All posts by GD Jasuja

The American Apparel & Footwear Association Disappointed With U.S. Government’s GSP Decision

(Washington, D.C.) – The American Apparel & Footwear Association today expressed deep disappointment with President Obama’s decision to proclaim very limited duty-free treatment for travel goods (including luggage, handbags, backpacks, tote bags, etc.) under the Generalized System of Preferences (GSP) program.

Today’s decision means travel goods imported from ‘least-developed beneficiary developing countries’ and African Growth and Opportunity Act (AGOA) countries are able to enter the U.S. duty free effective tomorrow, July 1, 2016. However, the President has delayed indefinitely a decision on granting travel goods benefits to all other GSP beneficiary developing countries. Continue reading The American Apparel & Footwear Association Disappointed With U.S. Government’s GSP Decision

Garment Industry Shaken By Proposed Excise Duty in Union Budget 2016-17

Editor-NCMThe Union Budget 2016-2017 is a growth-oriented budget that aims to build on India’s strengths and to address the problems and challenges that are faced by the country. Keeping this approach in mind, the Finance Minister introduced Budget 2016-17 with the aim to strengthen and build on the country’s growth drivers through infrastructure and social sector development, deal with challenges of inflation, poverty, fiscal management and other social problems and to promote overall growth of the economy. Though, overall Budget focuses on areas requiring major investments, while seeking to take forward the process of fiscal consolidation, certain changes proposed in Budget, have become topics of much discussion throughout the country. One such proposal is to impose 2 per cent excise duty on branded readymade garments and made-up articles of textiles of retail sale price of Rs 1,000 and above. Continue reading Garment Industry Shaken By Proposed Excise Duty in Union Budget 2016-17

“Budget Expectations Are Going To Be Muted in 2016”

Editor-NCMIndia has a tradition to treat the Union Budget as a big event of February every year. Citizens, at personal level, look forward to increase in income tax exemption limit whereas businesses, through their respective associations, submit what is called ‘pre-budget memorandum’, the format of which has largely remained unchanged since decades. One can find many of the textile trade associations’ suggestions/demands repeating every year, prominent among them being related to removal of hank yarn obligation, labour reforms, reduction in duties, etc. Continue reading “Budget Expectations Are Going To Be Muted in 2016”

Is India Ready for Zero Liquid Discharge (ZLD) Effluent?

Editor-NCMThe textile industry’s hard realization that it was causing an unbearable health hazard to people’s lives came in February 2011 when the Madras High Court ordered that the 700-odd dyeing units in Tirupur be shut down. The order was the outcome of the legal battle fought by Noyyal River Ayacutdars Protection Association, a farmers’ association led by a social activist A P Kandaswamy, against the polluting industry. The Madras High Court order was the outcome of the contempt petition moved by the farmers’ association. Earlier, in 2006, the court had ordered the industry and the state government to ensure zero liquid discharge (ZLD, meaning no liquid effluent is released in the open). The factory owners’ plea that they should be given more time to implement the order was dismissed by the court on March 25, 2011. Continue reading Is India Ready for Zero Liquid Discharge (ZLD) Effluent?

ITMA 2015 : Taken Over By Sustainable Technologies

Editor-NCMITMA 2015, held from 12 – 19 November 2015 at Milan, Italy, saw an unprecedented competition among exhibitors over various features related to what they call “sustainable technology” – also termed as “green technology”. A major requirement for any technology to be sustainable is that it should not irrevocably destroy any resource (except an insignificant amount) that is not renewable and it should be durable enough that any renewable resources it requires can be replenished during its life. Normally, if a technology claims to be energy efficient, less polluting, recyclable, and easy to maintain, then it is termed as “sustainable” but there is a growing concern that it must also be affordable and economically viable. It must create more value than it costs over the long term and contribute to the overall prosperity of all the stakeholders. Continue reading ITMA 2015 : Taken Over By Sustainable Technologies

Spinning Units Seek “Level Playing Field”

Editor-NCMThe textile spinning sector units, especially those engaged in export of cotton yarn, have expressed unhappiness with the Foreign Trade Policy (2015-20) announced by the government saying that there is hardly any concrete step in it for encouraging exports despite the fact that the sector employs over 35 million workers and has the required potential to double this number by 2020.

They find no incentives for export of cotton yarn in the policy. They also complain that the 2 percent incentive provided for MMF yarn and fabrics of all fibres under the Merchandise Exports from India Scheme (MEIS) is only for countries in which these products have very limited market. Overall, they feel that instead of reducing any incentives on textiles export, the government should reduce interest cost on working capital to 7 percent and also the duty burden on MMFs. Continue reading Spinning Units Seek “Level Playing Field”

The Trans-Pacific Partnership (TPP) Agreement

Editor-NCMThe Trans-Pacific Partnership (TPP), concluded on Oct 5 in Atlanta, is dubbed as the biggest trade agreement in history struck by the US and 11 other Pacific nations – the U.S., Canada, Japan, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Together these twelve countries make up about 40 percent of the global economy with economic output of almost $30 trillion. The TPP aims to free 40% of world trade from tariffs and quotas, and elevate protection for the environment and worker rights, among other objectives. The dismantling of trade barriers across the TPP countries is bound to reduce transaction costs and speed up procedures, increase ease of doing business for their companies and possibly benefit consumers with lower prices and more choice. With the implementation of the TPP agreement there will be a lot of mergers and acquisitions (M&A) activity, both within and outside the TPP countries to take advantage of the new business environment. Continue reading The Trans-Pacific Partnership (TPP) Agreement

Wages & Working Hours in the Textiles & Clothing Sector

Editor-NCMThe International Labour Organization (ILO) is holding a Forum of all the stake holders (workers, employers & representatives of government, intergovernmental and non-governmental organizations) from 23-25 Sept. 2014 to evolve future policy with regard to wages and working hours in the textiles, clothing, leather and footwear industries.

According to UNIDO, global average wages in the clothing industry are 35% lower and in the textiles industry are 24% lower than the manufacturing industry average wage. In some production countries the minimum wage remains below the national subsistence minimum. The ILO notes that the industry is distinctly divided into high-end and low-end (or “value”) production and brands. Factories involved in high-end production generally use better technology and more skilled workers. These factories have greater degree of multi-stakeholder initiative engagement resulting in better working conditions. But factories engaged in low-end or low-value production are considerably focused on cost cutting measures and mostly have poor working conditions. Many national economies rely on the clothing industry: 88% of total exports from Haiti, 79% from Bangladesh, 58% from Lesotho, 52% from Cambodia, 43% from Sri Lanka, 38% from Honduras, 36% from El Salvador, 31% from Mauritius, 20% from Madagascar, 18% from Tunisia, 17% from Pakistan, 15% from Morocco, 13% from Jordan, 12% from Viet Nam and 10% from Turkey are linked to the clothing industry. A glance at the world’s clothing retail reveals that North America represents 25%, Western Europe 27%, Eastern Europe and Turkey 10%, Japan and the Republic of Korea 13%. The rest of the world represents 25% of the total clothing retail. Another point worth noting is that while trade has grown, clothing prices have dipped by 30 to 40%. Continue reading Wages & Working Hours in the Textiles & Clothing Sector

Can China be a Major Destination for India’s Textile & Clothing Exports?

Editor-NCMI recently came across a number of reports and statements by leading export related experts related with textile and clothing claiming that China is set to provide a lucrative destination for Indian exports of these items. Obviously, I was pleasantly surprised to read that the dragon, World’s Factory and Clothier to the World, is going to look to India for procurement as it finds increasingly difficult to meet its own demand. A deeper look provided me the information that China was looking for huge quantities of grey fabric from various countries and Indian exporters were desperately trying to capture some share of the Chinese demand for the grey fabrics. At least this is what one tends to believe after reading the report of the 2015 Imported Yarn & Grey Fabric Forum held in June this year. More than 300 suppliers attempted to lure Chinese buyers of grey fabric. The Cotton Textiles Export Promotion Council (Texprocil) was so enthusiastic that it fielded an outsider to make an impressive presentation on behalf of Texprocil so that the Chinese authorities and buyers could be convinced to buy cotton yarn and grey fabric from India. “(Texprocil) has been successfully using this platform to popularize advantages of using Indian yarn and grey fabric for conversion into value added textiles by the Chinese enterprises,” said its post event report. Continue reading Can China be a Major Destination for India’s Textile & Clothing Exports?

Is China Clothing the World in Polyester?

Editor-NCMThere is a growing trend of manipulating consumers who buy their clothing articles thinking they are buying genuine cotton clothing made from 100% cotton. But to their horror, their wearing experience turns out to be a nightmare. They soon realize that manufacturers are replacing the cotton in their favorite clothes with unreliable and uncomfortable fabrics and they have been victims of some mystery fabric. It looks and feels like cotton, but only at first. America’s cotton producers and importers have launched “CottonOrNothing” campaign to educate consumers about such malpractices. In view of lack of information on the labels, buyers are unable to know the exact composition of the fabric. In most cases synthetic fibres are mixed with cotton to reduce cost. Polyester is the predominant among them. Continue reading Is China Clothing the World in Polyester?