CALL US : 
WAPP : 
Solar industry demands uniform 5% GST rate
The Solar Power Developer Association has demanded the GST rate be kept uniform at 5% on solar power generating system (SPGS) and said the recent proposals of the GST Council were inconsistent with the Centre’s policy of promoting clean energy. The total incidence of tax on the SPGS would increase to 8.9% with the implementation of the GST Council proposals finalised on December22.
Archives
ISLAMABAD: Minister for National Food Security and Research, Sahibzada Mehboob Sultan had reiterated the government’s resolve for mobilising all resources in collaboration with provinces to achieve the production of 15 million cotton bales targets set for the next sowing season.
In a statement, the minister said Pakistan Central Cotton Committee has developed good varieties of high-quality seeds and introduced production technology that best suits with changing the environment.
In addition, the provincial agriculture department has also partnered in cotton development and achieving the target production of 15 million bales, he added.
All the scientists and field staff of the agriculture department will be mobilized in capacity building of growers in various aspects of cotton production technology. The government will specially focus on contamination and quality improvement by properly implementing the Cotton Control Act and other regulation through respective forums, he added
“Cotton being the lifeline of Pakistan is of our prime focus and this ministry is in the process of developing a long-term strategy to meet the requirement of our textile industry”, he added.
The minister explained that a committee of experts was formed which was devising the details of the plan in consultation with stakeholders to achieve the target.
The committee was assigned a task for ensuring availability of certified seed, pesticides and fertilizers, maintaining the plant population to the maximum level and determination of indicative price.
“We are also focusing on horizontal expansion in Khyber Pakhtunkhwa and Balochistan especially the value-added cotton. During the current year, cotton prices remained firm and farmers experienced good profit and that will drive in getting the extra area under this crop during the following season.
Previous government has put this important crop on the back burner and resultantly area and production declined which ultimately badly affected our exports and the textile industry.
Mehboob Sultan said that the Ministry of National Food Security and Research always safeguards the growers’ interests to enhance their profitability by reducing the cost of cultivation. The recent reduction in electricity tariff to Rs5.35 per unit as the flat rate is one example of growers’ friendly policies of this government, contrary to the previous government who did it for three months only for political gains.
In the ready-made garment (RMG) sector, 2018 will in many ways be viewed as the end of an era. The Alliance for Bangladesh Worker Safety, the North American-led initiative which has done so much to improve worker safety in garment export factories, will shortly end operations in Bangladesh. Ninety-three percent of the remediation work is now complete in Alliance-affiliated factories, and there is no doubt that Bangladesh’s RMG industry has a much safer working environment now than when the Alliance arrived.
A similar story is to be told about the Bangladesh Accord for Fire and Building Safety. We cannot at this stage speak with an air of finality about the Accord, as it is unclear whether the Supreme Court in Bangladesh will allow the safety body to extend its tenure. The Accord, like the Alliance, has undoubtedly been a force for good in the RMG industry, making it safer, more sustainable, and significantly more competitive in the international markets.
It is hoped that whatever the Supreme Court verdict is, the government of Bangladesh and the Accord steering committee can work together to devise a way forward which will be beneficial to our industry and its people.
The year 2018 has seen other strides taken by the RMG industry. Earlier this year, we saw the announcement of a new minimum wage of Tk 8,000 (USD 97) for the garment workers. This is a notable step forward for the RMG industry and, although some international NGOs and unions were calling for a larger increase, it has to be borne in mind that this was an over 50 percent increase on the previous minimum wage, which was set five years ago.
More general, recent amendments to national labour laws will also help to bring Bangladesh further into line with internationally accepted standards, including those of the International Labour Organization (ILO). In October, new Bangladesh Labour Laws were passed in parliament. Under the new laws, workers’ participation required to form trade unions was reduced to 20 percent from the existing 30 percent. In addition, union quashing will be generally more difficult under the new regulations.
While in many ways this has been a good year for Bangladesh, the mood has not all been positive. The terrorist attack at the Holey Artisan Bakery in July 2016 placed the authorities in Bangladesh on high alert. This led to the issuing of travel alerts by many countries on foreign nationals visiting Bangladesh, and this undoubtedly impacts the ease of doing business. Thankfully, in the two and a half years since then, we have had plenty of evidence to suggest that the government has successfully secured full security. It foiled a number of planned attacks, making several arrests in 2018, and has taken a position of zero tolerance and committed to uprooting terrorism from the country.
Similarly, temporary direct bans on air cargo from Bangladesh were implemented by some countries in the wake of the terrorism concerns. However, many such bans have now been lifted since the government has taken a number of steps to comply with international security standards. The removal of bans will provide a relief to forwarders and exporters that have been compelled to pay extra surcharges to have their cargos screened in a third country before being transported to the target markets.
Against the backdrop, garment exports from Bangladesh were sluggish in the early months of the year but steadily picked up. The latest figures from the Export Promotion Bureau show that for the last fiscal year, the apparel sector contributed USD 30.61 billion, or 83.49 percent, to Bangladesh’s total exports of USD 36.66 billion. And during July-November of the current fiscal year 2018-19, the growth stood at 20 percent.
The challenge for the garment export industry is to maintain and even exceed these excellent figures in 2019. This will be a tough task at a time when wage levels have risen sharply and with uncertainty around the sector due to deliberations regarding the Bangladesh Accord which have been ongoing since September.
Can garment exporters rise to the challenge? Of course—but the industry, despite many successes, is still not completely fulfilling its potential. The way to exploit the potential is investing in people, technology and innovation. Well-trained people using cutting-edge industry technology are vital ingredients which drive productivity. Higher productivity in turn leads to increased national income per head and increased wages.
Such a path is well trodden by the world’s most successful economies—China is the most obvious in terms of textile and garment orientated exporters. There is no reason why Bangladesh should not follow this route. Indeed, there is already evidence among more successful and progressive exporters that a greater focus is now being placed on quality, service, and sustainability when dealing with international apparel brands. Sustainability, particularly, will become an increasingly important point of differentiation for exporters moving forwards.
Factory safety will also be an important source of competitive advantage. In this area, Bangladesh’s garment export industry now leads the world. For this reason and many others, the world will be watching Bangladesh as we head into 2019. We expect that our apparel industry will be placed to a further elevated position in the coming days.
Trade between Zambia and India has exceeded the targeted US$1 billion in the year 2018.
According to a statement released to ZANIS by First Secretary for Press and Tourism at the Zambian High Commission in India, Bangwe Naviley, trade between the two countries has improved from US$650 million in the year 2016 to US$980 million in 2017 and it has now exceeded the US$1 billion target for the year 2018.
Zambia’s High Commissioner to India Judith Kapijimpanga disclosed that the business visas issued to Indian traders and investors also increased from 520 in the year 2017 to 602 in the year 2018, which represents an increase of 82.
Ms. Kapijimpanga said more Indians were interested in investing in Zambia following the first ever visit in 30 years by an Indian President, Shri Ram Nath Kovind, who had a 3- day state visit to Zambia in April 2018.
“The mission was engaged in various activities that promote investment, trade and economic cooperation between Zambia and India and countries of extra-accreditation, namely; Singapore, Sri Lanka, Bangladesh, Nepal, Myanmar and the Maldives,” Mrs. Kapijimpanga said.
She said the mission also attended several meetings and hosted several others to ensure that the objectives of attracting foreign direct investment (FDI) and enhancing Zambia’s international trade were realized.
“I wish to appeal to all stakeholders to move with speed in ensuring that prospective investments are actualized as the mission’s mandate ends at marketing the country,” she added.
Mrs. Kapijimpanga further said the mission wooed one of India’s biggest seed processing companies, PRASAD Seeds, which is setting up a multi-million dollar processing facility in Zambia. The company has already been registered in Zambia.
“We further initiated talks with PME Power Solutions India Limited, one of the leading Indian transformer manufacturers which offered to set base in Zambia to service the country and the region, with a planned investment of USD$100 million target to create over 600 jobs,” she explained.
She expressed happiness to have witnessed the launch of works to decongest Lusaka roads at a cost of US$289 million, which she said was on one of the biggest government to government cooperation projects.
“We were also in Bangladesh for talks with Bangladesh Export Import Company (BEXIMCO), the largest company in Bangladesh in textiles, garments manufacturing, pharmaceuticals and ceramics among others, which showed interest in setting up operations in Zambia. It has US$1.4 billion group total investment in Bangladesh with 70 000 workers,” she said.
Supported by robust demand conditions in textiles, chemicals, iron and steel
The manufacturing sector, particularly the textile, iron and steel segments, maintained the pace of sales growth in the second quarter of 2018-19 compared with the year-earlier period, the RBI said on Wednesday.
Demand conditions in the manufacturing sector “maintained its pace in the September quarter 2018-19 as reflected in strong sales growth (year-on-year),” as per the RBI analysis of 2,700 listed private sector non-financial companies.
“The manufacturing sector sales growth was mainly supported by robust demand conditions in chemical and chemical products, iron and steel, and petroleum products industries coupled with significant improvement recorded by textile industry,” the RBI said.
The central bank said heavy moderation was seen in the sales growth of motor vehicles and other transport equipment, driven in part by a large adverse base effect, and pharmaceutical and medicine industries.
The information technology (IT) sector also recorded further improvement in sales growth over the year-ago period.
The manufacturing sector continued to record strong growth in net profit, which received support from other income.
On the expenditure front, manufacturing companies continued to face rising input cost (cost of raw materials, staff cost) pressures. In the case of the IT sector, staff costs accelerated in tandem with the improvement in sales growth, the RBI said.
To be organised in Erode
The textile fair organised by Texvalley and Confederation of Indian Industry recently generated business for nearly Rs. 450 crore, according to a press release from the organisers.
The four-day event in Erode had 204 exhibitors from different parts of Tamil Nadu, West Bengal, Karnataka, and Uttar Pradesh. The products displayed included greige fabrics, processed and finished fabrics, ethnic wear, knitted fabric, handloom/khadi, home textiles, accessories, machinery, and yarn.
Over 7,000 delegates from across the country and also from the U.S., Sri Lanka, Oman, South Africa, Dubai, Myanmar, Bangladesh, and Russia visited the fair. As many as 654 business-to-business meetings were held.
The next edition of Weaves will be held in Erode in November 2019, the release added.
‘Agriculture and allied sectors have registered 11% growth rate and there is significant drop in suicides’
The State government could double the farmers’ income in the last four-and-a-half years with persistent efforts, change in strategies and programmes.
Their income touched Rs. 2.52 lakh in 2017-18 from Rs. 1.28 lakh in 2014-15.
The agriculture and allied sectors registered an average growth of 11%. The growth rate stood at 17.76% in 2017-18 against 3.55% in 2014-15, according to Chief Minister N. Chandrababu Naidu.
The Chief Minister released a white paper on farmers welfare (agriculture and allied sectors) at the Grievance hall near his residence at Undavalli near here on Wednesday.
Apart from growth and development, the farmers’ suicides had come down significantly.
The government was poised to make Andhra Pradesh as ‘farmers suicides free State’. It was ensuring seed, power and water security for the farming community to that end.
The agriculture budget was increased to Rs. 19,070 crore in 2018-19 from Rs. 6,128 crore in 2013-14 despite stress on the State finances. Nearly Rs. 82,000 crore was spent on agriculture and allied sectors since 2014, he said.
‘Of claims and reality’
“Prime Minister Narendra Modi has been promising to double the farmers’ income. Andhra Pradesh has shown it. That’s difference between claims and reality.”
Despite deficit rainfall, the State could do well in agriculture and allied sectors due to change in the strategies. Aquaculture and horticulture were promoted in a big way. Andhra Pradesh stood first with regard to organic farming with 8% growth compared to an average 1% in the country. When the TDP assumed power, the districts such as Anantapur required de-desertification programmes and were at the bottom of the pyramid in agriculture. Now Anantapur stood first in the State with an income of Rs. 14,775 crore against the popular belief that Krishna, Guntur and Godavari districts fared well in the sector, he said.
Mr. Naidu said debt redemption scheme, soil health cards, farm mechanisation, zero budget natural farming, a drastic reduction in use of insecticides, pesticides, and fertilizers, government interventions in the purchase of farmers’ produce, mega seed park and input subsidy were some of the initiatives that helped the government in achieving its targets.
Debt redemption
The CM said the government paid Rs. 15,147 crore to 58.29 lakh accounts, both agriculture and horticulture farmers, including 10% annual interest. It paid the entire loan if it were less than Rs. 50,000 as a one-time settlement.
For accounts more than Rs. 1.5 lakh, the government paid three instalments so far. Remaining would be cleared in a month. The outlay of debt redemption amount was Rs. 24,000 crore, he said. To a question, he said debt redemption, subsidies etc were not included in calculating the farmers’ income.
Agriculture Minister Somireddi Chandramohan Reddy and others were present.
Cotton sown in 95,000 ha in Sangareddy district: official
Deficit in rainfall has badly affected cotton yield in the district. “There was 45 % deficit rainfall in the district. Cotton was sown in about 95,000 hectares and the yield has fallen from eight to 10 quintals per acre to three to four quintals per acre,” District Agriculture Officer B. Narasimha Rao said.
“I had sown cotton in 30 acres, including five acres of my own while the remaining is on lease. I had paid a lease amount of Rs. 15,000 per acre. The total investment I made is Rs. 6 lakh whereas I am likely to get only Rs. 2 lakh. I do not know what to do now,” a cotton farmer of from Pottipally in Sadashivapet mandal, R. Shivanandi, told The Hindu. He attributed low yield in cotton to lack of rains and pink boll worm.
There was roughly a 45 per cent deficit rainfall and the rain has been scattered through the season resulting in reducing the cotton yield this has resulted in the yield falling by 50 %, official sources said. “In the past it was only pink boll worm that hit us and we were able to manage to recover our investment though we could not earn enough to cover the amount spent on labour. This year poor rainfall has aggravated our problems,” he commented adding that earlier they used to get eight to 10 quintals per acre whereas it had fell down to two to three quintals per acre this year.
“Farmers used to make two or three plucking from their fields once the harvesting seasons commenced. But this time, they will have to be satisfied with only one plucking as there is no rain. However, the effect of pink boll worm was relatively less,” president of Manjeera Rytu Samakhya Pruthvi Raj explained.
While 2018 was the year trade wars broke out, 2019 will be the year the global economy feels the pain.
Bloomberg’s Global Trade Tracker is softening amid a fading rush to front-load export orders ahead of threatened tariffs. And volumes are tipped to slow further even as the US and China seek to resolve their trade spat, with companies warning of ongoing disruption. Already there are casualties. GoPro will move most of its US-bound camera production out of China by next summer, becoming one of the first brand-name electronics makers to take such action, while FedEx Corp recently slashed its profit forecast and pared international air-freight capacity.
“Any kind of interference with commerce is going to be a tax on the economy,” said Hamid Moghadam, chief executive officer of San Francisco-based Prologis, which owns almost 4,000 logistics facilities globally. “And the world economy is probably going to slow down as a result of it.”
Financial markets have already taken a hit. Bank of America Merrill Lynch estimates that the trade war news has accounted for a net drop of 6 per cent in the S&P 500 this year. China’s stock market has lost $2 trillion in value in 2018 and is languishing in a bear market. Recent data underscore concerns that trade will be a drag on American growth next year. US consumers are feeling the least optimistic about the future economy in a year, while small business optimism about economic improvement fell to a two-year low and companies expect smaller profit gains in 2019.
For the world economy, the threat of trade war has dissipated, not disappeared. Three risks stand out. First, 90 days of talks between China and the US might end in failure, with higher tariffs following. Second, even without an increase in tariffs, front-loading of exports in 2018 will reduce shipments in 2019. Finally, looking beyond the trade war, early warning signs from PMI surveys to FedEx profit warnings flag a softening of demand.
Officials from the textile department said that co-operative spinning mills are expected to set up solar power plants in their premises in three years.
In an attempt to give the textile industry a boost, the state government has decided to give a power subsidy of Rs 3 per unit to co-operative spinning mills for three years.
Officials from the textile department said that co-operative spinning mills are expected to set up solar power plants in their premises in three years. The concessions in power tariffs are not applicable for residential users, said an official, adding that the subsidy will be reviewed every year to reduce the overall financial burden.
Sources in the textile industry said that 90 co-operative spinning mills in the state are likely to benefit.
“A committee has been set up under the chairmanship of the textile director. It is in the process of formulating the criteria to decide the eligibility,” said an official, adding that the textile director would carry out random inspections to check whether the power is being used for the same purpose.
Apart from co-operative spinning mills, a power subsidy of Rs 2 per unit will be given to powerloom units and other textile processing units.
“The information about the power consumption and productions of the spinning mills and other textile units will be collected through global positioning system,” the official said.
In February, the state government approved a new textile policy for 2018-2023. A government resolution on giving the power subsidy was issued on Friday.
Welcoming the decision, Ashok Swami, president of the Maharashtra State Textile Mahasangh, said: “It will give a much-needed push to the industry. One of the major reasons for spinning mills to incur losses is the higher power tariffs in the state compared to the state.”
