Textile Raw Material Price 2015-09-27
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1083.95 |
USD/Ton |
-1.42% |
|
VSF |
2070.78 |
USD/Ton |
0% |
|
ASF |
2283.03 |
USD/Ton |
-5.20% |
|
Polyester POY |
1038.52 |
USD/Ton |
-1.04% |
|
Nylon FDY |
2521.90 |
USD/Ton |
0% |
|
40D Spandex |
5639.04 |
USD/Ton |
0% |
|
Nylon DTY |
2772.53 |
USD/Ton |
0% |
|
Viscose Long Filament |
5834.84 |
USD/Ton |
0.68% |
|
Polyester DTY |
1331.44 |
USD/Ton |
-0.58% |
|
Nylon POY |
2349.60 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2471.00 |
USD/Ton |
-4.83% |
|
Polyester FDY |
1127.81 |
USD/Ton |
-0.96% |
|
30S Spun Rayon Yarn |
2819.52 |
USD/Ton |
0.56% |
|
32S Polyester Yarn |
1738.70 |
USD/Ton |
-0.89% |
|
45S T/C Yarn |
2772.53 |
USD/Ton |
0% |
|
45S Polyester Yarn |
1895.34 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2318.27 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2960.50 |
USD/Ton |
0.53% |
|
T/R Yarn 65/35 32S |
2553.23 |
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 = 0.15664 USD dtd. 27/09/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
An excessive dependence on China is hurting India’s textile exports, while the garment industry is doing better due to wider geographical spread of its export markets, reports Banikinkar Pattanayak in New Delhi. While China is the biggest market for textiles, accounting for over 70% of India’s cotton and 40% of yarn supplies, the US and EU are the largest markets for Indian apparel, making up for roughly 65% of the country’s garment exports. Given that China is predicted to slow further in 2015 as well as 2016 while the US economy seems to have turned the corner and Europe is on its way towards a fragile recovery — if the IMF forecasts on global growth are any indication — India’s exports of garments may continue to perform better than those of textiles for some more time. Textile exports include a range of products such as raw cotton, yarn, fabrics, made-ups, carpets, jutes, etc. Even the depreciation of the rupee against the dollar isn’t going to help Indian textile exporters much, as the recent yuan devaluation by China has made its imports more expensive, according to senior textile industry executives. However, the fact that the rupee has depreciated more than currencies of other garment-exporting countries such as Bangladesh and Vietnam this year, outbound shipments of apparel may not be affected much. Then again, biggest rival China would be more competitive in the garment export market following the yuan devaluation. The withdrawal of certain shipment incentives under the foreign trade policy for 2015-20 just made the matter worse for Indian textile exporters.
Already, while exports of raw cotton and waste crashed by 58% during the April-July period from a year before, those of man-made yarn dropped nearly 6% during this period. However, some of the other textile segments, such as jute and carpets, have performed well during the April-July period (exports of jute grew 13.2% and those of carpets rose 12.3%), helping the overall textile exports achieve an under 1% rise up to July this fiscal. Not just exports, even the production of textiles dropped in July from a year before, while that of garments gained 21.7% during the month, according to the industrial output data. This suggests while export demand remains weak, even domestic consumption isn’t picking up in textiles. Not surprisingly, spinning mills in India have now started cutting down on production for the first time in five years to prop up prices. The fact that the government is yet to clear subsidy claims of around Rs 4,500 crore for investments made under the flagship Technology Upgradation Fund Scheme has added to the liquidity woes of textile units, especially the spinning mills.
SOURCE: The Financial Express
India's technical textile industry is expected to grow at a rate of 20 per cent annually to touch $30 billion over the next five years. "In view of the growing demands, the country's technical textile industry is expected to grow at a rate of 20 per cent annually to touch USD 30 billion over the next five years," Textile Commissioner Kiran Soni Gupta said after inaugurating the 5th edition of the exhibition for technical textiles and non-wovens 'Techtextil India'. Soni emphasised the growing sectors within the technical textiles industry in India such as medical (Medtech), geo-textiles (Geotech), protective textiles (Protech) and agricultural textiles (Agrotech) and factors of ease of doing business and technology integration that can further propel growth in technical textiles sector.
A large number of technical textile products are consumed by different industries like automotive, healthcare, infrastructure, oil and petroleum, among others. With increase in investments in industry sectors, higher consumption and growing exports, the industrial sector is poised for considerable growth. Growing awareness about the superior functionality of technical textiles will encourage higher consumption of these products. She also said that the National Textile Policy, which is now in its final draft, will be announced soon. The government is promoting the growth of technical textiles in the country and is implementing four schemes for the purpose namely technology mission, scheme for strengthening of database and standards for technical textiles, scheme for usage of agri-textiles in north-eastern region, and restructured technology upgradation fund scheme. In addition to these four schemes, the Ministry of Textiles has set up eight Centres of Excellence (CoE) and has also approved setting up of integrated textile parks, Gupta said. The exhibition saw participation from over 150 exhibitors from India, Austria, Belgium, China, Czech Republic, England, France, Germany, Italy, Switzerland, the UK and the US.
SOURCE: The Economic Times
Access to markets is the first and foremost policy urgently required for the textile industry to enable it has a level playing field in global markets as there is excess production capacity, Southern India Mills' Association (SIMA) has said. Textile exports declined in August 2015 for the ninth straight month by 20.66 per cent with overall exports reaching $26.8 billion, while exports of cotton textiles registered a negative growth of 7.39 per cent as exports touched $863.18 million in August, as against $932.02 million in August 2014, the newly elected SIMA chairman M Senthil Kumar told reporters.
Continuing decline in exports is a serious concern and the Centre needs to take urgent action as major importing nations like EU, Canada, China are giving preferential access to competing nations like Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam. Abnormal duties imposed on Indian textiles are severely affecting Indian exports, he said. Therefore, the government should expedite conclusion of Free Trade Agreements with China, EU, Australia, Canada and other countries and gain market access, he added. Kumar also requested the government to allocate Rs 6,500 crore as already recommended by the Textiles Ministry to clear all pending Technological Upgradation Fund subsidies, including blackout period, committed liabilities and to keep the scheme live till March 31, 2017 and bring it in a new format in the next five year plan.
Seeking removal of import duties, anti-dumping duties and reduction of Central Excise duty on man made fibre from 12.5 per cent to six per cent, the association has sought expedite implementation of GST by covering textiles and clothing products under the lowest slab considering the nature of the industry (predominantly SMEs). Another major policy decision required for smooth going of the industry was to extend subsidies directly to cotton farmers and de-link Cotton Corporation of India from cotton trade, Kumar said.
SOURCE: The Economic Times
Tamil Nadu Minister for Handlooms and Textiles S. Gokula Indira, inaugurating training centre at Emaneswarm on Thursday said that 100 handloom weavers in Paramakudi, Virudhunagar, Nagercoil and Tirunelveli circles would be offered training for 50 days under the Integrated Skill Development Scheme (ISDS). During the training the weavers would also be given a daily stipend of Rs. 150 each. The training imparted to the weavers in the centre would help them develop new designs and come out with diversified products with improved quality to meet changing market needs and enhance their earning. In the first batch, 20 weavers, including eight women, from Paramakudi circle would be trained and all the 100 weavers would be covered in the next 10 months, she said. The Minister said that 89 weavers’ cooperative societies were functioning in Ramanathapuram (86) and Sivanganga (three) circles with more than 12,000 weavers attached to them. They produced about Rs. 36 crore-worth products, mainly cotton saris, per year, and Co-optex procured 40 percent of them.
The training centre was equipped with all necessary infrastructure facilities, including looms, motorised jacquard boxes, computerised design machine, computerised card punching machine, and motorised pirn winding machine to help the weavers upgrade their skills and familiarise with emerging technologies, R.P. Gowthaman, Assistant Director of Handlooms and Textiles, Parakamudi circle, said. He said that 30 weavers each from Paramakudi and Virudhunagar circles and 20 each from Nagercoil and Tirunelveli circles would be trained in the centre. Besides, the Tamil Nadu Cooperative Union is also imparting 15-day training to weavers in technology upgradation on a regular basis. Twenty weavers are trained every month with a daily stipend of Rs. 150 each.
SOURCE: Yarns&Fibres
As China is confronting property market challenges, overcapacity in industries, debt burden and financial risks, the recent slowdown in the economy and the devaluation of the Chinese currency has heightened major concerns for the various economies across the globe, including Africa. Over the past decades, China has been a major and the largest trading partner of Africa, with bilateral trade amounting to $220 billion in 2014. China imports a wide range of products—from copper to oil—from Africa and the continent has become an increasingly important source for feeding the appetite of the consumer-rich Chinese economy. However, the dramatic slowdown of the Chinese economy has left the African region looking vulnerable. The past few months have seen a significant deterioration in Africa’s trade balance with China. In fact, the lower forecast growth rate of 3.1% of China depicts the fragile picture affecting the dynamics of Sino-African relationship.
So, what is the exact impact of the Chinese slowdown on African economies? According to researchers at IMF: “No region may be more affected by the financial meltdown in China than Africa. If China sneezes, Africa can now catch a cold.” China is highly dependent on Africa for its mineral resources, oil and cheap labour. Given the fact that exports to China from Africa accounted for 30% of the region’s total exports between 2005 and 2012, African resource exporters are going to suffer negative shock-waves to their industries. Lower demand from China will shrink the economies of Africa and eventually heightened the debt burden.
For the top five exporters—Angola, South Africa, the Republic of Congo, Equatorial Guinea and the Democratic Republic of Congo—a 1% decline in domestic investment growth would mean a 0.8 percentage point decline in the region’s growth. According to Fathom Consulting research, Zambia—which has the large community of Chinese immigrants, having established successful businesses in the retail and the construction industries, followed by South Africa—is most exposed to the Chinese economic slowdown. Last month, with the devaluation of the yuan, South African stock markets suffered from heavy losses with the fall in the value of the rand by almost 8%. In addition to the damage caused on the rand, analysts also noticed the impact of the slowdown on the South African steel industry, which found it difficult to compete against cheaper Chinese steel exports. Moreover, Chinese firms are finding themselves increasingly at odds with their African hosts over environmental and labour issues.
Given these developments, the slowdown may bring benefits to the Indian economy. The India-Africa Forum Summit (IAFS) in October will be a testing time for India to seek a proactive and meaningful engagement to make the best of the times. Though not as strong as China, India’s commerce with Africa has seen considerable progress over the years. In 2013, the trade between both the regions stood at $70 billion. Nigeria and Angola account for more than a quarter of India’s oil and gas imports. India’s private sector has established a significant presence in South Africa, Kenya, Tanzania and Mauritius, which has led to strong entrepreneurial ties in sectors such as retail services, mining and commodities trading.
In light of Africa’s increasing dependency on and trouble with Chinese actors, African leaders are beginning to look beyond China in an attempt to diversify. Considering that the demand for African resources will get affected from the Chinese slowdown, India and the long-standing presence of Indian businesses in the continent can help Africa deal with the losses. Compared to China, the Indian economy is expected to grow more rapidly, at 7.5%, and offers a large consumer market. With growing energy demands and Make-in-India, further engagement with Africa is possible. Moreover, India provides a useful model for democratic development. The learning experience from India can help Africa strengthen its judicial system. Additionally, India can be a useful partner to support Africa against terrorism. The upcoming IAFS will be an occasion to harness this opportunity and a meaningful strategic engagement beneficial to both the countries.
SOURCE: The Financial Express
Leading businessmen from India and 15 other countries, including China and Japan, may soon be able to make visa-free short business trips to each other's territory to boost commercial ties, with the Home Ministry giving in-principle approval to the ambitious plan.The member countries of the Regional Comprehensive Economic Partnership (RCEP), a proposed mega trade agreement, will discuss the matter at its next meeting scheduled to be held in Busan, South Korea, from October 12 October 16.
Sixteen-member RCEP comprises 10 ASEAN member states and their trading partners -- India, South Korea, Japan, China, Australia and New Zealand.As per the proposal, a special business travel card, modelled on that of the Asia Pacific Economic Cooperation (APEC), will be issued to leading businessmen of RCEP member countries for uninterrupted, visa-free short business trips to each other's territory."We have received a proposal from the Commerce Ministry and conveyed that, in principle, the plan is feasible. But we have sought the detailed project report for giving the final clearance," a senior Home Ministry official said.If the proposal gets clearance, bona fide business travellers with the special card will avoid visa documentation and long queues at airports and could tour with more ease.
RCEP negotiations were launched in Phnom Penh in November 2012. The 16 countries account for over a quarter of the world's economy, estimated to be more than USD 75 trillion.The proposed trade agreement is under negotiations and is an extremely important institutional process which will have significant implications for India and other partners.The pact is expected to help India increase its share in the global trade. India is aiming to increase its global trade share to 3.5 per cent by 2020 from the current 2 per cent.
For fast and efficient travel for businessmen within the region, APEC has created an APEC Business Travel Card (ABTC), which allows business travellers pre-cleared, facilitated short-term entry to participating member economies. ABTC removes the need to individually apply for visas or entry permits, saving valuable time, and allows multiple entries into participating economies during the three years for which the card is valid.
SOURCE: The Economic Times
Indian manufacturers and exporters should diversify more and become part of regional multi-lateral trade pacts to boost shipments of their products globally, India's top envoy in Singapore has said. "It is for the business community of India and Singapore to identify more opportunities and further increase trade flows," India's High Commissioner Vijay Thakur Singh told some 200 delegates at the 'India-Singapore Trade: Challenges and Opportunities' business forum.
Underlining the wide range of initiatives and thrust of India's trade foreign policy, Singh called on the manufacturers and exporters to diversify and be part of the regional multi-lateral trade pacts to boost shipments of their products globally. Singh also reiterated the government's target of further increasing shipments of merchandise and services as there are plenty of opportunities to do so. "The trade policy aims to increase the share of Indian exports in world markets to 3.5 per cent by 2019-2020, doubling it in five years," Singh said. In value terms, the increase in exports would be approximately USD 900 billion by 2019-2020, almost double from USD 461 billion in 2013-14. Some 175 Indian manufacturers and exporters are showcasing their products at the Singapore International Indian Shopping Festival being held from September 24-27.
Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations, also called on the manufacturers and exporters to adopt strategies to further boost their exports. Stressing that India's direct global exports were growing, he said there are still more opportunities to be part of regional trade groupings and pacts, especially benefiting from the lower taxes and incentives of landing products in the international markets. Sahai suggested that Indian manufacturers and exporters should also consider Singapore for shipments to markets in the United States, Canada, Mexico, Peru, Chili, Australia, New Zealand, Japan and South East Asia. Singapore can be a centre for refining and re-packaging of merchandise followed by shipments to global markets, he stressed. "Although India has a wide range of exports to these markets, routing it through Singapore will create additional opportunities. It will be advantageous in landing lower tax product in export markets," said Sahai. He said there will be more opportunities through multi-lateral trade pacts such as the proposed Trans Pacific Partnership (TPP) that is designed to cover countries in the Pacific Rim. It would be good for Indian manufacturers and exporters by adding value to their products in Singapore and be part of the export routes that would emerge from TPP-type pacts, he pointed out.
SOURCE: The Economic Times
The Southern India Mills’ Association (SIMA) will be focusing on four major issues in the next two years – improving the cost competitiveness of the industry and getting the Centre to make raw material available at international prices, especially synthetic fibre, address market access problems, and promote value addition, the newly elected chairman of SIMA, M. Senthilkumar said. SIMA will promote two textile processing parks in the State that will increase the textile processing capacity in Tamil Nadu by 350 tonnes to 400 tonnes a day. The park coming up at Cuddalore is expected to be commissioned by 2017 and will have 10 units that will process yarn and fabric for captive use. The capacity of the park will be 250 tonnes a day. The other park at Ramanathapuram will come up on nearly 200 acres and will have minimum 20 units, including small and medium scale industries. The total investment in the park will be nearly Rs. 500 crore. SIMA is the single largest employers’ rganization representing the rganizat textile industry in the world and the only employers’ rganization of the textile industry having in-house expertise to advice right from designing the textile project to marketing.
SOURCE: Yarns&Fibres
In its Foreign Trade Policy statement, issued in March, the commerce ministry talked of a relative lack of awareness about the potential benefits from free trade agreements (FTAs). Also, that industry is not adequately oriented to using such FTAs to find new markets and products, except when these adversely affect their business. So, an FTA outreach programme has been launched for all tier I and tier II cities, to be conducted till a satisfactory level of awareness is achieved, it said. While such programmes will help, it can assist exporters who want to compete in the markets of countries with which we have FTAs, by making it easier to access essential information on tariffs. For example, if an exporter is talking to a prospective buyer in Malaysia, he would need to know the normal tariff for his product in Malaysia and the concessional one for imports there. This will enable him to work out the landed costs from various countries. Armed with this, he can adjust his quotes and be competitive.
This information is not readily available. A web portal on FTAs has been developed and can be accessed at http://indiantradeportal.in. This provides both the normal tariff (rate under the most favoured nation (MFN) treatment, given to all countries) and the trade agreement applicable, rules of origin, sanitary and phytosanitary standards, and technical barriers to trade under various FTAs signed by India. The data is provided at the eight-digit level of the harmonised system of classification.
However, the information on preferences in that portal relate only to India. The exact rates under the FTA with India are not given. In many cases, the MFN rate is given as zero and so, it is difficult to understand how the FTA helps. Besides, the data is so presented as to require some interpretation and enhanced levels of understanding by the exporter. Not all can easily reach that expertise. What is needed is a presentation of relevant information in a chart showing the comparative tariffs for each product in the destination country for imports from various countries. In other words, the exporter should, at a glance, know the tariff rates in the importing country for his product, for imports from various countries. That will enable him to understand the extent of preferences his competitors get, and quote accordingly. For example, if an exporter knows imports from India attract five per cent duty in a destination country, whereas imports from his competitor in another country attract nil duty, he can adjust his prices. Facilitation by way of better presentation of available information can help Indian exporters leverage the benefits of FTAs.
SOURCE: The Business Standard
The third edition of Indian Textiles Exhibition in Egypt (INTEXPO EGYPT) is being organized by the Synthetic & Rayon Textiles Export Promotion Council of India in association with the Embassy of India and with the active support of Cairo Chamber of Commerce from 1st to 4th October at Cairo in Egypt. The INTEXPO is aimed at forging win-win partnership among the Indian and Egyptian companies for effective forward and backward business linkages in the near future. The objective is to strengthen trade between the two countries through the exhibition, particularly in the fast growing area of modern textiles, the statement added.
Thirty three Indian textile companies will showcase their latest range of yarn and fabrics in a textile exhibition in Egypt, one of the biggest markets for Indian textiles, currently poised at USD 360 million. The latest range of yarn and fabrics to be showcased includes suitings, shirtings, dress materials, and embroidered fabrics/high fashion fabrics, furnishing, home textiles, scarves, stoles, shawls and yarns of man-made fibre and their blends, according to a statement by the Embassy of India. The exhibition is expected to draw a large number of trade visitors for fruitful business discussion with the Indian companies. India is world's second largest producer of synthetic fibre & yarn, cotton, cellulosic fibre and silk and, Indian Man Made Fibre (MMF). Indian textiles and clothing industry output is USD 110 billion, of which around USD 40 billion is currently exported to more than 140 countries. India exported around USD 360 million worth of textiles and clothing products to Egypt during the year 2014-15.
SOURCE: Yarns&Fibres
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$ 44.93 per barrel (bbl) on 25.09.2015. This was lower than the price of US$ 46.33 per bbl on previous publishing day of 24.09.2015.
In rupee terms, the price of Indian Basket decreased to Rs 2969.79 per bbl on 25.09.2015 as compared to Rs 3062.44 per bbl on 24.09.2015. Rupee closed at Rs 66.10 per US$ on 24.09.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 25, 2015 (Previous trading day i.e. 24.09.2015) |
Pricing Fortnight for 16.09.2015 (Aug 28 to Sep 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
44.93 (46.33) |
47.42 |
|
(Rs/bbl |
2969.79 (3062.44) |
3147.27 |
|
|
Exchange Rate |
(Rs/$) |
66.10* |
66.37 |
SOURCE: PIB
In order help Indian shipbuilding companies bid for international contracts, Exim Bank has decided to provide them with buyer’s credit. Public sector shipyards, such as Goa Shipyard and Garden Reach are in the process of utilising the credit. Buyer’s credit is a facility of the bank, whereby it helps Indian companies export their products by extending credit to their overseas buyers. These buyers get financing for their imports from Exim Bank. Using the credit, Garden Reach is in the process of pitching for a Rs. 1,400-crore order from the Vietnamese Navy for supplying 14 patrol boats. The Deputy Managing Director of Exim Bank, Debasish Mallick, told BusinessLine in a telephonic interview that for such projects the shipyards have received credit at a low coupon rate of 4-5 per cent. The bank is providing credit after taking a long-term view of the sector. It is also providing working capital and term loans for projects under implementation.
Cheap loans
He pointed out that countries, such as China, South Korea and Japan provide credit at very cheap rates. Indian shipyards, in spite of having good products and engineering skills, could not compete because they lacked finance arrangements for the buyers. “They took a beating in the international market, especially from Chinese companies which have been pushing funds at a very cheap rate,” he said. Due to the economic slowdown since 2007, the shipbuilding industry is reeling under the pressure of huge loans. Various discussions are underway on how to restructure the loans. Other than the regular corporate debt restructuring packages, financial institutions, such as Exim Bank, are looking at newer ways to tackle the problems. According to Mallick, public sector shipyards, such as Mazgaon Docks, Cochin Shipyards and Garden Reach — which primarily build warships and other vessels for the Navy and Coast Guards — are in better financial health than private players, such as L&T Shipbuilding, Pipavav Defence and Offshore, and ABG Shipyard, which are yet to break even.
Counterparty guarantee
Mallick said that private shipyards are operating by taking a counterparty guarantee from Exim Bank. The guarantees are facilitated by the companies that place the order for the ships. These companies then source funds in the form of project finance from the bank for three to five years for shipbuilding. After that, they could be also be provided with five to 10 years of buyer’s credit. This kind of financial arrangement, Mallick said, would be more stable in the long term.
SOURCE: The Hindu Business Line
Prime Minister Narendra Modi is on his second visit to the US since assuming office, but is yet to hold a summit meet with the European Union -- India's largest trading block. Though the hurdles have often been attributed to "scheduling issues", the fact is that a political cloud has somehow loomed over this conversation ever since EU held back on the first set of dates proposed by India last April. The Italy factor, provoked by the Italian marines issue was said to be the key factor though EU officially never articulated this line. Former Italian foreign minister Federica Mogherini, who's the current head of EU's external relations commissioner, has been upset with New Delhi over the trial of Italian marines. The last India-EU Summit was held in 2012 under the UPA government -- the same year when Italian marines had allegedly killed Indian nationals and were sent to custody.
At the same time, India has pressed ahead in strengthening ties with individual member states of the EU. Modi visited France and Germany last April and now will host German Chancellor Angela Merkel on October 4-6. He will also meet her on the margins of the UN General Assembly in New York on September 26 as part of G-4 effort to expand the UN Security Council. UK, that was the first European Union country to reach out to Modi when he was Gujarat CM, will host him for a trip between November 12-14 and next Republic Day Chief Guest could well be from Europe. He may also visit Paris for the Climate Change Summit later this year.
But the state of the political engagement with EU as such has been nominal except for the informal meeting with the former President of the European Council Herman Van Rompuy last November in Brisbane on the sidelines of G-20 Summit. Besides that, a EU Parliamentary delegation visited India and then, Lok Sabha Speaker Sumitra Mahajan went to Brussels on reciprocal trip. However, no high-level meeting with the current EU hierarchy has happened. This has stood out because EU is India's largest trading partner. The two-way commerce stood at $ 101.5 billion in 2013-14 and FDI equity inflows from EU to India from April 2012 to May 2015 was nearly $ 25 million. Despite this, the relationship has appeared testy. Couple of months' back New Delhi cancelled a meeting with EU here to negotiate the much delayed Free Trade Agreement (FTA). This Agreement is very much the centre-piece of all conversations especially when it comes to analyzing prospects.
The EU is now hoping that Merkel's visit will give push to India's economic partnership with Europe particularly FTA with Germany being most powerful economy in that continent, sources in the EU told ET. Significant component of Merkel's trip will be focussed on increasing trade and investments in India under Make in India initiative. Last month Minister of State for External Affairs VK Singh, replying to a question in Rajya Sabha, said the EU has invited PM Modi for an India-EU summit in November. Singh said it was proposed, in a joint letter addressed to the Prime Minister by the Presidents of the European Council and European Commission, to hold the next summit in Brussels just before or after the next G-20 Summit on November 15-16 in Antalya in Turkey. However, this proposal too has also been put in cold storage due to scheduling issues. Officials indicated that the two sides even looked at the possibility of holding the summit this week en route to Modi's New York trip or on his return from the United States via Europe. The two sides are now trying to schedule a meeting between Modi and President of the European Council Donald Tusk in Turkey on the sidelines of the G-20 Summit.
Former Secretary (West) in MEA Vivek Katju who had handled India-EU relations in the past told ET that it is EU's turn to reach out to India to fix dates for the next Summit specifically because of the offence they caused when India had probed six months back if a Summit was possible. The proposed meeting in November could hopefully set the tone for a possible summit in Brussels in December if Modi travels to Paris for climate change meet or when he travels to Moscow for bilateral annual summit in the same month. It is Brussels' turn to host the summit.
SOURCE: The Economic Times
There are big changes occurring in Vietnam's bustling garment industry, as businesses and investors prepare for changes linked to the upcoming Trans-Pacific Partnership. Vietnam is seeing a wave of investment from foreign textile and garment manufacturers keen to cash in on the tax benefits of the upcoming Trans-Pacific Partnership (TPP). The agreement being negotiated by 12 countries, including the US, promises radical tax cuts for Vietnam’s garment exports, but only if they use fabric made locally or in other TPP countries, which excludes China. For the emerging country’s thousands of small and medium-sized garment makers, however, the benefits are less certain. The 25 million garments produced every year at the Ho Guom Garment factory in Hanoi all bear the label “Made in Vietnam” but more than half the material used to make them comes from China. Sourcing locally is tough and expensive.“Even some zippers, or some special raw materials (are) very, very difficult to find. Sometimes we have to contact Ho Chi Minh City, Danang, even China or Taiwan to get samples, so it takes a very long time,” said the factory’s vice-general director, Phi Ngoc Trinh.
The race is on for Vietnam’s clothing makers to find the right suppliers; its own textile mills only produce a fifth of the country’s needs today.For years, Vietnam has focused on the far less capital intensive part of the global garment business: cutting and sewing the final product for export.“The value added of our products is low; our role in this global supply chain is also low. At this position, we almost don’t have much impact on the supply chain unless the world needs our (labour) inputs,” said Dang Phoung Dung from the Vietnam Textile & Apparel Association. Like other labour intensive industries across the country, the garment sector thrives on one of Vietnam’s key competitive advantages – a young population of 90 million people offering a ready pool of low-cost labour. There are questions how long will this advantage last, though the TPP’s promise of massive tax savings could pay for Vietnam’s rising labour costs. But businesses that do not have the capital to invest are stuck waiting for large domestic or international producers to build up Vietnam’s local fabric supply.
SOURCE: The Channel News Asia
A conference was organized last week in Sri Lanka with the participation of the delegation and members of the textile industry where a three team members delegation representing the Chinese government were present to brief on the Chinese regulations and testing standards, and trends in global textile testing. The Chinese market is vast and growing but many countries have failed to break into the textile market due to the lack of knowledge of their standards. Their standards are different to the standards adopted by other countries. Chinese delegation enlightened the Sri Lankan’s apparel sector on the Chinese National Standards (CNS) for textiles. General Manager, Hong Kong and Overseas of SDL Atlas Ltd. Hong Kong, Fred Cheng said that they need to educate and enlighten the Sri Lankan industry stakeholders on the standards adopted by the Chinese, if they are to break into the market and have an edge above their competitors in the region. According to Euromonitor International, one of the world’s leading independent provider of strategic market research, China is to overtake the US to become the largest apparel market by 2017.
SOURCE: Yarns&Fibres
A delegation of the Istanbul Textile and Apparel Exporter Associations (ITKIB) headed by Chairman of the Istanbul Textile and Raw material Exporters’ Association Ismail Gulle along with four members of the governing councils and representatives of the ITKIB secretariat will visit Belarus on 28 September to 1 October. The ITKIB delegation will hold meetings with Belarusian partner organizations and attend the expo Bellegprom 2015. The sides will discuss the prospects of trade, economic, and manufacturing cooperation and the implementation of investment projects aimed at the market of the Eurasian Economic Union in Belarus. Besides, they will visit Belarusian light industry enterprises and promising investment platforms. The visit has been organized by Bellegprom Concern, the National Agency of Investment and Privatization of Belarus, and the Belarusian Embassy in Turkey within the framework of preparations for the Belarusian Investment Forum to be held in Istanbul in October 2015.
At present, ITKIB is the largest association of light industry enterprises in Euorpe having membership of more than 16,000. ITKIB members account for some 15% of the total amount of Turkey's merchandise export, including the export of ready-made garments (some $13 billion per year), textile products and raw materials (over $5 billion), leather and leather goods (around $1 billion), and carpets (over $1 billion). İTKİB main objective in the sectors involved in the field include Turkey's export potential to increase exports and help their members to improve the performance of international business identified as contributing to the development of bilateral and multilateral trade relations.
SOURCE: Yarns&Fibres
Chairman of All Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA) Syed Muhammad Aasim Shah has expressed concern over the situation arising out of the sudden cancellation of OEKO-TEX standard-100 certification. With OEKO-TEX standard-100 suddenly cancelling the certification of manufacturers of yarn, dyed items, export of millions of rupees to different countries particularly European Union have been suspended and some exporters have to unload their consignments from the containers due to cancellation of certification. The value-added Pakistan textile industry has sharply reacted to the cancellation of the certification by The OEKO-TEX(r) Standard 100, which caused the suspension of export consignment.
Chairman of APBUMA appealed to the OEKO-TEX(r) Standard 100 to restore the certification of local value-added industries and educate them about the world standards so that they could keep continue their business with European Union and other western countries. According to him, OEKO-TEX need to issue warning if any procedure was not being adopted by the manufacturer. He also informed the Federal Minister for Commerce Engr. Khurram Dastgir Khan about their grievances. Syed Muhammad Aasim Shah said that Multan is the export hub of traditional yarn dyed Home Textile items across the globe and it was the only competitor of India.
SOURCE: The CCF Group
