Textile Raw Material Price 2015-08-13
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1088.53 |
USD/Ton |
0% |
|
VSF |
2061.66 |
USD/Ton |
0% |
|
ASF |
2397.73 |
USD/Ton |
0% |
|
Polyester POY |
1057.34 |
USD/Ton |
0.67% |
|
Nylon FDY |
2651.15 |
USD/Ton |
0% |
|
40D Spandex |
5770.15 |
USD/Ton |
0% |
|
Nylon DTY |
5762.35 |
USD/Ton |
0% |
|
Viscose Long Filament |
1305.30 |
USD/Ton |
0% |
|
Polyester DTY |
2448.42 |
USD/Ton |
0% |
|
Nylon POY |
2584.87 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1232.01 |
USD/Ton |
0% |
|
Polyester FDY |
2869.48 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2651.15 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1731.05 |
USD/Ton |
0% |
|
45S T/C Yarn |
2791.51 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2838.29 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2541.99 |
USD/Ton |
0% |
|
40S Rayon Yarn |
1918.19 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2354.85 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.09 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.92 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.01 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.74 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15595 USD dtd. 13/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Reacting to China's currency devaluation, R K Dalmia, Chairman, Texprocil -- Textile Export Promotion Council -- stated that this sudden move on the part of China will have an adverse impact on India's exports of textiles and clothing, which are facing already sluggish growth due to recessionary conditions in global markets. Dalmia stated that the Government has not yet announced the interest rate subvention of 3% which has been pending despite sanction of funds for this purpose by the Finance Ministry. Further the Council's request to include some fabric items exported to Korea, China and certain sub-Saharan African countries has also not been accepted. In fact situation is so worsening that spinning mills in north and southern India were contemplating shutdowns which will result in lay-offs and job losses. This could get worst. In view of the crisis situation facing the textile industry, Dalmia appealed to the Government to clear the dues of the industry under the TUF Scheme, and release additional funds.
SOURCE: The Business Standard
China's move to devalue the Yuan has made an already bad situation worse for the textile industry in Madhya Pradesh, say experts. China imports synthetic yarn from India to convert it into fabric and garment. Madhya Pradesh exports yarn worth Rs 2,500 crore annually of which China accounts for about 60%. "Yarn exports (from India) to China have fallen by about 50% in recent months as the neighbouring country has cut back production due to falling demand in global markets," MP Textile Mills' Association secretary M C Rawat said. "The fall in Yuan will not have any impact on yarn exports but will affect the readymade garments exports," he said. The textile association has approached the union finance ministry urging it to take remedial measures. "The problem is that Indian textile products command higher duties in major international markets. This coupled with higher input costs is making the local industry uncompetitive," Rawat said. Experts have predicted a negative outlook for the synthetic textile sector for 2015-16. However, apart from China, the sector could also see an impact due to other factors.
According to a recent report by India Ratings and Research, the industry also estimates price of polyester fibres to decline due to oversupply of cotton yarn. "The situation has now aggravated to such an extent that Indian synthetic textile units have cut production by 30%," he said. Exporters have tried to increase the share in other markets and there has been a slight rise in yarn export to Sri Lanka, Bangladesh and Vietnam in recent months. The textile association has urged the union government to make polyster fibres available on par with international price and reintroduce the 3% interest subsidy. The association has also urged the Centre to allocate funds to clear all pending cases and the existing liabilities under technology upgradation fund scheme (TUFS). "The outlook for synthetic yarn exports looks bleak due to falling cotton yarn prices and also due to the China factor," Maral Overseas Ltd President Suresh Maheshwari said. In a volatile foreign exchange currency market, the Yuan slid down further on Thursday at 6.40 per US dollar and the rupee too slipped below the `65 mark.
SOURCE: The Hindustan Times
The Ministry of Textiles, Government of India will implement an Integrated Processing Development Scheme (IPDS) in public private partnership (PPP) mode by Special Purpose Vehicle (SPV), textiles minister Santosh Kumar Gangwar has said. The SPV will be a corporate body registered under the Companies Act, Gangwar said in reply to a question in Lok Sabha, a news agency said. The scheme envisages sharing of funds in the ratio of 50:25:25 between Government of India, state governments and SPV respectively, the minister said. The Indian government's support, which is limited to 50 per cent of the project cost, has an upper ceiling of Rs 75 crore for projects with Zero Liquid Discharge and Rs 10 crore for projects with conventional treatment systems. “In case of marines discharge project, maximum assistance can be given upto Rs 75 crore on case to case basis,” Gangwar said. Under the 12th Five Year Plan, a sum of Rs 500 crore is earmarked to enable the textile industry meet the required environmental standards by adopting modern technology.
SOURCE: Fibre2fashion
The Odisha government is planning to set up two integrated textile parks at Choudwar and Bhadrak. It was announced by chief minister Naveen Patnaik on Thursday while laying foundation stone of Shahi Exports here at Mancheswar industrial estate. Naveen also announced that the state government has made special arrangement for textile and handloom sectors in the new industrial policy resolution to attract investment in textile and handloom sectors. The industrial policy will be unveiled very soon, sources said. "The state government would also come up with a special policy to promote different industrial projects having opportunities for employment," said an official release quoting Naveen. Naveen also said the textile unit by Shahi Export will help to boost the handloom and textile sector in the state. The unit would start production within one year. The promoter is planning to invest Rs 36 crore in the unit. It will create employment opportunity for around 2500 people. The textile unit is targeted to produce more than three lakh clothes per month. Shahi Export has over 48 units across the country, the release said.
SOURCE: The Times of India
The finance ministry says one should not worry that the proposal for an extra tax up to one per cent over the goods and services tax (GST), to woo manufacturing states on board, would encourage imports. If this happened in some cases, it has said, customs duty could always be raised. A key official in the ministry argued that the current two per cent central sales tax (CST) had not made imports cheaper. So, why should it happen with a one per cent tax on interstate sale of goods? CST is also imposed on interstate sale of goods. It would be subsumed with GST, once the latter is rolled out. CST does not have a system of credits for taxes paid on inputs. So, too, with the additional tax proposed over GST. As such, both lead to cascading. Earlier, there was to be additional cascading, as it was to be levied on all interstate supply of goods. To avoid this, the Rajya Sabha panel, which examined the change, has suggested this one per cent be limited to interstate supplies which are for monetary considerations. The revised Bill, tabled in the Rajya Sabha, in fact, proposed to limit this tax to interstate commerce.
CST is already imposed on interstate trade of goods. “If your two per cent tax is not making imports cheaper, how can half the tax rate do so?” asked a finance ministry official. Sources said the government does not forgo its right to alter customs duty and would raise the tax in case the situation demands it. “We will see to it that one per cent tax does not lead to an inverted duty structure. We might have a re-look at import duty in case the situation arises that imported goods become cheaper,” said the official. Also, the one per cent tax will stay only for two years, till manufacturing states recover their revenue loss on account of GST, a destination-based tax. Arvind Subramanian, the chief economic advisor, had argued that the one per cent and origin-based tax would have a cascade effect and favour international trade over intra-national trade. This was before the Rajya Sabha panel gave its report. A committee is currently looking at the issue of further minimising the cascade impact of the additional one per cent tax. “It will look at suitably addressing the issue,” the official said, adding, “It is important to note that it is primarily for two years.”
Subramanian had noted a product going to Gujarat from Tamil Nadu crosses four states and the product will embody an additional tax of four to five per cent, making it easier to import to Tamil Nadu from Bangkok or elsewhere. “So in a sense, it has the potential to undermine Make in India. That’s why we need to look at this provision carefully,” he’d said. “If the one per cent tax is applicable only on monetary transactions, it will not encourage more than what it is doing right now. In fact, in relative terms, the impact will be less than what the two CSTs had on imports,” said Satya Poddar, senior advisor, EY India. He added his own view was that there shouldn’t even be the one per cent origin-based tax. “Even the two per cent tax encouraged many imported goods through dealers,” he added.
SOURCE: The Business Standard
The rupee reversed early gains to hit the key 65 per dollar mark on Thursday. It hit a low 65.23 per dollar, a two-year low against the greenback. The rupee last traded around these levels in September 2013 when the country was struggling with slow growth and rising deficits. Reuters citing traders said the Reserve Bank of India likely sold dollars at around the 65 level to slow the rupee's falls. Selling in the rupee has intensified over the last three days following China's unexpected devaluation of its yuan currency on Tuesday. The devaluation of the yuan has dragged down global equity and currency markets, leading to a sharp selloff in the rupee too.
Yuan's devaluation has sparked fears of a global currency war; analysts say continued depreciation in China's currency will increase the volatility in the rupee, pressure domestic exports and result in dumping of cheap Chinese goods in to India. "We are part of the global markets and we are responding to what is happening in the global market," said Jamal A. Mecklai, CEO of Mecklai Financial & Commercial Services. The reversal in the rupee led to a correction in stock markets too. The BSE Sensex, which had surged as much as 280 points in morning trade, ended just 37 points higher at 27,549. The rupee closed lower for a sixth straight day, ending at 65.10 per dollar against Wednesday's close of 64.77.
SOURCE: The NDTV News
The government blames the Congress for the failure of the Rajya Sabha to take up, leave alone pass, the Constitution amendment Bill to create a goods and services tax (GST). It has accused the Congress of seeking to torpedo growth. This is sound politics, no doubt. However, it does not either help change the country’s indirect tax regime or accord with the facts. If the government were serious about getting the Constitution amendment Bill passed, it would not have made the procedural lapse that the Congress has pounced on to prevent the GST Bill being discussed: it was not on the House business advisory committee’s approved list of things to be taken up. An amendment to the Constitution is not something that is taken up for discussion in an ad-hoc manner, suspending the rules of procedure.
GST
If the government were serious about GST in the current session, the Prime Minister would have engaged the Opposition directly on the subject. The fact is that even if the Congress remains obdurate, the government can obtain the two-thirds majority of those present and voting, if the rest of the Opposition cooperates in the Rajya Sabha. Save the PM’s meeting with Jayalalithaa in Chennai, which could have been on the GST Bill among other things, there is no sign of the government having sought to get the Opposition on board on GST. Further, having stalled the GST all through the UPA’s tenure, the BJP can hardly carry conviction when it says opposing the tax change means wrecking growth. The Congress’ objection is not to GST but to three elements of the Bill: the wholly undesirable, cascading, 1% tax on interstate sales, absence of a cap on the combined central + state GST rate, and leaving parties to the dispute to resolve GST disputes. What is the problem in addressing these objections?
And, are our political parties serious about GST? The tax creates multiple audit trails to income generation that goes totally undetected at present and finances much of politics. There is no sign of any effort to change how politics is funded. Can we, then, have GST?
SOURCE: The Economic Times
It remains a contradiction unparalleled that successive governments have extolled the virtues of manufacturing in India, but almost all of them formulated policies that promote trading over manufacturing. The new government has made the right noises with its emphasis on branding India as a manufacturing hub, but is the back end backing it up? Not yet. Indian physical retail is chock-a-block with products that have been manufactured in China, sourced at low prices and sold in India especially in the unorganized sector. It has become so endemic that the smallest Chinese brands are now household brands in India. Incentives for a local manufacturer to manufacture in India have always been subject to unpredictable policy, license and inspector raj and infrastructural glitches. The expertise and investment required for local manufacturing to build brands and start manufacturing in India has been depressed for ages because of the lack of capital and access to broader markets. E-commerce has been an outlier in all the gloom we have witnessed over the past few years. It has the potential to and incubate local brands with local manufacturing. E-Commerce is a border-neutral paradigm for business for a global market. Alibaba's contribution to China's manufacturing cannot be ignored, in the context of bringing buyers from all across the world to buy from China. It may be true that China was already in place as a manufacturing economy but with hindsight, we can do even better and use E-Commerce platforms to kick start manufacturing activity on scale.
Today there are customers globally who buy directly from e-commerce players by cutting out marketplaces in their own country. By using expertise in advertising, brand building and logistics and warehousing, e-commerce companies can assist local manufacturers in selling to customers globally, making it easy for Indian manufacturers to access global markets. With the advent of e-commerce we have seen many products finding a market and the barrier for entry for small entrepreneurs, craftspeople and brands to be able to sell directly had been reduced significantly. To build on the success, businesses need more capital to scale. The entrepreneurs who have build micro businesses and have employed carpenters, painters, weavers and other skilled and unskilled craftsmen or who have created small markets and brands for themselves, need to produce more to find more sales and growth. This can happen only if E-Commerce companies underwrite their risks by way of underwriting the inventory. In doing so, e-commerce companies will allow them to focus on innovation and manufacturing on scale rather than worry about sales and marketing and distribution which comes packaged to them with an E-Commerce platform.
E-Commerce has been one of the bright spots in Indian economy over the other sectors. Unfortunately, by creating an artificial differentiation between marketplace models and inventory models, government is stifling the growth of E-commerce, stifling the entrepreneurship potential of India and stifling economies of scale that could help us become competitive on price globally. All this is being done at the cost of promoting incumbent large business houses and traders. By opening up inventory led B2C Ecommerce model to FDI, India can broad base wealth creation in India. Some of the most popular internet companies of China, like Baidu, Alibaba, Tencent, JD.com have listed and are cumulatively worth more than $500 billion, creating hundreds of multi-millionaires and bringing in more than $30bn in cash from IPO proceeds. By comparison Indian stock market's total market cap is $1,500 billion. If we seriously want to match the successes of China in this sector India must stop implementing policies which end up maintaining the status quo in favour of small and inefficient trading oriented policies. Continuing to wish for a boost in manufacturing and doing everything to encourage retail to buy from China will not get us to Make in India. Ecommerce has to be liberalized fully to enable the linkages between Make in India and Buy in India.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 49.52 per barrel (bbl) on 13.08.2015. This was higher than the price of US$ 49.15 per bbl on previous publishing day of 12.08.2015.
In rupee terms, the price of Indian Basket increased to Rs 3214.84 per bbl on 13.08.2015 as compared to Rs 3186.39 per bbl on 12.08.2015. Rupee closed weaker at Rs 64.92 per US$ on 13.08.2015 as against Rs 64.83 per US$ on 12.08.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 13, 2015 (Previous trading day i.e. 12.08.2015) |
Pricing Fortnight for 01.08.2015 (July 14 to July 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.52 (49.15) |
55.15 |
|
(Rs/bbl |
3214.84 (3186.39) |
3511.95 |
|
|
Exchange Rate |
(Rs/$) |
64.92 (64.83) |
63.68 |
SOURCE: PIB
Almost a year after Rajasthan took the lead in ushering labour reforms, companies are rushing to the state to skill workers in large numbers - a move seen as a precursor to huge investment that may follow. The state has witnessed a four-fold increase in the number of companies imparting skills to the youth. At present, 120 companies are actively running 250 short-term skill development centres to skill the youth, as against 30 companies running close to 50 centres in January 2014. These centres impart skills through a three-month duration programme, providing both institutional and on-the-job training to the youth.
Besides, Rajasthan has 800 private industrial training institutes (ITIs) - most of them, around 646, came up only in the last one year with a capacity to train more than 100,000 workers. The state government has set an objective of training 150,000 youth this year, and this target is set to go up each year as more companies set up their skill development centres. "The confidence shown by the training providers is an indicator of the positive sentiments of the investors regarding new projects and scaling investment in the state after we ushered in steps towards ease of doing business and introduced a slew of labour reforms," feels state Labour Commissioner Rajat Kumar Mishra. In November, Rajasthan led the way in bringing amendments to the labour laws considered crucial by the industry players. Those were related to easing retrenchment norms, hiring more contract workers, toughening trade union formation, among others. This was followed up by the Centre and state governments like Madhya Pradesh, Maharashtra, etc. "But changes to the labour laws could only address the demand side of the problems; the supply side is being fixed by providing skill development so that a capable labour force is created," said Gaurav Goyal, managing director, Rajasthan Skill and Livelihood Development Corporation.
Dealers of many automobile companies such as Maruti, Toyota Motors, Honda, Mahindra, TVS, Hero, among others, are among some of the training partners, Goyal said. Others include Jindal Hospital, Raymond, Sutlej Textiles, Bombay Stock Exchange, etc. Companies such as Cairn India Limited and Samsung have partnered with the state government to set up advanced labs in government ITIs and run industry-specific skill programmes. "Earlier, there was a major disconnect between the employed youth, training partners and employers. We are now encouraging industries to start imparting training according to job requirements, which include on-the-job training for factories, hotels, hospitals and warehouses," Goyal added. The number of workers skilled has almost doubled in the past year. Around 74,000 youth was provided skills in 250 skill development centres, compared to 38,000-40,000 people trained in a year on an average in the past. The number of private training centres is set to double by the end of this financial year."Earlier, it was difficult to find skill training partners in the state. However, since the government has implemented labour law changes, things have improved drastically, and the response has been positive," Mishra said.
SOURCE: The Business Standard
Leading lights of the ruling National Democratic Alliance have been bestirred to stage a demonstration, complete with placards, urging that democracy be saved. So upset is the BJP that it has forgotten that it had called Arvind Kejriwal an anarchist for staging a demonstration after having formed the government in Delhi. This level of vexation is entirely understandable. Not just the government but the entire nation is disappointed. The Monsoon session has been a washout. No Bills have been passed. Nor has the government been held to account on anything other than some high-profile issues. The work of Parliament, in other words, has been short-circuited. This is wholly to be regretted.
Monsoon-session
What is the way ahead? The government blames the Opposition for its refusal to let the House function and cooperate on a crucial reform like the goods and services tax (GST). The Opposition maintains that the government is shielding wrongdoing on the part of a Union minister and two state chief ministers. It also says that it will cooperate on GST, but only if three of its objections to flaws in the GST Bill are addressed. If neither side budges, it is the nation that will fail to progress. Both sides must be willing to relax their hardline stands and show accommodation. And it is the government that has to take the initiative in this regard. No government after PV Narasimha Rao’s had a majority in the Rajya Sabha, even if it had a tenuous majority in the Lok Sabha. But, still, the country has witnessed laws being passed to alter the economic and political landscape. This resulted from the art of engagement, of give and take, of appreciating the differing priorities of different parties in the Opposition. There is a lesson in this for the present government.
The nation needs the proposed indirect tax reform. Convening a special session on GST will change neither the Congress’ objections nor the composition of the Rajya Sabha. It is better to address the objections and pass the constitutional amendment than to let it suffer the fate of the land Bill.
SOURCE: The Economic Times
Nigeria's apex bank, the Central Bank of Nigeria (CBN) has started a programme aimed at revival of the country's cotton textile and garment (CTG) industry, Nigerian media reported. CBN would provide loan at single digit interest to the CTG industry under the Real Sector Support Facility (RSSF). During a meeting with representatives of the country's textile and apparel industry in Lagos, CBN governor Godwin Emefiele said the textile and clothing sector, which once had over 150 mills and employed more than one million people, is now completely dominated by imports from Asian countries. Seeking collective efforts of all stakeholders to play their role to bring the country's CTG sector back to its past glory, Emefiele said the apex bank is ready to provide funding for the industry under RSSF.
The CBN decision comes few months after the US government extended the expiry of the African Growth and Opportunity Act (AGOA) till September 2025. The act provides enhanced market access for certain goods from qualifying countries in sub-Saharan Africa, including Nigeria. Textile industry chairman Grace Adereti said the industry is currently in a state of coma, and less than 20 textile companies are operational compared to more than 150 mills that were once operational. In the first quarter of 2015, Nigerian textile, apparel and footwear segment produced goods worth N460 billion ($2.31 billion), accounting for 21.7 per cent of the country's manufacturing output. Nigeria also produces cotton, but its production decreased by more than 50 per cent to 200,000 bales of 480 lb in 2014 compared to 420,000 bales a decade ago, according to the US Department of Agriculture.
SOURCE: Fibre2fashion
Profits in most of the textile companies tumbled in the first-half (January-June) of the year compared to the year-ago period as political turmoil and depreciation of the euro hurt earnings. Of the 41 listed companies in the textile sector that accounts for 3.50 per cent of the total market capitalisation at the Dhaka Stock Exchange (DSE), nearly one-third disclosed their un-audited half-yearly reports. Among them, consolidated profits of nine companies declined, six showed marginal profits while 26 are yet to publish half-yearly financial reports as they consider June and September to be year-ending.
Textile companies include spinning, knitting, weaving, dyeing, and zipper manufacturing, as well as readymade garments manufacturing units. The poor performance of the companies is attributed to slowdown in export growth in the US and the EU markets, which weighed on the export earnings of textile makers," said LankBangla Securities, a stockbroker, in an analysis. "We saw impressive growth during the period due to higher utilization of expanded capacity in denim fabric unit-2," said Abdus Salam Murshedy, managing director of Envoy Textile. "We are also expecting better business in the coming years, as buyers from EU and USA are now expressing interest in sourcing more denim products from Bangladesh, bypassing China, India, Pakistan and Vietnam," said Mr Murshedy.
In the last fiscal year, garment export growth was only 4.0 per cent compared to the last fiscal. "Political turmoil in the first quarter and depreciation of the euro affected the sector's earnings," said the analysis of LankaBangla Securities. The textile and readymade garment is the largest export-earning, accounting for four-fifths of the country's annual merchandise shipment. The textile is the second-largest sector in terms of number of securities in the country's capital market after insurance.
SOURCE: The Financial Express Bangladesh
Indonesian textile industry would still be pressured in the second half of the year and predicted that sales and exports of textile products would remain sluggish, according to Ade Sudrajat, head of Indonesian Textile Association (API). The domestic textile and related products market has been projected to generate Rp 60 trillion ($4.3 billion) in the second half of the year as local products hold only 20 percent of market share and the industry feels the effects of a dragging economy, an association chief said. Imported products, particularly from China, had crushed the market share of local textile products. In the first half of this year, local market share reached 30 percent but will see a decline to 16.6 percent in the second half. Importing textile products from China is considered more profitable because it is cheaper. Thus it causes oversupply due to low demand from the markets following the economic slowdown. This situation only happens to domestic-oriented companies. If they don’t want any production or employee inefficiencies, the companies must be export-oriented, but not all companies can be like that.Ade said that the export target of textile product and market was $12.7 billion this year, the same as last year.
Textile makers cannot increase the target because Indonesian textile products cannot compete with Vietnamese products in terms of price. Indonesia’s electricity costs are more expensive than in Vietnam, which affects production costs. Ade urged the government to lower the electricity rate for industry to help the domestic players compete with foreign-made products. He also expected issues of dwelling times for containers to soon be settled to assist the industry. Dwelling time also affects because it is related to raw material flow. If the flow is quick, they don’t have to pay extra for the stockpiling cost. All these things increase all the costs and many businessmen chose to be traders by importing products from China.Moreover, Indonesian-made textiles are charged an import duty of between 11 and 30 percent to enter the US market. Ade urged the government to have a free-trade agreement with the European Union and the US to help boost exports by as much as three times. Indonesia has not signed any FTAs on textiles. The domestic textile industry has recently laid off 6,000 employees in Majalaya, Bandung, following oversupply of textile products. Ade said the industry could not yet rehire them. The textile industry started to slow down in 2014 following the decline of the global oil price, and the increase of gas and electricity rates in January this year exacerbated the issue.
SOURCE: Yarns&Fiibers
