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Argentina on Monday invited Indian business to invest in the Latin American nation in a move to boost the current low level of bilateral trade with India and take the relationship to a higher level.
Following Macri’s talks with Modi on Monday, the two sides signed 10 MoUs for greater cooperation in a range of areas including in information and communications technology, nuclear energy and agriculture.
Addressing the India-Argentina Business Forum here organised by the Confederation of Indian Industry (CII) President Mauricio Macri said Indian enterprise is “most welcome” in Argentina in a situation of “endless potential” for economic cooperation between both nations.
Macri, who arrived on his first official visit to India on Sunday, held delegation-level talks with Prime Minister Narendra Modi earlier on Monday.
“I invite you to participate in this process of integration between our two countries…to invest, partner and participate in the unprecedented pace of development that is taking place in Argentina,” Macri said, addressing the business forum.
Declaring that Argentina wants to learn from India’s experience in “innovation and sustainable development,” the President said his delegation includes representatives from Argentina’s MSME sector, as well as business representing all the 11 provinces in the country.
“There are many complementarities between both countries, for instance, that between India’s EV (electric vehicles) programme target for 2030 and Argentina’s lithium programme,” he said.
Lithium is important for solar power projects and a key element of lithium-ion batteries for EVs, while, following Modi’s meeting with Macri in Argentina last year, an Indian consortium has been to the South American country to explore mining of lithium and copper.
Macri pointed to potential areas of cooperation as being agro-industry, non-conventional energy sources, renewables and the knowledge economy, among others.
Argentina, which supports India’s bid for membership of the Nuclear Suppliers Group (NSG), will hold its first nuclear talks with India in Mumbai later this week through the mechanism of a joint nuclear group.
While the current bilateral trade stands at a modest $3 billion, Macri’s visit, coinciding with the 70th anniversary of diplomatic relations, is part of efforts to upgrade the relationship to the “strategic level”.
Addressing the gathering earlier, Commerce Minister Suresh Prabhu said that India is looking to expand the current preferential trade agreement (PTA) with Argentina to a “higher level.”
He also praised Argentina’s efforts in the World Trade Organisation (WTO) in the context of a “new wave of protectionism.
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The 15th Finance Commission which met the representatives of Trade and Industries bodies has noted that the tertiary sector comprising IT and ITES sectors have been the key drivers of Gross State Value Added (GSVA).
GSVA is the measure of the value of goods and services produced in the sector of an economy and the Telangana’s share is over 10% of country’s IT exports. The share of secondary sector in GSVA in Telangana is the lowest among southern States.
The meeting on Monday discussed the State’s need to provide impetus to the development of manufacturing sector to reduce over dependence on IT/ITES to reduce risk to growth.
The meeting also discussed that out of 33 districts, only four districts — Ranga Reddy, Hyderabad, Medchal-Malkajgiri and Sangareddy — have a per capital income that is above State’s average. These districts were the onces where the industry and service sector activities are concentrated — leaving large areas of under development in the State.
The State did well in GST implementation and the number of dealers post-GST increased by 37.4% and the GST revenue registered 20% growth.
The State did not receive any GST compensation except for initial months, the meeting was informed.
With jute millers not furnishing undertakings on payment of statutory dues to workers and prompt payment for raw jute supplies within the stipulated date citing ongoing discussions with the Ministry of Textiles, the Jute Commissioner has extended the deadline to February 20.
The office of the Jute Commissioner has, however, said the “unusual delay” on the part of the jute millers to submit the undertakings has been “taken very seriously”.
The jute industry is predominantly dependent on the government, which annually purchases jute bags worth over Rs 6,500 crore for packing foodgrain and sugar. Some 3.7 lakh workers and several lakh farm families are dependent for their livelihood on the jute sector.
Following the approval of Cabinet Committee on Economic Affairs (CCEA), the Ministry of Textiles had issued an order stipulating that 100 per cent foodgrain and 20 per cent of sugar is required to be compulsorily packed in jute packaging material.
And, to ensure that persons engaged in production of raw jute and jute packaging material derive beenfit from the mandatory packaging, the jute millers were asked to submit the undertaking to the Office of the Jute Commissioner by January 25.
“One month has already elapsed since the intimation to the all jute mills was made. The unusual delay by the mills in submitting an undertaking as per an order conveying the decisions of CCEA has been taken very seriously,” an official told IANS.
The failure or delay or any hesitation on the part of the mills in submitting the undertaking has “the potential to raise question on the business practices” adopted by them and it may raise apprehensions that mills have defaulted on payment on account of raw jute purchase, payment of wages and statutory dues to jute workers,” the official said, citing a letter sent to jute mills except those who submitted the same.
Union Textiles Minister Smriti Irani recently said here that the centre was committed to the welfare of jute farmers and workers.
According to Irani, the centre has made it mandatory that any packaging order that the industry receives from the central government is conditional on payments being made to farmers and workers and ensuring their welfare.
If the mills fail to fulfil their commitments, penal measures including deduction in the quantity ordered in the following months and debarment from government orders in future could be considered, according to a document IANS has accessed.
“We are in discussions with the Ministry of Textiles. Millers did not submit the undertaking on the statutory dues. All our issues have been brought to the notice of the ministry,” Indian Jute Mills Association (IJMA) Chairman Manish Poddar told IANS.
Without divulging the details of the parleys, Poddar said the industry is hoping that “a solution would be brought forward”.
He said the industry has “never supported” any provision of statutory dues with regard to payments to workers.
However, a government official said the undertaking was sought for implementing the CCEA’s decision.
“The process of submitting an undertaking by jute mills is in line with the exercise for implementing the CCEA decision for ensuring payment of statutory dues to jute workers and prompt payment on procurement of raw jute,” the official said, adding that they have been asked to submit this by February 20.
According to sources, mills procure raw jute from traders, suppliers and financiers, who buy it by paying cash to farmers or middlemen. The traders then supply it to different jute mills on different payment arrangements with the interest varying from 18 per cent to 36 per cent per annum.
Chennai: After the government increased duties on textile products to check cheaper imports from China, apparel imports from Bangladesh has more than doubled. Industry suspects that Chinese products are making a backdoor entry into the country through Bangladesh.
Despite a spate of labour unrest in Bangladesh, apparel exports from that country to India grew 143 per cent between July and December to $270 million from $166 million in the same month last year, as per the data from Bangladesh Export Promotion Bureau.
Value of knitwear exports rose 107 per cent and woven garment exports by 161 ssper cent.
“Under the free trade agreement with us, imports from Bangladesh are not subject to any duty. We suspect that Chinese fabric is making a backdoor entry through Bangladesh as garments. We have asked the government to implement the rule of origin provision for imports from Bangladesh,” said Sanjay Jain, chairman of Confederation of Indian Textile Industry.
The government had doubled the duties to 20 per cent for over 300 textile products, ranging from fibre to apparels, in August, mainly to check rising imports of cheaper products from China. Imports started increasing after the implementation of GST. The effective duty rates came down as the countervailing duty of 12 per cent was done away with post-GST. In FY18, India’s textile imports jumped 16 per cent to a record $7 billion and of this around $3 billion came from China.
“Cheaper imports are a threat to the existence of MSMEs, which is the backbone of India’s textile industry,” said Jain. The industry had expected that the imports will come down by at least $1 billion this year due to the increased import duties. However, Bangladesh imports have now become a growing threat.
Apparels from Bangladesh are up to 30 per cent cheaper than Indian products as the labour cost is significantly lower there. Further, Bangladesh can get cheaper fabric from China. As fabric accounts for 75 per cent of the cost of apparel, cheaper fabric too adds to the savings. Proximity is an added advantage when it comes to shipping products from Bangladesh to India.
Bangladesh expects the imports to rise in the coming months as well.
Textile millers’ stacks of unsold yarns and fabrics are getting higher due to massive leakage of imported bonded goods to the local market and invasion of cheap Chinese and Indian substitutes, said a top BTMA official yesterday.
Since the turn of the year, the local market has become flooded with cheap Chinese and Indian yarns, according to Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA).
For instance, the widely consumed 30-carded cotton made yarn can now be bought for $2.90 to $2.95 a kg, down from $3.25 to $3.30 per kg in November last year.
This has left the textile millers with 30 percent unsold inventory worth about Tk 15,000 crore.
Subsequently, the BTMA president met with Salman F Rahman, prime minister’s adviser on private industry and investment, on Sunday to request the government to take measures to stop the illegal imports.
“A section of unscrupulous traders have been importing yarn illegally in connivance with some government officials,” Khokon said in a statement after the meeting with Rahman at his residence.
For example, they open letters of credit for importing one truck of yarn through Benapole but they end up importing more due to lack of proper monitoring at the land port.
If the illegal imports are not checked, the local factories’ inventory will soar and they will feel discouraged to continue production, he said.
The local spinners, which can meet 85 percent of the demand from the knitwear sector and 35 percent from the woven sector, have already slashed production by 40 percent because of the recent development.
Another problem afflicting the textile millers is that a section of unscrupulous traders have been selling goods imported under bonded facility.
The government allowed import of duty-free goods under bonded facility only for export-oriented garment factories.
“The importers are not interested in commercial import as they would have to pay nearly 37 percent duty.”
If the two issues are not addressed, the primary textile sector, which has Tk 70,000 crore tied up, will regress, he added.
Dubai Exports has launched the ‘Exporters Gateway,’ a knowledge platform that provides vital economic and trade data for the UAE and Dubai as well as information on the most sought-after UAE products.
The launch of the digital platform is part of the Gulfood 2019 exhibition, and one of a series of initiatives Dubai Exports seeks to implement as part of diversifying its services and exploring new channels that increase export capabilities of local companies and enable them to successfully compete in foreign markets.
Saed Al Awadi, CEO of Dubai Exports, said: “The Exporters Gateway aims to promote exports from the UAE while also enhancing export competitiveness and the quality of the exporter services we provide. The portal features a range of innovative technical solutions and digital content, which will complement our efforts to boost exports and the growth of our national enterprise in international markets.”
The portal will enable exporters to search for and identify opportunities across seven key sectors in more than 40 target markets globally. “Currently, the portal lists more than 60 products in which our local exporters have a competitive edge across the global markets targeted,” said Al Awadi.
The portal is particularly advantageous to exporters in overcoming major challenges in marketing their product, searching for partners, selecting the ideal partner, and estimating the export costs, said Abdul Rahman Al Omari, director of Exports Market Development in Dubai Exports, adding that exporters can hence easily navigate the export process and markets.
“Dubai Exports seeks to help our local companies to grow and enhance their overseas trade, and accordingly we continue to deliver services and initiatives that keep them abreast of emerging trends in global consumer behaviour. The Exporters Gateway will increase business development opportunities for local companies and eliminate many obstacles that our manufacturers and exporters often face in their target markets.
The African Continental Free Trade Area Agreement could be in force by mid-2019, given the current pace of ratification, according to trade experts. Rwanda’s department of trade and industry recently held the 2nd ordinary session of the specialised technical committee of the African ministers of trade, industry and mineral resources to discuss the agreement.
The meeting was themed ‘The Entry into Force of the Agreement Establishing the African Continental Free Trade Area (AfCFTA) and its Implementation’.
The objective was to consider draft continental strategies, including the African Union Commodity Strategy, Africa Union Small and Medium Enterprises Strategy and Trade Facilitation Strategy.
The meeting also took note of the various technical reports and presentations in trade, customs, industry and minerals, according to reports by news agencies.
Once established, AfCFTA will bring together 55 countries, availing a market of 1.2 billion people with a gross domestic product of about $3.5 trillion.
It is also expected to drive the transition from low productivity and labour-intensive activities to higher productivity and skill-intensive industrial and service activities across the continent.
The meeting was attended by member states, regional economic communities, experts from the Afreximbank, the African Development Bank (AfDB), the United Nations Economic Commission for Africa (UNECA), the United Nations Industrial Development Organisation (UNIDO) and the United Nations Conference on Trade and Development (UNCTAD).
AfCFTA, launched in March 2018 in Kigali, requires 22 ratifications for entry into force. The total number of ratifications now stands at 18, Rwanda’s commissioner for trade and industry Albert Muchanga said.
Fashion producers should be charged a penny per garment to fund better clothing collection and recycling in a bid to end the era of throwaway fashion, a cross-party group of MPs has suggested.
The Environmental Audit Committee urged ministers to make retailers take responsibility for the waste they create and reward companies that take positive action.
In a report, they recommended “clear economic incentives” to encourage retailers to “do the right thing”, and suggested the government reform taxation to reward companies that design products with lower environmental impacts and penalise those that do not.
They proposed extending the tax on virgin plastics, due to come into force in 2022, to synthetic textile products to encourage the use of recycled fibres. And they called on ministers to explore how they can support hiring, swapping or subscription clothes services.
The committee said an Extended Producer Responsibility scheme for textiles could raise £35 million for better clothing collection and sorting, which in turn could create new “green” jobs.
Their report, entitled Fixing Fashion: Clothing Consumption and Sustainability, also recommended retailers with a turnover of more than £36 million be made to comply with environmental targets, as the voluntary approach to improving sustainability is “failing”.
And they noted that consumption of new clothing in the UK is estimated to be higher than any other European country – at 26.7kg per person.
MPs on the committee also urged the government to change the law to require companies to perform due diligence checks across their supply chains to ensure their products are made without child or forced labour.
They pointed to labour exploitation in the UK, and said the “Made in the UK” label should mean workers are paid at least the minimum wage.
In a summary to the report, MPs wrote: “Forced labour is used to pick cotton in two of the world’s biggest cotton producing countries, Turkmenistanand Uzbekistan. Labour exploitation is also taking place in the UK. ‘Made in the UK’ should mean workers are paid at least the minimum wage.
“But we were told it is an open secret that some garment factories in places like Leicester are not paying the minimum wage. This must stop. But if the risk of being caught is low, then the incentive to cut corners is high.”
Labour’s Mary Creagh, chairwoman of the committee, said: “Fashion shouldn’t cost the earth. Our insatiable appetite for clothes comes with a huge social and environmental price tag: carbon emissions, water use, chemical and plastic pollution are all destroying our environment.
“In the UK we buy more clothes per person than any other country in Europe. ‘Fast fashion’ means we overconsume and underuse clothes. As a result, we get rid of over a million tonnes of clothes, with £140 million worth going to landfill, every year.”
She added: “Fashion retailers must take responsibility for the clothes they produce. That means asking producers to consider and pay for the end of life process for their products through a new Extended Producer Responsibility scheme.
“The government must act to end the era of throwaway fashion by incentivising companies that offer sustainable designs and repair services.
“Children should be taught the joy of making and mending clothes in school as an antidote to anxiety and the mental health crisis in teenagers. Consumers must play their part by buying less, mending, renting and sharing more.”
Unlike natural fibers like wool, cotton and silk, current synthetic fibres are petroleum-based products and are mostly not biodegradable. WASHINGTON: Polyester, nylon and other synthetic fibres are a major contributor to the microplastics pollution in the environment, according to scientists who suggest that switching to biosynthetic varieties may help tackle the global menace.
Unlike natural fibers like wool, cotton and silk, current synthetic fibres are petroleum-based products and are mostly not biodegradable.
While natural fibres can be recycled and biodegrade, mixed fibres that contain natural and synthetic fibres are difficult or costly to recycle.
“These materials, during production, processing and after use, break down into and release microfibers that can now be found in everything and everyone,” said Melik Demirel, from Pennsylvania State University in the US.
Islands of floating plastic trash in the oceans are a visible problem, but the pollution produced by textiles is invisible and ubiquitous.
In the oceans, these microscopic plastic pieces become incorporated into plants and animals.
Harvested fish carry these particles to market and, when people eat them, they consume microplastic particles as well.
Researchers suggest four possible approaches to solving this problem.
The first is to minimise the use of synthetic fibres and switch back to natural fibres such as wool, cotton, silk and linen, said Demirel.
However, synthetic fibres are less expensive and natural fibres have other environmental costs, such as water and land-use issues.
Since much of the microfibre load that ends up in water sources comes from laundering, he suggests aftermarket filters for washing-machine outflow hoses.
Clothes dryers have filters that catch lint — also microfibre waste — but current, front-loading washing machines usually do not.
“Capturing the microplastics at the source is the best filtering option,” said Demirel.
Bacteria that consume plastics do exist, but are currently at the academic research phase, which takes some time to gain industrial momentum.
If bacteria were used on a large scale, they could aid in biodegradation of the fibres or break the fibres down to be reused.
While these three options are possible, they do not solve the problem of the tons of synthetic fibres currently used in clothing around the world.
Biosynthetic fibres, a fourth option, are both recyclable and biodegradable and could directly substitute for the synthetic fibres.
They could also be blended with natural fibres to provide the durability of synthetic fibres but allow the blends to be recycled.
Derived from natural proteins, biosynthetic fibers also can be manipulated to have desirable characteristics.
Demirel, who developed a biosynthetic fibre composed of proteins similar to silk but inspired by those found in squid ring teeth, suggests that by altering the number of tandem repeats in the sequencing of the proteins, the polymers can be altered to meet a variety of properties.
For example, material manufactured from biosynthetic squid ring-teeth proteins, called Squitex, is self-healing.
Broken fibres or sections will reattach with water and a little pressure and enhance the mechanical properties of recycled cotton as a blend.
Also, because the fibres are organic, they are completely biodegradable as well.
The textile industry here has welcomed the pension scheme announced in the interim budget on Friday for workers in the unorganised sector.
However, it wanted the government to revise upward the allocations for Amended Technology Upgradation Fund Scheme (ATUFS) and the Remission of State Levies Scheme (ROSL).
Chairman of the Southern India Mills’ Association P. Nataraj said, in a press release, that the pension scheme would benefit weavers in the power loom and handloom units and those employed in the small and micro textile units.
Similarly, the announcement of Rs. 6,000 a year for farmers having less than two hectares would benefit millions of cotton farmers. However, the budget allocation for two major schemes of the Textile Ministry would have a serious impact on the industry.
Issues in ATUFS
The government should sort out procedural issues in the ATUFS and increase allocation under the scheme.
It should also hike the ROSL rate and include cotton yarn exports for MEIS and IES benefits, he said.
According to Raja M. Shanmugham, president of Tirupur Exporters’ Association, the Income Tax benefit for individuals, monthly pension scheme for unorganised sector workers, and Rs. 6,000 for farmers are all welcome measures.
Allocation
The knitwear industry hoped the government would revise upwards the allocation in the regular budget later this year for schemes of the Ministry of Textiles.
