Cotlook A Index - Cents/lb (Change from previous day)
02-09-2019 70.15 (-0.20)
27-08-2018 87.95
26-08-2017 79.70
New York Cotton Futures (Cents/lb) As on 04.09.2019 (Change from
previous day)
Oct 2019 58.26 (-0.05)
Dec 2019 58.56 (-0.27)
Mar 2020 59.55 (-0.10)
04th September
2019
Textiles Secy promises to resolve Tirupur knitwear issues
Alarm at falling cotton price
India-Iran PTA to be concluded by 2019 end: Iranian envoy
Next 2 months crucial for economy: SBI Chief
'Big' free trade agreement coming soon with India, says Boris Johnson
Cotton and Yarn Futures
ZCE - Daily Data (Change from previous day)
MCX (Change from previous day)
Oct 2019 19480 (-140)
Cotton 12465 (-50) Nov 2019 19220 (-10)
Yarn 20215 (-75) Dec 2019 19230 (+40)
www.citiindia.com
2 CITI-NEWS LETTER
-------------------------------------------------------------------------------------- Textiles Secy promises to resolve Tirupur knitwear
issues
Alarm at falling cotton price
India-Iran PTA to be concluded by 2019 end: Iranian
envoy
Next 2 months crucial for economy: SBI Chief
'Big' free trade agreement coming soon with India, says
Boris Johnson
IRDAI sets up panel to revisit 3-yr old trade credit
insurance guidelines
Why are the Indian government and ratings agencies not
taking the economic slowdown more seriously?
Putting the skids under border trade
-------------------------------------------------------------------------------
'No deal' Brexit would cost at least $16 billion in UK sales
to the EU: U.N.
Economic Watch: China's industrial sector gains global
competitiveness
Indonesia to invest in US cotton with trade mission
Working hour reduction to create more difficulties
Centrestage to feature 100 local fashion brands
--------------------------------------------------------- ----------
NATIONAL
---------------------
GLOBAL
www.citiindia.com
3 CITI-NEWS LETTER
NATIONAL:
Textiles Secy promises to resolve Tirupur knitwear issues
(Source: Covai Post, September 03, 2019)
Tirupur Exporters’ Association (TEA) on Tuesday claimed that the Union Textiles
Secretary has promised to address various issues being faced by knitwear industry and
help for the growth of Tirupur knitwear export units.
The assurance came after a meeting with Secretary Ravi Kapoor in Delhi on Monday to
discuss the implementation modalities, course design, scope and breadth of the upskilling
component under Samarth Scheme and focus on improving the overall productivity
following best practices, TEA president, Raja M Shanmugham said in a statement here.
After discussions, TEA appealed for reimbursement of various schemes, including rebate
on state levies, amended technology upgradation funds and pending claims and subsidies
to meet the financial requirements of exporting units, he said.
TEA also sought removal of exporting units from risky exporters category and help them
continue to receive drawback and IGST claims. Kapoor promised to take up and address
the issues, he said.
Home
Alarm at falling cotton price
(Source: S Harpal Singh,The Hindu, September 03, 2019)
Traders apprehensive of compulsion to buy at MSP
The sharp fall in price of cotton bale in the national market and the declining exports of
cotton yarn is an ominous sign for the huge cotton trade and the processing industry in
erstwhile undivided Adilabad district. The trend is expected to have a direct and negative
impact on the price of raw cotton when the market opens for trading around Dasara
festival and going by past experience, it will result in discontent among farmers, at least
for a few days after commencement of trading.
The sensitivity of the matter can be gauged from the fact that nearly 3.5 lakh cotton
farmers contribute their produce to make undivided Adilabad a top trading centre in the
country. The cumulative production capacity in erstwhile Adilabad is between 16 lakh and
18 lakh bales and the turnover is about ₹ 5,000 crore during the six month season
starting October.
www.citiindia.com
4 CITI-NEWS LETTER
CCI may go slow
The anticipated downward trend of open market rate will force the Cotton Corporation of
India to launch its minimum support price operations right from the start of the trading
season. “The CCI, however, is expected to be slow in its operations as it is already saddled
with about 8 lakh bales from last season, thanks to the dipping price,” an industry source
pointed out.
“Trading is likely to be affected by the usual high moisture content issue at the start of
this season too according to indications. The administrations in all four districts should
start creating awareness among farmers to bring dry cotton to the markets in order to
avoid the produce being denied its proper price as,” cautioned B. Goverdhan Reddy, a
farmer leader from Telangana Rashtra Samithi party.
The government has increased the minimum support price of long staple cotton from ₹
5,450 per quintal last year to ₹ 5,500 per quintal which may be a welcome development
for farmers but traders and industrialists say it can spell doom for them.
Current downtrend
“The production cost of one candy of cotton bale (candy=2 bales of 178 kg each) comes up
to ₹ 47,500 while its price in December is ₹40,500,” Rajiv Mittal, a cotton trader and
processor compared the costs to drive home the point that traders will lose heavily if they
purchase cotton at MSP given the current downtrend.
“To benefit farmers, the governments can give them bonus money as direct benefit
transfer instead of insisting on private traders or the CCI go by MSP,” a trader suggested.
Home
India-Iran PTA to be concluded by 2019 end: Iranian envoy
(Source: Fibre2Fashion, September 03, 2019)
India and Iran can conclude a preferential trade agreement (PTA) by this year end as very
limited formalities are to be completed, ambassador of Iran to India Ali Chegeni said
recently. He, however, said the proposed Bilateral Investment Protection Agreement
(BIPA) will take a little longer as details on this front need some more approvals and
endorsement.
On the Double Taxation Avoidance Agreement (DTAA), Chegeni pointed out that this
agreement has the approval of Indian Government whereas approval of Iranian side on
this front is awaited.
www.citiindia.com
5 CITI-NEWS LETTER
The ambassador was addressing an interactive session on business opportunities in Iran
under aegis of the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi.
In the last few years, over 26 memoranda of understanding (MoUs) have been signed
between India and Iran to promote trade and economic ties, a PHDCCI press release
quoted him as saying.
The bilateral trade between the two during fiscal 2017-18 reached $17.5 billion, which
might go up to $35 billion in the next few years before hitting $ 50 billion with progressive
and conclusive trade talks and agreements between both sides at the highest level, he
added.
Barter trade between both sides should also be encouraged under a different trade
mechanism, at least to promote and intensify trade ties on commodities in agriculture
and pharmaceuticals, he proposed.
Home
Next 2 months crucial for economy: SBI Chief
(Source: Economic Times, September 04, 2019)
SBI chairman Rajnish Kumar reiterated his support for the government’s move to
consolidate state-owned banks.
The next two months are crucial for the Indian economy that’s facing its worst slowdown
in six years amid debate about whether the downturn is cyclical or structural as the key
automobile industry faces headwinds, said State Bank of India chairman Rajnish Kumar.
He reiterated his support for the government’s move to consolidate state-owned banks.
“If we see the automobile sector, today I read Kia Motors reported very good numbers…
That sector is going through a lot of churning,” Kumar told ET in an interview ahead of
SBI’s annual banking and economics conclave. “There are issues around environment,
change in public mindset. We don’t know how much of this is cyclical and how much is
structural… but October and November are two very crucial months for the economy.”
The success or otherwise of the festive season, which traditionally accounts for a bulk of
consumption, will determine whether Indians feel emboldened enough to resume
spending.
India’s growth slumped to a six year low of 5% in the June quarter.
www.citiindia.com
6 CITI-NEWS LETTER
‘Strong Execution Needed’
Monthly automobile sales have collapsed, in some cases as much as 50%, plunging
dealerships into losses and triggering job cuts. The government has announced stimulus
measures and reforms including a merger of state-run banks aimed at strengthening them
and bolstering credit expansion in order to revive growth.
“Suggestion to consolidate PSU banks was given 25 years ago… This had to be done,” said
Kumar. “If there is a strong execution team, then any credit slowdown can be taken care
of. The biggest issue is IT, human resource and customer integration.”
Finance minister Nirmala Sitharaman said last week that the government would merge
10 state-run lenders to create four mega banks that would help facilitate the flow of credit.
Home
'Big' free trade agreement coming soon with India, says Boris Johnson
(Source: Business Standard, September 03, 2019)
Boris Johnson met PM Narendra Modi on the sidelines of G7 summit in Biarritz, France,
last month
British Prime Minister Boris Johnson on Tuesday said that a "big" free trade agreement
(FTA) was among the key issues he discussed with Prime Minister Narendra Modi during
their meeting on the sidelines of the G7 summit in Biarritz, France, last month. In
response to a question on India-UK relations raised by Indian-origin Conservative Party
MP Shailesh Vara in the House of Commons on the summit outcomes at the end of
parliamentary summer recess, Johnson said he had an extremely good conversation with
Prime Minister Modi.
"We agreed to strengthen our cooperation, not just on the security side where clearly the
UK and India stand shoulder to shoulder in the fight against terror but also in military
cooperation in the Asia-Pacific region where we share many interests," Johnson said.
"This (the discussions) also included on free trade, in doing a big free trade agreement
with India, he said.
Home
www.citiindia.com
7 CITI-NEWS LETTER
IRDAI sets up panel to revisit 3-yr old trade credit insurance guidelines
(Source: Economic Times, September 03, 2019)
IRDAI said it decided to revisit the guidelines after it received
representations from various stakeholders
Insurance regulator IRDAI (Insurance Regulatory and Development Authority of India)
has decided to review its three-year old guidelines on trade credit insurance in line with
the changing requirements of the market. Trade credit insurance policy provides coverage
to supplier of goods and services against delay in payment or non-payments of trade
credit.
IRDAI said it has set up a nine-member working group headed by New India Assurance
CMD Atul Sahai with an aim to review March 2016 guidelines. The panel, which has been
asked to submit its report in three-months, would study the need and scope for changes
in the current guidelines keeping with the times and requirements of various segments of
market. As per the terms of reference (ToR) given to the panel, it would also suggest
suitable amendments to guidelines that add value to the policyholders and stakeholders
such as banks and factoring companies. Another key ToR is: "To examine the current
guidelines on Trade Credit Insurance and products available for catering to the needs of
credit insurance market in India." IRDAI said it decided to revisit the guidelines after it
received representations from various stakeholders.
They wanted the regulator to revisit the scope of the trade credit cover.
Home
Why are the Indian government and ratings agencies not taking the
economic slowdown more seriously?
(Source: Girish Shahane, Scroll.in, September 04, 2019)
Forecasts of GDP growth are unreasonably optimistic and consistently wrong
Why are economic forecasts so consistently optimistic? Why, on reading the bombshell
report that India’s GDP growth fell to 5% in the last quarter, the fifth consecutive quarter
of sequentially falling growth, did none of the forecasting agencies put out a note saying
conditions are likely to get even worse? Without exception, they see the slowdown as a
blip that will pass, and have their eyes set on the 8% growth that we think is India’s by
right, though it has rarely been touched in the past decade.
With each unexpected fall, ratings agencies recalibrate their charts, setting a new course
to the same wished-for destination. There’s always an excuse for things not working out:
one year, it is the effect of demonetisation, another, it is the Goods and Services Tax
www.citiindia.com
8 CITI-NEWS LETTER
rollout, a third it is the shadow banking crisis, and so on. At what point will they begin to
consider the blips not as blips, but a pattern of mismanagement that is likely to continue,
because the ruling party is incompetent and has no clue what good economic policies look
like?
Consider the agency Fitch Solutions. I’ve settled on it arbitrarily, others have been as bad
at their forecasts. Its response to the latest disastrous GDP reading was, “We at Fitch
Solutions believe that growth has likely bottomed out and will start to rebound over the
coming quarters.” That’s the tale it’s been telling for a long time. A year ago, Fitch
estimated India’s growth in the financial year ending March 31, 2019, would be 7.8%. By
December, it cut that to 7.2%, citing “higher financing cost and reduced credit
availability”. The final figure landed at 6.8%.
Cutting projections
Taking 6.8% to be the bottom, Fitch forecast a slightly healthier growth rate for the
current year, at 7 %, increasing to 7.1% the following year. In March, it cut that projection
to 6.8%, and in June dropped it further to 6.6%, before shifting to a 6.4% forecast after
last week’s figures, a rosier view than Moody’s, which now projects 6.2%. Fitch is far from
alone in being consistently optimistic and consistently wrong. The International
Monetary Fund’s projections following the global meltdown, which it failed to predict,
overestimated the world’s growth trajectory in each of the following years. But none of
these past errors should be taken to mean its current forecast is necessarily misguided.
Maybe the ratings agencies are correct that this is just a common, garden variety
slowdown caused by a bunch of one-time blows to the economy.
But what if it’s more serious? What if it goes beyond something that can be ameliorated
by merging a few banks, tinkering with GST rates, and commandeering a bigger slice of
the Reserve Bank of India’s surplus?
The Modi government has produced no fundamental changes to stimulate long-term
growth, aside from ones it inherited from the previous regime such as the Goods and
Services Tax. There is no word on reforming labour laws or making it easier for farmers
to sell land (which is very different from making it easier for the government to
expropriate land from farmers). Without resolving such serious bottlenecks, it is highly
unlikely the government will hit its target of making India a $5 trillion economy by 2024.
Indians are not only buying fewer biscuits and less underwear, but also fewer air
tickets and Mercedes Benz vehicles. The slowdown is evident across economic classes and
across sectors of the economy. When car sales fall by 30% from one year to the next, it
does not signal a common or garden variety slowdown. Those are shocking figures, which
will have severe knock-on effects on industries like steel manufacture.
www.citiindia.com
9 CITI-NEWS LETTER
The textile industry, a sector in which India ought to be a world leader given its over two
thousand year history of exporting cotton fabrics, is losing out to competition from
Vietnam, Indonesia, Bangladesh and Sri Lanka, and failing, in the process, to pick up
market share from China. Far from flourishing in global trade, it finds itself beleaguered
at home. This is not something that a drop in interest rates will come close to addressing.
A new Cold War
Meanwhile, the geopolitical situation is hardly likely to improve while a capricious lunatic
sits in the White House. The worst-case scenario for the global economy
was articulated last month by Nouriel Roubini, who spoke of a Cold War rivalry between
the United States and China that goes beyond a trade war and leads to a medium term
process of decoupling of supply chains and de-globalisation.
What seems remarkable to me, given all the negative data, is the complacence of India’s
government. Narendra Modi and his ministers are like the officers in a scene from Monty
Python’s The Meaning of Life. A man named Perkins has had his leg bitten off at night,
for which he blames a hole in the bed net that allowed mosquitoes to get through. A doctor
is summoned, who says, “Well, let’s have a look at this one leg of yours, then, eh? Yes…
Yes, well, this is nothing to worry about… keep warm, plenty of rest, and if you’re playing
football or anything, try and favour the other leg… be as right as rain in a couple of days.”
The Indian economy will not be as right as rain anytime soon.
Home
Putting the skids under border trade
(Source: Afaq Hussain, September 04, 2019)
The India-Pakistan face-off is having more repercussions than intended,
with border economies the worst hit
In February 2019, in the wake of the Pulwama attack, India decided to withdraw the Most
Favoured Nation (MFN) status to Pakistan; subsequently, it imposed 200% customs duty
on all Pakistani goods coming into India. After the Balakot airstrikes, again in February,
India and Pakistan closed their airspace,with Pakistan keeping the ban in place for nearly
five months. In April, India suspended trade across the Line of Control in Jammu and
Kashmir citing misuse of the trade route by Pakistan-based elements. And more recently,
post the Jammu and Kashmir Reorganisation Bill, Pakistan cut off diplomatic and
economic ties with India — expelling the Indian envoy, partially shutting airspace and
suspending bilateral trade.
Plunging trade
www.citiindia.com
10 CITI-NEWS LETTER
Escalating tensions between the two neighbours naturally led to the announcement of
retaliatory unilateral decisions, one after the other. Like in the past, the impact has
trickled down to trade relations between both the countries; this time it is much more
severe. In 2018-19, bilateral trade between India and Pakistan was valued at $2.5 billion
— India’s exports to Pakistan accounted for $2.06 billion and India’s imports from
Pakistan were at $495 million. India’s decision vis-à-vis withdrawal of MFN status and
imposition of 200% duty has hurt Pakistan’s exports to India, falling from an average of
$45 million per month in 2018 to $2.5 million per month in the last four months.
Western border trade
The quantum of loss that has been incurred by traders in both India and Pakistan has
varied according to the nature of trade and the trade route. For example, through the
Wagah-Attari land route, bilateral trade was heavily in favour of Pakistan; in the last two
years, India’s imports from Pakistan accounted for 82% of the total trade through the land
route. After February, most of this business has been badly affected with only a handful
of items including rock salt, continuing to be imported.
Unlike national economies, border economies owe their existence to cross-border
economic opportunities. These economies generally experience a sudden boom-bust cycle
on account of political changes, trade bans, price and exchange rate and tax fluctuations.
As seen elsewhere in South Asia such as via the inception of India-Bangladesh
border haats, the costs and benefits are mutual to the border economies on both sides;
much more in cases such as Amritsar where major economic activity is largely dependent
on border trade with Pakistan.
Amritsar is land-locked, is not a metropolis and traditionally has no significant industry.
Hence, any decision on India-Pakistan trade has a direct impact on the local economy and
the people of Amritsar. Since February, according to estimates on ground, 5,000 families
have been directly affected in Amritsar because of breadwinner dependence on bilateral
trade. Traders and their staff members, customs house agents (CHAs), freight forwarders,
labour force, truck operators, dhaba owners, fuel stations, and other service providers are
closing shop and going out of business. Of the nearly ₹25-30 crore that was being added
to the local economy of Amritsar every month, the estimate now is that three-quarters has
been lost in the last six months.
Many a time, upsetting the trade apple cart can have more repercussions than intended.
For example, gypsum, imported from Pakistan, was being used in India as well as in Nepal
for the cement plants there. To avoid empty backhauling on the return journey, trucks
carrying these consignments brought back specific products such as yarn from mills in
Uttar Pradesh to Punjab. In the absence of gypsum trade, the freight rate of trucks from
Uttar Pradesh to Punjab, as per the ground reports, has increased from ₹3 to ₹7 per kg,
with a single trip absorbing the cost of the entire journey. Earlier, prices of tradeable
www.citiindia.com
11 CITI-NEWS LETTER
goods which were kept under check owing to the balancing out mechanisms of
international trade, are experiencing fluctuations now because of the trade disruptions.
Pakistan takes a hit too
There is gloom on the Pakistani side too. With Pakistan deciding to completely suspend
bilateral trade, exports of cotton from India to Pakistan are expected to be affected the
most, eventually hurting Pakistan’s textiles; the lawn industry which will now have to
source pricier cotton from alternative markets in the United States, Australia, Egypt or
Central Asia; or there is a high possibility that Indian cotton, along with other products,
will be routed through third countries such as the United Arab Emirates and Singapore,
thereby increasing the share of indirect trade which is estimated to be more than double
the direct trade between India and Pakistan.
Hence, while the overall economies of the two countries may very well manage to stay
afloat despite the suspension of economic ties, it is the local economies that will suffer the
most and are already perishing. In this connection, there has been a loss in business, rise
in prices, lack of alternative sources of livelihood, as well as an expected increase in bank
defaults. There are also individual cases, for example a CHA in Amritsar, who has no
means to pay the equated monthly instalment for his home loan, highlighting the
hardship of locals dependent on border economies.
In the spirit of nationalism, the trade fraternity on both sides, by and large, has stood by
their respective governments. But locals in border economies on both sides have mouths
to feed, which calls for a solution. What are the alternative sources of livelihood that can
be generated to keep border economies afloat? Is there a sword hanging over the future
of other bilateral arrangements such as the transit of goods from Afghanistan through
Pakistan into India?
While it’s about damage containment for now, one can only hope that the appetite for
trade engagement still remains.
Afaq Hussain is Director and Nikita Singla is Associate Director, respectively, at the
Bureau of Research on Industry and Economic Fundamentals (BRIEF), New Delhi.
Home
--------------------------
www.citiindia.com
12 CITI-NEWS LETTER
GLOBAL
'No deal' Brexit would cost at least $16 billion in UK sales to the EU: U.N.
(Source: Reuters, September 04, 2019)
Leaving the European Union without a trade deal would cost Britain at least $16 billion
in lost EU sales, and probably far more after accounting for indirect effects and other
markets, a report by the U.N. trade agency UNCTAD said on Tuesday.
“UNCTAD’s research indicates that a no-deal Brexit will result in UK export losses of at
least $16 billion, representing an approximate 7% loss of overall UK exports to the EU,”
it said.
That would include $5 billion in motor vehicle exports, $2 billion in animal products and
a further $2 billion in apparel and textiles.
UNCTAD said the $16 billion figure was conservative, and only took into account a rise in
EU tariffs from zero to the basic “most favored nation” rate that it offers countries without
preferential deals.
“These losses would be much greater because of non-tariff measures, border controls and
consequent disruption of existing UK-EU production networks,” UNCTAD’s report said.
The report was published as Britain’s parliament debated a bid to stop Britain crashing
out of the EU on Oct. 31 without a transitional deal, which the European Commission
described as a “very distinct possibility”.
UNCTAD said 20% of Britain’s non-EU exports were at risk of higher tariffs in markets
such as Turkey, South Africa, Canada and Mexico - countries that have preferential trade
deals with the EU but have not yet agreed to roll over those benefits for British exporters
in the event of a “no deal” Brexit.
If Britain did not strike those deals before its exit from the EU, it would lose a further $2
billion in exports, with higher tariffs for cars, processed food, clothes and textiles, with
$750 million in forgone motor vehicles exports.
Still more losses could come if Britain failed to conclude rollover deals with Vietnam and
the MERCOSUR countries of Argentina, Brazil, Paraguay and Uruguay, which have
recently signed trade agreements with the EU.
Home
www.citiindia.com
13 CITI-NEWS LETTER
Economic Watch: China's industrial sector gains global competitiveness
(Source: Xinhua, September 03, 2019)
In the early 1980s, a steam turbine factory in inland China was at the brink of bankruptcy,
forcing its workers to produce kitchen knives to survive.
The factory now has turned into one of the world's largest manufacturer of power
generators, with its products and services exported to nearly 80 countries and regions.
The secret behind the transition, said Xu Peng, deputy general manager of Dongfang
Electric Corporation, was the company's relentless efforts in research and development
(R&D).
"Innovation is what brings us to where we stand today," Xu said.
Dongfang Electric is among the thousands of industrial firms riding on the tide of China's
rapid development over the past decades.
Since the founding of the People's Republic of China 70 years ago, the country has seen
tremendous progress in its industrial strength, with the manufacturing sector now
playing an indispensable role in the global industrial system.
Industrial value-added expanded 970.6 times from 12 billion yuan (about 1.7 billion U.S.
dollars) in 1952 to 30.52 trillion yuan in 2018, representing an average year-on-year
growth rate of 11 percent calculated at the constant price, according to data from the
National Bureau of Statistics (NBS).
World Bank data showed that China overtook the United States as the world's largest
manufacturing country in terms of added value in 2010 and has retained first place ever
since.
As the world's factory, the country now ranks first in the production of clocks, bikes,
furniture and beer, while it could barely make enough soap and clothing to meet domestic
demand 70 years ago.
The country's output of mobile phones, computers and televisions amounted to 1.8
billion, 310 million and 190 million units in 2018 respectively, accounting for about 70
percent to 90 percent of global output, NBS data showed.
Auto production stood at 27.82 million units in 2018, remaining first in the world.
"China not only has a competitive edge in the production of light industrial goods or
textiles but also is almost on par with the developed economies in terms of manufacturing
of high-tech products and major equipment," said Wei Jigang, a researcher with the
Development Research Center of the State Council.
www.citiindia.com
14 CITI-NEWS LETTER
Dongfang Electric made its way out of the inland province of Sichuan to the global stage
thanks to its high-tech advantage. In a laboratory test in Switzerland, its power generator
was proved 0.39 percent more efficient than its competitors in a variety of simulations.
"A 0.39-percent difference could mean an additional 50 or 60 million kilowatt-hours of
electricity a year for hydropower stations," said Zhao Yongzhi, an engineer with the firm.
The country has been stepping up its efforts to invest more in high-tech manufacturing
and upgrade its industrial sector.
According to the NBS, China's R&D intensity, or the proportion of R&D expenditure to
GDP, reached a record high of 2.19 percent last year.
"As the country shifts from high-speed growth to high-quality growth, technology will
power the industrial sector's future growth," said Tang Jiqiang with a think tank under
the Southwestern University of Finance and Economics.
Home
Indonesia to invest in US cotton with trade mission
(Source: Fibre2Fashion, September 03, 2019)
Indonesia will invest in US cotton after being a part of the 2019 Cotton USA
special trade mission. Eighteen cotton buyers from Indonesian textile mills and two
leaders of the Indonesian textile association attended the mission. The group visited six
stops in the cotton belt to learn about the seven segments of the US cotton industry and
met cotton leaders.
The mission educated the group on the many advantages of US cotton and developed
business relationships between the foreign trade and US cotton industry to help increase
business opportunities. After the event, the participants said they expect to purchase an
addition 194,000 bales of US cotton in the next year because of their participation,
according to Cotton USA.
The mission began in New York where the group met with ICE Futures, followed by a stop
in Raleigh, where it visited Cotton Incorporated and toured their research labs.
Afterwards, the group travelled west, stopping in Memphis to visit a USDA classing office
and to meet with the National Cotton Council (NCC) and representatives of the local
growing region. Later, the mission travelled to South Texas, visiting a farm and gin and
seeing some of the first cotton being harvested in the US. The group then travelled to
Lubbock and finished its tour in California where it met with representatives of the local
growing regions as well as Supima.
Home
www.citiindia.com
15 CITI-NEWS LETTER
Working hour reduction to create more difficulties
(Source: Vietnam Plus, September 03, 2019)
The reduction of working hours from 48 hours per week to 44 hours will create difficulties
for textile and garments enterprises, according to one leading expert.
Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (Vitas),
in the response to the draft revised Labour Code which made the change in May this year.
The industry is facing many challenges. Reducing the working week would have a negative
impact on the industry and the economy, he said.
Currently, Vietnam sets normal working hours to not exceed 48 hours per week,
enterprises of many industries such as textile and garment, leather and footwear still have
to use all permitted overtime of 300 hours per year, he said.
"With the textile and garment industry with production scale at present, if we reduce by
four working hours per week, the industry’s export value will be reduced by at least over
3 billion USD per year," Cam said.
Vietnam is a developing country, so a reduction means a reduction of production in goods
and services, leading to reducing gross domestic product (GDP) for the society and GDP
per capita, Cam said.
"Moreover, if the working hour reduces, to maintain the same volume of production and
export value of the textile and garment industry at present, the businesses will have to
recruit more workers, spending more trillions of dong to pay salary for the workers," Cam
said.
"This is not feasible because at present, the textile and garment industry has faced labour
shortages and there is competition to recruit workers, especially skilled workers. Besides,
the businesses must increase spending, leading to a reduction in their competitive
ability."
For many years, enterprises in the garment and textile industry and some other industries
have repeatedly asked the State to extend the overtime to facilitate production, he said.
“We recommend not reducing the normal working hours from 48 hours per week to 44
hours,” Cam said.
“For overtime, I agree with keeping the regulation of overtime working hours per day
which is not more than 50 percent of the normal working time in a day.”
However, the existing regulation has caused difficulties for businesses, especially for
www.citiindia.com
16 CITI-NEWS LETTER
fashion and seasonal industries such as textiles, footwear and fisheries, he said. The
industries will have periods to promote production to ensure quick delivery, so they need
all overtime working hours.
At present, the State regulates overtime to be no more than 200 hours per year for general
industries and 300 hours per year for specific industries like textile, garment and
footwear.
Countries in the region also have much higher overtime hours than Vietnam. Therefore,
Vitas asked to extend the overtime working hour to 300 hours per year for general
industries and 450 hours per year for specific industries, he said.
Home
Centrestage to feature 100 local fashion brands
(Source: Fibre2Fashion, September 03, 2019)
The fourth edition of Centrestage, Asia’s premier fashion event, to be held from
September 4-7, 2019, at the Hong Kong Convention and Exhibition Centre (HKCEC), will
feature close to 100 local fashion brands. In addition, more than 40 exciting events will
be presented as part of Centrestage 2019, including over 20 fashion shows and parades.
Organised by the Hong Kong Trade Development Council (HKTDC), the event has
“Future Tribes” as its central theme with three distinct zones − Iconic, Allure and Metro
– showcasing some 240 local and international fashion brands.
The opening gala fashion show, Centrestage Elites, will feature Hong Kong designer Anais
Mak’s internationally renowned brand Anaïs Jourden, as well as acclaimed New York
designer Joseph Altuzarra’s brand, Altuzarra. They will have the global launch of their
pre-spring 2020 collections on the catwalk.
Following hot on the heels of Centrestage Elites, the Fashion Hong Kong Runway Show
will showcase the latest collections of seven homegrown designer labels – 112
Mountainyam, Doriskath, From Another Planets, Harrison Wong, Meiking Ng,
Methodology and Yeung Chin – that have taken part in other major international fashion
weeks in New York, London, Copenhagen, Tokyo and Shanghai to highlight Hong Kong’s
creative prowess.
Another Centrestage highlight will be the finals of the Hong Kong Young Fashion
Designers’ Contest 2019 (YDC) on September 7. Sixteen shortlisted candidates will
compete for five awards this year, with renowned Japanese designer Mihara Yasuhiro
serving as the VIP judge and special guest at the event.
www.citiindia.com
17 CITI-NEWS LETTER
Other shows include the Redress Design Award, the Knitwear Symphony 2019, and the
ninth Hong Kong Knitwear Designers’ Contest presented by the Knitwear Innovation and
Design Society. The HKTDC will also organise the “Meet the Visionaries” seminar series
featuring representatives from the Centrestage Elites designers Anais Mak and Joseph
Altuzarra and YDC VIP judge Yasuhiro, while the “Trend Talk Series” will feature
prominent industry experts such as GOXIP vice president of marketing Michele Tardelli
and Euromonitor international head of fashion research Jorge Martin.
Home
--------------------------