first virtual B2B meeting held between Indian apparel exporters and leading buyers based in UAE AEPC Chairman Dr A Sakthivel said UAE is the second largest market for Indian apparels after the USA. We had exported apparels worth USD 1.9 billion in 2019. It is an important market for us as there is still large potential to increase our exports. The Chairman said India is focusing on higher value and specialized products such as manmade apparels medical textile and technical textiles. Top brands like Zara H&M M&S Mango GAP Topshop and Calvin Klein are already sourcing from India he said. I invite all brands and buyers of UAE to increase sourcing from India. UAE investors can set up manufacturing facilities in India directly as 100 per cent FDI is allowed or through joint ventures Dr Sakthivel said adding more B2B meetings would be held in future. The maiden virtual B2B meeting organized by AEPC and Embassy of India in Abu Dhabi saw 30 apparel exporters from India and about 20 brands and buyers from UAE including top names like Lulu Group Landmark Group KM Trading and Apparel Group participating in the meeting. Contact and other relevant details of both exporters as well as buyers have been shared with all the participants by the Council. Sandeep Kumar Bayyapu Deputy Chief of Mission Embassy of India Abu Dhabi UAE said Our main aim is to increase exports from India to the UAE and there is tremendous potential for doing it. Dubai with its large transhipment port offers additional advantages as it caters to the needs of six other countries in the region. Come and partner with us in building R&D design innovation and incubation centres in India. Build textile design forecasting and market research centre in India for global and Indian textiles said Sudhir Sekhri Chairman (Export Promotion) AEPC.
Source: KNN
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
908.83 |
USD/Ton |
2.20% |
22-10-2020 |
|
VSF |
1562.29 |
USD/Ton |
0.19% |
22-10-2020 |
|
ASF |
1859.42 |
USD/Ton |
0% |
22-10-2020 |
|
Polyester POY |
816.45 |
USD/Ton |
-0.28% |
22-10-2020 |
|
Nylon FDY |
2065.53 |
USD/Ton |
0.73% |
22-10-2020 |
|
40D Spandex |
4686.86 |
USD/Ton |
0.65% |
22-10-2020 |
|
Nylon POY |
1945.35 |
USD/Ton |
0.39% |
22-10-2020 |
|
Acrylic Top 3D |
2027.97 |
USD/Ton |
0% |
22-10-2020 |
|
Polyester FDY |
976.43 |
USD/Ton |
0% |
22-10-2020 |
|
Nylon DTY |
2343.43 |
USD/Ton |
0% |
22-10-2020 |
|
Viscose Long Filament |
5407.92 |
USD/Ton |
0% |
22-10-2020 |
|
Polyester DTY |
1051.54 |
USD/Ton |
0% |
22-10-2020 |
|
30S Spun Rayon Yarn |
2110.59 |
USD/Ton |
0% |
22-10-2020 |
|
32S Polyester Yarn |
1607.35 |
USD/Ton |
0% |
22-10-2020 |
|
45S T/C Yarn |
2463.61 |
USD/Ton |
0% |
22-10-2020 |
|
40S Rayon Yarn |
2253.30 |
USD/Ton |
0% |
22-10-2020 |
|
T/R Yarn 65/35 32S |
2012.95 |
USD/Ton |
0% |
22-10-2020 |
|
45S Polyester Yarn |
1802.64 |
USD/Ton |
0% |
22-10-2020 |
|
T/C Yarn 65/35 32S |
2298.37 |
USD/Ton |
0% |
22-10-2020 |
|
10S Denim Fabric |
1.22 |
USD/Meter |
0% |
22-10-2020 |
|
32S Twill Fabric |
0.71 |
USD/Meter |
0% |
22-10-2020 |
|
40S Combed Poplin |
1.01 |
USD/Meter |
0% |
22-10-2020 |
|
30S Rayon Fabric |
0.51 |
USD/Meter |
0% |
22-10-2020 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
22-10-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15022 USD dtd. 22/10/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Global Organic Textile Standard (GOTS) has appointed Ganesh Kasekar as the new GOTS representative in South Asia (India Pakistan Bangladesh and Sri Lanka). Kasekar based in Mumbai takes over the role of Sumit Gupta the previous GOTS Regional Representative in India and Bangladesh with the additional countries Pakistan and Sri Lanka.Gupta will from now on serve in the newly created position of head of quality assurance and implementation. Kasekar is a textile chemistry alumni of VJTI in Mumbai. He holds over 17 years of experience in the textile industry with a special background in inspection and certification in supply chains. In his former position as business development manager he was involved with supply chain stakeholders internationally contributing to quality assurance requirements in the textile and leather goods industry. The new position of head of quality assurance and implementation has been created taking account of the increasing workload GOTS is facing because of fast growing numbers of certified operations. Given Gupta's substantial long experience within representing GOTS as well as contributing substantially to GOTS Quality Assurance and Implementation we are happy that he is taking this next step GOTS said in a press release. GOTS is the stringent voluntary global standard for the entire post-harvest processing (including spinning knitting weaving dyeing and manufacturing) of apparel and home textiles made with certified organic fibre (such as organic cotton and organic wool) and includes both environmental and social criteria.
Source: Fibre2fashion
The COVID-19 crisis has badly hit the garment sector in the Asia-Pacific (APAC) region, with retail sales plummeting in key export markets and workers and enterprises throughout supply chains getting affected, according to research from the International Labour Organisation (ILO), which found major buying countries’ imports from garment-exporting countries in Asia dropped by up to 70 per cent in the first half of 2020. This has been due to collapsing consumer demand, government lockdown measures and disruptions to raw material imports necessary for garment production. The research report assess the impact of COVID-19 on supply chains, factories and workers in ten major garment-producing countries of the region: Bangladesh, Cambodia, China, India, Indonesia, Myanmar, Pakistan, Philippines, Sri Lanka and Vietnam. As of September 2020, almost half of all jobs in garment supply chains were dependent on demand for garments from consumers living in countries with the most stringent lockdown measures in place, where retail sales have plummeted. The Asia-Pacific region employed an estimated 65 million garment sector workers in 2019, accounting for 75 per cent of all garment workers worldwide. Chihoko Asada Miyakawa, ILO APAC regional director, said: “This research highlights the massive impact COVID-19 has had on the garment industry at every level. It is vital that governments, workers, employers and other industry stakeholders, work together to navigate these unprecedented conditions and help forge a more human-centred future for the industry.” Although governments in the region have responded proactively to the crisis, the research reveals the closure of thousands of factories across the region either capacity. Sample data from May 2020 shows that only 3.9 per cent of Bangladeshi suppliers have retained their entire workforce and 43 per cent of RMG factories in Bangladesh are operating with less than temporarily or indefinitely. Worker layoffs and dismissals have increased sharply, while factories that have reopened are often operating at reduced workforce. “Thankfully, many RMG exporters have resumed operations over the past few months. At the same time, these resilient Bangladeshi enterprises and workforces are having to wrestle with the ongoing pandemic and ensuring safe conditions for all,” said Tuomo Poutiainen, country director, ILO Bangladesh. “To this end, the ILO has supported the development of a national Occupational Safety and Health (OSH) guideline on COVID-19 to mitigate infections in workplaces. In addition, several initiatives to protect income, health and employment of RMG workers and support for employers during the pandemic have also been developed,” Poutiainen was quoted as saying by an ILO press release. In addition, the research identifies how women, who make up the majority of the workers, have been disproportionately affected by COVID-19, exacerbating existing inequalities in earnings, workload, occupational segregation, and distribution of unpaid care work. Although the garment sector in Asia is generally marked by low levels of collective bargaining at both sector and factory level, the research notes that social dialogue appears to have helped strengthen crisis responses in countries where dialogue mechanisms are in place. The brief calls for more inclusive and meaningful social dialogue at the national and sectoral level in countries across the region. Other recommendations highlighted include the need for continued support for enterprises, as well as the extension of social protection for workers and especially women. The recent global ‘Call to Action,’ an international multi-stakeholder initiative facilitated by ILO is also noted as a promising example of industry-wide, solidarity efforts to address the crisis.
Source: Fibre2fashion
True Religion Apparel has emerged from US Chapter 11 bankruptcy under a court-approved plan of reorganisation that significantly reduced the company’s debt and provides it with liquidity to execute its growth plans over the next several years. Collaboration from lenders and other vendor partners in the bankruptcy case proved pivotal, the company said. “We want to thank the company’s loyal and diverse customer base, which remained faithful to the brand both prior to and during the pandemic. We are incredibly thankful and completely indebted to our customers who have showed us consistent support during a period that was challenging in so many ways,” chief executive officer Michael Buckley said in a statement. “The reorganization has allowed the company to reduce its operating costs and lower its debt load, and emerge a profitable, lean operating company with a healthy balance sheet. The path is now clear for True Religion to continue its reinvigoration of its iconic American brand,” he added. Simon Property Group, the landlord on a substantial number of True Religion’s retail stores, was an essential partner in the company’s reorganisation. The company’s lenders, including Farmstead Capital Management and Crystal Financial, also worked tirelessly to reach an agreement and facilitate its turnaround.
Source: Fibre2fashion
