The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 14 SEPTEMBER, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-09-13

Item

Price

Unit

Fluctuation

PSF

1118.27

USD/Ton

0%

VSF

2070.52

USD/Ton

0%

ASF

2408.03

USD/Ton

0%

Polyester POY

1080.68

USD/Ton

-0.36%

Nylon FDY

2529.41

USD/Ton

0%

40D Spandex

5638.32

USD/Ton

0%

Nylon DTY

5804.34

USD/Ton

0%

Viscose Long Filament

1358.68

USD/Ton

0%

Polyester DTY

2349.30

USD/Ton

0%

Nylon POY

2595.98

USD/Ton

0%

Acrylic Top 3D

1158.99

USD/Ton

-1.33%

Polyester FDY

2772.17

USD/Ton

0%

30S Spun Rayon Yarn

2787.84

USD/Ton

0.56%

32S Polyester Yarn

1769.81

USD/Ton

0%

45S T/C Yarn

2772.17

USD/Ton

0%

45S Polyester Yarn

2928.79

USD/Ton

0.54%

T/C Yarn 65/35 32S

2552.91

USD/Ton

0%

40S Rayon Yarn

1910.76

USD/Ton

0%

T/R Yarn 65/35 32S

2333.64

USD/Ton

0%

10S Denim Fabric

1.10

USD/Meter

0%

32S Twill Fabric

0.92

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 = 0.15662 USD dtd.13/09/2015)

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

India to fix tariffs for 42.5% of items traded with China under mega pact

India and China have agreed to remove import duties on close to half the goods traded between them under the proposed Regional Comprehensive Economic Partnership (RCEP) pact, a development that is likely to give the domestic industry sleepless nights.

The RCEP countries — which include the 10-member Asean bloc, India, Japan, China, South Korea, New Zealand and Australia — reached a breakthrough on the initial offers for eliminating tariffs on goods at a meeting of trade ministers in Kuala Lumpur late last month. “India and China have agreed to remove duties on 42.5 per cent of traded items in the initial offers,” an industry representative who attended a recent stakeholder meeting in New Delhi toldBusinessLine . “We are nervous as no sector would want zero duty access for Chinese goods. But a pragmatic approach needs to be taken as we will also gain duty-free access into China,” the industry representative added. India’s trade deficit with China crossed $40 billion last fiscal and is about a third of the total. “Detailed offers on items to be opened up will be made by the RCEP members in Busan, South Korea, in October which will be followed by requests for improvement, subsequent revised offers, and their finalisation,” a Commerce Ministry official said. Stakeholder consultations.  The Commerce and Industry Ministry has started stakeholder consultations with industry representatives to identify goods where duties can be eliminated and those that need to be protected. There will be more such meetings in Mumbai, Kolkata and other cities. The elimination of duties will be carried out over a 10-year period. RCEP members hope to conclude the negotiations by the end of the year, which could lead to the creation of the largest free trade bloc, accounting for 45 per cent of the world population and a GDP of over $21 trillion. New Delhi has offered to open its markets widest for the Asean, by agreeing to eliminate tariffs on 80 per cent of items, and this will be reciprocated by all the members of the bloc. As India has already committed to removing tariffs on 74 per cent items in the bilateral FTA (free trade agreement) signed with the Asean, the additional commitment under RCEP is not substantial.  For Japan and South Korea, India has offered to open 65 per cent of items, which is lower than what it has already committed under its existing bilateral FTAs with the countries, but may include slightly different items as both countries have to be given the same offer under RCEP. The two have agreed to reduce tariffs on 80 per cent of goods from India. India has offered Australia and New Zealand — neither has an FTA with India — duty elimination on 42.5 per cent items. New Zealand and Australia have, in turn, offered to reduce tariffs on 62.5 per cent and 80 per cent of items from India, respectively. The RCEP will also open up markets for services and investments, the initial offers for which have also been exchanged, and include chapters in moving ahead together in areas such as government procurement and e-commerce.

Source: The Hindu Business Line

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Textile parks likely to be set up in every taluka of the state to courage youths

A workshop on Karnataka Industrial policy – 2014-19 , organised by the district industrial centre was inaugurated by Minister for Social Welfare and district in-charge H. Anjaneya on Saturday, where it was informed that the State government has decided to establish textile parks in every taluk of the State to encourage youths to become entrepreneurs and become self-dependent. The state government has also decided to adopt a new policy to help establish small and medium industries by providing 35 percent financial assistance to general category, 40 percent to women and 50 percent financial assistance to those belonging to the Scheduled Castes and Tribes.  Under the new policy, the government would provide power, land, water and other infrastructure including loans from banks and financial institutions at very reasonable rate of interests. Taking all elected representatives into confidence, a total of 20 acres of land has been identified at Holalkere taluk in the first phase and the textile park would be established apart from this steps would be taken to set up such parks in different taluks of the district.

Presiding over the programme, MLA G.H. Tippareddy informed that decades back, Chitradurga district was known for industries, but now there is considerable decrease in number of industries owing to various reasons. So the success of new industrial policy would depend on how many new industries would be set up in backward districts like Chitradurga.  The move taken up by the state government would also play a crucial role in stopping migration of youth to other places in search of livelihood.

Source : Yarn and fibres

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Textile sector seeks fresh impetus

Apparel and fabric exporters look to government to provide conducive environment The Indian textile industry expects a revival of demand in Europe and US markets by the end of this financial year. Which is good news for an industry that has seen investments declining for the past few years.  The bad news, however, is that the sector is not adequately prepared to grab the opportunity. It, therefore, wants the government to create a conducive environment to make the most of this opportunity. “Since the global meltdown struck India’s key markets, demand has slowed down. But the US market is on the revival path. In Europe, the Greece problem has largely receded and the European economy too should get better in the coming quarters. So, by the end of the financial year, we expect textile demand to go up considerably,” said D K Nair, secretary general, Confederation of Indian Textile Industry.

The Indian textiles industry has been in bad shape for some time now, added to which are the current problems affecting cotton and cotton yarn — the changing Chinese import policy has led to a situation of surplus stocks. China being the largest importer of both, lower offtake has forced many spinning mills to work on lesser number of shifts and some to even close down. In the case of garments and apparels, Indian exporters have to pay 16 per cent import duty while shipping to its largest market Europe, while competitors like Cambodia, Vietnam and Pakistan enjoy zero per cent duty. “Indian exports will grow significantly if the country signs a free trade agreement with Eurozone. The industry has been asking the government to move forward on this for quite some time now,” Nair added.  “We need a level-playing field,” agreed K Selvaraju, secretary general, South Indian Mills Association. Increase in exports of garments, made-ups and apparels would help clear the glut in upstream segments like cotton and cotton yarn, he felt. The fabric units could increase their production for the garment industry and absorb the surplus stocks of yarn. This value-addition would also help the industry earn more foreign exchange compared with what it receives by shipping cotton or yarn. Revival of Chinese cotton and yarn imports is also not likely to happen, Selvaraju felt.  “When it comes to yarn, most spinning mills are facing working capital crunch with the subsidies under the technology upgradation fund scheme (TUFS) still pending. Subsidy amounting to Rs 3,000 crore has been pending since 2010 and the incentive under focus market scheme has also been withdrawn,” he added. Under the TUFS scheme, there was 10 per cent capital subsidy and 5 per cent interest subsidy for processing and technical textiles. Shuttle looms and shuttle-less weaving too used to receive TUFS subsidies. According to Selvaraj, Tamil Nadu alone has a pending payment of Rs 1,500 crore.

“The payment of subsidies will at least solve the working capital problems of the mills. This will help stem the losses of a lot of spinning mills,” said Nair. Tamil Nadu, which accounts for one-third of the textile production of the country, has seen investments go down since 2008. Even after the power problem receded, investors are not back. The state used to bag annual investments of over Rs 20,000 crore prior to 2008, and this has come down to a maximum of Rs 3,000 crore a year. In the recently concluded Global Investors Meet in Chennai, the industry could garner a meagre 0.8 per cent of the total investment commitments which amounted to Rs 1,955 crore.  “This is not just a Tamil Nadu phenomenon. Investments are not happening in other textile hubs of the country as well,’ said Nair.

Source : My Digital FC

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New textile policy to be announced by TN to add pace to thriving textile sector

The Tamil Nadu State would be soon announcing a new textile policy, making the already successful textile industry a top destination for investment, industry experts said at a seminar at the Global Investors Meet (GIM) on Thursday.  Tamil Nadu - the nation’s largest textile manufacturer would be able to corner a lion’s share of the 15 million new jobs that would be generated, with the Indian textile industry poised to touch US$ 500 billion by 2025. T Rajkumar, chairman, Southern Indian Mills Association (SIMA), while appealing to prospective investors at the seminar said that the policy framework is very friendly and the power situation has also improved significantly. A Sakthivel, president, Tirupur Exporters Association, said that exports of textiles from Tamil Nadu had crossed Rs 21,000 crore and no other sector could promise such an accelerated growth. Apart from textile industry growth, Prakash Vasudevan, director, South India Textile Research Association (SITRA), said that there was huge scope in technical textiles which are used in fisheries, sporting goods, etc. The Minister Gokula Indira recalled the support extended to a closed mill in Ramanathapuram district after the present government came to power in 2011. Free power was extended to government mills even when there were some issues in power generation a few years ago.

Source : Yarn and fibre

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Govt may extend loan interest subsidy for exporters by 3 years to boost shipments

Indian exports have been in the negative zone since December last year, with shipments hitting an eight-month low in July.  The government is expected to extend the interest subsidy scheme for exporters for three years to help boost overseas shipments that have been in the negative zone since last December. The ministries of commerce and finance are discussing the issue, and their decision is likely to be sent soon to the Union Cabinet for approval, sources said. There were some issues regarding the time period but that was resolved and the government may extend the scheme for three years, they said. Under the interest subvention scheme, exporters get loans at affordable rates. Loans at subsidised rates will help exporters boost shipments as the country's exports have been in the negative zone during the past seven months.  The interest subvention scheme of 3% ended on March 31 last year.  Hit by global slowdown, India's exports contracted for the eighth straight month by 10.3% in July to $23.13 billion, pushing the trade deficit to $12.81 billion.  The last time exports registered a positive growth was in November, when shipments expanded at a rate of 7.27%.  Federation of Indian Exports Organisation is demanding to extend it retrospectively from April 2014.  Cost of credit is important for exporters as they are facing stiff competition from countries such as Bangladesh and Vietnam, FIEO has said.

Earlier, eight sectors including handicrafts, handlooms, carpets, sports goods, and few engineering products were availing the benefit of this scheme.  The Commerce Ministry is taking several steps to boost exports, which have been hovering at around $300 billion for the last four financial years.  It is involving states in pushing the shipments. It has also taken steps towards promoting ease of doing business in order to reduce transactions cost for exporters.  High growth in exports would help boost manufacturing activities and overall economic growth.

Source : DNA

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India's Rank May Improve in List on Ease of Doing Business: Sitharaman

India is likely to be ranked "better" this year in the World Bank's 'Ease of Doing Business' report as the government has taken several steps in this direction, Commerce and Industry Minister Nirmala Sitharaman said on Thursday. India is ranked 142 among 189 nations in the World Bank's 'Ease of Doing Business 2015' report. With the exception of two parameters (getting credit and protecting minority investors), India does not feature in the top 100 in the remaining parameters. "Last year there was a debate as to why India was poorly fared in that (ranking). With the slew of steps, this year we hope India would be ranked better," Ms Sitharaman said at a CII function here.

She also said that the World Bank together with a professional agency could release the ranking of Indian states on 'ease of doing business' this week.  Most of the states have taken a series of steps to remove red-tapism and improve business environment, she said, adding "they (states) can no longer be red-tape ridden states". Addressing businesses, the minister said government is ensuring greater market access for Indian industry in the trade agreements which it is negotiating.  "We as exporters should get best of market access," she said. Ms Sitharaman asked industry to "push forward now" to take risks and invest in the country. "You have to take risks, you have to invest. You have to choose your destiny. You have to capitalise on Indian domestic market and its demographic dividend," she added.  The government has been making investments to improve infrastructure. It has taken a series of steps to improve business environment that include having a timeline for clearance of applications, de-licensing the manufacturing of many defence products and introduction of e-Biz projects for single window clearance.  Ms Sitharaman said huge opportunities exist in sectors such as health care, energy, automobile and defence for investments in northern states which have shown growth of about 7.7 per cent during 2004 to 2014.

Source : NDTV

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Karnataka Govt to restructure its handlooms and textile department

The Karnataka state government has decided to restructure the Handlooms and Textile Department apart from this the 145 skill development centres in the State would also be upgraded with the provision of hi-tech textile centre to offer skill development. Official sources said on Friday that to restructure the handlooms and Textile Department, the Deputy Director posts in the six divisional headquarters have been upgraded to Joint Director posts and 237 new posts of different cadres have been created to strengthen the divisional offices and to man the three new district offices of the department.

To effectively implement the new textile policy and give a boost to skill-development programmes of the department, more posts are being sanctioned and also allowing it to open district offices in Chikballapur, Ramnagar and Yadgir districts and creating a separate division office for Hyderabad Karnataka. Sources said that the work of the Gulbarga Textile Park has also been hastened up and expected to be completed within 15 months which would create 10,000 direct and indirect.  Sources said that an international textile park was being established in Yadgir district with an investment of Rs. 5,000 crore and the State government had given its administrative approval. Chief Minister Siddaramaiah will lay the foundation stone on September 25 in Yadgir.  The restructuring is taken up to strengthen the department and to upgrade the skills of unemployed youths and create jobs for five lakh people over five years.

Source : Yarn and fibre

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TUV SUD enters advisory domain in Indian textile sector

German testing and certification firm TÜV SÜD has announced its entry into the advisory domain for textile manufacturing in India to drive product innovation, process and production management across the textile value chain from fibre to garment. In a statement, the company said the newly launched services will follow a multi-pronged approach towards quality, safety and efficiency in textile manufacturing.TUV SUD's Research and Development Advisory Services will include a team of global experts who will help deliver customized solutions for Indian textile manufacturers. While Production Advisory Services will guide businesses to develop new and innovative products, at the same time help them scale up existing plants and dry & wet processing houses. The holistic service solution will also include Lab Advisory Services and Training Services to help business in the back-end by assisting them to set up quality control labs as well as delivering training programs respectively.

"Our services will provide end to end consultancy in product innovation and development while mitigating any risks that could hamper completion of the process. Due to the fragmented nature of this industry, we can also support with an efficient single point control that aids product development plan to be on schedule, control costs, improve quality and enhance user satisfaction," said Mr. Suresh Kumar, Senior Vice President, Consumer Product Services, TÜV SÜD South Asia. The comprehensive testing methods of TÜV SÜD can reduce the risk of product failure by avoiding safety and quality issues. Across sectors TÜV SÜD's experts work with businesses across the entire product development lifecycle to reduce risk of failure and rejections due to non-compliance.  TÜV SÜD South Asia currently also has a robust network of 14 laboratories across regions that cater to various key sectors like environmental, food, chemical, leather, electrical and electronics. (SH)

Source : Fibre2fashion

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Deshbandhu teams up with Chemtex to build polyester staple fibre plant

Deshbandhu Group is a leading corporate house in Bangladesh has teamed up Chemtex Inc. a USA based technology and engineering solution provider for polyester staple fibre plant, first of its kind in Bangladesh. The contract signing ceremony between Deshbandhu Group and Chemtex was held yesterday at the capital's Sonargaon Hotel. Industries Minister Amir Hossain Amu was also present at the signing ceremony.

Polyester staple fibre is a fibre produced from synthetic chemical compounds, which is strong enough to be twisted into yarn similar to natural fibres such as cotton or wool. In other words, it is a substitute for raw cotton.  Golam Mostafa, chairman of Deshbandhu Group said that the factory, which will be located in Sirajganj district, is expected to start production in 24 months. The investment involve in this project will be to the tune of $100 million. Chemtex will be a strategic partner.   Once the factory is up and running, it will produce 400 tonnes of polyester staple fibre a day. The local market is their main target as the demand for such fibres is on the rise with the soaring garment exports. Bangladeshi garment makers need more than three lakh tonnes of polyester staple fibre a year, with the demand fully met through imports. At present, the country imports $480 million worth of polyester staple fibre a year.  Deshbandhu Group is targeting to supply 1.2 lakh tonnes of the fibre to garment factories a year initially, with production amped up later to facilitate the $50 billion export target, according to Mostafa.  The raw materials for the plant will be imported from Arabian countries, India, Indonesia and China.

Mostafa hopes more than 2,000 workers can be directly employed in the new plant and 6,000 more indirectly.  Deshbandhu Group, which has presence in sugar refinery, shopping malls, garment and cement manufacturing, shipping and rice mills, has an annual turnover of $260 million. It employs 5,500.  Mostafa said that they will expand their business in different areas soon as Bangladesh is a good destination for investment. The upcoming polyester staple fibre plant will help in Bangladesh's efforts to hit $50 billion in garment exports by 2021 as it will reduce the lead-time for manufacturers.

Source : Yarn and fibre

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'Japan Desk' to be set up in Maharashtra: CM Devendra Fadnavis

Maharashtra Chief Minister Devendra Fadnavis today announced to set up a 'Japan Desk', a one-stop shop in the state for all Japanese companies.  He also said that Japan, which will fund the Mumbai-Ahmedabad bullet train project, has agreed to study the proposal for the train to go via Nashik.  "I am happy to inform that we are setting up 'Japan Desk' - a one stop shop in Maharashtra for all Japanese companies," Fadnavis said at a seminar on 'Investing in Maharashtra' held in Tokyo today.   He also said that his government was trying to set up Japanese Industrial Park at Supa with the help of Japan External Trade Organisation (JETRO).   Maharashtra accounts for 15 per cent of national exports, 30 per cent of the national FDI which includes 7 per cent from Japanese FDI. The 3 Ds- demography, democracy and demand are in favour of investment in India and Maharashtra is the most preferred destination, Fadnavis said addressing and interacting with officials from around 300 Japanese business houses at the seminar.

Japan International Corporation Agency (JICA) also agreed to support new tourism infrastructure in Ajanta, Lonar in this meeting with Fadnavis, an official in CMO informed. Fadnavis proposed that the bullet train from Ahmedabad to Mumbai should go via Nashik, to which JICA agreed to study the proposal.   JICA will start public consultation on Mumbai Metro next week and will also support the bullet train project. It assured Fadnavis proposed that the bullet train from Ahmedabad to Mumbai should go via Nashik, to which JICA agreed to study the proposal.   JICA will start public consultation on Mumbai Metro next week and will also support the bullet train project. It assured Fadnavis to fast-track funding for Mumbai Trans Harbour Link (MTHL) project so as to start bidding by December this year.  

The Chief Minister met JICA's representatives and SoftBank Group CEO Masayoshi Son.

Source: The Economic Times

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Exim Bank provides USD 35 million line of credit to Guinea

Export-Import Bank of India (EXIM) Bank has provided a USD 35-million line of credit to Guinea to construct and upgrade hospitals in the country.   "Export-Import Bank of India, at the behest of the Government of India, has extended a Line of Credit (LOC) of USD 35 million to the government of Guinea for construction and upgradation of regional hospitals at Kankan and Nzerekore in Guinea," EXIM Bank said in a statement today.

An agreement for the LOC was signed here between Alexandre Cece Loua, Ambassador of the Republic of Guinea to India and Regional Head of EXIM Bank, Tarun Sharma on Wednesday, it said.

This is EXIM Bank's first LOC to Guinea.

With the signing of this agreement, EXIM Bank has now in place 199 LOCs, covering 63 countries in Africa, Asia, Latin America, Oceania and the CIS, with credit commitments of over USD 12.19 billion, available for financing exports from India, it added.

Source: The Economic Times

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IIP beats expectations, rises 4.2% in July

Industrial output growth slowed to 4.2% in July from an upwardly revised 4.4% in the previous month but still beat analysts’ expectations, buoyed by a decent expansion in manufacturing, showed the official data released on Friday. 

What gave some credence to policymakers’ assertion about a turnaround of the economy was the fact that both capital goods and consumer durables rose in double digits — 10.6% and 11.4%, respectively in July — albeit aided by favourable bases (both the segments had contracted a year earlier). The 4.7% growth in manufacturing, although lower than the 5.4% in the previous month, does corroborate the Centre’s robust mop-up of indirect taxes so far this fiscal. Excise collections grew 70% in the first five months of the year and by 9% even after the stripping of additional levies imposed since the last Budget. However, while the good growth in consumer durables production in July, after rising by 17.4% in the previous month, seemed to have been aided by an uptick in urban consumption, the contraction in consumer non-durables output (-4.6% in July) for the second time in the last three months points at the negative impact of last year’s weak farm harvests on rural India.Rural demand anyway is dampened by damages to the 2014-15 rabi crop from unseasonal rains, a plunge in commodity prices for more than a year and low wage growth. That’s why analysts, unlike the government, chose to wait for some more time to gauge any sustained recovery in consumer demand. The production of consumer durables had witnessed growth in April after 10 straight months of contractions and the segment also recorded a slump once (in May) so far this fiscal. Although notorious for short-term fluctuation, the fact that the output of capital goods — a proxy for fixed corporate investments — grew 4% in the April-July period on top of an 8.7% expansion a year earlier, and basic goods recorded 4.8% growth in the first four months of this fiscal, against a decent expansion of 8.3% in the same period of 2014-15, indicate enhanced activity in the infrastructure sector, probably aided by robust government spending, said analysts.  While the government revised the June growth figure to 4.4% from 3.8% announced earlier, it sharply trimmed the April growth rate to just 3% from as high as 4.1%.  However, with the festive season round the corner and the government expecting a better kharif harvest than the last year, when similar dry spells had shrunk production, due to higher areas under various summer-sown crops, the consumer sentiment is expected to improve in the coming months. This will likely help private demand and boost manufacturing, they added. “The latest data is a good sign and does signal that IIP growth could be in the region of 4% for the entire year considering that there is expectation that both investment and consumption would pick up in second half,” said CARE Ratings chief economist Madan Sabnavis.  However, mining and electricity generation continue to see weak growth. Mining grew just 1.3% in July even on a favourable base of 0.1% a year earlier. Electricity, however, recorded just 3.5% growth, thanks to a high base of 11.7% a year before.

Source : The Financial Express

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Current account deficit narrowed in Q1: RBI

The country's current account deficit (CAD) narrowed to $6.2 billion (1.2 per cent of gross domestic product) in the quarter (Q1) ended June, from $7.8 bn (1.6 per cent of GDP) in the quarter ended June 2014. It was $1.3 bn (0.2 per cent of GDP) in the quarter ended March.The addition to reserves was $11.4 bn in the June quarter against $11.2 bn in the year-ago period, the Reserve Bank said.  It said the CAD improvement for Q1 was due to contraction in the merchandise trade deficit ($34.2 bn), higher net earnings from services and lower outflow of dividend and interest payments. The merchandise trade deficit contracted on a year-on-year basis due to a larger absolute decline in imports relative to exports in the segment.  Madan Sabanavis, chief economist, CARE Ratings, said the CAD number was on eected lines. It might widen later and for this financial year, was expected to be 1.8-2 per cent of GDP.

In the financial account, net inflow of foreign direct investment was higher over a year before. Portfolio investment declined sharply, almost entirely in the debt segment, RBI said.

Current account deficit narrowed in Q1: RBI

Non-resident Indian deposits received by commercial banks at $5.9 bn were more than double the net inflow into these accounts in Q1 of last year. Sabnavis said accretion to reserves might stay positive in the second quarter but the amount could be low, as foreign portfolio investors pulled out part of their investments in August and early September.

Source: Business Standard

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Rupee closes 11 paise lower at 66.54 against USD

Extending losses for the second straight session, the rupee slipped by 11 paise at 66.54 against the U.S. dollar on sustained demand for the American currency from banks and importers amidst a higher greenback overseas. Besides, persistent foreign capital outflows affected the rupee sentiment. The local currency resumed higher at 66.34 as against Thursday’s level of 66.43 at the Interbank Foreign Exchange (Forex) market and moved up further to 66.32 on initial selling of dollars by banks and exporters.  However, it washed out initial gains and dropped to 66.58 before concluding at 66.54, showing a loss of 11 paise, or 0.16 per cent.  The rupee has dropped 13 paise, or 0.19 per cent, in the two trading sessions.  It hovered in a range of 66.32 and 66.58 during the day. According to forex dealers, the US dollar’s strength will keep the rupee under pressure as investors are expected to trade cautiously and square off their positions ahead of the weekend.  The dollar index was up by 0.10 per cent against a basket of six currencies in the afternoon trade.

In the global market, the dollar extended gains against the Japanese yen for the third session but was mostly range-bound ahead of next week’s highly anticipated Federal Open Market Committee meeting. The Federal Reserve policy-makers are set to begin their next two-day meeting on Wednesday. Some market strategists and economists believe they could vote to raise interest rates next week, while others expect them to hold off.  Meanwhile, the benchmark BSE Sensex gained 11.96 points, or 0.05 per cent, to close at 25,610.21.  In forward market today, the premium for dollar dropped further on sustained receivings from exporters. The benchmark six—month premium payable in February declined to 195.5—197.5 paise from 199—201 paise on Thursday and far forward August 2016 also fell to 406.5—408 paise from 414—416 paise. The RBI fixed the reference rate for the dollar at 66.3866 and for the euro at 74.8974. The rupee also dropped further against the pound sterling to close at 102.59 as against 102.32 on Thursday and also moved down further against the euro to 74.93 from 74.34.  It dropped against the Japanese currency to finish at 55.14 per 100 yen as against 54.81 on Thursday.

Source : The Financial Express

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Global crude oil price of Indian Basket was US$ 46.13 per bbl on 11.09.2015

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$ 46.13 per barrel (bbl) on 11.09.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3062.25 per bbl on 11.09.2015 as compared to Rs 3071.34 per bbl on 10.09.2015. Rupee closed stronger at Rs 66.39 per US$ on 11.09.2015 as against Rs 66.58 per US$ on 10.09.2015. The table below gives details in this regard:

Particulars

Unit

Price on September 11, 2015 (Previous trading day i.e. 10.09.2015)

Pricing Fortnight for 01.09.2015

(Aug 13 to Aug 27, 2015)

Crude Oil (Indian Basket)

($/bbl)

*46.13              (46.13)

46.03

(Rs/bbl

3062.25          (3071.34)

3024.17

Exchange Rate

(Rs/$)

66.39              (66.58)

65.70

 

Source: Ministry of Textiles

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Vietnam textile and apparel industry likely to face big challenges over the TPP’s rule of origin

During a Vietnam-Republic of Korea (RoK) scientific seminar on garment technology held in Ho Chi Minh City on September 9, co-hosted by the Ministry of Science and Technology’s National Office in the Southern Region and representative office of the Korea Institute of Industrial Technology, concern was raised that once the looming Trans-Pacific Partnership (TPP) comes into force, regulations on the origin of goods will present big challenges to Vietnam’s textile and garment sector.  Moon Byung-chul, Commercial Counsellor at the RoK Consulate General in Ho Chi Minh City, said that Vietnam must follow TPP’s “yarn-forward” rule of origin which requires that only textile and apparel products using the US and other TPP countries’ yarns and fabrics qualify for the benefit of the agreement.   Although Vietnam is one of the world’s top apparel exporters, 70 percent of its textile makers are working as sub-contractors on medium and small scales, but are still weak in fibre manufacturing, weaving and dyeing, with almost all input materials imported from China and the RoK.   According to the Vietnam Textile & Apparel Association (VITAS), the rate of locally-made products in the sector stands at a mere 55 percent, attributable to the weak weaving and dyeing capability. VITAS Vice Chairwoman Dang Phuong Dung revealed that weaving and dyeing projects fail to receive licences due to their high risk of environmental pollution. She called on Vietnamese apparel makers to learn from the RoK – a fashion powerhouse in research and development in order to produce quality fabrics and also suggested zoning off regions and areas exclusively designed for weaving and dyeing and equipped with infrastructure and waste treatment facilities, making it easier to pitch to foreign investors.

Source : Yarn and fibre

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Japan reduces knitwear imports from India

India’s knitwear exports have declined with a market share of a meagre 0.3 per cent of the total knitwear products imported by Japan in 2014 in spite the fact that India enjoys duty free access to Japan. Prashant Godghate, secretary general of Japan India Industry Promotion Association (JIIPA), said that if Indian knitwear exporters want to enter the Japanese market on a large scale, then they should improve the quality of their products and display sticking to delivery schedules. Also, they should come up with innovations in order to meet the preferences of Japan, he added.  Further, he stated that almost 80 per cent of the total textile products imported into Japan were from China, although Chinese textile exporters did not have duty free access to Japan.

India’s market share in woven garments import in Japan was at 1.45 per cent while knitwear imports at 0.3 per cent, he added. 

Source : Yarn and fibres

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Robotics to rule textile & apparel manufacturing processes

These automated dyeing plants Robotics will eventually rule the textile and apparel manufacturing processes, and full-automation at all the stages of production will be encouraged.  As scientists predict, the day is not far when robots will rule the world. High profile, technologically superior robots will take care of the work that human beings had been slogging at for long. Human intervention will be needed only in monitoring and instructing. Artificial intelligence is likely to scale down this limitation of the need for human monitoring and instructing to the maximum extent possible. Machinery manufacturers will adopt as much automation as they can for processes, and the resultant will likely be a fully-automated manufacturing plant with hardly any human intervention. The textile industry is fast moving in this direction. Renowned textile machinery manufacturers and solution providers claim that the global textile industry will not take long to become fully automated. Robotics will help achieve this dream. Latest advancements in robotics for the textile industry will be showcased in the ITMA 2015 fair about to be held in Milan this November. Machinery companies will present innovative solutions with respect to automation for the various functions in textile and apparel manufacture like ginning, spinning, knitting, weaving, dyeing, finishing and various others.

Neuenhauser Maschinenbau GmbH, providing automated handling and transport system for natural, chemical and carbon fibre bobbins, will exhibit new automation solutions for collecting packages from spinning machines, palletising and packaging at ITMA. Wilhelm Languis, head - Textile Industry Automation at Neuenhauser said in a statement, “Anybody who walks into a spinning plant, wherein Neuenhauser has had a hand in designing, is likely to believe to be in some kind of a science fiction film. Robots carry out an enormous variety of tasks autonomously in cavernous production halls almost unpopulated by humans. Even loading and unloading the machines, transporting and packing the bobbins are executed without human intervention.” More and more spinning units are switching to the use of robots to do burdensome tasks formerly carried out by humans, especially handling, transport and packaging of bulky natural, chemical and carbon fibre bobbins, according to Languis. The company provides solutions to spinning mills all over the world and 80 per cent of its output is exported. Its primary markets are India, China, Turkey and the United States of America. It recently provided automation solutions involving robotics to the Welspun manufacturing facility located in Anjar, India, which is its largest order till date for roving bobbin and package transport systems with palletisation. Welspun wanted a completely automated, contactless material transport system for its unit.

Source : Fibre2fashion

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California amends 'Made in the USA' law

California has amended its “Made in the USA. law” and taken a step toward the mainstream. California Governor Jerry Brown has signed into law Senate Bill 633 on September 1, amending a portion of California's Business & Professions Code known as the “Made in the USA.” Law, The National Law Review has reported. This amendment marks a break for California manufacturers and marketers, as it relaxes California's standard for merchandise labeled as “Made in the USA.” and aligns the state's requirement more closely with the federal standard, widely followed by other states.

The Federal Trade Commission (FTC) standard for products labeled and marketed as “Made in the USA.” requires that “all or virtually all” of a product be made in the US, examining the foreign content of a product as a whole. According to the FTC's guidelines, “all or virtually all” means that “all significant parts and processing that go into the product must be of U.S. origin,” or “the product should contain no — or negligible — foreign content.”  Until now, California has implemented a stricter standard, prohibiting the use of the phrase “Made in the USA.” when any merchandise or “any article, unit, or part thereof”—no matter how small—has been “made, manufactured, or produced outside of the US.” And as is often the case when different standards are imposed on goods that are distributed nationally, that stricter California standard has exposed many unsuspecting manufacturers to litigation, some of which remains pending.

California's new amendment, Senate Bill 633, now recognizes that merchandise made, manufactured, or produced in the US can be labeled “Made in the USA.” even if it includes one or more articles, units, or parts from outside of the US. In particular, merchandise can be labeled “Made in the USA.” “if all of the articles, units, or parts of the merchandise obtained from outside the US constitute not more than 5 per cent of the final wholesale value of the manufactured product.” Additionally, merchandise can be labeled “Made in the USA.” “if the manufacturer makes a showing that it cannot produce or obtain a certain article, unit, or part” within the US for reasons other than cost and that the article, unit, or part does not constitute more than ten per cent of “the final wholesale value of the manufactured product.”  But manufacturers will still need to go through the exercise of determining if their products meet the new California standard, and it's not entirely clear how this new standard will affect pending litigation that was filed under the old standard. But going forward, this recent amendment should help reduce the number of instances where manufacturers have to create one set of labeling materials for California and another set for the rest of the country. (SH)

Source : Fibre2 fashion

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