INTERNATIONAL
Textile Raw Material Price 2015-09-01
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1127.30 |
USD/Ton |
1% |
9/1/2015 |
|
VSF |
2069.86 |
USD/Ton |
0% |
9/1/2015 |
|
ASF |
2407.26 |
USD/Ton |
0% |
9/1/2015 |
|
Polyester POY |
1091.29 |
USD/Ton |
1% |
9/1/2015 |
|
Nylon FDY |
2552.09 |
USD/Ton |
-1% |
9/1/2015 |
|
40D Spandex |
5636.52 |
USD/Ton |
0% |
9/1/2015 |
|
Nylon DTY |
5793.09 |
USD/Ton |
0% |
9/1/2015 |
|
Viscose Long Filament |
1354.33 |
USD/Ton |
0% |
9/1/2015 |
|
Polyester DTY |
2379.86 |
USD/Ton |
0% |
9/1/2015 |
|
Nylon POY |
2595.15 |
USD/Ton |
0% |
9/1/2015 |
|
Acrylic Top 3D |
1205.59 |
USD/Ton |
0% |
9/1/2015 |
|
Polyester FDY |
2786.95 |
USD/Ton |
-1% |
9/1/2015 |
|
30S Spun Rayon Yarn |
2693.00 |
USD/Ton |
0% |
9/1/2015 |
|
32S Polyester Yarn |
1737.93 |
USD/Ton |
0% |
9/1/2015 |
|
45S T/C Yarn |
2771.29 |
USD/Ton |
-1% |
9/1/2015 |
|
45S Polyester Yarn |
2865.23 |
USD/Ton |
0% |
9/1/2015 |
|
T/C Yarn 65/35 32S |
2552.09 |
USD/Ton |
0% |
9/1/2015 |
|
40S Rayon Yarn |
1910.15 |
USD/Ton |
0% |
9/1/2015 |
|
T/R Yarn 65/35 32S |
2332.89 |
USD/Ton |
-1% |
9/1/2015 |
|
10S Denim Fabric |
1.10 |
USD/Meter |
0% |
9/1/2015 |
|
32S Twill Fabric |
0.92 |
USD/Meter |
0% |
9/1/2015 |
|
40S Combed Poplin |
1.02 |
USD/Meter |
0% |
9/1/2015 |
|
30S Rayon Fabric |
0.74 |
USD/Meter |
0% |
9/1/2015 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
9/1/2015 |
SOURCE: The Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15657USD dtd. 9/1/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Department of Economic Affairs (DEA) has created a last minute hitch in the implementation of the long-awaited interest subvention scheme for exporters which was to be placed before the Cabinet on Wednesday. Although the subvention scheme, under which exporters of labour-intensive products will have access to cheaper loans, got the clearance of the revenue and expenditure departments, questions raised by the DEA late last week on whether the scheme actually increased exports may further delay its implementation, a Commerce Ministry official told BusinessLine .
Pushing for clearance
Commerce Minister Nirmala Sitharaman will take up the matter with Finance Minister Arun Jaitley and push for speedy clearance of the scheme as exporters have waited long for its implementation. The interest subvention scheme, which lapsed in the beginning of the previous fiscal, allows loans to exporters at a lower interest rate of about 3 per cent which is reimbursed to banks by the government. “The interest subvention scheme was provided for in this year’s Budget and was to be implemented from April 1. Exporters, who are already struggling because of shrinking global demand, have been waiting for more than five months for it to be executed. It should not be further delayed on flimsy grounds,” the official said.
But the DEA, obviously, thinks differently. In a communication to the Commerce Ministry last week it said that there was a need for detailed analysis to see whether the interest subvention scheme indeed resulted in increase of exports. “When we were short-listing beneficiary sectors, for the scheme, we identified them on the basis of how badly they were hit by the global slowdown and also the potential for growth,” the official said. Carrying out an analysis of how the scheme helps in increasing exports might not just delay its implementation further, but may dilute the purpose behind the scheme which is to help exporters reduce their operating costs, the official added. The interest subvention scheme, which has been approved for a period of five years has an annual provision of Rs. 1,625 crore.
SOURCE: The Hindu Business Line
Tirupur Exporters' Association today thanked Tamil Nadu Chief Minister Jayalalithaa for announcing formation of the State Textile Consultative Committee, a long pending request of the association. The committee, headed by the textile minister, would help the growth of the industry, including apparel and also help address textile-related issues, TEA president A Shaktivel said in a letter to Jayalalithaa. TEA also thanked for extension of state Government's financial support up to 25 per cent in project estimates under the Centre's scheme for integrated textile processing development, which is a major requirement for improvement made in the processing sector, the weakest link in the textile value chain.
Sakthivel said the Tirupur garment industry growth had returned to normalcy only after the announcement of Rs 200 crore interest free loan offered to Tirupur CETPs immediately after Jayalalithaa assumed office as Chief Minister. The garment sector possesses more than 80 per cent of units under SME categories and an announcement on unveiling of new MSME policy would pave the way for growth of garment sector in Tamil Nadu, including garment exports, Shaktivel said.
SOURCE: The Economic Times
Southern India Mills’ Association (SIMA) is contemplating setting up a textile processing park in the State for the small and medium-scale units. The association chairman T. Rajkumar told The Hindu on Wednesday that about 50 SMEs in the Salem, Karur, Erode, Tirupur, Coimbatore and Madurai textile clusters will benefit from the park, when it is developed. The association is looking at taking up this project under the Integrated Processing Development Scheme. The Chief Minister Jayalalithaa had announced on Tuesday that the State Government will extend 25 per cent capital subsidy to textile processing parks set up under the scheme. The Union Government gives 50 per cent subsidy. Welcoming the Chief Minister’s announcement, Mr. Rajkumar said the association will take the lead for the implementation of the scheme in the State.
Apart from this, the association will also sign a Memoradum of Understanding with the State Government, at the Global Investors’ Meet, to set up a textile processing park at Cuddalore, for the larger textile processing units. The project was mooted in 2007 and is coming up on 260 acres. Coming up at a total project cost of Rs. 500 crore, it will have 10 processing units that will have the capacity to process 200 tonnes of fabric (knitted and woven) and yarn. The association will see if this project can also be covered under the Integrated Processing Development Scheme, he said. Mr. Rajkumar added that the Chief Minister’s announcement of formation of an advisory committee for the sector will play a greater role in laying the road map for sustained growth of textile industry in the State and make it a hub for textile manufacturing. He welcomed the announcement of 15 per cent discount for silk fabric sales. He expressed hope that the State would soon come out with a textile policy.
SOURCE: The Hindu
The fall in the rupee seems to have paused. After its sharp decline from 64 to below 66 levels in a very short span of time, the rupee has been in a consolidation phase. The currency failed to sustain the break above 66 on Thursday last and reversed lower after recording a high of 65.86. It then went on to record a low of 66.5 on Monday. The rupee has managed to gain some ground from this low to close at 66.19 on Wednesday, down 0.1 per cent for the week. The macroeconomic data releases in the past week were not very positive for the currency. India’s gross domestic product (GDP) grew at 7 per cent in the April-June quarter, lower than the 7.5 per cent recorded in the previous quarter. The Nikkei India Manufacturing Purchasing Managers’ Index for August fell to 52.3 from 52.7 in July. The only news that gave some respite to the rupee was the exemption of Foreign Portfolio Investors (FPIs) from Minimum Alternate Tax (MAT) on their transactions prior to April 1, 2015.
Cues to watch
The FPIs are on a selling spree in the Indian equity segment. They sold $1 billion worth of equities in the past week. In August, equities witnessed an outflow of $2.6 billion, the highest in a single month since October 2008. In debt, the outflow was just $72 million in August. The FPI action in the debt segment has been relatively tepid in the last three months. But if they start selling off their debt positions as well, the rupee could come under pressure. FPI action in the coming weeks will need a close watch. The second important event to watch this week is the US unemployment numbers due on Friday. After the strong preliminary second quarter GDP numbers release last week, the upcoming payroll data is going to be crucial. The unemployment numbers will give a signal on the probability of a rate hike this month when the US Federal Reserve meets on September 16-17.
Dollar-rupee outlook
The dollar index (95.67) has breached the 200-day moving average resistance at 94.87 in the past week. As long as the index trades above 94.87, the short-term outlook remains bullish for a rise to 96.5. The rupee reversing higher from the low of 66.5 last week is a positive. There is a strong likelihood of it moving higher to test 66 in the coming days. A break above 66 can see the rupee strengthening to 65.8 in the coming week. This upmove is possible ahead of the US jobs data release on Friday. Whether the rupee can extend its rally beyond 65.8 will be decided by the US jobs data. If the rupee manages to move above 65.8, then it can strengthen to 65.5 and 65.3 in the short term. On the other hand, a reversal from 65.8 will see the currency weakening to 66.5 and 66.8. However, the medium-term outlook continues to remain bearish with a key resistance at 64.3. The chances of the rupee falling to fresh lows cannot be ruled out as long as it trades below this level.
SOURCE: The Hindu Business line
A cyclical recovery is under way for the Indian economy, and the country’s GDP growth is expected to improve to 7.8 per cent this fiscal from 7.3 per cent in 2014-15, a Nomura report says. According to the Japanese brokerage firm, the PMI data for August reinforce the view that cyclical recovery is in progress for the Indian economy led by improving consumption demand and rising profit margins owing to low inflation and falling interest rates.
The Nikkei India Manufacturing PMI — a composite monthly indicator of manufacturing performance — stood at 52.3 in August, down from a six-month high of 52.7 in July. According to Nomura, historically, the manufacturing PMI has fallen in August and the decline this year has been much smaller than the average fall of 1 point in the last six years. “Therefore, we believe that the PMI data signal improving manufacturing activity,” it said. “We expect a gradual recovery in GDP growth to 7.8 per cent in FY16 from 7.3 per cent in FY15, led by higher corporate profits, policy easing, debottlenecking of stalled projects and rising discretionary demand.”
On RBI’s policy stance, the report said the central bank is likely to cut its repo rate by 25 bps at its review later this month, following which it’s “likely to be on hold”. “With CPI inflation likely to undershoot the Reserve Bank’s 6 per cent inflation target for January 2016 and pipeline price pressures remaining weak, we expect RBI to cut its repo rate by 25 bps on September 29 and then go on hold,” Nomura economists Sonal Varma and Neha Saraf said in a research note. RBI, which has lowered the benchmark rate by a combined 75 basis points so far this year in three instalments, is scheduled to hold its next bi-monthly monetary policy meet on September 29.
SOURCE: The Financial Express
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$ 46.65 per barrel (bbl) on 02.09.2015. This was lower than the price of US$ 49.37 per bbl on previous publishing day of 01.09.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3086.36 per bbl on 02.09.2015 as compared to Rs 3271.26 per bbl on 01.09.2015. Rupee closed stronger at Rs 66.16 per US$ on 02.09.2015 as against Rs 66.26 per US$ on 01.09.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 02, 2015 (Previous trading day i.e. 01.09.2015) |
Pricing Fortnight for 01.09.2015 (Aug 13 to Aug 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.65 (49.37) |
46.03 |
|
(Rs/bbl |
3086.36 (3271.26) |
3024.17 |
|
|
Exchange Rate |
(Rs/$) |
66.16 (66.26) |
65.70 |
SOURCE: PIB
The latest data to confirm Britain's increasing interest in investing in India will make PM Narendra Modi happy a couple of months before he embarks on his maiden visit to the United Kingdom. The UK has become the largest investor in India among all G20 countries with combined revenue of more than $54 billion in India. Between the year 2000 and 2015, UK's FDI into India amounts to $22 billion - 9 per cent of all FDI in the country. In total, G20 nations invested $ 73.9 billion in India between 2000-2015 with the UK being the single largest G20 investor into India followed by Japan ($ 18.3 bn), the US ($13.7bn), Germany ($ 7.6 bn) and France ($ 4.5 billion).
As India's largest employer, UK firms employ around 691,000 people across the country - 5.5 per cent of total organized private sector jobs in the country. Between 2000 and 2015, UK FDI generated around 138,000 direct jobs, 7 per cent of the total 1.96 million jobs generated by FDI in India. India's massive talent pool was the main reason for 63 per cent of the British companies to believe in India's potential while India's recent growth story made 86 per cent of them turn to interest towards the Asian giant. English being an official language has helped, too, with 53 per cent of the companies relying on it while 40 per cent said it was the country's stable government.
Confederation for British Industry's first Sterling Assets India report sponsored by PwC UK and brought out in association with the UK India Business Council says that Maharashtra and Delhi have attracted the bulk of Britain's FDI into India - 26 per cent and 20 per cent respectively. The chemicals sector attracts the lion's share of British investment in India, at $5.78 billion (26 per cent of UK FDI), followed by the pharmaceutical sector at $3.76 billion (17 per cent of UK FDI) and the food processing sector at $3.05 billion (14 per cent of UK FDI). Katja Hall, the confederation's deputy DG, said, "The economic relationship between India and the UK is in fine fettle. The UK has played a significant role in India's growth journey, investing more and creating more jobs than any other G20 nation. PM Modi's steps to improve the ease of doing business in India are a great boost and we look forward to the EU-India FTA talks resuming."
British prime minister David Cameron recently asked Modi to help "the EU-India free-trade agreement get going again" and "for structural reform in India to help open up her economy and lead to higher growth rates". Cameron met the Indian PM on the sidelines of the G-20 Summit in Brisbane recently. Modi met an EU delegation who conveyed that the 28-nation bloc is keen to "re-engage" with India on trade". Cameron had said "I had a very good meeting with PM Modi. We discussed the need for the EU-India free-trade agreement to get going. I am clear that PM Modi is a man with a clear vision for doing economically for his country what he succeeded in doing for Gujarat". Mukesh Rajani, India Business Group Leader at PwC UK said "The UK has been one of India's largest investor for decades. But with Japan and other territories rapidly increasing levels of direct investment in the last few years, this advantage is by no means guaranteed".
According to the findings, UK is a close second (after the USA) in generating service sector jobs in India, with an estimated 43,000 positions created. CBI says "India remains a hugely attractive investment destination for British companies and several of them are now household names in India. It is easy to guess why. India is Asia's third-largest economy. The sheer size of the domestic market - fuelled by growing purchasing power and size of the Indian middle class, successive democratically elected governments, a vast pool of talented workforce, a legal and educational system rooted in British tradition and English as an official language - are some of the many factors that have attracted and retained British investments in India".
According to United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2015, India acquired ninth slot in the top 10 countries attracting highest FDI in 2014, moving up six places compared to last year. The report to be made public on Wednesday says India has historically attracted FDI directly and indirectly through a number of international business centres. FDI from UK-headquartered companies constituted $4.4bn of the top 25 investments from these centres.
SOURCE: The Economic Times
The economy appeared to be in deflation territory or close to it, chief economic advisor (CEA) Arvind Subramanian said on Wednesday, even as he said that the 7% real GDP growth reported for the first quarter could be an underestimate. Pointing out that the prices, as measured by deflators for the gross value added (GVA), and GDP grew at just 0.1% and 1.7%, respectively, according to the latest Central Statistics Office’s estimates, he said even this GDP deflator estimate could be over-stated. Subramanian’s argument appeared to buttress the case for interest rates cut by the Reserve Bank of India. According to him, the real challenge that loomed ahead appeared not to be price inflation but possibly price deflation. Both retail inflation and wholesale inflation hit record lows of 3.78% and -4.05%, respectively, in July.
The CEA noted that GVA, which was seen to expand 7.1% compared with 6.1% in the previous quarter, better reflected the economy’s recovery than the headline GDP number about which he advocated “utmost caution.” He argued that the CSO’s procedure that assumes that indirect taxes grow in line with the relevant tax base (which consists of value of imports, manufacturing and services, all of which loosely correspond to volumes in the current situation), could be far from efficient in capturing the net indirect tax (NIT) increase during “unusual times” like the current one, when the indirect taxes are rising sharply. “If what I expect to happen with annual estimate (materialises) and the revenues maintain this pace, it is quite likely that the GDP number will be substantially higher than what has suggested by the latest number,” the CEA said.
Notwithstanding the lower-than-expected GDP growth estimated for the first quarter, the economy might clock close to 8% growth in FY16, he maintained, adding that his confidence stemmed from a “combination of oil price decreases, macro-economic stability, reforms, (lower) inflation and (moderation of) interest rates”. In the latest Economic Survey, the GDP growth was projected to be 8-8.5% in FY16, the RBI in the latest annual report retained its 7.6% growth estimate, while rating agency Moody’s lately put the figure at around 7%.
Under the new internationally compliant CSO methodology, indirect taxes are assumed to grow in line with the relevant tax base and in the case of subsidies, the CSO uses the GDP deflator to arrive at constant price estimates. The CEA’s point is that since net indirect taxes (indirect taxes less subsidies) increased 40% in nominal terms in Q1FY6, the GDP estimate will have to be treated with caution, because of the commensurate potential for understating growth.
SOURCE: The Financial Express
Kevin Rudd, former Australian PM, said that India's membership to the 21-member Asia Pacific Economic Cooperation (APEC) - the only missing link in the Modi government's Act East Policy - is looking bright in 2015-16, a development that would ensure the country's access to the global supply chain. Rudd incidentally is a member of the task force that is making a case for India's entry to the club. India's entry into APEC will not only boost its economy and ease its entry into the new markets in the Pacific, it will also be a good news for the region, Rudd told ET in an exclusive interview on Wednesday during his visit to Delhi. Rudd feels there is a good chance for India to get an entry into APEC this year under the chairmanship of Delhi's good friend Philippines as well as in 2016 under the chairmanship of Peru.
According to the former Australian PM, greater economic integration in the Asia-Pacific region in the aftermath of India's entry would also lead to peace and stability in the area. "Unlike various other regional groupings, APEC is a quiet achiever towards regional integration," said Rudd.
Rudd said that because APEC has now ended its moratorium on new membership and key member economies including the USA, Australia and Japan have officially welcomed India's interest in joining, there is strong case in favour of Delhi. APEC, which also includes Canada, Mexico, Russia and Vietnam, accounts for about 40% of the world's population, 55% of global gross domestic product, and 44% of world trade. "India's APEC membership would contribute significantly to new government's Act East agenda and open up strategic opportunity for the growing economy," according to Rudd.
According to a senior Indian government official, APEC is one of the major groupings where "India is conspicuous by its absence", notwithstanding its growing economic prowess. India had sought APEC membership for long but was granted observer status in 2011. Pointing out that Indian economy will be welcomed in the Pacific region, Rudd said it would open up a huge market for India not only with traditional partners but also in Peru, Chile and Mexico. Australia too has encouraged India's growing footprints in the Pacific region, said Rudd.
Earlier in July, Rudd, who also is the president of the Asia Society Policy Institute, and MasterCard president and CEO Ajay Banga (also member of the task force pitching India's candidature) made a strong case for India to be made member of the grouping that promotes free trade throughout the Asia-Pacific region. "India is a rising power, eager for a greater role in Asian and global affairs," they wrote in a joint oped in The Wall Street Journal Asia, saying it was the "right time" for India to join the APEC bloc and become fully integrated into the global economy. "Indian membership in APEC has been in the very slow lane for 20 years through a combination of indifference and inertia in Delhi, Washington and the regional capitals," they said. Rudd said that he was keen to push India's case in APEC when US President Barack Obama visited India and unveiled a joint vision statement for Asia-Pacific ensuring a larger role for Delhi in the region.
SOURCE: The Economic Times
The much-awaited International North South Transport Corridor (INSTC) through Iran has been set in motion, with New Delhi, Tehran, Moscow and 10 other nations at a recent meeting in Delhi approving draft transit and customs agreements, which will provide the legal framework for moving freight on ship-rail-road route linking India, Iran, Russia, Central Asia and Europe. India, with Iran's assistance and supported by Russia, has moved fast to make the INSTC project a reality after over a decade following the deal between Tehran and P-5+1 (US, Russia, China, UK, France and Germany) over Iran's nuclear programme that brightened the prospects of withdrawal of international sanctions against Tehran. Last month, the Modi government hosted a meeting of the INSTC coordination council away from the public glare here. Besides senior officials of India, Iran and Russia, representatives of most of the 10 other participants and prospective participant nations attended the meeting. They agreed to undertake "practical steps on issues related to logistics and infrastructure necessary for making the proposed transport corridor operational", an official said, adding, INSTC draft transit and customs agreements are under consideration by all the stakeholders.
The INSTC transit and customs agreements will provide the legal framework necessary for addressing logistical issues and facilitate smooth movement of freight through the corridor. The current corridor for India to transport goods to Eurasia and Europe is via Suez Canal. Officials here told ET that INSTC could also serve as the route for Southeast Asian countries to send their cargo to Europe instead of the Suez Canal route to cut down on both cost and time. Speaking at the Delhi meet, Foreign Secretary S Jaishankar mooted a proposal for having an inter-country agency for making the corridor operational.
India, Russia and Iran jointly envisaged the INSTC in September 2000 as a multi modal transportation corridor, which would link the India Ocean and Persian Gulf to the Caspian Sea through Iran and onward to North Europe via Russia. Various Central Asian and Eastern European countries joined the initiative later. Kuwait has now expressed interest to join the corridor project. The last 15 years saw very little progress on the ground due to international sanctions on Iran. The significance attached by India to INSTC can be gauged from the fact that the Delhi meet was held back-to-back with a meeting of stakeholders in Mumbai in June.
SOURCE: The Economic Times
Near-term growth prospects remain favourable in India but some macroeconomic imbalances still exist, International Monetary Fund said today ahead of the meeting of finance ministers from G-20 countries in Turkey. “In India, while near-term growth prospects remain favourable and external vulnerabilities have decreased, some macroeconomic imbalances remain,” IMF said in its report ‘Global prospects and policy challenges’ meant for the G-20 meeting of finance ministers in Ankara. “While the faster-than-expected fall in inflation has created space for considering modest cuts in the nominal policy rate, medium term inflationary pressures and upside risks to inflation remain,” the report said. With balance sheet strains in the corporate and banking sectors, financial sector regulation in India should be enhanced, provisioning increased, and debt recovery strengthened, it said.
According to the report, global growth in the first half of 2015 was lower than in the second half of 2014, reflecting a further slowdown in emerging economies and a weaker recovery in advanced economies. IMF said emerging market currencies have generally depreciated, reflecting weakening commodity prices, concerns about the growth transition in China, an increase in risk aversion and expectations of a lift-off in policy rates in the US.
In contrast financial conditions in advanced economies continue to be easy. On the back of weak demand, safe real interest rates remain low, despite some widening of spreads, even as the policy rate lift-off approaches in the US. The growth in emerging economies has been slowing with marked differences across countries and regions, it said. “In India, domestic demand is accelerating, underpinned by the large positive terms of trade shock (mostly due to collapsing commodity-import prices),” the report said.
Noting that the outlook for emerging economies has weakened in 2015 relative to last year, the report said in China, growth is expected to decline as excesses in real estate, credit, and investment continue to unwind, with a further moderation in investment growth, especially residential real estate. “In India, one of the world’s largest commodity importers, growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices,” the IMF said. “In India, the post-election recovery of confidence and lower oil prices offer an opportunity to pursue much-needed structural reforms,” it said. According to the report, in many emerging economies policy space to support growth remains limited.
SOURCE: The Financial Express
The Wellman textile factory began with four sewing machines 37 years ago. With a credit from Ecuador's development bank, it has now expanded to 70 employees, selling around 45,000 items of clothing per month. Ecuador is a dollarized economy, and the appreciation of the U.S. dollar and depreciation of the Colombian peso have proved to be the greatest threat to this family-owned venture, as many consumers now choose to buy goods in Colombia. The safeguard measure aims to create a space for Ecuadorean goods in the national market by putting a progressive tax on selected imported goods. "We need to give incentives to Ecuadorean consumers, to buy what is ours. We need to keep our dollars in the country. We will never see this money again if it is taken out of the country. We should make it circulate here, then it will support our production, which will be sold among all Ecuadoreans," said Hernan Mena in his family's factory near Quito's historic sector.
The Pichincha Chamber of Small and Medium Industry (CAPEIPI) has said that the safeguards should be accompanied by publicity campaigns to encourage national consumption, training for workers and lines of credit to further support the textile industry. Vice President of the Textile Sector of CAPEIPI Jose Guerra told teleSUR, "What we need are parallel measures to this policy, so that people can take advantage of the safeguards." The popular Ipiales market in Quito features many Ecuadorean products, which are customer favorites both because of their price and their quality. "These national products are very good, they are well-priced, and in my case, I buy them all the time," said Anai Rodriguez while buying clothes in the Ipiales market.
Many consumers choose to buy Ecuadorean products over imported goods as part of a conscious decision to contribute to the national economy. As a frequent shopper at the Ipiales market, Reinado Gill told teleSUR, "As Ecuadoreans we have to first value what is ours, because imported products are good, but Ecuadorean products are also good. We should not discard what is ours, because it is a good product." The safeguards should stimulate the economy and create a space for Ecuadorean goods in the domestic market. The measure has been in place for the past six months and is expected to be reviewed this September. The aim is to further strengthen national production and support Ecuadorean workers.
SOURCE: The Telesurtv
The textile industry in Indonesia is currently facing pressure from both inside and outside the country. The slowing economic growth of the country led to a decline in the people’s purchasing power causing lower demand for textile products in domestic market. Ade Sudrajat, chairman of Indonesia Textile Association (API), said that due to lack of demand, the factories cannot produce as the goods produced 2-3 months back are still in their warehouses. Most of these companies are small-scale with 360 employees on average, he added. As a result of this falling demand, more than 100 textile and garment makers are on the edge of collapse putting 36,000 jobs at risk.
Indonesia's economy grew 4.67 percent in the April-June period, the slowest rate of expansion in five years, as exports suffered from weak global demand while domestic consumption also decreased combined with sluggish government and private investment. Ade Sudrajat expects that the government will cut electricity tariffs by 40% to reduce the production cost and thereby helping local manufacturers to create competitive edge in the market. He also opined the government to come up with trade barriers for some textile imports to save the domestic market.
SOURCE: Yarns&Fibers
Cambodia officially became a member of the World Trade Organization in 2004, after almost a decade of membership negotiation. Expectations that Cambodia would benefit from trade liberalisation were high. Through its membership, Cambodia would expand its export markets to the world, in particular its textile and agricultural products, the two areas where Cambodia has a strong comparative advantage. Dr. Sok Siphana, former Secretary of State of the Ministry of Commerce and now government advisor, wrote in 2005: “Cambodia has, from the outset, made its position clear that it looked to the process of WTO accession as a positive externality to stimulate and make irreversible substantial trade liberalisation and more broadly based reforms.” However, the failure of the Doha trade negotiation round of the WTO disappointed WTO members, particularly developing countries. It derailed prospects for lowering trade barriers and facilitating global trade.
Some members focused on deepening regional trade liberalisation. In the Asia Pacific, there are three mega regional free trade areas under negotiation: the Regional Comprehensive Economic Partnership (RCEP), the Trans-Pacific Partnership (TPP), and the Free Trade Area of the Asia-Pacific (FTAAP). The conclusion of trade facilitation negotiations in Bali in December 2013 was a significant milestone in restoring the image and relevance of the WTO. The main goals of the Trade Facilitation Agreement (TFA) are to expedite the movement and clearance of goods, including goods in transit. It sets out measures for effective cooperation between customs and other authorities for trade facilitation and customs compliance.
TFA also contains special provisions for developing and least-developed countries. These are aimed at helping them to implement the agreement. Cambodia should conduct studies on areas where it needs support from international donors to implement TFA. Technical assistance and public awareness programs need to be promoted. The expected benefits of TFA are cost reductions, more trade flow, more investment flow, better allocation of limited resources, and the lock-in of reforms. This gives the WTO members a common direction for lowering trade barriers. Developing and least developed countries will largely benefit from trade facilitation.
But, there are procedures required to put TFA into force. First, it calls on members to draw up a protocol of amendment to insert the TFA into Annex 1A of the WTO Agreement. Second, it has to mandate a protocol to enter into force in accordance with Article X:3 of the WTO Agreement. Article X:3 requires acceptance by two-thirds of all WTO Members for the Agreement to enter into force. The main challenge now is to encourage WTO Members to ratify TFA before the end of this year. So far only 12 out of 161 WTO Members have ratified TFA. From ASEAN, only Singapore and Malaysia ratified TFA. It would be a setback in Cambodia’s foreign trade policy if it fails to ratify TFA before December.
Consultations among legislators, the Royal Government, business leaders, and civil society leaders should be conducted to exchange views on the opportunities and challenges of TFA and to develop action plans to increase Cambodia’s export capacities and opportunities under TFA. It is believed that the political support from both the ruling Cambodian People’s Party and the opposition Cambodia National Rescue Party is not a problem. But, there are legislative hurdles. A concerted push in the National Assembly is needed to discuss and ratify TFA in upcoming parliamentary sessions.
SOURCE: The KHMER Times
The next Texworld Paris winter event to get together all textile and fashion professionals to discover the trade fair’s innovations and trends, which rejoice in the harmonious name of Prelude this season. This theme will launch the tones and textures for Autumn/Winter 2016/17. The fair’s two artistic directors, Louis Gérin and Grégory Lamaud, and a group of designers, reflect on the influence of fashion on the future of society.
The Trend Book contains their vision of future synergies, in which the artist is at the centre of design. Prelude conveys the images and a general vision of the world of tomorrow, which every designer will breathe into their textile designs or fashion collections. The names of the six themes evoke notes and rhythms, organisers report. These include Simple Tessitura, Imitation Fugue, Sacrilegious Harmonies, and Rhapsodic Transgression. The focus on denim has been baptised Graphic Percussion, whilst the concentration on accessories is entitled Chiselled Score.
The Trends Forum will display most astounding materials, daring embroidery, new textures and the most creative developments of the season, according to organisers. Visitors wanting to make the most of all the tones can attend two seminars, scheduled for Monday and Wednesday. The artistic developers will use them to develop the link between materials and colours and will share their inspiration and the new aesthetic directions taken by textiles and fashion in winter 2016/17. The event expects 46 businesses specialising in the blue material, Denim, an undisputed king of materials, unisex, indispensable material of all season for brands and designer will unveil their winter 2016 collections and initial developments for summer 2017. The offer is diverse and high quality: selvedge denim for purists, powerstretch for hipsters, stonewashed for the 70s look, which is currently fanning the flames of fashion and eco-friendly for green and ethical brands. Six new weavers will be present, all specialising in imaginative materials, mostly for women’s and junior collections, whilst elaborate light cloths will flourish for men. Four of them come from Shanghai.
Texworld Paris invites young alumni of the Esmod Fashion School to show their graduation collections. They will form a kaleidoscope of cuts, proportions and materials, delighting in their boldness and sincerity. This year, two students, Anne-Sophie Blanc and Tamami Tomemori, have produced pieces in their collection using lace generously supplied by the maker Decotex, part of the Albani Group and an exhibitor in the Lace&Embroidery section. The lace was created specially for them, from their sketches. As the designs were very different from Decotex’s current collections, its designers modified some of them slightly to adapt them to their looms. They were then dyed in the shades chosen by the two students.
Michael Scherpe, CEO of Messe Frankfurt France said that they encourage designers and industry to come together at Texworld so that young graduates can ease their way into the professional world and understand its demands and the industry benefits from new ideas to develop its collections. Texworld Paris is set to take place from 14-17 September at the Paris Le Bourget. The show looks to suffuse its visitors and exhibitors with the latest trends, to have them touch and feel the materials, for an ever-more-lively visit.
SOURCE: Yarns&Fibers
