NATIONAL

• Textile Industry wants quick Govt help
• Export of spun yarns made of 100pc manmade fibres on the recovery
• Top industrialists urges safeguard against cheap textile imports
• Govt scraps plan for special session on GST, rollout unlikely before 2017
• Assocham's blueprint for reviving economy
• India's Rupee Climbs for Second Day as Local Shares Extend Rally
• Global crude oil price of Indian Basket was US$ 46.69 per bbl on 07.09.2015

INTERNATIONAL

• Bangladesh doubles polyester cotton yarn imports from India
• Host of home grown apparel makers to set up manufacturing facilities in Ethiopia
• Pakistan textile delegation out to explore business opportunities in Denmark

Textile Raw Material Price 2015-09-09

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15681 USD dtd.09/09/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Textile Industry wants quick Govt help

After Tuesday's meeting between the Prime Minister and top business heads, the textile industry is expecting the central government to take quick action on its problems.The measures hoped for include action on free trade agreements (FTAs), on export incentives and release of funds under the Technology Upgradation Fund scheme (Tufs), among others. The textile and clothing industry’s yearly turnover is pegged at $105 billion, of which exports form 35-40 per cent. Capacity utilisation, especially in yarn, has declined by 15-20 per cent in the past couple of months due to decline in export competitiveness. K Selvaraju, secretary general of the Southern India Mills Association, investments worth Rs 1 lakh crore have not received any subsidy benefits under Tufs.

“While the recent rupee depreciation has helped textile exporters in some ways, the industry continues to get hurt in many other ways. For instance, as against the rupee, India's export target nations have also seen currency depreciation, which has almost nullified any benefit. Also, not only is the excise duty on synthetic textile products of 12.5 per cent hurting the industry, the reduction in duty-free scrips from two to four per cent to zero to two per cent has reduced export competitiveness,” said O P Lohia, chairman of Indo Rama Synthetics.  Another charge is that China has a lot of surplus capacity, used to dumped into countries like India through other routes. “India has signed an FTA with Bangladesh, which allows any garment converted in Bangladesh, whether the fabric is from that country, India or any other country like China, to arrive duty-free in India. Such agreements are hurting India, where even Chinese products can now come duty-free. India was competent enough in yarn exports. However, China has stopped buying yarn from India and instead begun producing,” said Sanjay Lalbhai, managing director of textile conglomerate Arvind Ltd.

Lalbhai says while competing nations Sri Lanka, Pakistan and Bangladesh have signed FTAs, such as with Europe, we have got left out. “India has to become part of FTAs. India is not part of any major FTA, unlike its competing nations. If agreements like the Trans-Pacific Partnership agreement come through, India could get completely marginalised,” he said.  “The situation has aggravated in the past couple of months, with imports growing, especially from China. In such a scenario, the Centre needs to provide a level playing field. Unlike our competing nations like Vietnam, Bangladesh and Cambodia which have duty-free access, all textile products from India attract four to 15 per cent duties. We have demanded an export incentive of three per cent for yarn, five per cent for fabric and seven per cent for garments,” Selvaraju said.

Source : Financial Express

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Export of spun yarns made of 100pc manmade fibres on the recovery path

100 percent man-made fibre yarns export rebounded sharply in July particularly that of polyester and viscose yarns. In July, 6.09 million kg of man-made spun yarn were exported, comprising 2.63 million kg of polyester yarn, 2.19 million kg of viscose yarn and 1.23 million kg of acrylic yarn.  Polyester yarn exports were up 13 per cent in value while viscose yarn export jumped 27 per cent during the month. Acrylic yarn export was down 8.5 per cent after a significant pick seen on June. Unit price realization was down US cents 11 for polyester at from a year ago and that of viscose yarn was down 5 per cent. Acrylic yarn unit price realization fell only 1.1 per cent on year on year basis. Polyester spun yarns were exported to 46 countries in July aggregating US$6.2 million with a unit price realization averaging US$2.37 a kg. A total of 2.6 million kg was exported, of which, 21 per cent was shipped USA alone. 16r new destinations were found for polyester yarn this July, of which, Nigeria, Dominican Republic and Colombia were the major markets.  Viscose yarn export in July was valued at US$5.5 million or INR35 crore and volume at 1.83 mil-lion kg, implying average unit price realization of US$3.04 per kg. This was US cents 13 higher than realized in May and US cents 15 lesser than a year ago. They were exported to 29 coun-tries with Belgium being the single largest importer worth US$1.25 million. It was followed by Turkey with imports worth US$0.94 million. Both these markets accounted for 35 per cent of all viscose yarn exported in July.  Bangladesh, USA and Portugal were the fastest growing markets for viscose yarns while Pakistan, Brazil and Guatemala were the new major markets in July 2015. Germany and Bulgaria were the major ones among the six countries that did not import any viscose yarns during the month.

Source : Yarn and fibre

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Top industrialists urges safeguard against cheap textile imports

With currencies weakening and global economic turmoil, Prime Minister Narendra Modi held a meeting on Tuesday with industrialists, bankers and economists to analyse the current situation and identify solutions.  The meeting was attended by leading industrialists like RIL Chairman Mukesh Ambani, Aditya Birla group's Kumar Mangalam Birla, Tata group chairman Cyrus Mistry, Sunil Bharti Mittal of Bharti Airtel and ITC chief Y C Deveshwar. They sought protection of Indian textile and steel sectors from cheap imports even as they pressed for reducing interest rates to improve ease of doing business.

Mukesh Ambani stated that the worst news from China might be yet to come and there may be fears around the banking and real estate sectors which could affect the Indian economy.  Cyrus Mistry urged to save the domestic steel industry from Chinese imports. Tata Steel is among the largest Indian steel makers. China’s slowdown has led to increased exports of steel and is landing in India at around $290 a tonne which is lower than the domestic price. In order to be competitive in the market, the Indian companies have therefore reduced the prices by around 28%. If a study reveals that how much these increased shipments are harming the domestic market, then the government can impose safeguard duties. K M Birla showed concern to enhance and boost the textile sector, which is among the largest employers in India.

Source : Yarn and fibre

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Govt scraps plan for special session on GST, rollout unlikely before 2017

Implementation of the Goods and Services Tax is unlikely before 2017 as the government on Wednesday abandoned plans to convene a special session of Parliament to approve the Constitution amendment bill for rolling out the country's most ambitious indirect tax reform since independence.  Finance minister Arun Jaitley said the Cabinet panel on parliamentary affairs had recommended to the President that the monsoon session of Parliament be prorogued.  The government had hoped to convene a short special session to approve the GST bill and had kept the monsoon session alive. However, opposition parties, which had blocked Parliament proceedings demanding the resignations of foreign minister Sushma Swaraj and the chief ministers of Madhya Pradesh and Rajasthan, showed no signs of relenting.

Lack of support from the opposition ranks prompted the government to scrap plans for a special session of Parliament "for the time being", Jaitley said, adding that the government would pursue efforts to thrash out an agreement over the GST bill.  "We will keep trying. We are in contact with all political parties. And nearly all parties except Congress are in favour of this bill. In Lok Sabha, except Congress, all political parties had voted in favour of the bill. Congress had walked out, they (other parties) had not walked out. If situation changes, then Cabinet will again reconsider the matter," Jaitley said. The winter session of Parliament is likely to be held in November but experts said it would be too late for adhering to the April 1, 2016 rollout date. Asked whether the government will miss the deadline for rolling out GST by April 1, 2016, the finance minister said, "Your guess is as good as mine." The government was keen to ensure passage of the bill in the monsoon session but stiff opposition from the Congress held up proceedings. The government has argued that the amendment to the Constitution, which needs to be ratified by half the state legislatures, is critical to meet the April 2016 rollout deadline. An amendment to the Constitution will be followed by the setting up of a GST Council, comprising the Union and state FMs, which will decide the details including a revenue-neutral tax rate. Then, the government will introduce a GST bill, which will enable actually levy of the tax. The government had assured states that it would be a win-win situation as far as the Centre and states were concerned. Jaitley said the tax reform would help raise India's GDP and increase revenues. States had also been assured of full compensation in case of revenue loss.

The bill on GST, which will be the biggest tax reform after 1947, was introduced in Lok Sabha in December last year. According to the bill, a single rate of GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax to ensure seamless transfer of goods and services. GST has been in the works for over a decade and has missed several deadlines, thanks to political wrangling. The NDA government had identified it as a key reform and implementation of GST would have sent positive signals to investors about the coalition's commitment to accelerating economic reforms.

Source : Times of India

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India's Rupee Climbs for Second Day as Local Shares Extend Rally

India’s rupee climbed for a second day on speculation a rebound in local stocks will prompt global funds to add to their holdings.  The S&P BSE Sensex index, the nation’s benchmark equity gauge, completed its biggest two-day advance since May after slumping to a 15-month low on Monday. Options show confidence in the rupee is increasing on signs central bank Governor Raghuram Rajan will deploy the foreign-exchange reserves he built up over the past two years to stem volatility. While overseas investors have sold Indian stocks this quarter, their total purchases for 2015, at $3.8 billion, are the highest among seven Asian markets tracked by Bloomberg.  The rupee strengthened 0.2 percent to 66.4150 a dollar in Mumbai, according to prices from local banks compiled by Bloomberg. It rose 0.4 percent on Tuesday. The currency has gained 0.1 percent in September, following a 3.5 percent retreat in August amid an emerging-market selloff triggered by China’s shock devaluation of the yuan.  “Gains in equities are aiding sentiment in the currency market,” said Sajal Gupta, head of foreign exchange and rates at Edelweiss Securities Ltd. in Mumbai. “On a relative basis, India remains among the best-performing economies.”

Official data last week showed gross domestic product increased 7 percent last quarter, putting India on par with China as the world’s fastest-growing major economy. India’s fundamentals are reasonably strong, and it has the potential to grow faster, Finance Minister Arun Jaitley said on Wednesday. 

Swings Narrow 

The rupee’s three-month implied volatility, a gauge of expected swings used to price options, dropped to 8 percent on Wednesday from as high as 10.08 percent in August, signaling reduced potential for losses. Rajan said on Aug. 24 that India will use its reserves to stem rupee swings. Foreign-exchange reserves have fallen $3.4 billion from $355 billion on Aug. 21, a sign the Reserve Bank of India has been intervening to keep the exchange rate stable as the Federal Reserve considers raising borrowing costs.  The yield on notes due May 2025 was little changed at 7.77 percent, according to prices from the central bank’s trading system. It fell three basis points on Tuesday.

Source : Financial Express

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Assocham's blueprint for reviving economy

Assocham, the apex trade chambers body, has submitted a list of 12 Key Actionable Points to Prime Minister Narendra Modi to kickstart the economy. Assocham submitted the memorandum at the high-level industry interaction convened by the Finance Ministry on “Recent Global Events – Opportunities for India”. They include Short Term Actionables (within the next 3 months) and Medium to Long Term Actionables (3 to 12 months).  In the Short Term Actionables, Assocham asked the PM to make room for monetary easing to the tune of 75-125 bps over the next 7 months: Between Jan-Jul 2015, WPI and CPI inflation fell by 793 bps and 298 bps respectively over Jan-Jul 2014. However, the magnitude of monetary easing so far has moved by just 75 bps. With WPI showing sharp deflation, the real rates for a producer has seen a 7-8 per cent jump over the last year. It said that since industrial sector accounts for 45 per cent of outstanding bank credit while it has a lower share of 28 per cent in GDP, there is an urgent need for investment revival through a strong dose of monetary easing.  It pointed out that rupee depreciation could preserve domestic price competitiveness in global trade. Assocham stressed that in a subdued world trade environment, India should prevent any real appreciation in rupee.  It has asked for FDI-FII fungibility in banking sector through a composite cap which will help in import of lower, effective cost equity capital, make banks efficiently capitalized, and boost consumer sentiment tremendously vide increasing lending capacity.  Assocham has called for investment revival by prioritizing project clearances. It has advocated fast track clearances for large infra projects especially for Government owned/EPC for private players to support construction activity and core sectors like steel and cement and called for protecting domestic industry from 'dumping' through adjustment in duties.

In the Medium to Long Term Actionables, Assocham has asked the government to explore Land Pooling model for PPP and SEZ projects. It said Government can encourage states to emulate the land pooling model as adopted by Andhra Pradesh and initially pioneered by Gujarat.  To boost growth through Investment revival, Assocham suggested that large cash-rich PSEs should be enabled to participate in buying out projects via transparent auctioning (post due diligence), that are delayed due to financial/technical constraints of Project Sponsors. Asocham has also suggested floating smart city bonds to fund the smart city projects. It said affordable housing needs a thrust and mooted infrastructure status for the housing sector especially Affordable Housing.  It also called for removing impediments in the road sector by setting up a separate wing within NHAI to work on land acquisition in consultation with States. NHAI should award projects only when substantial land parcels have been acquired.

Source : Fibre2fashion

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Global crude oil price of Indian Basket was US$ 46.69 per bbl on 07.09.2015

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$ 46.69 per barrel (bbl) on 07.09.2015. This was lower than the price of US$ 48.16 per bbl on previous publishing day of 04.09.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3116.09 per bbl on 07.09.2015 as compared to Rs 3197.82 per bbl on 04.09.2015. Rupee closed weaker at Rs 66.74 per US$ on 07.09.2015 as against Rs 66.40 per US$ on 04.09.2015. The table below gives details in this regard:

 Source : Ministry of Textiles

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Bangladesh doubles polyester cotton yarn imports from India

Blended spun yarns export aggregated US$36.3 million in July, up 12 per cent YoY while volumes gained 20 per cent at 12 million kg. During the month, 6.7 million kg of PC yarns worth US$19 million and 3.5 million kg of PV yarns valued at US$9.8 million were exported.  Cotton/viscose yarn demand has been on the rise since cotton prices have started moderating while viscose gave the lustre. In July, 0.7 million kg of yarns were exported worth US$2.7 million as against 0.3 million and US$1.69 million in the same month last year. Egypt and Bangladesh were the largest importer of PC yarn from India in July with former reducing its intake and latter doubling, followed by Turkey. USA, Argentina, Sri Lanka and Portugal were the fastest growing markets for PC yarns while Mexico, Venezuela and Ukraine significantly reduced their import of PC yarns from India.

Chile and Cuba were among the 10 countries which did not import any PC yarns from India during July. South Korea and Bahrain were the major destinations among the 16 new markets found in July.  In July, US$9.8 million worth of PV yarns were exported from India with volumes at 3.5 million kgs. Turkey and Pakistan continued to be largest importers of PV yarns from India in July with total volume at 1.95 million kg worth at US$5.7 million.  Tunisia was the new major market for PV yarn while 7 countries did not import any PV yarn during the month, including the major ones like Chile and Germany.

Source : Yarn and fibre

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Host of home grown apparel makers to set up manufacturing facilities in Ethiopia

Indian enterprises, both large and mid-sized are putting in millions of dollars for setting up manufacturing facilities in Africa’s oldest independent country, Ethiopia which is a promising sourcing destination for global manufacturers despite Modi government aggressively pushes its 'Make in India' programme. Host of home-grown apparel makers are enticed to Ethiopia, as the Ethiopian government is offering attractive incentives to draw foreign investors, such as land on decades-long lease, cheap power and duty-free exports to key markets like the US and Europe.   Fabric-to-apparel maker Raymond will be investing $100 million over the next two-three years for a garmenting unit in Awasa, a lake-side city, which will be one of its largest facilities.   Sanjay Behl CEO, Raymond said that there are two major manufacturing costs – labour and power. The labour costs in Ethiopia are 50% cheaper compared to India and power tariffs one-third. They have looked at various options including Ethiopia, Vietnam and Myanmar, and have decided to go for Ethiopia because of its favourable political and economic climate.

Arvind, another Indian textiles major, will set up a six-million-piece garment plant in Ethiopia. Its director and CFO Jayesh Shah pointed out that, among various factors, the long-term lease for factories that the Ethiopian government offers is one of the main attractive propositions for the company's decision to invest in this east African nation. There is also single-window clearance for industrial projects. Kanoria Textiles, too, is setting up a project in Ethiopia, as it is the most favoured low-cost destination for apparel makers on the lines of Vietnam, Bangladesh and India. It is not only Indian textile companies that are making a beeline for Ethiopia - companies from China, Korea and Turkey too are investing in this African nation.

Source : Yarn and fibre

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Pakistan textile delegation out to explore business opportunities in Denmark

The counsellor of Danish embassy, Assar Qureshi alongwith seven member team of Pakistani textile delegation is out to explore business opportunities in Denmark market and seek partnerships with entrepreneurs there. Participating in the trip are representatives from the following seven Pakistani companies: Gul Ahmed, Sapphire Textile Mills, Master Textile, Soortey Enterprises Pvt Ltd, Towellers Limited, Image Garments Pvt. Ltd. and VI Sigma. The trade council of the embassy of Denmark in Pakistan in collaboration with the Danish Fashion and Textile Association has organized and supported such of kind of visit for the first time, said an embassy statement.  Mr. Assar Qureshi, is delighted that the delegation, which consists of some of Pakistan’s most renowned and well-established companies, would be meeting some of the top Danish textile companies and tapping in on existing and potential resources, technology, knowledge and market opportunities. He stated that the real potential for trade between Denmark and Pakistan was significantly higher than the current trade volume of around $450 million.  Qureshi said that they want to ensure that both Danish and Pakistani companies can find partnership opportunities and avail maximum benefits from these windows of opportunities. The trip is expected to be the first round of more such visits of business delegation in future, not only from Pakistan, but also from companies based in Denmark.  He also said that among Pakistan’s advantages are an abundance of raw material, CSR focused business strategies, relatively inexpensive and well-qualified labour, state-of-the-art vertically integrated textile set-ups, and design expertise.

Pakistan’s textile is the mainstay for exports to Denmark, presently constitutes almost 10% of it’s gross domestic product. Apart from having world-class textiles manufacturing, Pakistan’s strength lies in the vertical integration of the industry which stems from being the fourth largest producer and third largest consumer of cotton in the world.Pakistan is a fast growing economy and predicted to have growth rates well above 5 percent until 2020. In addition, Pakistan’s access to GSP Plus has substantially increased the scope for EU textiles companies to import high quality products at competitive price, while Pakistani exporters have been granted duty free access to EU.

Mr. Thomas Klausen, Director of Danish Fashion and Textile Association is also looking forward to the delegation visit. He said that they are truly honored to be hosting such a prominent delegation in Denmark. The delegation consists of some of Pakistan’s leading companies, whom they anticipate receiving and introducing them to their Danish members. The Danish Fashion and Textile Association is looking forward to strengthening ties between the Pakistani and Danish companies and hope to build a solid, healthy and rewarding cooperation between both parties.

Source : Yarn and fibre

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