FW
The Pakistan Cotton Ginners Association (PCGA), for the year 2015-16 is set to get a new chairman, Shehzad Ali Khan from Muzaffargarh district, who, it’s anticipated would be elected unopposed as no other candidate has filed their candidature for this slot. Haji Muhammad Akram, Chairman of Ginners Group thanked the ginners' community for reposing confidence into the Group and unopposed election of 15 members of the central executive of PCGA against the 15 vacant seats.
Sarfra Nazim Awan, Sheikh Muhammad Saeed, Aasim Saeed Sheikh, along with group member Khan and others, addressed a press conference recently. Khan said that PCGA Ginner Group have swept all vacant seats, 15 in all of Central Executive Committee (CEC consecutively for eight times in a row.
The other names are: Khawaja Muhammad Arshad Muzaffargarh, Chaudhry Qaiser Mehmood (Rahim Yar Khan), Qadar Bakhsh (Shujabad)Suhail Mehmood Haral(Lodhran), Malik Muhammad Naeem (Mianwali), Chaudhry Abdul Sattar (Bahawalpur), Malik Nazim Awan (Bahawalpur), Muhammad Arshad (Hasilpur), Girdari Lal (Sangarh) Fazal Elahi (Multan), Lado Mal (Sukkur) Bhagwan Das (Hyderabad), Sheikh Ashfaq Ahmed (Burewala), Chaudhry Muhammad Akbar (Chichawatni), and Ali Chauhan(Sahiwal).
Pakistan's investors, who set up textile manufacturing units in free trade zones of Tajikistan, can hire 40 per cent of the workforce from their home country. There are five free trade zones in Tajikistan with lucrative incentives, Pakistani investors can import textile machinery without any taxes or duties. Tajikistan, where 93 per cent of the land constitutes hilly areas with a population equal to that of Faisalabad, is a gateway to other Central Asian states. Tajikistan is rich in gas and electricity and will provide electricity to Pakistan.
Until 2007, trade between Pakistan and Tajikistan was restricted but now it is growing satisfactorily with room for a quantum jump in future. Tajikistan imports 60 to 70 per cent of its medicines from Pakistan. During the Soviet era, a big textile unit was set up in Tajikistan to cater to the huge demand from the Soviet Union. This unit has now become redundant, but new and small units are being established to meet the needs of the domestic market. Businessmen and industrialists from Pakistan have been invited to set up textile units in Tajikistan. Pakistan and Tajikistan aim to establish direct contacts in order to encourage trade and tap the potential between the two countries.
The Woolmark Company's stand at SpinExpo Shanghai will be showcasing ‘The Wool Lab Autumn/Winter 2016-17’ and latest innovations in Merino wool from September 1 to 3, 2015.
The company is focusing on three key pillars of innovation: touch, technique and texture. Examples of the three directions include warp-knit fabrics which extend the range of options for using Merino wool in sports, casualwear and business casuals and knitted denim with a choice of circular knit, seamless or flat-bed knitting, Merino Retract knitwear that looks like boiled wool but has the resilience and pilling performance of normal wool and Mottled Merino is a special yarn which has been created by randomly mixing untreated and anti-felt treated regions within the yarn to create a highly textured and mottled aspect after milling.
On September 2, The Woolmark Company is hosting two seminars in at the event venue. At 11am, The Wool Lab AW16/17 will be presented to attendees, showcasing a collection of inspirational themes to inspire and influence trends dedicated to the upcoming AW16/17 season. The Wool Lab is an innovative seasonal guide to the best wool fabrics and yarns in the world. It connects designers with manufacturers through technical skills, know-how and passion. At 2pm, the company will present a seminar on Merino innovations.
www.woolmark.com
Raw silk, which is imported from China, is becoming costlier thus, India’s silk fabric exporters are looking for incentives to remain competitive. They hope to meet commerce ministry officials to discuss the withdrawal of export incentives under the Foreign Trade Policy 2015-20. Members of the Silk Association of India say exporters could get a five per cent incentive on woven silk fabrics, which was applicable on exports to all countries under the previous Exim policy (2009-14). As per the new policy, export of silk fabrics made only on handloom is eligible for a five per cent incentive and it was lowered to two per cent for power looms.
Under the new policy, exports to one of the major silk markets are no longer incentivised, said Vikram Tantia, President of the Silk Association of India. East Asia, Africa, and Australia too are major markets for silk exports. Besides, several exporters using powerlooms are not eligible for incentives from states such as Karnataka, Bengal, UP, and Bihar.
Textile mills in Maharashtra are incurring losses to the tune of Rs 10-40 crores each as almost 50 co-operative textile mills are either sick, closed or under liquidation process. The government's share in their capital ranges from 80 per cent to 45 per cent. Maharashtra government may soon allow the mills to sell off excess land in their possession to save them from further losses. Earlier they were never permitted to do so despite repeated requests. The government is yet to decide whether there should be a cap on saleable land.
The closure of all ailing mills was suggested earlier by the Suresh Halwankar Committee, to cut losses. The Congress and NCP reproached the suggestion as a ‘deliberate attempt’ to devastate the cooperative sector. Chandrakant Dada Patil, Textile Minister said they believed this decision would help ailing mills to revive their business as the government has invested huge amounts in them. He added that if this move does not help, the government would have to step in.
Most ailing mills are in smaller cities and towns and not a single one has that much excess land, which could fetch Rs 30-40 crores. Therefore, experts have termed this plan as ‘useless’ and ‘impractical’.
The consultant for preparation of a Detailed Project Report was appointed by the government said M Ashokan, Corporation Commissioner. He added that the focus in Tirupur would be on underground sewerage scheme, improvement of water supply, e-governance, health and sanitation, increasing green cover and transportation, and some other parameters. Infrastructure needs would be minutely studied by the DPR before floating the final plan, said Corporation officials. Tirupur is going to be included under the Smart City project, as it is envisaged that it would propel the prowess of the knitwear industry, both in the global and the domestic markets. Industrialists in Tirupur knitwear cluster have welcomed this move.
The cluster is looking at Rs one lakh crore in turnover through garments sales, both to foreign and domestic markets by 2020, says M Veluswamy, Chairman of Confederation of Indian Industry (Tirupur district council). He added that infrastructure needs to grow exponentially to attain this, thus the funding for development of Tirupur as a ‘Smart City’ will be helpful.
The main requirements of the knit city include housing facilities for labourers, which could be constructed on a public-private partnership mode, ESI hospital for workers, development of ring roads to improve access to villages from where workers travel to the city and wifi facilities across the city. These were just some among others, cited by the knitwear entrepreneurs of Tirupur.
The Trading Corporation of Pakistan (TCP) has asked the Federal Board of Revenue (FBR) to clarify the rate of withholding tax on purchase of lint cotton under the prevailing laws, as the rate would have future implications for TCP if government intervenes in the market during the current season. The TCP has written to the FBR seeking clarification of withholding tax rate on purchase of ginned or lint cotton.
As per the government's directive TCP has purchased lint cotton from cotton factories located in different parts of the country and deducted income tax on the following rates, i.e. 4.5 per cent of the gross amount in case of non-corporate sellers and four per cent of the gross amount in case of corporate sellers.
TCP’s tax consultant has stated that withholding tax will be applicable on purchase of ginned cotton under section 153(1)(b) of the Income Tax Ordinance, 2001, and not under clause 1(a) of division III of part III of the first schedule of the income Tax Ordinance, 2001. However, Pakistan’s cotton ginners do not agree with this rate. They say ginned or lint cotton is covered under the lower rate and, according to the Income Tax Ordinance, 2001, withholding rate on ginned or lint cotton is one per cent.
If Bangladesh RMG makers wish to establish warehouses in India, they would have to set up manufacturing units in the country, as the Indian government has hinted at a meeting held in Gujarat between the two parties. Shahidullah Azim, BGMEA Vice-President Shahidullah Azim, said that the government, during the meeting mentioned that if Bangladesh wanted to open a warehouse in India, they would have to establish manufacturing units for their interest, creating employment. Bangladesh would have to move forward with this policy proposed by the Indian government.
Azim was on a two-day visit to India and had travelled to Gujarat to inspect the possibility of setting up a warehouse to grab the local market there. A five-member delegation visited three economic zones during the trip, which included Sanand Industrial Estate under Gujarat Industrial Development Corporation, Amitar Green Hi-Tech Textiles Park Private Limited and Viraj Integrated Textile Park to assess if a warehouse could be set up. Azim said that they had selected Sanand Industrial Estate to set up a warehouse, based on the facilities offered by the zones’ management. Besides, Azim said that the state had uninterrupted power connection and other facilities while there is no obligation of allowing trade union there.
Bangladesh can get land at a cost of Rs 3,500 per sq. mt. while per unit electricity price at Rs 6.5, according to the offer. High land prices, according to Azim need to be bargained for at the high level G2G meetings. The domestic market in India is of $32 billion and offers duty-free access. Azim feels that if Bangladesh can establish a warehouse and distribution centre here, it could grab more market.
China to strengthen its position
The report suggests annual apparel sales in China will reach $333,312 million in 2019, an increase of 25 per cent from $267,246 million in 2014. In comparison, apparel sales in the United States are estimated to reach $267,360 million in 2019, which is only 3 per cent higher than $260,050 million in 2014.
The study points out that China seems to be an even more competitive apparel market than the United States because no apparel brand was able to achieve a market share of more than 1 per cent in 2014 in China, whereas in the United States, market shares of several leading brands exceeded 2 per cent. Moreover, domestic brands overall outperform international brands in the Chinese market.
Despite its overall market size, as a developing country, dollar spending on apparel per capita will remain much lower in China than many developed economies around the world. In 2014, each Chinese consumer on average spent $240 on apparel versus $815 in the United States, even though apparel spending accounted for a larger share of household income in China (around 10 per cent) compared with the United States (less than 3 per cent).
Shift to value-added products benefit China
Sheng Lu, of the Department of Fashion & Apparel Studies, University of Delaware points out, it is time US apparel companies and fashion brands start thinking about their sourcing strategy seriously, specifically for the Chinese market. He says for many Chinese apparel companies, serving the domestic market will help them upgrade from low-value added manufacturing to higher-value added functions such as design, branding and distribution to boost exports.
Lu says controlling sourcing cost will be equally important for China as well as the United States. When China’s applied tariff rate is still as high as 9.63 per cent for textiles and 16.05 per cent for apparel, US fashion companies or fashion brands may not have many options but to use ‘Made in China’ to serve the Chinese consumers. But the equation can later change with ‘Made in China’ gradually getting replaced by ‘Made in Asia’, since several free trade agreements (FTAs) involving China such as CEPA are reaching finalisation.
While China may strategically use rules of origin in these FTAs and encourage domestic manufacturers to use China-made textiles for its products, Lu feels managing the apparel supply chain based on either ‘Made in China’ or ‘Made in Asia’ may not give a competitive edge to US companies over their Chinese counterparts.
www.euromonitor.com
The United States Fashion Industry Association (USFIA) and the Better Cotton Initiative (BCI) in partnership have come together to promote the cause of responsible cotton sourcing. USFIA represents the fashion industry that includes textile and apparel brands, retailers, importers and wholesalers, based in the US and is doing business globally. The Better Cotton Initiative, on the other hand, is an NGO that works with a multi-stakeholder group of organisations to support responsible cotton production across the globe.
Julia K Hughes, President of USFIA points out that they are thrilled to collaborate with the BCI. She adds that their members include major global brands and retailers, who are committed to responsible sourcing at all levels in the supply chain. Their members would be able to enhance this commitment from the ground up with this collaboration and would also learn from the BCI.
BCI and USFIA, both stand to mutually benefit with this partnership from each other’s expertise. The BCI would give information about supporting responsibly grown cotton to USFIA members. BCI members, in turn would get support of USFIA to navigate the complex sourcing issues in the US and around the globe. The USFIA will enable the BCI to connect with key stakeholders via publications, educational events and networking opportunities.
Daren Abney, Membership Engagement Manager, BCI says that they are excited about joining an organisation as repute as the USFIA and are looking forward to exploring this partnership and how it can enable the supply chain of the future.
