The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 SEPTEMBER, 2015

NATIONAL

INTERNATIONAL

 

Textile Raw Material Price 2015-09-11

Item

Price

Unit

Fluctuation

PSF

1119.62

USD/Ton

-0.70%

VSF

2073.03

USD/Ton

0%

ASF

2410.95

USD/Ton

0%

Polyester POY

1085.91

USD/Ton

0%

Nylon FDY

2532.48

USD/Ton

0%

40D Spandex

5645.16

USD/Ton

0%

Nylon DTY

5811.38

USD/Ton

0%

Viscose Long Filament

1360.33

USD/Ton

0%

Polyester DTY

2352.15

USD/Ton

0%

Nylon POY

2599.13

USD/Ton

0%

Acrylic Top 3D

1176.08

USD/Ton

0%

Polyester FDY

2775.54

USD/Ton

0%

30S Spun Rayon Yarn

2775.54

USD/Ton

0%

32S Polyester Yarn

1771.95

USD/Ton

0%

45S T/C Yarn

2775.54

USD/Ton

0%

45S Polyester Yarn

2916.67

USD/Ton

0%

T/C Yarn 65/35 32S

2556.00

USD/Ton

0%

40S Rayon Yarn

1913.08

USD/Ton

0%

T/R Yarn 65/35 32S

2336.47

USD/Ton

0%

10S Denim Fabric

1.10

USD/Meter

0%

32S Twill Fabric

0.93

USD/Meter

0%

40S Combed Poplin

1.02

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 = 0.15681 USD dtd.9/11/2015)

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

Package for exporters soon, says Nirmala Sitharaman

With merchandise exports growth in negative territory since December last year, the government will soon come out with a package to boost shipments, commerce and industry minister Nirmala Sitharaman said on Thursday.  Speaking at the Indian Express group’s Idea Exchange programme, the minister said the package would include extension of the existing interest subvention scheme to many more sectors.

“The finance ministry has given us an outlay for interest subvention. We (commerce ministry) have laid out rules by which different sectors would be given this benefit. These will soon go the the Cabinet (for a decision),” Sitharaman said. Although the minister declined to name the sectors that would be brought under the scheme (under which banks would give 3% interest relief on export credit and get compensated), official sources told FE that these might include chemicals, pharmaceuticals and electronics, given the fall in export realisations in these sectors.  The minister stressed the need to push exports, but said that the Merchandise Export for India Scheme for rewarding export performance will be looked at afresh only at the time of a mid-term review of the Foreign Trade Policy 2015-20, which is slated for September-October 2017. Turning to other major steps the government is contemplating to stimulate investments, the minister said that ranks of states on the ease of doing business would be revealed “within this week or early next week”.  With the Modi government’s focus on cooperative federalism giving states higher stakes in the development process and red tape still an impediment at the state level while project clearances have been fast-tracked at the Centre, the industry is awaiting the state-wise rankings. Making public the relative performance of states in business facilitation could also induce healthy competition among them, it is felt. On foreign investment in retail e-commerce (business-to-consumer), the minister said some states were yet to give their responses on the issue. “Once we get the responses from a majority of the states, we will take a decision,” she said. However, she added that the government was not considering allowing foreign investment in multi-brand retail, neither had it received any applications from companies in this regard. In Budget FY16, the finance ministry had allocated Rs 1,650 crore for the interest subvention scheme for exporters. This amount would likely be raised significantly now. The rate of export credit in India is 11-12% compared with 5.5% in China, 6.2% in Malaysia, 4.6% in Thailand, 2.6% in Taiwan and 2-3% in the euro area (except Greece).  On the issue of protecting steel makers from cheap imports, Sitharaman said her ministry had receive several representations from SMEs, which are users of steel, asking not to hike import taxes or impose dumping duties. She said the SMEs — which are mainly from labour-intensive sectors — have warned that higher duties would lead to job losses, adding that her ministry strongly raised this during inter-ministerial consultations. Sitharaman said her ministry was of the view that steel producers, having gained earlier when prices for the alloy were ruling high, should now reduce prices and take on competition from overseas by making their production processes more efficient. On the Directorate General-Safeguards proposal to impose a provisional 20% safeguard duty on steel imports, she said the relevant board would take a call on this, keeping in view all issues including the sudden surge in imports in recent months. In order to have better coordination with the industry on trade and economic related issues, the government will soon revive the Prime Minister’s Trade and Economic Relations Committee, the minister said. She said in a recent meeting with the PM, industry raised concerns on high input costs, fall in exports, dumping from China and state-level obstructions in ease of doing business. The minister said the industry also demanded more legislative reforms.  She said the government, with the help of ECGC and Exim Bank, is trying to boost project exports, mainly in Africa and Latin America, besides Southeast Asia. However, she added that the government was not planning to tweak any existing bilateral free trade pacts as of now. On the issue of the free trade agreement talks with the European Union being deferred, she said India was still awaiting a response from the EU on why they chose to act against the country’s pharmaceutical sector, which is world-renowned as suppliers of authentic but cheaper generic medicines. “We did not get any response from (EU authorities) though the Prime Minister and I had taken up this issue with them,” she said.

Source : The Financial Express

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Bengaluru to see investment of over Rs2000cr in garment and textile sector

Karnataka, and especially Bengaluru hosts many big garment companies and also known for its garment and textile industry to see big investments in the textile sector. With a cumulative investment of over Rs2,000 cr, the projects are estimated to provide direct employment to more than 5,000 people, mostly women, said additional Chief Secretary in department of Commerce and Industries, Ratna Prabha. The state government is also to develop a mega Silk Park in Mysuru under a union government assisted project catering exclusively to the integrated silk textile sector, ranging from silk rearing to manufacture of silk garments.  Among the big investments to come up in the textile industry, Himatsingka Linen is set to implement a massive expansion plan with an investment of about Rs1,500 crore to manufacture bedroom linen and other fabrics. Himatsingka Group is a vertically integrated Home Textile major with a global footprint focusing on the manufacturing, retailing and distribution of Home Textile products and operates amongst the largest capacities in the world for producing upholstery fabrics, drapery fabrics and bed linen products, it already has a plant in Hassan Special Economic Zone. A proposal from Shahi Exports, a major name in the sector, has also been approved for setting of its unit in Bengaluru and expansion of its already existing units in Mysuru and Srirangapatna with an overall investment of about Rs500 crore. It is estimated to create over 1,000 jobs. Jockey, a subsidiary of Page Industries, is set to implement its expansion plans with an investment of Rs132 crore in Hassan to manufacture inner garments. It will have employment potential for 700 persons.  Indo Count, one of the world’s biggest producer of bedspreads, has shown interest to set up a unit in Dharwad, with an investment proposal of Rs250 crore. Indo Count is vertically integrated right from spinning to finished made ups. The company takes pride in being India’s third highest exporter of bed linen.

Source : Yarn and fibre

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Government looking at mid-2016 rollout of GST

The government on Thursday indicated that it was reworking the goods and services tax (GST) rollout deadline to October 1, 2016, and might advance the winter session of Parliament to achieve this objective. A day after the government dropped plans to call an extended monsoon session of Parliament to pass the GST Constitution amendment, NITI Aayog Vice-Chairman Arvind Panagariya told a business news channel that he was still hopeful of the GST rollout by middle of the financial year of 2016-17, that is by October 1, if not the proposed deadline of April 1, 2016. On whether the April deadline can still be achieved, Panagariya said: “In politics you can never say anything is over. Things can change, turn around. I would not rule out that as a possibility,” Panagariya said. He, however, added: “On the other hand, if it delays… it’s okay. It is a process. It started 10 years ago. If not in April, may be six months later it can be rolled out,” he said.

Parliamentary Affairs Minister M Venkaiah Naidu also doled out hope that the winter session of Parliament could be advanced to immediately after the Bihar polls to pass the key tax reform. The minister said he was disappointed at the “negative politics” of the Congress and that the government couldn’t call the special session. “Still there is scope. Once the Bihar elections are over, we can make one more effort. We have the winter session. It can be advanced. We can still meet the deadline,” Naidu said.  The October 1, 2016 deadline has been on the government radar ever since it became clear that the Congress will not allow the GST Constitution amendment to be passed in the monsoon session. At least half the states need to ratify a Constitution amendment after it is passed by Parliament. A mid-2016 deadline will the government at least until the Budget session, that concludes in May, to ensure passage of other GST related Bills both by Parliament as well as state assemblies.  Government sources also say that big corporate groups, after their meeting with the Prime Minister on Tuesday, would put more pressure on the Congress party to ensure the passage of the GST in the winter session.  However, a string of holidays could hamper government plans to advance the session. The festival of Diwali falls on November 11, a Wednesday, followed by Bhai Dooj on November 13. ‘Surya Sashthi’ or Chhat Puja, a festival of enormous import in Bihar and Eastern UP, will be observed on Tuesday, November 17. It is, therefore, unlikely that the government would be able to call a session before that.

Source : Business Standard

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Rupee closes 2 paise down against dollar

Snapping its two-day rising trend, the rupee slipped marginally by two paise at 66.43 against the dollar on good demand for the greenback from banks and importers. The domestic unit resumed lower at 66.72 against Thursday's closing level of 66.41 at the interbank foreign exchange (Forex) market and fell further to 66.76 on initial dollar demand from banks and importers. However, it recovered afterwards to 66.42 on selling of dollars by exporters in view of recovery in the equity market, but still ended down by 2 paise, or 0.03 per cent, at 66.43. The domestic currency had gained 41 paise, or 0.62 per cent, in last two trading sessions. It hovered in a range of 66.42 to 66.76 during the day. The dollar index was quoted higher by 0.15% against a basket of six currencies in afternoon trade.

Crude oil prices fell in early Asian trade as weak Japanese and Chinese economic data fuelled concerns that low levels of investment could further erode already slow growth in Asia. In New York, the dollar trimmed early gains against the yen and the euro yesterday, but remained higher against both even as falling Treasury yields dulled the dollar's luster. Meanwhile, the benchmark BSE Sensex ended lower by 97.41 points, or 0.38%, at 25,622.17.

Source : Business Standard

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RBI allows importers to raise trade credit in rupees

he Reserve Bank of India (RBI) has decided to allow resident importers to raise trade credit in rupees, with riders. It can be raised after entering into a loan agreement with a foreign lender.  “Trade credit can be raised for import of all items, except gold, permissible under the extant Foreign Trade Policy,” said the regulator on Thursday. The credit period for import of non-capital goods can be up to a year from the date of shipment or up to the operating cycle, whichever is lower. RBI says the trade credit period for import of capital goods can be up to five years from the date of shipment. No roll-over or extension can be permitted by a bank beyond the permissible period.  Banks can permit trade credit up to $20 million equivalent per import transaction. They may give a guarantee, letter of undertaking or letter of comfort in respect of trade credit for a maximum period of three years from the date of shipment. ALSO READ: RBI intervenes more through forwards in foreign exchange market.  RBI said the all-in-cost of such rupee-denominated trade credit should be commensurate with prevailing market conditions. Foreign lenders of such trade credits will be eligible to hedge their exposure in rupees through permitted derivative products in the onshore market with a bank in India.

Source : Business Standard

 

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Exim Bank moots a special purpose vehicle model for ship financing

The funding mechanism to acquire/build ships could undergo a sea change as the Export-Import Bank of India is planning to get shipping companies and shipyards to float special purpose vehicles for each ship, with investors, including banks, investing in the financial instruments issued by these vehicles.  To get all players in the maritime industry on board vis-à-vis the funding mechanism, Exim Bank will seek to establish a Maritime Financing Facility (MFF) at the International Financial Services Centre (IFSC), Ahmedabad, in association with commercial banks. Companies use special purpose vehicles (SPVs) to finance large projects, usually in the infrastructure sector, without putting the entire firm at risk. Alluding to the stress facing the Indian banking industry on their exposure to the maritime sector, Yaduvendra Mathur, Chairman and Managing Director, Exim Bank, observed that a facility could be created whereby the manner in which maritime facilities are financed can be changed. India could emulate the Korean shipbuilding industry’s success.   “Instead of borrowing on the books of companies to build ships, ship-specific bonds can be floated. Actually, people will invest in ship-specific bonds.  “So, there will be an exposure of people only to a particular ship. These are innovative financing structures. We have been talking to a few merchant bankers on how the maritime activity can kick-start the whole economy,” explained Mathur. The Exim Bank chief underscored that only 5 per cent of India’s trade is carried on India-made ships.

Need to build ships

“We are so vulnerable. Some short-sightedness in Indian policies has decimated our shipbuilding, shipping and ports. So, we are too much focussed only on building ports. That is not the real thing. “We should actually build ships. Seventy per cent of ships which are built in India are using imported components. We don’t make even the steel used in shipbuilding. So, Exim Bank is committed to supporting the whole maritime sector,” he said. The MFF, as envisaged by Exim Bank, could see the banking skill-sets related to the maritime sector getting housed at one place in the IFSC.  So, if some innovative overseas instruments have to be structured then the banks, which are part of the MFF, can start operating in the global bond markets.  “The challenge in ship financing is that valuations have dropped. Today, if a ship has got a charter, it has got value. If the ship doesn’t get business, its value immediately collapses and then the banks take the hit. “…So, if the ship is owned by a shell (SPV), which is a financial owner, it can be very easily leased out all over the world. Globally, this is how ships are financed. In India, we have not tried out this kind of financing,” said Mathur.

Source : Business Line

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GST will spur British investments in India

UK companies’ investment interest in India will surge if GST regime gets implemented and industry concerns over land acquisition are addressed, Patricia Hewitt, Chairperson of UKIBC, has said.  However, any delay in Goods and Services Tax (GST) implementation beyond the proposed April 1, 2016 timeline will not dilute the UK’s long-term commitment to India, Hewitt said on the occasion of the launch of the ‘Sterling Assets India’ report here on Thursday.  Her remarks are significant as they come at a time when speculation is rife that the Modi-led Government’s reform agenda of implementing GST from April 1 next year may get derailed.  The Sterling Assets India report, produced by the Confederation of British Industry, PwC UK and the UK India Business Council (UKIBC), has assessed the impact of British FDI in India in terms of jobs creation, business success stories and corporate social responsibility initiatives of British companies in India across a number of sectors.  The India focused study — in its first edition — has found that between 2000 and 2015, the UK invested $22.2 billion in India — 9 per cent of all foreign direct investment (FDI) that come into the country.

This has made the UK the largest G-20 investor, outpacing the US and Japan, and substantially ahead of other nations.  The report also revealed that UK FDI of $22.2 billion (between 2000 and 2015) generated around 138,000 direct jobs, 7 per cent of the total 1.96 million jobs generated by FDI in India.  As India’s largest G-0 investor and employer, the UK companies currently employ around 6,91,000 people across India, 5.5 per cent of total organised private sector jobs in the country.  This Sterling Assets India study has also found that the UK companies spend more than twice the government requirement on corporate social responsibility (CSR).  Currently, the CSR spend of British companies is 4.4 per cent of profits against the government-mandated figure of 2 per cent.

Source : Business Line

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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: 

Particulars

Unit

Price on September 07, 2015 (Previous trading day i.e. 04.09.2015)

Pricing Fortnight for 01.09.2015

(Aug 13 to Aug 27, 2015)

Crude Oil (Indian Basket)

($/bbl)

46.69              (48.16)

46.03

(Rs/bbl

3116.09          (3197.82)

3024.17

Exchange Rate

(Rs/$)

66.74              (66.40)

65.70

Source : Ministry of Textiles

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Bangladesh textile sector earned $128,000mn in six fiscal years

Bangladesh government has set a target to earn foreign currency of $28,447.57m in the current fiscal year of 2015-16 after its textile sector earned foreign currency of $128,203.71 million in the six fiscal years since 2009-10, according to the statistics placed in the Parliament by Textile and Jute Minister Md Emaz Uddin Pramanik yesterday. The textile sector earned foreign currency of $26,509.77m in FY2014-15, $25,508.77m in FY2013-14, $22,556.73m in FY2012-13, $21,496.57m in FY2011-12, $19,002.78m in FY2010-11 and $13,129.09m in FY2009-10.  The minister also said that Bangladesh exported a total of 84.37 lakh bales (1 bale = 181kg) in the last five fiscal years, from 2010-11 to 2014-15. While, the amount of exported jute was 111.08 lakh bales from 2005-06 to 2009-10.  Bangladesh has exported jute to Pakistan, China, India, Brazil, Ivory Coast, Vietnam, Korea, Russia, Djibouti, Nepal, Cuba, Germany, UK, USA, El Salvador, Philippines, Tunisia, Belgium, Netherlands, Ethiopia, Japan, Thailand, Spain, Iran, South Africa, Turkey and Italy.  The Bangladeshi textile and garment manufacturing sector is fuelled by young, urbanizing, workers many of whom are women. It is the sixth largest apparel supplier to the United States and EU countries. Major products exported from Bangladesh include polyester filament fabrics, man-made filament mixed fabrics, PV fabrics, viscose filament fabrics and man-made spun yarns. Major garments exported include knitted and woven shirts and blouses, trousers, skirts, shorts, jackets, sweaters and sportswear, among other fashion apparel.

Source : Yarn and fibre

 

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New solution unearthed to spinning banana stems into textile fibres

The textile sector has been constantly investing and exploring new innovations as it faces significant challenges moving into the future in terms of fibre recycling technologies and alternative material sources, especially with the most common fibres, like cotton, are generally inseparable from chemicals and binders and consequently very expensive to reprocess to the recycle or biodegrade. The Philippine Textile Research Institute has recently discover a new solution, the potential opportunity to use banana plant stems as the source of a new bio-sourced fibre. Research found that around one billion tonnes of banana plant stems are wasted every year with the potential for banana plantations in the Philippines alone generating more than 300,000 tonnes of textile fibre.  As is the case with most exploratory materials, the full potential and possibilities of the banana stem fibre is pretty much an unknown. However, textile company Offset Warehouse are one of the first movers experimenting with the new material, which is likened to hemp or bamboo. It needs fewer chemicals and less water to manufacture and can be mostly bio-degraded at the end of use.  In the textiles sector where there is significant turnover in terms of products, it is becoming obvious that finding a way to utilize materials in more than one cycle will definitely offer companies a considerable economic advantage

Source : Yarn and fibre

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Intertextile Shanghai Home Textiles sets new records for exhibitor, visitor and exhibition space

The gateway to Asia's home living, Intertextile Shanghai Home Textiles which was recently held at the National Exhibition and Convention Center (Shanghai) across 170,520 square meters from 26 – 28 August, 2015 set new records for exhibitor, visitor and exhibition space figures.  More than 43,000 trade buyers and around 1,402 exhibitors from 30 countries and regions attended Intertextile.  Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd said that going beyond the record figures, there were a number of other aspects that were just as pleasing such as the increase in internationality of participants, and the number of first-time overseas exhibitors who were seeking out opportunities in the Asian market. They also had a number of new product zones, as well as returning ones, which proved extremely popular, while their new InterDesign programme attracted huge crowds to the Trend Area, Trend Concept Show and seminars. The fair took place against a backdrop of economic uncertainty in China, but this did not appear to dampen the enthusiasm of both new and returning overseas exhibitors that target the Chinese mid-range and high-end markets, with many reporting that they do not expect to be adversely affected.

In recent years, the fair has placed a big emphasis on providing opportunities for exhibitors that match market demand through relevant product zones, with the new Whole-Home Style and digital printing areas joining the existing Exquisite Europe, Intertextile Design Boutique, editors and carpet & rug zones this year.  Returning Chinese company Lezai Dongfang Culture was one such exhibitor, with Jake Ji, general manager, saying that being in the Whole-Home Style zone has been a big advantage as it attracts their target buyers to their booth. After only one and a half days, they received so many enquiries from China’s top designers, buying offices and agents, and many have placed orders. Buyers also appreciated the zones, as well as the internationality of the fair. It’s very beneficial for them to visit the fair as it gathers suppliers from around the world. The International Hall is their favourite as having the different product zones and country pavilions makes it easier for them to locate their targeted suppliers and products, Mr David Costantini, Director, Profile Fabrics, Australia said.  As well as the product zones the fair’s fringe programme also responds to the demands of the local market, with the new InterDesign programme a response to the increased need for design and trend information from the growing middle and upper classes in China. In addition to the Trend Area, which was designed by the NellyRodiTM Agency, a new Trend Concept Show matched China’s top interior designers with eight leading brands including LaCanTouch, Brilliant & Refined, Designers Guild, Uniwal, Jean Paul Gaultier, Pt, Dedar and JAB Anstoetz to bring the trends in the Trend Area to life. Intertextile Shanghai Home Textiles – Autumn Edition was organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association. The next Autumn Edition will take place Aug. 24-26 next year.

Source : Yarn and fibre

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