|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1092.56 |
USD/Ton |
0% |
|
VSF |
2063.38 |
USD/Ton |
0% |
|
ASF |
2399.73 |
USD/Ton |
0% |
|
Polyester POY |
1069.15 |
USD/Ton |
0% |
|
Nylon FDY |
2637.75 |
USD/Ton |
-0.59% |
|
40D Spandex |
5696.92 |
USD/Ton |
-1.35% |
|
Nylon DTY |
5767.16 |
USD/Ton |
0% |
|
Viscose Long Filament |
1326.68 |
USD/Ton |
1.19% |
|
Polyester DTY |
2419.24 |
USD/Ton |
-1.27% |
|
Nylon POY |
2587.03 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1233.03 |
USD/Ton |
0% |
|
Polyester FDY |
2856.26 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2668.97 |
USD/Ton |
0.59% |
|
32S Polyester Yarn |
1732.49 |
USD/Ton |
0% |
|
45S T/C Yarn |
2793.83 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2840.66 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2544.10 |
USD/Ton |
0% |
|
40S Rayon Yarn |
1919.78 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2341.20 |
USD/Ton |
-0.66% |
|
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 = 0.15608 USD dtd. 20/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Southern India Mills’ Association has appealed to the Chief Minister to take up with the Union Government the need to support the textile industry with an interim package that will improve the industry’s competitiveness. The textile industry, especially the spinning mills, in the State is going through a phase of recession, said T. Rajkumar, chairman of the association. An interim package, providing subsidy for export of textile products, will enable the industry increase its exports. Tamil Nadu has attracted over Rs. 1.5 lakh crore investment in the last 15 years. It is the only State that has the entire textile value chain – from spinning to garment making – accounting for almost one-third of the size of the Indian textile industry. However, the competitiveness of the industry in the State has been affected due to several reasons – import and export tariff barriers, pending release of subsidies under the Technology Upgradation Fund Scheme, import of manmade fibre and yarn, etc. States such as Gujarat, Maharashtra, and Madhya Pradesh have announced textile policies that provide incentives, including capital subsidies and Value Added Tax exemption. The State Government has already considered the appeal of the industry to reduce VAT on cone yarn to two per cent from five per cent, exempt cotton and cotton waste from market cess, and draft a textile policy focusing on value addition. The association has appealed to the Chief Minister to recommend to the Prime Minister allocation of Rs. 6,500 crore for clearing the dues pending under the Technology Upgradation Fund scheme, expedite trade agreements with China and other countries, provide an interim package with subsidies for the textile industry, and reduce the excise duty on manmade fibre.
SOURCE: The Hindu
Top textile manufacturers are filing for patents as they focus on innovations to seal their growing positions overseas and are projecting higher revenue notwithstanding the weak global markets. In the last decade, a handful of new textile companies got a toehold overseas, particularly in the home textiles segment, and now they are spending higher on research and development (R&D) to move the business to the next level. “Textile companies have reached a critical mass and now they need to spend on R&D as the only way they can keep their markets is to come out with newer products,” said Alok Agarwal, an independent stocks analyst. “Patents help to give their innovations longevity as replicas don’t get created and the innovations give the companies high- margin products.”
Welspun India Ltd, manufacturer of towels for Wimbledon, has applied for six patents in Europe, the US, Brazil, China, Korea and Australia for its creations such as natural finish fabric, ergonomics mattress pad and eco-dry towels that use little water during washing. Two patents have already come to Welspun for Hygrocotton that has a hollow core for fluffiness, temperature control and moisture wicking from the UK and the US in the past two years. Likewise, Indo Count Industries Ltd has applied for a handful of patents mostly in the US and one patent was received last year.
“USA constitutes about one-third of the global market. Here we have a level playing field and India is best placed to serve this market,” said Dipali Goenka, executive director at Welspun India. “We have been able to continuously increase our market share, especially in cotton home textiles and we have a bigger market share than China or Pakistan in key products like towels and sheets.” “We have the potential to increase penetration in key categories. Europe also constitutes about one-third of the global market and India stands in a competitive position in spite of our duty disadvantage,” she said.
Innovate or fade
Focus on innovation by the new textile companies coincided with the abolishment of the global textile quotas in 2005 as well as the government’s technology upgradation fund scheme (TUFS), which gave them a boost, say analysts. TUFS, which ensured cheap loans for revamp by the textile companies, was designed to make them capable for exports and also create employment. “While owners of the old stalwarts moved focus to other high- revenue businesses such as petroleum and real estate, a void was created, which was filled by the new companies that continued to invest in technology, upgradation and product innovation,” said analyst Agarwal.
Budgets for R&D run high in these companies—Welspun spent 5.4% of its latest net profit on R&D, while RSWM Ltd—a supplier to some of the old established brands such as Raymond, Siyaram, Bombay Rayon, Arvind, Raymond UCO Denim— spent 12% of its latest net profit into R&D. “We expect our revenues to grow at a CAGR (compounded annual growth rate) of 20% for the next two-three years. In towels, we expect a revenue growth of 25% CAGR in the next two-three years,” said a spokesperson of Trident India. “There is now a shift in the focus of the Indian textile industry to innovation. There are towels which provide high water absorbency, some are anti-microbial which prevents odour-causing bacteria and microbes, benzoyl peroxide- proof (which prevents discoloring), fade-resistant towels which do not fade even after several washing, and aroma towels.”
The home textiles market is estimated to be at $45 billion, in which India has about 11% share, according to trade data estimates, and analysts see the share doubling by 2020 based on the growth of exports. Companies have also tapped overseas talent for their innovation. “We have a full-fledged product development and design team here in India and overseas,” said K.K. Lalpuria, executive director at Indo Count. “Normally the patents are for 20 years, so we have a long tenure to use these licences.”
SOURCE: The Live Mint
The Fourth international textile and apparel fair 'VASTRA' will be held here from September 28-30, projecting India as a prominent sourcing hub and investment destination in textile sector. The fair, organised by Rajasthan State Industrial Development and Investment Corporation Ltd.(RIICO) in collaboration with FICCI will be supported by Union Ministry of Textiles, Managing Director, RIICO, Mrs Veenu Gupta said. Around 250 exhibitors, 400 overseas buyers and 60 Indian buying houses are slated to attend the mega fair, she said. Mrs Gupta, who is also Principal Secretary, Industries, further said that the textile sector was an inherent strength of Rajasthan - from spinning to weaving to garmenting. The State Government stands committed to promoting this sector which is highly employment-oriented, she said. At the recent Delhi Roadshow, Memoranda of Understanding (MOUs) for textile projects worth Rs 2,500 crores were signed, she added.
Over the years, "VASTRA" has emerged as a comprehensive trade fair on Textiles and Apparel. The objective of the exposition is to showcase the best and latest in textiles. The event also aims to provide a platform to participants and exhibitors for forming new business relations, exports, partnerships worldwide, and locations for setting up businesses in India, among others. The fair will also do its bit in projecting India as a prominent sourcing hub and investment destination, she said. The prefixed buyer-seller (B2B) meetings go a long way in concretising business for the participants.In fact, it is one of the main features of the event. Furthermore, the large number of trade visitors will also prove to be an excellent source for augmenting business. The overseas buyers will be mainly from countries like Algeria, Australia, Hong Kong, Italy, Japan and the UK. Business worth $85 million was generated during 'VASTRA -2014' at Jaipur.
SOURCE: The Economic Times
The government is working on a multi-pronged strategy to enhance exports competitiveness and address infrastructural bottleneck, a top Commerce Ministry official said. Contracting for the eighth month in a row, India's exports slipped 10.3 per cent in July to $ 23.13 billion, hit by global slowdown and a dip in crude oil prices, which in turn impacted the value of petroleum products. Commerce Secretary Rita Teaotia said the ministry is focusing on exports sectors with a huge potential such as pharmaceuticals, ready-made garments, leather, gems and jewellery, chemicals and agro-chemicals. Trade facilitation, she felt, can play a vital role in boosting competitiveness of domestic exports.
"In trade facilitation, we are dividing our approach into two pieces -- short term steps which we can do quickly to make things easier for exports and long term, in which a calibrated strategy (is required)," Teaotia told PTI in an interview. "Another (important area) is infrastructural bottleneck. Where are the low-hanging fruits for us? If it's just simply traffic management at a port, that should not be so difficult to resolve. You can look at IT tools to speed up processing of the cases." The ministry is also looking at cost of credit for exporters, the Secretary said. "On interest subvention (or subsidy), we hope to bring it to the government's (Cabinet's) consideration quickly. Once that is done, I believe there will be some clarity for exporters. That should happen early," she added.
The Secretary said despite global slowdown and currency depreciation, two sectors -- pharmaceutical and ready-made garments (RMG) in textiles -- have continued to grow, which is "good news". She identified leather, gems and jewellery, chemicals and agro-chemicals as the areas where "there is a need for the government to work with the industry to address its concerns". On the continuous decline in exports, Teaotia said since petroleum is a big chunk in exports and imports basket, whatever happens in this sector, it impacts India's trade. Petroleum products make up 18 per cent of the country's total exports. The main exporting sectors that logged negative growth last month included petroleum products (nearly 43.22 per cent), leather and leather goods, marine products and chemicals. Oil imports, which account for about 31 per cent of total pie, too dropped 34.91 per cent in July to $ 9.48 billion.
SOURCE: The Economic Times
Reserve Bank of India (RBI) governor Raghuram Rajan on Thursday said that he would not be overly concerned if the depreciation of the Chinese currency held at the current level but added it could become “worrisome” if this was the beginning of a longer-term depreciation process. “The Chinese move does raise questions about the true strength of the Chinese economy,” the governor remarked at the State Bank of India (SBI) Banking Conclave, adding that it does ripple across the global economy. “You have seen many currencies have depreciated in tandem, we have depreciated some,” he observed. Rajan said he anticipated tit for tat actions from other nations, if the depreciation continued.
The governor also said licences for small banks were likely to be awarded next month. On Wednesday the central bank gave in-principle approvals to 11 players, allowing them to set up payments banks. Rajan said that he saw the payment banks complementing the universal banks by traversing the last mile, rather than competing with them. “I don’t think the 11 banks are a competitive threat to the existing banking system. I see them as an add-on,” he governor said.
Rajan explained the RBI board had decided to allow a variety of players in order to experiment with models. He saw a greater chance of small finance banks migrating into universal banks rather than payments banks doing so. “I don’t see that change from payments banks to universal banks. When we talk about migration we talk about a long time, proving yourself in that area gradually,” he added.
Responding to a suggestion by SBI chairman Arundhati Bhattacharya on allowing banks to drop interest rates for home loan products with a view to reviving consumer demand, the governor said the central bank would examine the idea. “Some front-loading by banks may be useful,” he said, adding that if real estate developers sitting on unsold stocks start bringing down prices that will be a big help to the sector. “Once there is a sense that the prices have stabilised, more people will be willing to buy,” Rajan said. The governor observed that there have been signs of pick-up in the economy and further improvement in rural demand hinges on the prospects of the monsoon. “Hopefully, if the monsoon does not deteriorate and in fact improves, sowing has been very good, you may see rural demand coming back more strongly,” Rajan said. According to the latest India Meteorological Department forecast, the monsoon deficit could widen to 12% for the year and may impact kharif output.
SOURCE: The Financial Express
In a push for free market, Finance Minister Arun Jaitley has advocated completely opening up the Indian economy to global investment, except for rare sectors. Speaking at the SBI Banking and Economics Conclave in Mumbai, he said the government's view after observation the economy for the last 15 months is that except for 'rare sectors', India must accept that it has to completely open up. He said sectors that have so far remained closed, have to be opened up to received global investment. The minister said the government is moving towards that direction. Jaitley said growing at 8-10 per cent for a significant number of years will help India find an answer to poverty. He said while macroeconomic indicators like inflation and industrial production were positive; the challenges included slow credit off-take. He said indirect tax collections have also been good so far this fiscal and is indicative of a positive trend.
SOURCE: Fibre2fashion
Eyeing a permanent seat at the premier Asia-Pacific Economic Cooperation (APEC) trade forum, the government is planning to hold a series of consultations with the Indian industry and prepare them for adhering to international standards and tariff measures. As a result, the ministry of external affairs (MEA) has urged the commerce and industry ministry to begin consultations with industry leaders on a war-footing even as India’s membership at an expanded APEC will take time. APEC economies — Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, US and Vietnam — account for over 57 per cent of the world GDP and 47 per cent of global trade. “This will take a while. We will first have to prepare our industry and see if they are ready. APEC is a premier trade body with very high standards. The commerce ministry has to now hold the consultations with them. We are already late and this has to be addressed on a war-footing,” a top MEA official told Business Standard. The official also said that it makes more sense for India to join APEC now because it is also negotiating a regional trade pact Regional Comprehensive Economic Partnership (RCEP) where China is an influential member, including the 10 Southeast Asian countries and their partner countries.
India had applied for APEC's membership in 1993. However, it could not be inducted then due to a 10-year moratorium that is now over. India now believes that the member countries now need to be "nudged" to open the membership once again. The government is "confident" that the road ahead for it to be APEC's member will be smoother now that Chinese President Xi Jinping and US President Barack Obama have publicly assured their support for India's membership, according to another official. India will once again lobby for its membership when Prime Minister Narendra Modi meets US President Barack Obama on September 28. However, India needs to put its own house in order to be able to be part of APEC. India believes by 2017 it will be inducted as its newest member when Vietnam becomes the chair of APEC. Presently, the Philippines is the chair of APEC. "If India has to become a member of APEC, there will be an expectation to see that its economic reform and liberalisation process will contribute towards the APEC process of regional integration. If it is decided to move ahead, necessary preparations have to start right away even as a favourable decision on India's admission into APEC may take two to three years to materialize," said V S Seshashdri, vice chairman, RIS in a study on APEC.
The APEC grouping of 21 countries had not considered an expansion of the body ever since it was formed in 1989. However, in 2007 and 2010 the leaders did indicate that new members can be taken on board but the plan got postponed. However, chances are now high for India even as it is pushing for the moratorium to be removed and members discuss the matter once again of allowing newer members to be part of the pact. During the last APEC Summit held in November 2014 in Beijing there were some talks that new members who will be able to "contribute towards the global value chain significantly" can be considered for membership, officials said. Besides India at least 15 more countries from Latin and Central America, Africa, Pakistan and Sri Lanka are all waiting eagerly in the queue to be part of APEC. Share of APEC in India's total exports declined from 46.2 per cent in 2000-01 to 32.7 per cent in 2013-14 while imports from APEC countries to India increased from 29.2 per cent in 2000-01 to 36.2 per cent 2013-14, according to the RIS study.
SOURCE: The Business Standard
In a move that is sure to make Beijing prick up its ears, India is currently hosting heads of 14 Pacific island nations at the second summit of the Forum for India Pacific Islands Cooperation (FIPIC) that Prime Minister Narendra Modi will address on Friday. Denying that it is engaged in any kind of rivalry with China, India is nevertheless wooing a grouping of 14 small islands in the Pacific of which six have accorded recognition to Taiwan.
At the first FIPIC summit that was held in Fiji in 2014 and was attended by Narendra Modi, Chinese Premier Xi Jinping announced a package of economic assistance to the Pacific islands. He made it a point to assert that the six which had not been invited - Kiribati, the Marshall Islands, Nauru, Palau, the Solomon Islands and Tuvalu would also be beneficiaries of the package. These six are among the 22 nations worldwide that have full diplomatic relations with Taiwan. The tiny but plucky islands have been the source of complex diplomatic intrigue between China and Taiwan for decades, with each accusing the other of using "dollar diplomacy" to win recognition. China and Taiwan have been ruled separately since defeated nationalist forces fled to the island at the end of a civil war with the Communists in 1949. Although lately there have been moves of rapprochement, for most of the world community, reaching out to Taiwan means burning bridges with China. India only has relations with Taiwan at the level of a Trade Representation and Cultural centre.
Wariness at China's increasing presence in the Pacific Ocean has been voiced by other countries in the region. Indian officials say over the past few years, in speaking points during bilateral discussions, Australia and New Zealand have voiced their concerns over China's outreach in the region and have tried to draw New Delhi into some sort of alliance of the unwilling. Delhi's response has been bland. Much the same note was struck by the official spokesman, who briefed media ahead of the FIPC summit. When asked how India compared its involvement with Pacific Island countries in comparison to China's involvement, he answered: "I think we are not comparing ourselves with others." But that said, India was quick to offer to host the second FIPIC summit and will likely step up trade and investment with a group of nations that are geographically remote (it takes 18 hours of air travel to reach Samoa, for instance) but strategically close. On both: the issue of climate change and the thorny reform of the UN Security Council, many of these 14 nations can be valuable allies in the future.
On climate change, India is pragmatic enough to understand that these nations would not like to roil the waters in their immediate neighbourhood and sing a tune different from Australia and New Zealand. For the islands, the stakes are high: for instance, the largest Samoan population living outside Samoa is based in New Zealand and geography has forced a commonality of approach. But India has reached out and engaged with these countries even if there is a difference in public articulation of views on climate change, especially mitigation and adaptation. The government of India spokesman said: "Our orientation is mainly towards capacity building, development and trade. Now, we are looking at newer areas. So, it takes time as we progress further in our relationship to build upon what we have. We started looking at these countries seriously because of the common strands, common problems that we face with regard to mitigation issues, etc., where they need our technology for taking care of the disasters that they face on a regular basis."
On UN reform, out of the 14, two, Cook Islands and Niue, don't have a vote in the United Nations. "But as far as the other 12 are concerned, we have firm stated commitment of support from at least 10 of them. And the eleventh one has also supported the G4 resolution, which indirectly supports the Indian position. One country has not yet pronounced itself either way, yes or no. So, we are not specifically looking for that sort of endorsement. But we know that when it comes to a crunch, then we will get support of all of them in the process because of the relationship that we have developed," the spokesman said.
To cement the relationship, India is likely to offer technology in sectors like fishing, mining, oil and natural gas, information technology, health, marine resources, agriculture, coconut, coir, etc. "We have an annual trade of about $300 million between the Pacific Island countries and India at the moment. Our exports are around $200 million and imports are around $100 million. Of course, the largest country for bilateral trade in this regard is Papua New Guinea because of oil and gas, but Fiji is also an important country in that regard. As you know, the issue of connectivity with these countries is something which is first and foremost which has to be improved as far as trade and investment is concerned. But of course if there are companies from India which go and carry out projects in the project exports category, these can be done quite easily," the spokesman said.
He added: "The National Disaster Management Authority is going to talk to them about what they can do in terms of training programmes, mitigation programmes, which they undertake in India, and what we are doing ourselves internally to reduce the carbon footprint in India. In connection with that we are also going to talk about the issue of capacity building with solar energy. And that is going to save money in terms of the utilisation of kerosene for instance for lighting homes in many of these countries. So, there we are going to be helpful as far as these countries are concerned, and this is an offer from our side..."
SOURCE: The Business Standard
Visakhapatnam can be developed as a great logistics hub in Andhra Pradesh, as two major industrial corridors pass through the State, the Visakhapatnam-Chennai corridor and the Chennai-Bangalore corridor, according to Union Minister of State for Commerce Nirmala Sitharaman. She was speaking here on Thursday after inaugurating the container freight station of the Vizag Profiles Group near the Visakhapatnam Steel Plant and Gangavaram port.
Feasibility study
Sitharaman said the Asian Development Bank had prepared the feasibility study for the Visakhapatnam-Chennai industrial corridor. She was in the city to lay the foundation stone for the lab and office of the Export Inspection Agency at Gambeeram on the outskirts of the city. It would facilitate export promotion from the city. “Vizag tops in exports of seafood and this move will further boost exports,” she said. The minister said both Visakhapatnam and Bhimavaram in Andhra Pradesh had been declared as centres for export excellence. A major international seafood trade fair would also be held in Visakhapatnam later this year, she added. Later, the Minister told reporters that an exercise was being conducted directly under the supervision of the Prime Minister’s Office on how to help Andhra Pradesh in the aftermath of the bifurcation of the State.
Special status
“Our Government will fulfil all promises made in the AP Reorganisation Act and will also try to fufil the promises given by the then Prime Minister, Manmohan Singh. We are not escaping our responsibility. There may be delays, but no injustice will be done to AP,” she said, alluding to the promised special status for the State over which a controversy is raging. Earlier, K Bhaskar, Managing Director of VPL Integral CFS Pvt Ltd, said the CFS had been set up in 11 acres out of a total of 40 acres, and it would be expanded in future. Right now, its handling capacity is 4,500 TEUs (twenty-foot equivalent units). He said a special purpose vehicle had been floated by Vizag Profiles Group and the partner, Integral Trading and Logistics, to set up the CFS.
SOURCE: The Hindu Business Line
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$ 46.36 per barrel (bbl) on 20.08.2015. This was lower than the price of US$ 47.77 per bbl on previous publishing day of 19.08.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3024.53 per bbl on 20.08.2015 as compared to Rs 3115.56 per bbl on 19.08.2015. Rupee closed weaker at Rs 65.24 per US$ on 20.08.2015 as against Rs 65.22 per US$ on 19.08.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 20, 2015 (Previous trading day i.e. 19.08.2015) |
Pricing Fortnight for 16.08.2015 (July 30 to Aug 12, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.36 (47.77) |
50.68 |
|
(Rs/bbl |
3024.53 (3115.56) |
3243.52 |
|
|
Exchange Rate |
(Rs/$) |
65.24 (65.22) |
64.00 |
SOURCE: PIB
Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has rejected the government's plan to impose import duty on cotton yarn saying it would pose negative impact on the value-added textile sector, the Pakistani media has reported. PHMA chairman Usman Jawaad observed that the Federal Board of Revenue (FBR) was considering the move in the name of 'protecting spinning sector'. He strongly opposed this move and said that PHMA stands with Pakistan Readymade Garments Manufacturers and Exporters Association, Pakistan Apparel Forum and all other business associations who have already expressed their resentment at the proposed move.
“Value-added textiles in general and the apparel sector in particular are under severe pressure due to fierce competition in the international market being faced from countries like Bangladesh, Vietnam and Cambodia,” said Jawaad. Squeezing the apparel manufacturers would lead to a decline in export earnings coupled with unemployment, he said. At present, importers are enjoying zero customs duty on yarn import from India. The value-added sector prefers Indian yarn as it is cheaper than Pakistani product and has good quality due to long staple, which is used for lawn and other cloth manufacturing.
The European Union's GSP Plus facility has provided breathing space for the apparel sector, which has been able to increase exports at a time when overall shipments from Pakistan are falling. “In such a situation, any policy adversely affecting the apparel industry will have a direct and immediate negative effect on overall business activities since this is the largest employing sector of the country,” Jawaad added.
SOURCE: Fibre2fashion
From a massive work force of 25,000 in the 1970s, the textile industry now employs a paltry 1,700 workers, Business Finder can confirm. They are made up of 300 employees from Printex, 600 from Tex Style Ghana Limited formerly GTP and 800 from the Akosombo Textile Limited, Juapong Textile Limited and others have all collapsed. General Secretary of the Ghana Federation of Labor, Abraham Koomson told this paper that but for the timely intervention of the anti-piracy taskforce the industry would have collapsed by now. The taskforce was set up by government to check and destroy counterfeit products as well as arrest the perpetrators. However, he explained that the health of the industry is not too good. “It is not too good even though we appreciate the efforts government has been doing. The situation is like a sick person who has gone into coma. We are hoping to revive the industry though the situation is 50/50.” According to him, though the industry is left with few workers, it was still experiencing job losses. “ATL wants to offload but its problem is to raise funds and pay the workers. The workers under the condition of service must be paid 3 months of basic pay multiplied by the number of years served,” Mr Koomson explained. According to him, ATL which he described as a distressed company has workers who are currently home but are being paid every month. He noted that ATL cannot match up the inferior textile products from China and other Asian countries. “ATL is a fully integrated textile firm that does spinning and weaving. The spinning and weaving department employes about 65 percent of the workers but the cost is too high. GTP and Printex are still surviving because they have closed down their spinning and weaving department and importing labour”.
Explaining further, Mr Koomson said the textile firms are making huge losses and this year could be worse. With regard to the future, Mr Koomson said there is some hope for the textile industry as the taskforce has been doing its best to revive the industry to some extent. This year, the taskforce has confiscated more than 5,000 pieces of pirated textiles from traders in various markets across the country.
SOURCE: The StarrFm Online
Peru will send an official delegation to India to explore the potential of signing a free trade agreement (FTA) with the Asian giant, the country's Minister of Foreign Trade and Tourism, Magali Silva, announced. Silva specified that this delegation will meet with relevant Indian groups next month to launch a feasibility study, which will assess how best to boost bilateral trade. The minister also said that the feasibility study comes as the step before the start of formal FTA negotiations with India. This process comes amid a Peruvian charm offensive around the world as it seeks to establish a new policy of commercial openness. Being a member of the prospective Trans-Pacific Partnership (TPP) led by Washington, Peru is also planning to boost commercial links with Turkey, Russia, Belarus, Kazakhstan, Armenia and Brazil, among others. After three successful rounds of talks, the fourth which aims at a Turkey-Peru FTA, will take place in Lima in the coming days, said Silva.
SOURCE: The English East Day
The yuan's surprise devaluation roiled global markets and drew scorn from Donald Trump. Still, China's new market-driven exchange rate bolstered its bid to join the world's most elite currency club. As the yuan's fall broke a rally in the Standard & Poor's 500 Index and prompted a commodities selloff, some US politicians were quick to label China a currency manipulator and raise fears of a new foreign-exchange war. China indicated the August 11 move gave market forces greater say as it tries to sway an International Monetary Fund (IMF) review to include the yuan alongside the dollar and euro as a global reserve currency.
The shift to the more flexible exchange rate should boost the nation's case for the yuan to be included in the IMF's so-called Special Drawing Rights, said Eswar Prasad, a trade policy professor at Cornell University who previously headed the IMF's China division. The move is "consistent with other signals that China is making slow but steady progress toward market-oriented reforms, such as capital-account opening, exchange-rate flexibility and interest-rate liberalization," he said. Coming in the wake of a $4 trillion stock rout and days after a dismal report on Chinese exports, the reserve-currency argument was drowned out in the confusion over the devaluation that led to the biggest weekly loss in Asian currencies in four years. The move also creates potential headaches for US President Barack Obama as he prepares to host Chinese President Xi Jinping at a summit in September. "China has done what the Treasury has repeatedly asked for," said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington and author of "Markets Over Mao: The Rise of Private Business in China."
"If a few members of Congress object, that is a problem for the executive branch, not China. It should bolster their chances, it is what the fund asked for. I think the angst about the new system will be alleviated over the coming weeks." Trump, who is leading in opinion polls to become the Republican nominee for president, injected the i ssue into the 2016 campaign, saying August 11 that "'devalued' means 'sucks the blood out of the United States.'" Charles Schumer of New York - the third-ranking Senate Democrat - has threatened legislation to punish China with import tariffs. The IMF and the US Treasury have been pushing China to loosen the rigid exchange-rate mechanism that restricts the yuan's moves. The Washington-based fund only conducts its SDR review every five years and that may have accelerated China's efforts to get the yuan included in the group of currencies held as reserves by the world's central banks that currently includes the US dollar, euro, yen and British pound.
The People's Bank of China said on August 11 that price submissions for the yuan's daily reference rate must now consider the prior day's close, foreign-exchange demand and changes in major currency rates. The IMF, which rejected the yuan in 2010 on the grounds that it wasn't "freely usable," called China's move a "welcome step," while cautioning the change had no direct effect on the SDR review.
Breakneck Growth
China has been seeking reserve status as part of a campaign to play a larger role in the postwar global economic order designed and dominated by the U.S. Membership of the reserve-currency club would be a crowning achievement after three decades of breakneck growth that saw the Chinese economy take its place as the world's second-largest after the U.S. The devaluation may ensure there's enough time for the emotions to ebb before the Xi-Obama summit, said Arthur Kroeber, Beijing-based managing director at GaveKal Dragonomics, an independent global economic research firm. "There is no good time to do these things; moreover, it seems clear in retrospect the PBOC did not anticipate the very negative market reaction," he said. "Waiting until after the summit would have been far too late to build credibility with the IMF."
IMF Chances
Standard Chartered Plc in Hong Kong revised its forecast for the yuan's SDR chances to 80 percent by the middle of next year from 60 percent by the end of this year, said Ding Shuang, the bank's chief China economist. "The timing chosen was actually fine," said Ding, who spent a decade at the IMF in Washington as its senior economist on cross-country economic research. "You need to allow ample time to run the new mechanism before review, and leave enough time gap to facilitate its assessment." To qualify for the basket, the country must be a major exporter, and the currency must be "freely usable." IMF staff said this month the yuan trails its counterparts on key benchmarks and "significant work" remains to show it qualifies as a reserve currency. The IMF on Wednesday delayed until September 2016 the date the yuan could be included in the basket, a move staff had proposed to minimize disruption if the yuan was added. The yuan was little changed Thursday at 6.3953 per U.S. dollar as of 2:48 p.m. in Hong Kong.
Political Element
The IMF executive board, which represents the fund's 188 member nations, must approve any change to the currency basket, a requirement that adds a political layer to the technical analysis done by staff. The U.S. has 17 percent of votes in the IMF's executive board. China's system of maintaining trading bands to limit the yuan's fluctuations means the yuan can't be deemed as freely usable, said Fraser Howie, co-author of "Red Capitalism." The onshore spot rate in Shanghai is currently limited to moves of 2 percent on either side of a daily fixing set by the PBOC. "You cannot control your currency for 10 years and take a few actions over the space of a week, and say, 'Look, we are now a freely usable currency,'" he said. "You need to go through some cycles, and get at least months, if not years of data to show China is allowing its currency to fluctuate through economic cycles."
SOURCE: The Business Standard
South Korea and Ecuador will announce the start of negotiations for a bilateral free trade agreement (FTA) next week, the Seoul government said. The announcement will be made Tuesday at a meeting of the countries' trade ministers in Seoul, according to the Ministry of Trade, Industry and Energy. The declaration of the start of FTA talks comes nearly two years after the countries concluded a joint feasibility study in June 2013. "Ecuador is expected to become a gateway for our companies to the large Central and South American markets as the country has an FTA with MERCOSUR, a regional economic bloc of South American countries," the ministry said.
Currently, MERCOSUR has five full members. They are Argentina, Brazil, Paraguay, Uruguay and Venezuela. For Ecuador, the envisioned FTA with South Korea will be its first with an Asian nation, the ministry said. Bilateral trade between South Korea and Ecuador has been growing steadily from US$399 million in 2006 to some $1.15 billion in 2014. However, in 2014, South Korea's exports to the South American country plunged 11.8 percent on-year to $812 million while its imports from Ecuador spiked more than fivefold to $342 million from $48 million in the previous year.
SOURCE: The Global Post
