Textile Raw Material Price 2015-09-23
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1099.40 |
USD/Ton |
-0.85% |
|
VSF |
2070.38 |
USD/Ton |
0% |
|
ASF |
2407.88 |
USD/Ton |
0% |
|
Polyester POY |
1049.29 |
USD/Ton |
-0.89% |
|
Nylon FDY |
2521.42 |
USD/Ton |
0% |
|
40D Spandex |
5637.96 |
USD/Ton |
0% |
|
Nylon DTY |
2772.00 |
USD/Ton |
0% |
|
Viscose Long Filament |
5794.57 |
USD/Ton |
-0.54% |
|
Polyester DTY |
1339.02 |
USD/Ton |
-0.29% |
|
Nylon POY |
2349.15 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2595.81 |
USD/Ton |
0% |
|
Polyester FDY |
1138.55 |
USD/Ton |
-0.41% |
|
30S Spun Rayon Yarn |
2803.32 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1754.03 |
USD/Ton |
0% |
|
45S T/C Yarn |
2772.00 |
USD/Ton |
0% |
|
45S Polyester Yarn |
1894.98 |
USD/Ton |
-0.82% |
|
T/C Yarn 65/35 32S |
2317.83 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2944.27 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2552.74 |
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 = 0.15661 USD dtd.23/09/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India and the US have agreed to facilitate exchanges on technical textiles between centres of excellence in India and US universities, a joint statement issued at the end of first-ever India-US Strategic and Commercial Dialogue (S&CD) said. Addressing a joint press conference, India’s commerce and industry minister Nirmala Sitharaman said, “A small beginning has also been made on technical textiles, where the United States has agreed to facilitate exchanges between India’s Centre of Excellence and US universities. We also agreed on collaborating on standards in these areas.” India and the US will encourage industry to participate in trade exhibitions focused on technical textiles in their respective countries. Further, both sides agreed to consider collaborating on standards in this area, and to address concerns regarding barriers to technical textile exports in the relevant work stream, the joint statement said.
Emphasizing the importance of building commercial ties to drive the India-US partnership forward, both countries applauded the focus on innovation and entrepreneurship as an area for cooperation. They agreed to facilitate an innovation forum in 2016—a platform for US and Indian entrepreneurs to share best practices in promoting a culture of innovation and the creation of sister innovation hubs.
In addition, both sides launched a joint work stream on Ease of Doing Business. They agreed to continue exchanges of information and best practices on cross-border trade, and to continue commercial law-related initiatives on issues like insolvency and contract enforcement, and transparency. At S&CD, both sides agreed on a private sector-led collaboration between the Confederation of Indian Industry (CII) and the American National Standards Institute (ANSI) to maintain and update a portal containing standards information for the use of industry, including small- and medium-sized enterprises.
Explaining how the US looks at its bilateral commercial ties with India, commerce secretary Penny Pritzker said, “Despite being the fastest growing major economy in the world, India is only America’s 11th largest trading partner and 18th largest export market. Today, given the global headwinds in the global economy, neither of us can afford this underperformance any longer. As President Obama has said, we must make it easier for Indian and American companies to buy from each other, to invest in each other, and to create with each other. Now is the time to address the impediments to growth faced by our businesses and economies, and we will only succeed if we work together.”
SOURCE: Fibre2fashion
After pledging about Rs 500 crore for developing two existing berths at the Chabahar port off Iran’s south-eastern coast, India is now planning to invest over Rs 1 lakh crore for setting up various projects, including a urea plant, at the Chabahar port special economic zone (SEZ) area provided the nation on the Persian Gulf ensures gas at a lower rate. Iran has already offered to supply gas to the proposed Indian units at the SEZ area at $2.95 per mmBtu, which is nearly double the price of $1.5 per mmBtu demanded by India.
Addressing a press conference here, road transport and highways and shipping minister Nitin Gadkari said India would further negotiate on the gas price after it assessed the potential investment proposals being vetted by various ministries by September 28. The proposed investment in the Chabahar port would also be finalised soon. “After getting the proposals, we will discuss the issue with the Prime Minister and the PMO following which we would approach Iran for further negotiations. India is ready to invest over Rs 1 lakh crore in Iran, but all will depend on the price of Iranian gas to us,” Gadkari said.
India continued to maintain a friendly relation with Iran even when the western nations isolated it for its nuclear programme. Following the easing of sanctions by the US and the western world, Iran has become all the more potential investment destination for India for various strategic reasons. The proposed urea plant could be a big gain for India and would reduce its urea import bill and thereby subsidies on this most commonly used fertiliser. India imports around 8-9 million tonnes of the nitrogenous fertiliser annually. “If the urea plant is set up in Iran, it will result in slashing of urea prices in India by 50% and cut the subsidy on urea, which is roughly Rs 80,000 crore now,” Gadkari said.
On the modernisation of the country’s 12 major ports, which are reporting moderate growth in terms of cargo handling and operational profits after staging a poor show for a long six years ending FY14, Gadkari said his ministry plans to improve their efficiencies by increasing the level of mechanisation to 80% from 60% now and the average turnaround time to less than 2 days from 4 days now. The cargo handling capacity of the ports would also improve by around 400 MT to 1,230 MT in the next two years.
Asked about the investment that would be required to make for these proposals, he said money would not be a constraint since all the funds would be spent by the ports themselves. In addition to the existing one, four other ports would also equipped to handle cape-size vessels, he said. Along with the minor (private-sector) ports, the total cargo handling capacity of Indian ports would be 2,000 MT by 2018 from around 1,400 MT now. He said the port Trusts would be given more powers to improve operational efficiencies by making necessary change in laws, as the plan for corporatisation of major ports had hit political hurdles.
SOURCE: The Financial Express
Business optimism at Asia’s top companies dwindled in the third quarter to near a four-year low, with concern over China’s economic health sending sentiment in Singapore to its lowest ever and neighbouring Indonesia was only marginally less downbeat. Optimism was highest in the Philippines while Thai firms were likewise positive, albeit far less than in the second quarter when they had the brightest outlook in the region. The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing the six-month outlook at 79 firms, was 60 for July-September versus 71 three months prior, exceeding the 50 mid-point separating optimists from pessimists.
In India, sentiment was buoyant though firms were irked by the pace of economic reform promised by a new government last year. During survey polling, the government dropped a tax plan citing lack of support. Of seven respondents, from 19 previously, one expressed India’s first negative outlook for two and a half years. Two cited China’s slowdown as the chief risk, while another two flagged weakening emerging currencies. Three took on more staff over the past three months and two booked a rise in sales.
SINGAPORE: RECORD NEGATIVES LEAVES INDEX AT 14 IN Q3 VS 59 IN Q2
Singapore was Asia-Pacific’s most pessimistic economy in the third quarter as a record five of seven respondents reported a negative six-month business outlook, with four citing economic slowdown in China as their biggest risk. Two each reported lost orders and increased receivables over the past three months. All seven said staffing was unchanged.
MALAYSIA: CURRENCY CONCERN PUTS SENTIMENT AT 25 VS 71
Of four responses, two were neutral and two negative. The main concern for two firms was falling emerging-market currencies, such as the ringgit, which has lost 14 percent in three months.
INDONESIA: NO POSITIVE OUTLOOKS LEAVE INDEX AT 29 VS 75
None of Indonesia’s seven respondents saw positives in their outlooks, with three being negative. Three said the biggest risk was weakening emerging currencies, with the rupiah falling 8.6 percent against the U.S. dollar over the past three months. Two firms cut staff, two reported a rise in receivables, and four lost sales.
SOUTH KOREA: CHINA CONCERN SENDS INDEX DOWN TO 50 VS 69
Two companies each said their outlook was positive, neutral or negative, but all six agreed the biggest risk was slowdown in China where Korean exports have been declining. Three took on staff over the past three months while four reported higher sales.
TAIWAN: PROSPECT OF ECONOMIC SLOWDOWN PUSHES INDEX TO 50 VS 63
Sentiment in export-reliant Taiwan turned neutral as plummeting export orders portend the slowest economic growth in six years. Of eight responses, two negatives cancelled out two positives. Five said China’s slowdown was cause for concern, and five reported lower sales.
THAILAND: LEAST OPTIMISTIC IN ALMOST TWO YEARS AT 60 VS 94
The last survey’s most optimistic economy suffered a lapse in certainty, in a quarter when the national economic adviser cut its annual growth forecast in anticipation of a third year of export decline. Of 10 respondents, four said their biggest risk was a slowing China. Two pointed to domestic demand, while one cited the U.S. rate rise. Three each said staff and sales had risen.
JAPAN: FIVE-AND-A-HALF YEAR HIGH AT 73 VS 60
Firms with a neutral outlook outnumbered positives six to five leaving sentiment even higher than during “Abenomics” euphoria, when share prices rose after Prime Minister Shinzo Abe was elected in December 2012 promising economic change. Seven firms said Chinese economic slowdown was their primary risk whereas two cited weakening emerging currencies.
CHINA: MOST UPBEAT IN FOUR YEARS AT 80 VS 55
Five firms offered outlooks versus 11 previously, with three positive and two neutral. Just one said its biggest risk was the economy growing at its slowest pace in a quarter of a century, exacerbated by a stock market crash that prompted policymakers to cut interest rates and devalue the yuan. One said its chief risk was the impact of a U.S. rate rise, whereas two pointed to weakening emerging currencies. All five said staffing was unchanged.
AUSTRALIA: ECONOMIC UNCERTAINTY YET INDEX RISES TO 83 VS 71
Three Australian firms responded to the survey compared with 12 three months prior, of which two were positive for the coming half-year and two took on more staff over the past three months. Australia is shifting toward an economy driven more by services than resources as a mining boom fades. One firm cited the pace of adjustment as its chief risk.
PHILIPPINES: MOST OPTIMISTIC IN A YEAR AT 95 VS 78
Philippine companies were the most optimistic toward the coming half-year. Six of 11 saw sales rise in July-September, while data issued ahead of polling showed government spending helped the economy defy a regional slowdown in April-June. Three respondents cited the political situation ahead of a May election as a risk to their outlook. Two flagged rising competition, and one was concerned about passing on higher raw materials costs.
SOURCE: The Financial Express
Continuing its fall for the third consecutive day, the rupee on Wednesday lost another 10 paise to settle at 65.98 per dollar on persistent demand for the American currency from banks and importers in view of heavy foreign capital outflows. Higher dollar in the overseas market also affected the market sentiment, a forex dealer said. Foreign portfolio investors (FPIs) pumped out $147.15 million on Tuesday, data from the Securities and Exchange Board of India showed. The Indian unit resumed lower at 66.02 per dollar as against Tuesday's closing level of 65.88 at the interbank foreign exchange (forex) market. It slid further to 66.12 on heavy dollar demand from importers before concluding the day at 65.98, showing a loss of 10 paise or 0.15 per cent. It has dropped by 31 paise or 0.47 per cent in three days. The domestic currency hovered in a range of 65.89 and 66.12 per dollar during the day.
In the overseas market, the US dollar hit its highest in nearly three weeks versus a basket of currencies in early Asian trade, while the yen held on to broad gains made overnight as persistent worries over a slowdown in China dampened risk sentiment. Meanwhile, the Sensex rose by 171.15 points, or 0.67 per cent, to close at 25,822.99. The benchmark six-month premium payable in February fell to 183-185 paise from 188-189 paise on Tuesday and for forward August 2016 also dropped to 400-402 paise from 405-406 paise previously. The Reserve Bank of India fixed the reference rate for the dollar at 65.9600 and for the euro at 73.3700. The rupee recovered against the pound sterling to close at 100.96 from 101.67 on Tuesday while fell against the euro to 73.63 from 73.55 previously. However, the rupee firmed up against the Japanese currency to 54.85 per 100 yen from 54.93.
SOURCE: The NDTV
India does not need further fiscal stimulus to revive the economy, despite record low inflation and growth seen at the lower end of an 8.1-8.5 per cent target this financial year, Chief Economic Adviser Arvind Subramanian said on Wednesday. Comments by Subramanian earlier this month that a sharp drop in inflation meant the economy was in or close to deflationary territory led to a debate over whether public spending should increase to boost growth, along with calls for rates cuts. “I don’t think extra stimulus at this stage is necessary,” Arvind Subramanian told Reuters in an interview, adding that the government “will and must” meet the fiscal deficit target of 3.9 per cent of GDP in the current fiscal year.
Subramanian was instrumental in Finance Minister Arun Jaitley’s decision in February to soften the target from an initial 3.6 per cent to free up resources for a growth-boosting splurge on roads and railways. He said this public spending along with consumption will be the “big engines” of the economy in the short-term as debt-ridden private companies could take time to raise investments. “In transport we are on track, in railways we need to catch up,” he said, referring to about the $10.6 billion the government added to the infrastructure budget presented in February.
Prime Minister Narendra Modi, who was forced last month to put on hold a growth-boosting tax overhaul and drop a major land reform, is facing slowing exports and a short-fall in rains that could hurt food grain production. Finance Minister Arun Jaitley, who wants the Reserve Bank of India (RBI) to further cut policy rates to support the economy, met Governor Raghuram Rajan on Tuesday, ahead of the next policy review scheduled on September 29. The RBI is widely expected to cut interest rates after leaving the policy unchanged at its last review on August 4. Rajan has so far cut by 75 basis points this year as a slump in global crude oil and commodity prices brought down inflation. Subramanian said despite the shortfall in rains and export slump, the economy was still expected to grow at just over 8 percent in the current financial year, higher that private economists’ forecast. “The external environment has been much worse than what we thought. May be, we will be at the lower end of our forecast,” he said.
SOURCE: The Financial Express
The government is planning to remove some conditions and restrictions in its policy on foreign direct investment (FDI), to attract more of it, Economic Affairs Secretary Shaktikanta Das said on Wednesday. "The next area we are looking at is with regard to FDI reforms. New sectors have been opened up and sectoral caps have been liberalised but there is a lot more to do," he said at an event organised by business chamber Assocham. FDI policy has various conditionalities and restrictions, he said. "The effort is to make FDI policy simple and progressive. I won't be able to spell out details because it is work in progress." This government has relaxed FDI policy norms in the defence, insurance, construction, medical devices and railway sectors. Its 'Make In India' drive is aimed at making the country a global investment hub.
Das said the government would continue with measures to make India an attractive investment destination, without necessarily waiting for new announcements in the annual budgets. He reiterated an earlier forecast that growth in this financial year would exceed 7.5 per cent. In the June quarter, the economy grew at seven per cent. "Policy initiatives are round the clock, a 24x7 exercise, and it will continue," Das said. "The direction of these reforms and administrative measures is to strengthen the initiative towards Make in India and, second, to ensure revival of demand by giving a boost to more and more investment," he added.
On the latter, he said: "Obviously, we cannot resort to fiscal expansionary measures which were initiated five-six years ago when the financial crisis hit the world market...we don't have the fiscal room to adopt (such) expansionary policies because beyond a point, it produces negative consequences." Initiatives have to be much more structural and will have to address basic issues, he stressed. "So, as part of demand revival, the emphasis of the government is to promote investment and facilitate more and more (of it) coming into India." On start-ups that shift base out of the country due to procedural issues after a few years, Das said an enabling framework is in the works. "It will be spelt out as and when the government takes a decision."
On the often-debated good and services tax (GST): "The government is committed to a stable and simple taxation regime which has certainty, the pace of reforms will continue in taxation. GST is very much on the table. The government is committed to introducing (it) at the earliest possible." Das also emphasised the need for giving a boost to domestic savings. "This has been an area of challenge for two-three years. Our overall domestic savings have come down." The decision to launch the gold bond and gold monetisation schemes was a step in this direction, he said.
SOURCE: The Business Standard
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$ 46.33 per barrel (bbl) on 23.09.2015. This was higher than the price of US$ 45.06 per bbl on previous publishing day of 22.09.2015.
In rupee terms, the price of Indian Basket increased to Rs 3056.44 per bbl on 23.09.2015 as compared to Rs 2957.23 per bbl on 22.09.2015. Rupee closed weaker at Rs 65.97 per US$ on 23.09.2015 as against Rs 65.63 per US$ on 22.09.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 23, 2015 (Previous trading day i.e. 22.09.2015) |
Pricing Fortnight for 16.09.2015 (Aug 28 to Sep 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.33 (45.06) |
47.42 |
|
(Rs/bbl |
3056.44 (2957.23) |
3147.27 |
|
|
Exchange Rate |
(Rs/$) |
65.97 (65.63) |
66.37 |
SOURCE: PIB
"Electricity surcharges worth Rs 3.63 per unit levied by the federal government, and not determined by the National Electricity Power Regulatory Authority (NEPRA) has pushed the cost of doing business up for textile industry. It has already hit through the roof and the textile mills are collapsing fast one after another," industry sources said and lamented that the Prime Minister has delayed the relief package until after the Eid.
The textile industry circles said the NEPRA has determined electricity tariff of Rs 9.10 per unit while the government has made every electricity bill a carrier of collecting another Rs 3.63 per unit to overcome its low recovery and high line losses. In 2014, the government had levied a surcharge of Rs 2 per unit under the heads of Equalisation Surcharge, Debt Servicing Surcharge, Universal Obligation Fund Surcharge and Neelum Jhelum Surcharge. But in 2015, they have put the same old wine in new bottle by changing the labels of surcharges. "Out of Rs 3.63 per unit electricity surcharges, the federal government was charging Rs 3.10 per unit under the head of tariff rationalisation surcharge, Re 0.43 under the head of financing cost surcharge and Re 0.10 under Neelum Jhelum Surcharge," said industry sources. They also said the federal government had levied this surcharge without getting it determined from the authority, which enjoyed an exclusive power to determine the electricity tariff. "Surcharges are compulsory extraction of money from the consumers, as the government has levied it without following any guidelines. The only surcharge determined by the authority relates to a late payment, which is payable by consumers over and above the tariff in case they pay the electricity bills late," sources said.
The industry sources said the determination of tariff was the exclusive function of the authority under the law and once it is determined, the imposition of surcharge "over and above e the tariff" defeats the independence and autonomy of the authority. "The electricity surcharge is the cost incurred by power distribution companies imposed on consumers without scrutiny from the regulator," said one annoyed industrialist. He said the government is collecting revenue from the consumers in the name of surcharges to meet costs generated due to its inefficiency and financial defaults, theft and line losses in the power sector. "Instead of overcoming its efficiencies, the government is bridging the deficit by recovering it under the garb of costs of the system from the consumers," he said. However, Wapda sources said the government is not increasing the cost of doing business or generate revenue by imposing surcharges but, in fact it simply recovers the cost of electricity to ensure economic and efficient generation, transmission and distribution of electricity. The power sector experts have highlighted that the surcharges, unless determined by the NEPRA as part of tariff, amounts to unlawful extraction of money from the consumer as it has no link with the tariff or electricity consumed. "It is actually an unfair burden on consumers," experts said.
SOURCE: The Business Recorder
The impact of China’s economic slowdown on the global economy is bigger than previously thought, the head of the International Monetary Fund (IMF) said. The slowdown of Chinese growth has “probably more spillover effects in the region in particular than what was anticipated,” Christine Lagarde said in a speech at the Brookings Institution, a Washington think tank. According to Lagarde, the Chinese cooling has “downside risks… greater than they were estimated.” “Growth is lower,” she said, referring to the global economy. China’s slowdown, and questions about the government’s ability to manage it, has spurred concerns about the health of the world’s second-largest economy that have rattled financial markets in recent months. Lagarde noted the easing Chinese growth had already helped push commodity prices lower, putting pressure on export-led economies and their public finances. Her remarks came as Chinese President Xi Jinping began his first state visit to the United States in the West Coast technology and aviation hub of Seattle Tuesday, aiming to woo US businesses. President Barack Obama will host Xi for talks at the White House on Friday.
SOURCE: The Financial Express
With just under a month to go for the Intertextile Shanghai Apparel Fabrics – Autumn Edition 2015, Messe Frankfurt, the organiser, said details of further product zones and events, both brand-new and returning are ready to be announced. This includes the debut of Performance Lab for the high-performance activewear market and the return of All About Sustainability and Innotex Space zones. Planet Textiles Summit on textiles and sustainability which takes place on October 14 too returns on the second day of Intertextile Shanghai's three-day run. “Also occurring parallel to the fair are a wide range of new seminars on design and trends, technology and solutions, sustainability issues and much more,” Messe Frankfurt said in a press release. “As with all the product zones at the fair, the Performance Lab is responding to a current need in the market and matching demand from buyers,” Messe Frankfurt added.Participating at Performance Lab are a number of leading brands including Nilit, Nylstar, Thermore, Toyobo and Unifi. A group pavilion by the Korea Chemical Fibers Association will also feature, with their members such as Huvis, Hyosung and Toray Chemical Korea participating.
In addition to the overseas exhibitors in the Performance Lab, over 330 Chinese suppliers will also showcase functional wear and sportswear fabrics in hall 5.1. “Buyers looking for cutting-edge products can also find them in the Innotex Space area, as this year, around 70 companies will be displaying their new textile applications and innovative technologies,” it stated. Those interested in products, services or just the latest knowledge in the area of sustainability in the fashion and textiles industry, can find them all in the returning All About Sustainability zone and the Planet Textiles Summit. The former will see participants which includes Better Cotton Initiative (BCI), Ecocent and UL VS Ltd, Bros Eastern Co Ltd, Handseltex Industry Corp, New Wide Group and Unifi Textiles (Suzhou) Co Ltd.
An Oeko-Tex Pavilion also features there, while a seminar section inside the zone will offer a series of presentations specifically on sustainability in the industry. The Planet Textiles Summit which addresses the environmental and social impacts of the global textile supply chain will in total have 10 presentations from leading experts in the field of sustainability. Speakers from Adidas Apparel Sourcing, Institute of Public & Environmental Affairs, China, VF Corp, NimkarTek Technical Services, Corestro, Solidaridad China, Bluesign Technologies, etc will be speakers. Messe Frankfurt further added that this year's fringe program promises to be one of the most comprehensive yet, with over 25 seminars, forums, panel discussions and product presentations.
SOURCE: Fibre2fashion
Mauritian garment and textiles industry leaders are dreaming big and seeking to make the country into a marketing centre and fashion hub after seeing many of Mauritius's largest companies continuing to grow due to vertical integration that allows them to control value chains. They have been investing in technology and training, moving to higher-end production and shifting manufacturing operations to cheaper destinations. While, the domestic textile industry has been declining.
Gilbert Gnany, chief strategy officer at financial services company MCB Group, said that in textiles today, they are unable to compete with China. It is not a question of producing like they used to. But more and more the marketing arm staying in Mauritius, while part of the production is done in Bangladesh or Madagascar. Companies like CIEL Textile, one of the island's largest groups, have expanded abroad. Of its 16 production facilities, seven are in Mauritius, five are in Madagascar, while three are in India and one is in Bangladesh.
Chief executive Harold Mayer announced last year that the group is planning to make investment of Rs600m ($19m) in four new plants in Asia over the next five years. Others, like Compagnie Mauricienne de Textile (CMT), have focused on local production. CMT, which started in 1986 with 30 employees doing mainly basic cut, make and trim work, is now a fully integrated producer having seven production sites that also handle design, knitting, dyeing and sewing. CMT employs 10,000 people and plans to increase exports from its current level of 60m garments per year. The world has changed since investors from Hong Kong kick started the Mauritian textiles industry in the 1980s. They were looking for a new export base because the World Trade Organisation's Multifibre Agreement (MFA), which imposed quotas on exports from developing countries to the developed world, constrained shipments from their factories.
After two decades of rapid growth, the Mauritian industry reached a peak in 2000, when the rising cost of labour made it increasingly difficult to compete with Chinese exports. The end of the MFA in 2005 did not help either, and the number of factories declined from 660 then to around 240 today. According to Statistics Mauritius, exports declined slightly from Rs26.6bn in 2000 to Rs24.9bn last year, while employment in the sector fell from 81,000 people in 2000 to around 43,000 in 2013 Dev Chamroo, chief executive of export promotion body Enterprise Mauritius, expects new investment in the textiles sector, including spinning plants and increased dyeing, knitting and finishing capacity.
Local firms will set up factories elsewhere in Africa as there is a lot of manpower in Africa, and it is fast building its infrastructure. But those two are not enough: there is a need for marketing, access to technology and fast access to raw material. With 43 years of experience – they now know where to source fabrics, source trims, get accessories, equipment, who are the clients to look at – so they would like to play the same role as Hong Kong does as a marketing destination, Chamroo said. The country's financial services sector could also provide funding to the textile sector to help strengthen linkages Tianli Spinning, one of the island's largest suppliers of yarn, launched a programme last year to encourage farmers in Madagascar to grow cotton for its Mauritian mill, where it is investing Rs2bn to double capacity. There is a lot of capacity building going on in Mauritius and South Africa, and fashion and design schools in countries like Senegal and Ethiopia. They are trying to see whether they can establish a hub where they can use the best African designers to produce African designs and garments for the world. The government is working to turn Mauritius into a fashion hub
SOURCE: Yarns&Fibers
