background preloader

Trade News

Facebook Twitter

Trade news, apparel trade news, textile trade news, garment trade news

BGMEA President says more financial support needed to repair RMG sector: Report. Underlining that the apparel manufacturing industry in Bangladesh is going through a very challenging time, the President of the country’s apex garment makers’ body – the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) – Dr.

BGMEA President says more financial support needed to repair RMG sector: Report

Rubana Huq, reportedly, said more financial support is needed to repair the industry. According to media reports, addressing a recent virtual dialogue (on ‘Recovery of the Apparels Sectors from the COVID-19 Crisis: Is a Value Chain based Solution Possible?’) , the BGMEA President, reportedly, requested not to be criticised for now as it’s a very challenging time for the industry while adding that in 2020, exports dropped around 16.94 per cent compared to the previous year while in September to November 2020, apparel prices dropped around 4.82 per cent.

Dr. 165 workers of Sidco Group’s Ashulia-based unit terminated: Report. A total of 165 garment workers have been terminated by the Sidco Group from its Ashulia-based manufacturing unit recently.

165 workers of Sidco Group’s Ashulia-based unit terminated: Report

As per media reports, the company terminated these workers and put up a notice with images of the terminated workers at the unit’s entrance even as the workers demonstrated demanding salary of the previous month. Reports quoting workers of the concerned factory claimed the factory authorities shut the unit down on 13 October – 11 October was the deadline to clear the last month’s dues – without paying the workers’ dues only to reopen later with notice displaying the names and pictures of the terminated workers. According to the Organising Secretary of the Bangladesh Textile and Garment Workers League, Sarowar Hossen, the authorities illegally terminated the workers as they demanded salary, who went on to maintain that Sidco Group has also filed a general diary against the workers with the local police.

Lack of work orders continue to concern small & medium players: Report. Notwithstanding the reports of cancelled work orders being reinstated and new orders coming in, the small- and medium-sized garment manufacturing units are yet to witness any significant difference in terms of flow of new work orders, claimed media reports.

Lack of work orders continue to concern small & medium players: Report

The reports underlined that there is an uneven recovery as the small- and medium-sized units, vis à vis the bigger players, were yet to see the rebound in apparel shipments as the work orders that they have received are way less than those received by the bigger units. Speaking to the media, the Managing Director of Base Fashions, Ehterab Hossain, who employs around 1,000 workers in his manufacturing unit, said that he was receiving very less orders. I used to run 100 per cent overtime before the pandemic hit, but now it’s just 40 per cent as I am getting a small number of orders, claimed Ehterab. Industry happy with the steps taken by Ministry of MSME. Haryana releases draft of Enterprises Promotion Policy; support for textile and apparel industry too. Haryana, one of the leading textile and apparel states in India, has issued the draft of Haryana Enterprises Promotion Policy, 2020.

Haryana releases draft of Enterprises Promotion Policy; support for textile and apparel industry too

Textiles and apparel sector is among the priority sector for the Government, and therefore the aforementioned policy holds lot of relevance. The policy says that special incentives shall be provided for the thrust areas/focus clusters, i.e., textiles utilising raw materials produced in the state. Steps shall be taken for setting up Export Promotion Industrial Park (EPIP) at Panipat for textile exporting units. Other announcements related to the industry in this policy are as follows: Encourage setting up micro units making surgical cotton, masks, baggage, napkins in cotton-producing areas. Tap into new opportunities and encourage investments across entire value chain for inclusive growth through proactive investment promotion and outreach. Focused Product Investment Scheme for MMF to be launched soon!

To attract funding in the manmade fibre (MMF) segment, Indian textile and apparel industry will soon get Focused Product Investment Scheme.

Focused Product Investment Scheme for MMF to be launched soon!

As per Textile Secretary Ravi Capoor, this proposed scheme aims to promote both Greenfield and Brownfield investments in the MMF segment. He shared this information while addressing a webinar. Industry facing shortage of containers; shipment can delay. Unexpected problems during these unprecedented times are increasing the challenge of exporters.

Industry facing shortage of containers; shipment can delay

Now exporters are witnessing the less availability of containers for exports. The industry has urged Government to pay urgent attention in this regard as the shortage of containers can delay the shipments which is a big challenge. Trade Data News China. Industry urged to allow export of 20 crore surgical masks per month. The Government recently allowed the export of 2/3 ply surgical masks and medical goggles, with the monthly export quota of 4 crore units per month and 20 lakh units per month, respectively.

Industry urged to allow export of 20 crore surgical masks per month

But mask manufacturing industry is not happy with this and has demanded to increase this limit. Promoting khadi as school uniform for lakhs of students in Uttar Pradesh. Khadi fabric will be used for making Government school uniforms in the state of Uttar Pradesh.

Promoting khadi as school uniform for lakhs of students in Uttar Pradesh

The scheme, recently launched for 14 districts of the state as a pilot project, is now picking up. Along with the promotion of khadi, this initiative of the State Government is also benefitting a lot of women tailors as they are making uniforms in their SHG (Self Help Group). Importantly, lakhs of students in Uttar Pradesh’s Government schools will get 2 sets of uniforms. There will be 67 per cent cotton and 33 per cent polyester in the fabric for uniforms.

This is how India’s apparel export can double in 3 years! India’s apparel export, which has been stagnant since last few years and facing unprecedented challenges due to the pandemic, can double in 3 years if disadvantages in trade pacts are removed and positive sentiments leveraged.

This is how India’s apparel export can double in 3 years!

The Apparel Export Promotion Council (AEPC) strongly believes in this and has requested Prime Minister Narendra Modi to review India’s trade pacts with EU, UK, US, Australia and Canada. Notably, these five countries are the major markets for Indian apparels. ECGC to clear all pending claims in 4 months! Here’s some good news for Indian apparel exporters!

ECGC to clear all pending claims in 4 months!

The Export Credit Guarantee Corporation of India (ECGC) will clear all pending claims of apparel exporters in next 4 months, even as it faces an exposure of Rs. 100 crore in UK’s Laura Ashley and US’s JCPenney – two large retail store chains that have gone bankrupt. Under the Government of India and Controlled by the Ministry of Commerce, ECGC is a company which provides export credit insurance support to exporters. As per M. Senthilnathan, CMD, ECGC, “We are working under pandemic-related restrictions, but we are trying our best and we plan to clear all pending claims in 4 months.

Gurudev Sri Sri Ravi Shankar urges to take care of migrant workers. Gurudev Sri Sri Ravi Shankar, Founder of The Art of Living Foundation, has insisted that every stakeholder of the textile industry has to be positive and self-confident – if India has to grow in this unprecedented time. Addressing a session on ‘Indian Textile Industry – Road map for sustainable growth’, he insisted that migrant workers need to be taken care of properly. He said “It is our duty to bring enthusiasm in our workforce, which will hardly take one week.

As Indian workforce is intelligent, one-month time is enough to train them irrespective of whatever training is being provided. We have to reduce our production cost also. World sentiments are against China but in favour of India.” Many well-known players of the Indian textile industry were part of this discussion and they shared that what needs to be done for the industry. Dr. Industry appreciates the biggest relief package of India. Know complete details! Indian textile and apparel industry has appreciated the package of Rs. 20 lakh crore – the biggest relief package ever in the Indian history. Nirmala Sitharaman, Minister of Finance and Corporate Affairs, today shared details of this package. The package includes Rs. 3 lakh crore collateral-free automatic loans for businesses, including MSMEs. Notably, borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover will be eligible for this.

These loans will be for 4 years with moratorium of 12 months on principal repayment and interest to be capped. There will be a 100 per cent credit guarantee cover to banks and Non-Banking Financial Companies (NBFCs) on principal and interest. These schemes are available till 31 October 2020. Government claims cotton procurement is smooth in Maharashtra. Amidst the lockdown, cotton procurement still continues in Maharashtra! A total of 36,500 quintals of Kapas (6,900 bales) were procured during the lockdown period. It is imperative to note that Maharashtra contributes around 21 per cent in India’s total cotton production, which is highest after Gujarat. As per official details, such operations are continuing at 34 centres in Maharashtra; around 77.40 per cent of total Kapas produced in Maharashtra had already arrived in the markets and were sold till 25 March 2020. Cotton Corporation of India (CCI) had already procured 91.90 lakh quintals of Kapas equivalent to 18.66 lakh bales of cotton valuing Rs. 4,995 crore from cotton farmers in Maharashtra through 83 centres.

Out of total procurement value, a sum of Rs. 4,987 crore has already reached the farmers. Sheikh Hasina orders to keep shut all garment factories. Following reports that that many apparel manufacturing units have resumed work despite the Government extending the countrywide shutdown further in view of COVID-19 outbreak, Bangladesh Prime Minister Sheikh Hasina has ordered all apparel manufacturing units to remain shut. Also Read: Many RMG units resume operations, claim reports The only exceptions would be those that are currently involved in making masks and Personal Protection Equipment (PPE). Sheikh Hasina gave this directive to the apparel exporters following a weekly cabinet meeting held at her residence, Ganabhaban, on Monday. As per media reports, the Prime Minister also reportedly came down heavily on business leaders and some trade associations for their alleged attempts to resume work in the factories.

NIFT alumni propose an action plan to handle fall-out of COVID-19. Amidst Yes Bank crisis, textile and apparel industry too get impacted  Indian apparel manufacturers are facing heat amidst Yes Bank crisis! However, so far no major names that have been impacted have come forward. The Reserve Bank of India (RBI) has placed aggregate limit across all accounts (savings, term or current) of Rs. 50,000 on Yes Bank deposits till 3 April. Uniting against COVID-19 pandemic, Vietnam’s PM welcomes Chinese Textile Group’s Head.

Vietnamese Prime Minister, Nguyen Xuan Phuc warmly welcomed Tao Hui, Director General of Texhong Textile Group from China, one of the largest core cotton textile suppliers in the world, on Friday (6 March). Bangladesh requests US to reinstate GSP facility. Indonesia’s largest integrated viscose rayon production unit open. Something good for Indonesia’s textile industry! The President of Indonesia, Joko Widodo, inaugurated country’s largest integrated viscose rayon production unit on Friday thereby giving a huge boost to Indonesian textile industry. Chinese envoy dispels fear of adverse impact of Coronavirus on supply chain. 7 workers die in fire at Nandan Denim.

Coronavirus hits Vietnam’s garment and textile sector. Coronavirus, which has so far killed over 600 people in China, has affected the apparel and fashion industry across the globe and Vietnam too has been hit severely. Vietnam’s garment and textile is majorly dependent on China for raw materials and with the deadly virus showing no signs of slowing down, there is a struggle to get the raw materials. Speaking about the same, Cao Huu Hieu, General Deputy Director, Vietnam National Garment and Textile Group (Vinatex) said “The Chinese Government has ordered the companies making the raw materials to close and stop foreign trade.”

Textile and apparel industry welcomes Union Budget. “It is a positive, progressive, growth-oriented and forward-looking Budget. We are thankful to the Government for fulfilling a long-standing demand of industry of abolishing the Anti-Dumping Duty (ADD) on PTA. Some of the interesting announcements/steps in the Budget include a proposal to set up a dedicated Investment Clearance Cell to provide ‘end to end’ facilitation and support, 9,000 km of economic corridors, quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing, National Logistics Policy with single window e-logistics market with focus on generation of employment, National Logistics policy for making MSMEs competitive, Rs. 1.7 lakh crore for transport infrastructure in 2020-21, simplified return with features like SMS-based filing for nil return and improved input tax credit flow, enhancing digital connectivity, support for working capital, financing for MSMEs, 5-year exemption from audit for MSMEs and easing of tax filing for start-ups.