Textile traders of Surat, the country's largest man-made fabric (MMF) centre just when the demand for polyester saris and dress materials was seeing an increase with the start of the festival season has been hit hard with the ongoing indefinite strike by transporters. The Federation of Surat Textile Traders' Association (FOSTTA), an apex body of over 65,000 traders in the market, said that the festive season sale of textile fabrics touches Rs 140 crore per day from the normal day sale of Rs 110 crore. Traders from over 150 textile markets on Ring Road and Salabatpuara have not been able to dispatch goods to various destinations in the country. As over 800 transport trucks that deliver the textile goods have joined the nationwide strike to demand scrapping of the toll tax system. It is estimated that around Rs 500 crore worth of textile fabrics from the city could not be dispatched to various destinations across the country. The Ring Road is wearing a deserted look with very less movement of vehicles. More than 3,000 tempos that facilitate delivery of finished and unfinished goods from the weaving units and textile dyeing and printing mills to the textile markets too have stopped operating in view of the strike. Southern Gujarat Chamber of Commerce and Industry (SGCCI), Chairman Textile Committee, Devkishan Manghani said that the textile sector was passing through recession since the past eight months. Traders were upbeat about doing a brisk business in the festive season. But, the transporters' strike has cast a dark shadow on the industry. SGCCI has urged the central government to bring an amicable solution to the issue. According to textile traders, if the strike goes on for another 10 days, it will affect their business and will require more days to get the business back on track. Meanwhile, the strike is likely to continue for another few days as the government is not ready to accept the demands of the transporters.
Source: Yarn and fibre
The nation-wide strike by lorry owners, which started on Thursday, created problems for textile business as well. The textile product movement to and from the units faced hindrances because of the strike. Few mills that had imported cotton found it difficult to transport it to the unit from the port due to the strike, said M. Senthilkumar, Chairman of Southern India Mills’ Association. Likewise, exporters were unable to dispatch the products from their units. The Centre should intervene immediately, he said. Broiler Co-ordination Committee President R. Lakshmanan said that the ones who had their own vehicles were not affected and they were able to move the broiler birds. However, procuring raw materials from the northern states to the broiler farms were obstructed because of the strike. M. Rajendran, president of Thyagi Kumaran Market Vegetable Merchants’ Association, said that the lorry strike was seen affecting the vegetable movement in places like Pollachi. But vegetable movement to Kerala from Coimbatore and arrival of vegetables from Karnataka to the markets has not been affected. Around 95% of the lorries in Coimbatore did not transport goods, stated K.S. Kaliaperumal, president of Coimbatore Lorry Owners’ Association. Movement of essential goods is not affected by the strike.
Source: Yarn and fibre
India is well on track to meet its fiscal deficit target of 3% of GDP by FY18, said the finance ministry's top bureaucrats, who are confident growth will exceed 7.5% in the current fiscal. They said growth projections will be reviewed after second-quarter numbers are announced. Revenue will only fall short by about Rs 50,000 crore in the current year, the finance ministry’s secretaries said in an hour-long briefing. The government has prepared a disinvestment plan to try and raise the maximum possible amount, said the officials, who were joined by chief economic advisor Arvind Subramanian. The government will push ahead with its reform agenda to realise a potential growth rate of 8% and above over time, the ministry said in a release. An early
start has been made on budget preparation as part of this exercise. "Our macro-fundamentals remain strong," finance secretary Ratan Watal said. "We are now better placed to handle unforeseen external shocks and to put India firmly on the path of economic recovery and inclusive prosperity." Direct tax collections may come in a little under the budget target, said revenue secretary Has mukh Adhia. But the government will meet the fiscal deficit target of 3.9% for FY16 without needing to cut plan spending to make the numbers add up. Total tax revenues are likely to be around Rs 14 lakh crore in the current fiscal, as against the budget estimate of Rs 14.5 lakh crore, Adhia said. Collections will need to rise 16.5% for the remainder of the year compared with the year-earlier 9.9% in order to meet the target. Indirect taxes grew 36.5% in April-August. Excluding additional revenue measures by the government during the year, this amounted to 12.2%This is "quite satisfactory," he said, adding there was "likely to be some shortfall in direct taxes when we end up the year, but some part of it will be made good by indirect taxes because of the additional resource mobilisation measures. I am very hopeful that if there no other externalities... we should be able to achieve our target. Only the shortfall may be not more than 7% may be around 5% shortfall may be there," he said.in indirect taxes was a reflection of increasing demand and economic activity. Economic affairs secretary Shaktikanta Das said there were indications growth
will exceed 7.5% in the current financial year. "Despite the global slowdown and declining export demand, India has emerged as the fastest growing major economy in the world," said the official release. Subramanian said the government will assess the growth estimate after the second-quarter data is available. With supportive policies in place, "India is emerging as a strong growth driver for the world economy, capable of sustaining economic growth through its own momentum," Watal said. He said the government would do its part to back up the recent 50 basis point cut in the policy rate by the Reserve Bank of India. "This should boost confidence and investment and help shore up corporate balance sheets. The government will play its part to ensure the benefits of accommodative monetary policy are transmitted to the economy at large," the finance secretary said. He said the government would move ahead with its subsidy rationalization programme and was looking forward to the report of expenditure management commission to take further initiatives. The finance ministry is in talks with the food minis. Headed by former RBI governor Bimal Jalan, the commission is expected to submit its report by December end.
The finance ministry has started preparatory work on next year's budget two months ahead of schedule with a view to getting a head start on structural reforms, Watal said. "We continue to work together on rationalising central sector schemes and programmes in the run-up to the Union Budget 2016-17," he said. The pre-budget exercise had been advanced by two months to give ministries and departments time to reform their financial processes. On the price situation, the "outlook for inflation is also good, as indicated by the RBI in its latest monetary policy review," the finance ministry said in its release. "Despite the uncertain monsoon, government food management, including use of the price stabilisation fund to augment domestic supplies with imports will ensure that food inflation is contained”.
Source: The Economic Times
The Telangana Spinning & textile Mills Association (TSTMA) has sought a two-year moratorium on term loans and conversion of working capital into working capital term loan with the repayment period between three to five years. It has also sought the reduction of interest rates for textile mills on term loans to bank base rates, according to media reports. In a representation made to Textile Minister Santosh Kumar Gangwar, the association said any delay in addressing the problems of textile mills would make several hundreds of textile units in the country economically unviable resulting in large scale NPAs in the textile industry. It has asked the government to address its concerns on a priority basis to ensure that active mills are not forced to close down due to adverse external factors. TSTMA General Secretary, M. Anantha Reddy in a statement said the cotton mills and spinning and weaving sectors of the textile industry have been suffering for the last 18 months due to glut in the export market caused due to policy changes in China and the duty structure in EU, China and the Americas. Prices of finished goods, cotton and synthetic yarns have been on continuous decline over last 18 months and have reduced by more than 30 per cent and have completely eroded the margins of Industry. Most of textile units are suffering huge losses between 15-20 per cent of turnover and are under severe strain. The association wanted a cotton price stabilisation fund scheme consisting of cotton working capital loan at 7 per cent interest rate (or 5 per cent interest subvention), reduce margin money from 25 per cent to 10 per cent and increasing the credit limit from three months to nine months.
Source: Fibre2fashion
The State Government to extend every possible assistance to take Chanderi saris’ identity to newer heights. Better avenues for craft of weavers will be explored through use of modern technology, stated Chief Secretary Anthony de Sa while inspecting sari manufacturing process at weavers’ houses at Chanderi on Sunday. The Chief Secretary said that Chanderi weavers will not be allowed to face any problem. The State Government will make efforts to solve their problems at every level by chalking out an action plan. They would be imparted training through skilled weavers from Benaras and Bengaluru. Angle looms will be set up in place of wooden looms and punching machines will be installed for computerised designs. Job cards will also be provided to registered farmers. He also inspected under construction Handloom Park costing Rs. 50 crore on 4.19 hectares at Chanderi. The park will have facility to impart global level training to 240 weavers. Computerised design centre to promote online sale and marketing of Chanderi saris will be set up. It will also have yarn bank from where weavers will be able to obtain all kinds of silk and other threads for saris at fair prices. The Chief Secretary inspected Ginni Bhavan sari manufacturing training centre. He witnessed saris of various designs at the museum. . He said that Chanderi’s ancient heritage will not be only preserved but Chanderi clothes will be linked with tourism and will also be given trade mark. At present, in Chanderi town there are about 50 families having 100 looms. Chanderi sari is a traditional sari made in Chanderi, they are produced from three kinds of fabric i.e. pure silk,chanderi cotton and silk cotton. Traditional coin, Flora art, Peacocks and geometrices are woven into different chanderi patterns.
Source: Yarn and fibre
TCNS Clothing, contemporary ethnic wear firm that owns the W and Aurelia brands, are looking at 50 percent increase in their top line growth and scale up its sales in the current fiscal. They have set a target of achieving Rs 1,000 crore turnover by 2017 fiscal for which they will be offering new innovative product, add new stores and increase online sales. The company is looking at 125 new outlets of its brands 'W' and 'Aurelia' this year. It will be a mix of company-owned and franchise outlets. They will open 60 'W' stores and 65 'Aurelia' outlets. At present, there are 200 'W' and 90 'Aurelia' outlets. The company is also looking at opening three stores in Mauritius, Nepal and Sri Lanka by end of this month to tap Indian diaspora. They are also in advance stages of talks to open their outlets in the Middle East. The company wills first doing pilot project to see how these stores perform for the first six months and learn from challenges and then they will see aggressive expansion next year. They plan to target all leading Indian diaspora geographies, said TCNS chief executive officer Anant Daga. The company had reported consumer sales over Rs 500 crore in the previous financial year. On e-commerce boom and impact on TCNS' sales, Daga said that they have not seen any major negative impact on their sales. In fact, online visibility has added to their brand persona. They have also launched omni-channel experience for their customers.
At present, online channel accounts for 10 percent of its total sales. The company is also in the process to give its website a face lift to keep pace with fast growing e-commerce market.
Source : Yarn and fibre
To run concurrently with ITMA 2015, the World textile Summit has a powerful line up of speakers who will present on pursuing a strong sustainability policy in the textile manufacturing value chain on November 13. “The Summit will delve into a range of topics that link decisions on sustainability to profitability and corporate success,” an ITMA press release informed. These include the role of sustainability in; differentiating brands and companies; business profitability and security; investment decisions; the circular supply chain; customer acquisition and retention and product development. “The opening address will be delivered by Mary Porter Peschka, global acting director (sustainable business advisory) of the International Finance Corporation (IFC),” the organisers added. IFC published a 2012 report highlighting the ways in which sustainable business practices can cut costs, increase revenues, reduce risk and improve access to capital through better governance. Paula Oliveira, director at Interbrand, will explain how sustainability can deliver a marketing edge by differentiating brands and companies. Vivek Tandon, co-founder of French private-equity investor Aloe Group, which specialises in sustainable investments and has interests in the fibre sector will also speak on the subject.“First-hand experience of the advantages of investment in 'clean' manufacturing will come from three textile industry leaders,” the press release informed. Alfonso Saibene Canepa, director, Canepa SpA from Italy; Roger Yeh, president, Everest Textile Co Ltd, Taiwan and Ajay Sardana, vice-president at Aditya Birla Group from India will give presentations on the subject. They will each briefly describe their company's experience and stance and will then join an open discussion on the investment case for 'green' technology. Finally, delegates will be granted a preview of the findings of an important study by the Cambridge Institute for Sustainability Leadership (CISL), part of the University of Cambridge.
University of Cambridge's Natural Capital Leaders Platform has investigated the natural capital dependencies and impacts of cotton production and the risks associated with these. The study was conducted in partnership with major businesses including Olam International, Kering, C&A and Asda. In the second half of the day, in a discussion on capturing sustainable growth, delegates will hear first from Frank Henke, VP for Social & Environmental Affairs at Adidas.
Source: Fibre2fashion
Business activity in the euro zone grew at its slowest pace in the past four months last Monday. However, one sign of encouragement for the European Central Bank, service companies increased prices for just the first time in the past four years, showed a survey on Monday. The modest growth for the third quarter of 0.4% likely will disappoint policy makers six month into their 60 billion euros per month program of quantitative easing. The economy in Britain, which has outpaced the rest of the euro zone, is losing steam as well, with growth in the service industry at a low of 2 ½ years likely upsetting the Bank of England as this week the Monetary Policy Committee of the bank meets. Markit’s final PMI or Purchasing Managers’ Index for September for the common currency zone was at a low of four months of 53.6, which was weaker than an estimate earlier of 53.9. During August, it sat at 54.3 but recently was above 50, which denoted expansion since July of 2013, and tepid signs appeared of even inflationary pressure. However, new orders were up at a much slow rate than had been reported earlier and few jobs were added, which suggested firms were becoming increasingly less positive.
The PMI for service industry fell as well from Augusts’ 54.4 to 53.7 and lower than one of the flash estimates that came out of 54.0. Another similar of manufacturing firms that was released last Thursday had dropped as well from 52.3 to 52.0. An earlier PMI composite from Europe’s largest economy of Germany fell as did ones from Spain and Italy. France’s composite bucked the trend however and increased pointing to a growth of 0.2% during the third quarter, said figures released by Markit. Retail sales in the euro zone did not change during August from the previous month, which was better than the drop of 0.1% from the previous month. Headline services PMI in Britain dropped from Augusts’ 55.6 to 53.3 during September.
Source : The Financial Express
The US and 11 trading partners across the Pacific Rim have announced a landmark trade deal that will link 40 per cent of the global economy. The agreement on the Trans-Pacific Partnership (TPP) -- which comprise Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam -- was announced on Monday and will be the world's largest regional trade pact. The TPP will be the biggest trade agreement struck since the 1994 completion of the Uruguay Round, which created the World Trade Organization (WTO), and does not include China and India, two of the largest economies. The TPP is likely to have an adverse effect on India's textile and apparel exports, among other sectors. The text of the agreement has not yet been released, fuelling speculation on various aspects of the deal. The negotiations had been shrouded in secrecy and had caused a stir after Wikileaks had on at least two occasions published extracts from the ongoing parleys. The TPP has come in for trenchant criticism from various sections of society in almost all the participating countries. The Office of the US Trade Representative claimed in a statement that the TPP will eliminate or reduce "tariff and non-tariff barriers across substantially all trade in goods and services and covers the full spectrum of trade, including goods and services trade and investment, so as to create new opportunities and benefits for our businesses, workers, and consumers." The TPP includes 30 chapters covering trade and trade-related issues, beginning with trade in goods and continuing through customs and trade facilitation; technical barriers to trade; trade remedies; intellectual property; labour; environment; etc. There are two sections that India would like to examine closely once the details of the deal are released: 'textiles and apparel' and 'rules of origin'. The 12 member countries have agreed to eliminate tariffs on textiles and apparel, industries which are important contributors to economic growth in several TPP Parties’ markets. According to the statement, most tariffs will be eliminated immediately, although tariffs on some "sensitive" products will be eliminated over longer timeframes. The textiles and apparel chapter also includes specific rules of origin that require use of yarns and fabrics from the region comprising the TPP countries, which will promote regional supply chains and investment in this sector, with a “short supply list” mechanism that allows use of certain yarns and fabrics not widely available in the region. Moreover, there would be commitments on "customs cooperation and enforcement to prevent duty evasion, smuggling and fraud, as well as a textile-specific special safeguard to respond to serious damage or the threat of serious damage to domestic industry in the event of a sudden surge in imports."The Indian textiles and apparel industry will be keen on knowing the details of the relevant chapter, especially in the backdrop of the one on 'rules of origin' which may adversely affect its equations with Vietnam.
Source: Fibre2fashion
The current round of negotiations for the Trans-Pacific Partnership (TPP) if leads to a deal it would create a preferential trade zone between 11 countries including Vietnam, Bangladesh's direct competitor in the global apparel market, and the US, the country's single largest garment export destination. At present, Bangladesh pays 15.62 percent duty for its garment exports to the US, whereas Vietnam pays 8.38 percent. If the TPP is signed, garment exports from Vietnam will enter the American market completely duty-free and Bangladesh is set to lose its competitiveness in apparel trade. Vietnam will be a big beneficiary from the deal, said Ahsan H Mansur, executive director of Policy Research Institute. He could not quantify how much Bangladesh will lose every year as a result of the deal. For a deal, the US is currently negotiating with Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The TPP is a comprehensive agreement that will open markets, set high-standard trade rules and address 21st-century issues in the global economy. In so doing, it will promote jobs and growth in the US and across the Asia Pacific region. Mansur said that if Bangladesh had been a strong player in raw material exports such as yarn, fabrics and fibres, it would have benefited slightly from the deal. But they do not export garment raw materials. The average tariff of Bangladesh is 55 percent, which is too high for openness of the country's business. He said that Bangladesh should liberalise its tariff structure as some other countries have the opportunity to join the TPP in the near future. However, Bangladesh's garment exports to other nations of TPP like Canada, Japan, New Zealand, Australia and Chile might not be hampered, as it already enjoys zero-duty benefit to those countries.
Source: Yarn and fibre
Cambodian garment export shipment to the European Union led the way in making up for a decrease in exports to the United States. In the first six month of the year, it witnessed nearly 20 percent increase, according to a new Ministry of Commerce report. As per report, outbound shipments from Cambodia brought in $3.9 billion for the first six months, as compared to the $3.28 billion for the same period in 2014. The rise was buoyed by a 32 percent increase in garments to the European Union, not including textiles and footwear. According to Sivyong, director of the Export-Import Department, political stability and fewer garment-worker strikes this year are two of the reasons for increased purchases by EU buyers Garment exports to the Kingdom’s other major export destination, the United States, saw a small drop of 7 percent to $856 million in the first half of the year, with textiles registering a more than 40 percent drop. Cambodian has tried to negotiate with the US about the export tariffs – making it free like EU – but the US showed less interest as the market is small. Cambodian exports to the EU are free. So for the last few years, the EU market has been number one for Cambodia’s garment.
Source: Yarn and fibres
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.79 per barrel (bbl) on 05.10.2015. This was higher than the price of US$ 45.53 per bbl on previous publishing day of 02.10.2015.
In rupee terms, the price of Indian Basket increased to Rs 3055.19 per bbl on 05.10.2015 as compared to Rs 2984.86 per bbl on 02.10.2015. Rupee closed stronger at Rs 65.29 per US$ on 05.10.2015 as against Rs 65.55 per US$ on 02.10.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 05, 2015 (Previous trading day i.e. 02.10.2015) |
Pricing Fortnight for 01.10.2015 (Sep 12 to Sep 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.79 (45.53) |
45.27 |
|
(Rs/bbl |
3055.19 (2984.86) |
2991.44 |
|
|
Exchange Rate |
(Rs/$) |
65.29 (65.55) |
66.08 |
Source : Ministry of Textiles
