FW
The Cotton Textiles Export Promotion Council (Texprocil) has demanded the release of 50,000 cotton bales. It has asked the government to direct Cotton Corporation of India (CCI) to immediately start releasing the said number of bales per day for 100 days through e-auction to address the issue of cotton shortage.
“We have urged the government to instruct Cotton Corporation of India (CCI) to immediately start releasing at least 50,000 bales per day for a period of 100 days through E-auction directly to the actual users,” Texprocil Chairman R K Dalmia said in a statement.
For now, the cotton textiles industry is facing issues due to non-availability of adequate quantity of cotton on account of the ‘Stop-Go’ policy of the CCI in spite of holding high level of stock, he added, further stating that CCI has procured 86 lakh bales of cotton under the Minimum Support Price (MSP) during the current season to protect the interest of the farmers. Out of this, CCI has offloaded only three lakh bales of cotton so far and is presently releasing between only 3,000 to 5,000 bales per day as against a stock of around 83 lakh bales, which leading to steep rise in prices besides creating shortage of good quality cotton, which in turn is adversely affecting the exports of yarn, fabrics & made-ups.
www.texprocil.org
Groz-Beckert, the leading provider of industrial machine needles, will unveil latest innovations in needle solutions at the ShanghaiTex, a platform for the textile machinery for automated textile technological applications that will be held from June 15-18, in Shanghai, China.
In felting, Groz-Beckert will present needles for filtration felts. The range or products comprises numerous needle types with different barb sizes and shapes, as well as gauges and cross sections. With the model of a circular knitting machine made of acrylic glass, the knitting area will allow insights into the interaction of the individual components – Groz-Beckert needles, system parts, and cylinder. Fourteen knitting technologies as well as a unique gauge gradient on a segment of a cylinder from E10 to E50 will be showcased. Another central topic will be the improvement of productivity in the circular knitting process. Groz-Beckert will demonstrate how big the positive effects of minimal changes to the five key factors in the knitting process – machine speed, efficiency, needle lifetime and breakage rate as well as energy consumption can be.
In weaving, Groz-Beckert is full-range supplier both for high-quality weaving accessories and machines for weaving preparation. At the exhibition, Groz-Beckert will present its KnotMaster tying machine. The sewing area will highlight the Sewing5 comprehensive service concept that highlights supply, solutions, service, superiority and sustainability. In chain-stitch and lockstitch machines, the innovative needle geometry LoopControl allows formation of a perfect loop. The distinctively rounded needle protects the material and reduces the risk of needle breakage and point damage.
www.groz-beckert.com
After pre-feasibility studies gave thumbs-up to develop and industrial zone in Pakistan, China is said to contemplating over shifting part of its $300 billion textile industry to Pakistan, in near future. Sources point out the Industrial and Commercial Bank of China Limited, ICBC and Pakistani Habib Bank have already carried out studies to establish an industrial zone in Pakistan.
The study, carried out in areas like Gwadar, Pind Daden Khan and Bahawalpur in Pakistan, explored suitable places to develop an industrial zone spread across 5,000 acres. An official delegate from Pakistan, who recently visited China found out that the country is keen to establish factories in steel, cement and textiles sectors.
However, Chinese players have concerns over safety and compliance issues as well as other issues like availability of power and wanted to know how the Pakistani government will tackle such them to safeguard Chinese business in prevailing law and order situation in Pakistan.
www.icbc.com.cn
Agreeing for an extension of Technology Upgradation Fund Scheme (TUFS) following the demand of textile players, the Union government may re-introduce it with some changes. The aim is also to introduce a long term policy for at least 10 years, under the new textile policy, scheduled to be out by this month-end.
Under the revised policy, states where factories exist may have to fund the projects with the states’ share in central taxes increasing to 42 per cent from 32 per cent earlier. TUFS, implemented from April 1999, was introduced to catalyze investments in the textile and jute industry, with a five per cent interest reimbursement. The scheme was initially approved from April 1999 to March 2004, extended to 2007 with modifications and further restructured with effect from April 2011, to March 2012. The government started with a capital subsidy when it was introduced in 1999. Later, the mode of relief was changed to interest subvention. In 2012, the then commerce minister Anand Sharma announced its continuation for the 12th Plan period of 2012-17, with an outlay of Rs 11,900 crores. Of this, Rs 6,000 crores has been released so far.
As per data, the industry utilised Rs 12,383 crores against the budgetary allocation of Rs 13,785 crores during the 11th Plan. Restructured TUFS allocations did not prescribe sectoral ceilings for the spinning, powerloom and handloom sectors. Investments in spinning were Rs 34,347 crores and in the weaving sector, including powerlooms and handlooms, Rs 9,750 crores. Texmin.nic.in
After suffering heavily due to political unrest, manufacturer-exporters from Bangladesh are now initiating steps to increase exports. The efforts include sending business missions abroad and increasing dialogue with sourcing companies to recover their business losses.
The apparel apex body-BGMEA also held a meeting with buyers' forum, where more than 40 representatives of top global apparel buyers, brands and retailers participated. While the players assured buyers of improvement in the situation and smooth supply of products, even buyers expressed their willingness to increase sourcing from Bangladesh.
According to estimates, the country's largest foreign currency-earning sector has already suffered a 20-25 per cent production loss during the last three months' due to political unrest. Almost 35 garment factories have suffered losses worth Tk 1.81 billion from January 14 to February 19 due to the blockade, according to the BGMEA. Locally-made apparel export (woven and knit) witnessed a 3.18 per cent growth during the July-March period of the current fiscal year. Knit products failed to achieve the target by 5.58 per cent and woven by 3.89 per cent during the period, under review.
www.bgmea.com.bd
The volume of US apparel imports from all sources edged up 0.2 per cent year-on-year in February, rebounding from a 4.2 per cent fall in January. While shipments from China, the largest supplier of apparel to the US, increased 2.1 per cent in February, those from nearest rival Vietnam fell 1.5 per cent compared to a year earlier.
Bangladesh saw apparel shipments increase 13.9 per cent, bouncing back from the 8.4 per cent decline recorded in January. India also booked double-digit growth. El Salvador and Pakistan saw apparel shipments grow 7.4 per cent and 4.8 per cent respectively. But there were significant declines from Indonesia, Honduras, Cambodia and Mexico.
China continues to remain a compelling source for apparel buyers as rising prices are largely being offset by productivity gains. Despite its February decline, Vietnam has benefited as both producers and buyers diversify their supply chains. The country’s apparel business is also being buoyed by the expected benefits of the proposed Trans-Pacific Partnership trade treaty with countries including Canada and the US.
India may also have benefited from orders diverted from China and Bangladesh during the month as well as the recovering US economy. Cambodia, however, continues to face criticism over working conditions in garment factories.
As per APTMA chairman, S M Tanveer, domestic textile industry has lost its competitiveness against the strong competition from other regions. As per the latest study by the GHERZI/IBA, the manufacturing of 20s and 30s single cotton yarn is around 15 per cent cheaper in India owing to factors like availability of better quality raw material and production efficiencies are higher due to the latest machinery replacement under the TUFS scheme at almost zero interest rate.
Tanveer said that while all the production factors including energy availability at affordable tariff, cheaper finance, lower wages and productive workforce are well in place in India, the textile industry in Pakistan, on the other hand, is struggling for energy availability without break over the last six years. Pakistani industry is also being burdened with various types of new taxes and inefficiencies which cannot be passed on to the buyers.
Though the textile industry is predominantly export-oriented and thus exposed to the international market, he says, it is losing sheen with textile and clothing exports declining or stagnant since February last. He further added that the situation is heading towards a serious repercussion on the farm sector, the entire textile value-chain and eventually the textile industry workforce. He has sought government intervention to restore competitiveness of the textile industry by ensuring realistic rupee value, electricity and gas availability at regionally affordable rate, immediate notification of TUFS scheme, liquidation of all pending refunds, removal of all new taxes and immediate announcement of zero rate regime for five export-oriented sectors.
www.aptma.org.pk
The RBI marginally reduced the repurchase rate (also called as repo rate) by 0.25 per cent in March 4 this year but the knitwear industry in Tirupur wants a further reduction. Small and medium enterprises that dominate the Tirupur cluster say the cost of funds is a vital element for capacity expansion and for meeting working capital requirements. Since repurchase rate is still on the higher side, borrowers are forced to pay high equated monthly installments while repaying bank loans.
The RBI had kept the repurchase rate under the liquidity adjustment facility at 7.5 per cent and decided to maintain the cash reserve ratio of the scheduled banks unchanged at 4 per cent of net demand and liability based on an assessment of current and evolving macro-economic situations. The feeling is that unless the repo rates are slashed significantly, banks are not going to reduce interest rates by a substantial margin.
The repo rate has been used as a tool to suck out excess liquidity. The repo rate was just 4.75 per cent in 2009 and has been raised subsequently with only occasional reductions. Mostly inflation has been cited as the reason for increasing the rates.
Exporters from different sectors of Bangladesh have demanded a cut in tax at source on export bill and withdrawal of tax on cash incentives in the country’s budget for fiscal year 2015-16. Exporters have sent a proposal to the National Board of Revenue (NBR) to cut tax at source on export to 0.30 per cent from existing 0.60 per cent.
Currently, only apparel exporters get 0.30 per cent tax rates on export bill while others are paying 0.60 per cent. Frozen foods exporters, textile mills, jute, and plastic sectors have now sought the same amount of tax rate as paid by the apparel exports to bring uniformity. Bangladesh Textile Mills Association (BTMA) leaders have also urged the NBR to continue special income tax rate at 15 per cent for primary textile sectors including spinning, weaving, dying, printing and finishing mills, which is scheduled to expire in June, 2015.
The BTMA also sought tax holiday facility for new investment in spinning, weaving and other factories under primary textile sector to encourage investment in the sector. Despite being the second largest exporter after China, issues like political unrest and non-compliance are hindering the growth of exports industry in Bangladesh.
www.nbr-bd.org
The next edition of ITMA will take place in Italy from November 12 to 19, 2015. This showcases technology used for making textiles and garments. About 1,00,000 visitors from around the world are expected. It will display braiding and embroidery substances, plant operation equipments, finishing, dyestuffs and chemicals, garment and textile products and accessories, fibers and yarns, nonwovens, knitting and hosiery goods, spinning accessories and software, weaving equipments and services.
ITMA 2015 is a global marketplace, a one-stop sourcing platform for emerging trends and innovation solutions; acquiring new knowledge and best practices; and establishing strategic relationships with industry leaders. Since 1951, ITMA has been a recognized as a textile and garment machinery exhibition. CEMATEX, the European Committee of Textile Machinery Manufacturers, is the force behind ITMA.
The textile industry has a long way to go in improving its overall environmental performance. Sustainability remains a vital concern to manufacturers throughout the supply chain. The drive towards sustainability in the entire textile and garment value chain is increasingly integrated with enlightened business practices, and innovative technology holds the key to environmental sustainability. Textile technologists are being encouraged to consider what will happen to products at the end of their lifetime.
www.itma.com/
