Cotlook A Index - Cents/lb (Change from previous day)

07-08-2019 70.30 (+0.30)

08-08-2018 97.85

08-08-2017 80.85

New York Cotton Futures (Cents/lb) As on 09.08.2019 (Change from

previous day)

Oct 2019 63.02 (+0.13)

Dec 2019 63.11 (-0.71)

Mar 2020 64.23 (-0.83)

09th August

2019

Cotton and Yarn Futures

ZCE - Daily Data (Change from previous day)

MCX (Change from previous day)

Aug 2019 20320 (+390)

Cotton 12765 (-80) Oct 2019 19740 (+260)

Yarn 20355 (-120) Nov 2019 19410 (+120)

Govt gets ready for reforms to fight slowdown; FM to meet FPIs, MFs today FM Sitharaman assures industry of ‘Quick Action FinMin asks commerce ministry to assess revenue impact of proposed RCEP Viscose yarn imports jump hurting local spinners: ITF NCTO welcomes new Trump tariffs

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2 CITI-NEWS LETTER

-------------------------------------------------------------------------------------- Govt gets ready for reforms to fight slowdown; FM to meet FPIs, MFs today FM Sitharaman assures industry of ‘Quick Action FinMin asks commerce ministry to assess revenue impact of proposed RCEP India doesn’t have the luxury to opt out of multi-lateral trading system: Hardeep Puri Viscose yarn imports jump hurting local spinners: ITF Novel initiatives needed to make people self reliant, says DM Continue policy of zero duty on cotton imports: ITF Rajasthan working to combat textile sector water pollution -------------------------------------------------------------------------------

China exports rebound in July, just in time to face fresh Trump tariffs NCTO welcomes new Trump tariffs Pakistan: ECC constitutes committee to review cotton prices Feature: Chinese products gain popularity among Kenyan consumers Textiles evolving to meet demand for sustainable materials

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NATIONAL

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GLOBAL

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3 CITI-NEWS LETTER

NATIONAL:

Govt gets ready for reforms to fight slowdown; FM to meet FPIs, MFs today

(Source: Business Standard, August 09, 2019)

FM Nirmala Sitharaman is holding daily meetings with industry in the backdrop of

sluggish economic growth

Even as Finance Minister Nirmala Sitharaman is holding daily meetings with industry in

the backdrop of sluggish economic growth, the Centre is planning reforms in crucial

sectors over the next few months, Business Standard has learnt.

These plans include a public transportation initiative on the lines of the erstwhile

National Urban Renewal Mission (JN-NURM) for the automobile sector, a tax overhaul

through the direct tax code (which is in the works), and others.

The finance minister will also be meeting market participants including senior officials

of foreign portfolio investors and mutual funds on Friday to ascertain views on current

issues relating to financial markets.

Sitharaman also addressed immediate fears, assuring representatives of India Inc that

the penal provisions, including a jail term, under the recent amendments to the

Companies Act, would not be imposed for companies that did not meet corporate social

responsibility (CSR) norms.

She gave this assurance to members of industry bodies and other industrialists.

Representatives of the Confederation of Indian Industry (CII), Federation of Indian

Chambers of Commerce and Industry (Ficci), Associated Chambers of Commerce and

Industry of India (Assocham), and Cellular Operators Association of India (COAI) were

present in the meeting on Thursday.

“The penal provisions for CSR were discussed. We were assured by the finance minister

that punitive actions, which include a jail term, would not be taken,” Sajjan Jindal,

chairman of JSW Group, told reporters after the meeting.

Corporate Affairs Secretary Injeti Srinivas also said on Thursday the government had no

intention to criminalise any default in corporate social responsibility spending.

According to the amendments to the Companies Act, which was passed in Parliament,

violations of CSR norms will attract fines ranging from Rs 50,000 to Rs 25 lakh for both

the company and defaulting officers, with officers also liable to imprisonment of up to

three years.

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4 CITI-NEWS LETTER

Speaking on the economic slowdown, an official who has been part of the industry-

finmin meetings, said, “The government is seized of the matter that reforms are needed

across all sectors, be it coal, mines, power, or discoms, and steps will be taken to address

these.” The official added that industry representatives in a recent meeting had

complained about the high cost of business.

“The economy needs initiatives, for which the government is making preparations,” said

the official, who participated in the meetings held over the last two days, adding that

various plans were being discussed even with the top levels in government. “Next in line

for the government in terms of priority is combating the slowdown,” the official said.

Growth fell to a five-year low of 6.8 per cent in FY19, much below the government’s

projection of 7.2 per cent.

Growth in the fourth quarter decelerated to the lowest in 20 quarters at 5.8 per cent,

owing to a decline in investment.

In the meeting with Sitharaman, industry representatives asked the government for a Rs

1 trillion ‘quick fix’ stimulus to revive demand and consumption.

The finance minister met bankers on Monday; representatives of micro, small, and

medium enterprises on Tuesday; auto makers and component manufacturers on

Wednesday; and industry bodies on Thursday. She will meet representatives of the

markets and investors on Friday, and home buyers and real-estate developers on

Sunday.

Assocham President B K Goenka said his group had sought a stimulus package to

initiate the investment cycle. “The economy requires a critical intervention through a

stimulus package. We have suggested a package of over Rs 1 trillion,” he said.

“Stresses are there as far as non-banking financial companies (NBFCs) are concerned,

and because of NBFCs, what's happening in other industries,” said Ajay Piramal of

Piramal Enterprises.

In the meeting industry groups were unanimous in their complaint that banks had not

passed on the benefits of multiple rate cuts to consumers. “Compared to a cumulative

75-basis-point cut in repo rate, there has been only a 10-basis-point cut in the median

marginal cost of lending rate (MCLR) of public sector banks for a one-year tenor over

February-June 2019,” CII Vice-President T V Narendran said.

The CII wanted a reduction in the small savings rates in line with market rates. It

warned that inability to do so would scuttle the efforts of public sector banks to reduce

deposit rates and hence ease lending rates.

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5 CITI-NEWS LETTER

“While it’s encouraging that the RBI has reduced the rate by cumulative 110 basis

points, industry is looking forward to some more rate cuts because real interest rates are

still very high,” Ficci President Sandip Somany said.

Goenka said idle government land should be monetised, given the fiscal constraints.

Such land could be used for affordable housing and new projects, he added.

Assocham has asked the government to formulate a plan to turn the US-China trade war

to good account.

Vodafone Idea Chief Executive Balesh Sharma said Sitharaman told her secretaries to

look into the issues raised by various industry bodies, especially the one relating to GST

refunds staying blocked.

Talking points

Assocham President B K Goenka suggests Rs 1-trn stimulus package to initiate

the investment cycle

Piramal Enterprises Chairman Ajay Piramal says matters such as reluctance of

banks to lend to the industry were raised

CII Vice President T V Narendran says a slowdown in the auto industry will have

implications for the steel sector

Ficci President Sandip Somany says transmission of interest rate cuts to

consumers by banks is a big issue

Home

FM Sitharaman assures industry of ‘Quick Action

(Source: Economic Times, August 09, 2019)

Sitharaman will be meeting representatives of the capital markets on Friday, and real

estate on Sunday

The government has assured India Inc of some “quick action” to jumpstart the sluggish

economy, as a delegation of industry captains on Thursday met finance minister

Nirmala Sitharaman with a charter of demands.

Industry leaders have sought tax rationalisation, a package for non-banking finance

companies (NBFCs), faster transmission of policy rate cuts and relief from harsh penal

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6 CITI-NEWS LETTER

provisions introduced in the Companies Act for noncompliance with corporate social

responsibility (CSR).

“It was decided that the government is going to take action very soon to revive the

industry. It is a matter of sentiment. We got positive feedback from the finance

minister,” said Sajjan Jindal, chairman, JSW Group. Sitharaman is meeting industry

representatives, having interacted with those from public and private banks, micro,

small & medium enterprises (MSMEs) and automobiles sector, so far. She will be

meeting representatives of the capital markets on Friday, and real estate on Sunday.

“We are getting inputs from various sectors and trying to respond so confidence of those

sectors is restored,” the minister had said after her meeting with bankers on Monday.

Core sector growth slumped to its lowest in more than four years in June and auto sales

touched new lows, prompting companies to cut production. Thursday’s meeting was

attended by Wipro chairman Rishad Premji, ITC chairman Sanjiv Puri, Sun Pharma

managing director Dilip Shanghvi and Apollo Hospitals managing director Suneeta

Reddy. Jindal said the industry captains raised issues troubling sectors such as steel,

NBFCs and automobiles.

Piramal Enterprises chairman Ajay Piramal said the reluctance of banks to lend to the

industry was also brought to the government’s notice. “It is not that there was a lack of

liquidity in banks, but lending was not taking place. There is stress on the economy as

far as NBFC sector is concerned,” he said after the meeting, adding that the NBFC issue

was also impacting sectors such as auto, home loan, and MSMEs. “I am told that there

will be action soon. So, we will wait for that.” Sitharaman also assured that penal

provisions concerning noncompliance with CSR spending norms under the companies

law would not be pursued. Piramal said the industry demanded that oversight in CSR

spending should not result in any imprisonment. Confederation of Indian Industries

vice-president TV Narendran said the government sought views on ways to further

stimulate the country’s economic growth. “Across the board, we discussed key issues,”

he said adding that the slowdown in the auto industry would have an implication on the

steel sector too. Former president of the Federation of Indian Chambers of Commerce

and Industry, Jyotsna Suri, said interest rates cuts should be passed on to borrowers.

Associated Chambers of Commerce and Industry of India president BK Goenka sought a

stimulus package to kickstart investment cycle in the economy. With the current

slowdown in the global and domestic market, there is a for quick-fix solutions, he said.

Assocham, in its observations to the finance minister, said there is need for

rationalisation in the category of goods falling under 28% goods and services tax. There

are still 33 items in the highest slab. “It is recommended that the rate of other goods

falling under such categories such as cement, consumer durables, automobiles,

including parts thereof, etc should be reduced to 18%,” said Goenka.

Home

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7 CITI-NEWS LETTER

FinMin asks commerce ministry to assess revenue impact of proposed

RCEP

(Source: MydigitalFc, August 08, 2019)

India is looking for a balanced trade agreement, as it would cover 40 per cent of the

global gross domestic product.

The finance ministry has asked its commerce counterpart to assess the revenue

implication of the proposed mega free-trade agreement RCEP, sources said.

In a letter to the commerce department, the revenue department also suggested it to

form a joint team of officials to understand the revenue (customs duty foregone)

implication of RCEP.

"The revenue secretary has written a letter to the commerce secretary to calculate the

revenue impact of the proposed agreement," they said.

The Regional Comprehensive Economic Partnership (RCEP) is an agreement being

negotiated by 16 countries since 2013. So far, 27 rounds of talks at the chief negotiators

level have been conducted.

Several challenges in both goods and services sectors still persist and need to be

resolved before reaching the conclusion of negotiations RCEP.

The 16-member RCEP bloc has targeted to conclude the negotiations by November this

year.

The major challenges in front of India include widening trade deficit with member

countries, such as China, and disproportionate loss in customs revenue due to

elimination or significant reduction in import duties.

India registered trade deficit in 2018-19 with as many as 11 RCEP member countries,

including China, South Korea and Australia, out of the grouping of 16 nations.

Further, in a comprehensive stakeholder consultation on the pact, several sectors

including dairy, metals, marine products, electronics, chemicals, pharmaceutical,

plastics and textiles have registered reservation on the proposed agreement.

RCEP bloc includes the 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos,

Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and Australia,

China, India, Japan, South Korea and New Zealand.

The agreement aims to cover issues related to goods, services, investments, economic

and technical cooperation, competition and intellectual property rights.

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8 CITI-NEWS LETTER

In the merchandise sector, all the countries want India to eliminate customs duties on

maximum number of goods as the country's huge domestic market provides immense

opportunity for exports. But, the domestic industry has raised serious concerns over

presence of China in the grouping.

India trades in over 11,500 products. Certain sensitive sectors such as agriculture are

mostly kept out of the purview of such agreements to protect the interest of farmers.

Experts have mixed views over the impact of this pact on India. Biswajit Dhar, professor

of economics at Jawaharlal Nehru University, is of the opinion that free trade pacts are

not about only giving market access, but also getting that access in other countries.

India is looking for a balanced trade agreement, as it would cover 40 per cent of the

global gross domestic product and over 42 per cent of the world's population.

Home

India doesn’t have the luxury to opt out of multi-lateral trading system:

Hardeep Puri

(Source: Kritika Suneja, Economic Times, August 08, 2019)

On the domestic front, Puri said if the economy has to grow, then the import of plant and

equipment is necessary as it is a good sign of a healthy and growing economy.

Hardeep Singh Puri, minister of state for commerce and industry on Thursday said that

India doesn’t have the luxury to opt out of multi-lateral trading system but added that

the system needs to change in the wake of challenges posed by larger economies.

“No matter which way you look at it-whether you want to be a $5 trillion economy or

$10- trillion economy, I don’t believe we have the luxury of opting out of the multi-

lateral trading system,” Puri said at the 53rd Convocation of Indian Institute of Foreign

Trade held in Delhi.

Puri is Minister of State (Independent Charge) of Ministry of Housing & Urban Affairs

and Civil Aviation and Minister of State for Commerce & Industry.

Stating that the larger economies like the US underestimated the value of multilateral

trade and the amount they owed to the trading system for their own prosperity, he said:

“I think what startled them was the fact that the distribution of gains was unequal, both

within the country and between countries. And that is our challenge.” His statement

assumes significance in the wake of the World Trade Organisation (WTO) facing a crisis

with its dispute settlement system having been crippled by the US. “If you ask me as a

student of the international system, I have no doubt that the system has to change,” he

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9 CITI-NEWS LETTER

added. However, he said: “If I were an investor and give a talk to youngsters, which are

the three countries I would recommend them to seek professional career in…(it would

be) the US, China and India”. On the domestic front, he said if the economy has to grow,

then the import of plant and equipment is necessary as it is a good sign of a healthy and

growing economy.

Home

Viscose yarn imports jump hurting local spinners: ITF

(Source: Fibre2Fashion, August 08, 2019)

There is a huge jump in imports of

viscose yarn compared to the

previous year, which is hurting

domestic yarn manufacturing

spinning mills, according to the

Indian Texpreneurs Federation

(ITF). This can be addressed if the

domestic spinning industry is able

to buy viscose fibre at international

prices and is also protected from

low-priced yarn imports.

In recent years, the demand and use of viscose products has increased in the

Indian textile industry, as the sector is slowly and gradually moving towards making

more blended products both for domestic and export markets in line with the changing

fashion trends.

As a result, viscose products (including fibre, yarn, and fabric) are playing a major role

in the growth of overall textile manufacturing sector, within both the MMF and blended

product space.

Due to this growing momentum in viscose usage, several new capacities have been

added in viscose segment with considerable investments, creating lot of job

opportunities across India. Even new technologies like airjet spinning have been

introduced in the domestic viscose spinning segment, ITF said in a statement.

However, these spinning mills are now getting affected due to a big jump in viscose yarn

imports in recent months. Compared to imports of $58.85 million during April-March

2018-19, the first quarter of 2019-20 registered imports of $20.30 million, with June

2019 alone witnessing import of $8.64 million.

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10 CITI-NEWS LETTER

In rupee terms, the June 2019 import of viscose yarn works out to around ₹60 crore. If

the trend continues, it would mean import of around ₹700 crore per year. "This amount

is very high because viscose use is below one-tenth of cotton consumption or production

in India," ITF said.

Explaining the reason for increase in viscose yarn imports, ITF said the main reason is

the lower material cost for the Chinese and Indonesian spinning mills, from where most

of the imported yarn is originating.

The Indian government has protected viscose fibre by imposing duties including anti-

dumping duty. There is also 20 per cent customs duty on viscose fabric. This leaves

viscose yarn unprotected paving way for higher imports, according to the ITF.

Traders are exploiting this situation and are using the opportunity to import more

viscose yarn and supply the same to the domestic weaving sector. "This situation calls

for a level-playing field for the survival of the domestic spinning sector. We appeal to the

government to make viscose fibre available to the spinning industry at international

prices, or protect the sector from the current unprecedented low-priced yarn imports,"

ITF added.

Home

Novel initiatives needed to make people self reliant, says DM

(Source: The Pioneer, August 09, 2019)

Various novel initiatives will have to be taken to make women self reliant in order to

mitigate migration. The Almora district magistrate Nitin Singh Bhadauriya said this

while speaking at a function organised to mark the occasion of national handloom day

here on Thursday.

The district magistrate said that a factory used to operate here in the past which later

closed down. In order to boost income generation scope for the youth and women a

programme is being held in this site. As part of the programme, women are being

provided training in groups of 20 each. In the training programme, the women are being

taught to make Pashmina items, shawls, sweaters and other items. They can later

provide this training to their acquaintances in order to make the capable of self

employment.

Bhadauriya further said that the ministry of textiles and Almora district industry centre

are jointly undertaking various initiatives to enable the people to become self reliant.

The training programme has been organised here to boost income generation potential

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11 CITI-NEWS LETTER

of people earlier employed in the factory who were rendered unemployed with the

factory closing down.

After a six-month training period, the Hans Himadri Handloom will provide

employment to those who have undergone the said training, he added. The items that

will be prepared here after the training will be displayed at various locations and

arrangements will also be made for maketing the same. The DM informed that the

textile ministry has also decided to open an institution in the Almora district. It is hoped

that the opening of this institution will prove to be considerably helpful to weavers and

other people in the district.

He further said that care should be taken to ensure that all the items made here should

carry aspects identifying it with this region so that the products can have a distinct

identity. After addressing the gathering, the district magistrate also presented

certificates to the women and men who had completed their training from here. The

Bunkar Seva Samiti, Chamoli assistant director Vinay Kumar informed that 40 weavers

in Matena, Dinapani are being trained in dyeing.

Home

Continue policy of zero duty on cotton imports: ITF

(Source: Fibre2Fashion, August 08, 2019)

Coimbatore-based Indian Texpreneurs Federation (ITF) recently wrote

to textile minister Smriti Irani expressing its concern over a media report that said

Maharashtra state is mulling over imposing import duty on cotton to control domestic

prices. Such ‘anti-industry’ proposals can change the entire dynamics of the textile value

chain, it said.

Pasha Patel, head of Maharashtra government’s committee for agriculture cost and

pricing, recently told The Indian Express newspaper that as cheap imports and sluggish

exports loom large over the domestic cotton market, an import duty on cotton could be

explored to keep domestic prices steady.

The textile industry had received a severe setback in 2010-11 when policy changes

created a turbulence in the spinning sector and more than ₹15,000 crore was eroded

from the system. That was the beginning of stressed assets in spinning mills and many

mills are yet to fully recover from that setback, ITF convenor Prabhu Damodharan wrote

in the letter.

The Indian textile sector needs long-term and stable policies to face global competitors

and due to the US- China trade war, a lot of opportunities are emerging, the letter said.

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12 CITI-NEWS LETTER

India needs to make more value added products to capture the global market share and

also to ensure job creation, it said.

ITF requested the textile minister to intervene at the earliest to stop any such anti-

industry policy measure and continue with the policy of zero duty on cotton imports or

exports.

Home

Rajasthan working to combat textile sector water pollution

(Source: Fibre2Fashion, August 08, 2019)

A delegation of textile entrepreneurs from Rajasthan’s Pali district recently discussed

with state chief minister Ashok Gehlot various problems related to water pollution by

industrial units and its treatment. Gehlot assured them that the state is working on a

permanent solution to combat water pollution in the textile zone in Jodhpur, Pali and

Balotra.

In compliance with instructions given by the National Green Tribunal from time to time,

the state government is upgrading the existing common effluent treatment plants

(CETP), a news agency quoted the chief minister as saying.

The state is also working with the Rajasthan State Industrial Development and

Investment Corporation and the State Pollution Control Board to establish new CETPs.

Home

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13 CITI-NEWS LETTER

GLOBAL

China exports rebound in July, just in time to face fresh Trump tariffs

(Source: Business Mirror, August 09, 2019)

China’s export growth rebounded in July and imports shrank less than forecast,

signaling some recovery in trade just as companies brace for the arrival of new tariffs

from the US.

Exports increased 3.3 percent in July from a year earlier, while imports declined 5.6

percent, leaving a trade surplus of $45.1 billion, the customs administration said on

Thursday. Economists had expected exports to drop by 1 percent and imports to shrink

by 9 percent. China’s exports to the US dropped 6.5 percent in July from a year earlier in

dollar terms, and its trade surplus with the US for the first seven months was $27.97

billion, down from $29.92 billion in the first half.

Stabilizing exports are a brighter sign for China’s slowing economy after a bruising first

half and follow indications that policy-makers are willing to tolerate a weaker yuan that

may help boost the nation’s external competitiveness.

President Donald J. Trump announced last week that the US will impose 10 percent

additional tariffs on another $300 billion worth of Chinese exports starting next month,

after the two sides ended their first face-to-face talks in three months without progress.

Beijing said it will retaliate.

“The strength in exports reflected a broad-based improvement,” said Michelle Lam,

Greater China economist at Societe Generale SA in Hong Kong. “But given Trump’s

latest threat, we may see some front-loaded orders again in August before more

weakness in the rest of the year.”

If Trump imposes the additional tariffs as scheduled on September 1, China’s economic

growth will slow to 6 percent this year and 5.6 percent in 2020, according to estimates

by Bloomberg Economics. China’s yuan slid past the key level of 7 to the dollar this

week, weakening to its lowest level against a basket of peers since 2015 on Thursday.

Economists interpreted the data differently. Despite export and imports beating

expectations in July, the trade outlook remains bleak in the second half as purchasing

managers indexes of major trading partners remain low, indicating sluggish external

demand, said Ding Shuang, chief China and North Asia economist at Standard

Chartered Bank Ltd. in Hong Kong.

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14 CITI-NEWS LETTER

“The last round of US tariff increases in June—from 10 percent to 25 percent on $200

billion of China’s goods—will likely show its effect in the next few months,” he said.

“Compared with the first half, net exports may turn from a boost to a drag on the

economy.”

China’s escalating trade war with the US may be nudging the world economy toward its

first recession in a decade, with investors demanding politicians and central bankers to

act fast to change course.

The latest setback hit German industrial production, which, in June, registered its

biggest annual decline in almost a decade, highlighting the severity of a manufacturing

slump in Europe’s largest economy. In the Asia-Pacific region, central banks in New

Zealand, India and Thailand made surprise interest-rate cuts on Wednesday trying to

safeguard their economies from global headwinds.

Home

NCTO welcomes new Trump tariffs

(Source: Innovation in Textiles, August 08, 2019)

The Washington-based National Council of Textile Organizations (NCTO) –

representing the full spectrum of US textiles from fibres through to finished sewn

products – has welcomed President Trump’s announcement that he will impose a 10%

tariff on the remaining US$ 300 billion of imports from China on 1 September.

The US textiles industry has long supported the administration’s efforts to crack down

on China’s abuse of intellectual property rights while also calling on the administration

to include finished apparel and home furnishings in any retaliatory tariffs against China.

Chinese imports of finished goods into the US market, which have had the most

significant impact and disruption on domestic textiles and apparel production,

investment and jobs, will finally be included in the administration’s retaliatory tariffs.

“China’s rampant abuse of intellectual property rights and IP theft has gone on far too

long at the direct expense of the US textile industry and its supply chain, resulting in the

loss of US manufacturing jobs in this critical sector,” said Kim Glas, NCTO President

and CEO. “We have long encouraged the administration to include finished products on

the tariff list, given China’s rampant intellectual property abuses and the significant

impact it has had on our sector.”

Underscoring the penetration by China into the US market, finished apparel, home

furnishings and other made-up textile goods equate to 93.5% of US imports from China

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15 CITI-NEWS LETTER

in the textiles sector, while fibre, yarn and fabric imports from China only represent

6.5%.

“We believe this move will lead to more re-shoring of production to the United States

and the Western Hemisphere production platform and will also address and mitigate

China’s rampant trade distortions,” said Ms Glas. “While we support the inclusion of

finished products in the latest retaliatory tariffs, our industry has very serious concerns

that certain inputs already vetted by the administration and removed from previous

retaliatory tariff lists are on this list. These inputs include but machinery, dyes and

chemicals and textile components not available domestically, like rayon staple fibre.”

The US textiles supply chain employed 594,147 people in 2018 according to NCTO

figures, and the value of shipments for US textiles and apparel was $76.8 billion last

year.

US exports of fibres, textiles and apparel in 2018 were US$ 30,1 billion, while capital

expenditures for textiles and apparel production in 2017 totalled US$ 2 billion.

Home

Pakistan: ECC constitutes committee to review cotton prices

(Source: Radio Pakistan, August 08, 2019)

Economic Committee of the Cabinet has decided to constitute a Price Review

Committee, under the chair of Advisor Ministry of Commerce and Textile, to review and

suggest the indicative price and other measures to be taken in case of abnormal

fluctuations in the prices of cotton. Advisor to the Prime Minister on Finance and

Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting in Islamabad.

Ministry of National Food Security and Research briefed the ECC on the wheat situation

in the country .

The Committee instructed the Ministry of National Food Security and Research to

regularly monitor the wheat prices, availability of wheat stocks in the country and

ensure release of wheat stocks to the local market throughout the year.

The Ministry of Energy also submitted a summary to the ECC for extension of gas

network and rehabilitation of existing network in oil and gas producing districts of

Khyber Pakhtunkhwa at a cost of 9.039 billion rupees.

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16 CITI-NEWS LETTER

ECC approved a proposal for allowing SNGPL to raise verified subsidy bill/claim of

preceding month by 8th day of every month and Finance Division to release the subsidy

within seven days of receipt of claim from Petroleum Division.

The ECC also approved the proposal for the export-oriented sector to pay the invoices at

ECC approved tariff of 6.5 dollar per MMBTU along with applicable taxes.

It further approved that waiver of interest Late Payment Surcharge (LPS) charged by

SNGPL on the amounts over and above the tariff of 6.5 dollars per MMBTU during the

FY-2018-19 which was due to delayed subsidy release by the Government.

Home

Feature: Chinese products gain popularity among Kenyan consumers

(Source: Xinhua, August 08, 2019)

The balmy weather that enveloped Kenya's capital of Nairobi on Wednesday afternoon

provided an opportunity for Daniel to relax and meditate outside the textiles shop where

he works as a salesman.

Daniel's textiles shop that is located at a busy street in downtown Nairobi is a popular

destination for middle class Kenyans looking for curtains and beddings that have an

exotic feel.

The suave salesman with an athletic body frame told Xinhua that the bulk of fabrics sold

at the retail shop where he has worked in the last one year are sourced from China.

"We have been importing textiles, beddings and garments from China and the response

from our clients has been positive," said Daniel who preferred his first name only,

adding that he has no reservations on products manufactured in China.

According to Daniel, textiles imported from China have struck a chord with local clients

given their high quality, affordable cost and durability.

"I think textiles are my favorite Chinese brands so far. But I also believe machinery

imported from China is serving this country well as we embark on industrialization,"

said Daniel.

Now in his late 20s, Daniel belongs to a growing rank of young Kenyan entrepreneurs

who consider China a favorite destination for sourcing consumer goods.

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17 CITI-NEWS LETTER

Potential customers who streamed into his shop admired the elegant fabric on display

and some of them promised to return at a later date to purchase their favorite curtains

and bed sheets.

A random survey in Nairobi's central business district revealed that traders and their

clients have developed a strong attachment to products imported from the Asian

country.

John Mwangi, a middle aged father of three who operates an electronics shop in

downtown Nairobi, said that energy saving bulbs, sockets and solar lanterns imported

from China are popular with local clients.

"We have local agents who facilitate importation of electrical appliances from China on

our behalf and our customers have no problem with these products because they are

pocket friendly," said Mwangi.

The energy saving bulbs, in particular, are popular with developers who are putting up

apartments in middle to lower income settlements in Nairobi, he added.

As China emerges as Kenya's largest trading partner, local entrepreneurs and consumers

have benefited from access to products that are cheaper and of high quality.

Government statistics indicate that China's manufactured products that include

electronics, motorcycles, clothes, machinery, furniture and automotive parts account for

about 23 percent of all imports coming into the East African Nation.

Angela, tourism major in her mid-20s, gave a positive assessment of Chinese brands like

smartphones and kitchenware that have a large presence in the Kenyan market.

She revealed that Huawei smartphones remain her favorite Chinese brand and noted

that majority of retail shops in her residential district are stocked with merchandise

from the world's second largest economy.

"My impression of Chinese products has remained positive given that they are serving

our needs well," said Angela, adding that she aspires to own a travel agency firm that

will targets tourists from unexploited markets in Asia.

The growing popularity of Made-in-China products was evident at the China trade week

held in Nairobi in June where hundreds of local clients visited exhibition stalls in search

of textiles, home appliances, electronics and vehicle spare parts.

Nemaisa Kiereini, chief executive officer of Kenya National Chamber of Commerce and

Industry (KNCCI), told Xinhua that confidence in Chinese manufactured goods among

local consumers has grown in recent times.

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18 CITI-NEWS LETTER

According to Kiereini, Kenyan consumers have interacted with Made-in-China products

for many decades and cannot be swayed by distorted narratives like poor quality.

Joseph, a waiter at a busy eatery adjacent to a famous public park in Nairobi, said he is

comfortable with Chinese goods because they are affordable to Kenyans in the low

income bracket.

"The Chinese products are good, I do not have a problem with them. I like Chinese

phones because they are cheaper and easy to operate," said Joseph.

"Right now, I am using a Tecno smartphone that I bought at a shop in downtown

Nairobi and it has given me quality service," said Joseph.

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Textiles evolving to meet demand for sustainable materials

(Source: KATHERINE ROTH, AP News, August 08, 2019)

Whether it’s how they’re made or what they’re made of, textiles are evolving to meet

consumer demand for sustainability.

“There’s a real push for sustainability now, and the home textiles industry is waking up

to that consumer call,” says Shannon Maher, chair of Home Products Development at

the Fashion Institute of Technology, in New York. It’s about reducing waste during

textile production, she said, and reusing or recycling waste to produce other products.

“Zero Waste has definitely become a watchword,” she said.

Consumers today have a heightened awareness of the harm plastic does to the

environment, and “are willing to pay 5 or 10% more for a sustainable product as a way of

contributing to the circular economy, and helping the environment,” she says.

Rugs and outdoor fabrics, for instance, are increasingly being made with recycled

materials instead of new plastics.

A lot is happening on the fashion-design front, too, to explore new, sustainably sourced

and even compostable types of textiles.

“Companies like Adidas and Nike are at the cutting edge of some of these innovations,

and their work — and innovations in textiles used for apparel — does trickle down to

textiles in other realms,” Maher says. An exhibit of textile innovations at the Cooper

Hewitt Design Museum in New York City, on view through Jan. 20, includes a dress

made by a Japanese design team that features naturally glowing silk, made from

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19 CITI-NEWS LETTER

silkworms injected with a green fluorescent protein derived from jellyfish. There’s a

prototype for Adidas sneakers made entirely of ocean plastic; another prototype of

sneakers that would be entirely compostable; and a textile made from algae.

“There’s a level of optimism when you look around and see designers really taking on

the challenge of all this,” says Andrea Lipps, a curator at the Cooper Hewitt who helped

organize the exhibit. “There’s a groundswell of creativity that’s continuing to

reverberate.”

At the Fashion Institute of Technology, students have been experimenting with using

milkweed and flax to create luxurious “fur” from 100% plant material. That won them

the Stella McCartney Prize for Sustainable Fashion at the Biodesign Challenge Summit

earlier this summer. Another student design team there came up with the idea for a

Spandex-type elastic fabric using a protein found in oysters.

To help companies get the word out about steps they’re taking, and help consumers

identify environmentally responsible companies, the Sustainable Furnishing Council

provides an online list.

“We have about 400 member companies, and they each have made their own public and

verifiable commitment to sustainability,” says Susan Inglis, executive director of the

council.

Look up, say, garden furniture, and see what best practices various manufacturers have

put in place.

Another effort to help consumers reliably identify more eco-friendly companies is a new

level of Oeko-TEX certification, called “Made in Green,” certifying that no harmful

chemicals have been used in the manufacture of a certain product.

“People are talking more these days about ‘the value chain,’ showing that not only are

you certified as being environmentally responsible, but all of the factories in your

production process are certified. It’s a level of transparency that includes aspects like

using clean energy sources,” explains Maher.

“Sustainability is complex,” she says. From a factory standpoint, it’s also a matter of

asking whether they’re solar-powered, and how much water they use.

Home

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