|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1091.88 |
USD/Ton |
0% |
10/13/2015 |
|
VSF |
2287.97 |
USD/Ton |
0.07% |
10/13/2015 |
|
ASF |
2301.39 |
USD/Ton |
0% |
10/13/2015 |
|
Polyester POY |
1034.25 |
USD/Ton |
-0.76% |
10/13/2015 |
|
Nylon FDY |
2542.19 |
USD/Ton |
0% |
10/13/2015 |
|
40D Spandex |
5684.40 |
USD/Ton |
0% |
10/13/2015 |
|
Nylon DTY |
5886.51 |
USD/Ton |
0.08% |
10/13/2015 |
|
Viscose Long Filament |
1310.57 |
USD/Ton |
0% |
10/13/2015 |
|
Polyester DTY |
2368.50 |
USD/Ton |
0% |
10/13/2015 |
|
Nylon POY |
2490.87 |
USD/Ton |
0% |
10/13/2015 |
|
Acrylic Top 3D |
1121.09 |
USD/Ton |
0% |
10/13/2015 |
|
Polyester FDY |
2794.83 |
USD/Ton |
0% |
10/13/2015 |
|
10S OE Cotton Yarn |
1863.22 |
USD/Ton |
0% |
10/13/2015 |
|
32S Cotton Carded Yarn |
3110.63 |
USD/Ton |
0% |
10/13/2015 |
|
40S Cotton Combed Yarn |
3884.34 |
USD/Ton |
0% |
10/13/2015 |
|
30S Spun Rayon Yarn |
2873.78 |
USD/Ton |
0.55% |
10/13/2015 |
|
32S Polyester Yarn |
1768.48 |
USD/Ton |
0% |
10/13/2015 |
|
45S T/C Yarn |
2747.46 |
USD/Ton |
0% |
10/13/2015 |
|
45S Polyester Yarn |
3015.89 |
USD/Ton |
0% |
10/13/2015 |
|
T/C Yarn 65/35 32S |
2589.56 |
USD/Ton |
0% |
10/13/2015 |
|
40S Rayon Yarn |
1926.38 |
USD/Ton |
0.83% |
10/13/2015 |
|
T/R Yarn 65/35 32S |
2321.13 |
USD/Ton |
-0.68% |
10/13/2015 |
|
10S Denim Fabric |
1.11 |
USD/Meter |
0% |
10/13/2015 |
|
32S Twill Fabric |
0.93 |
USD/Meter |
0% |
10/13/2015 |
|
40S Combed Poplin |
1.03 |
USD/Meter |
0% |
10/13/2015 |
|
30S Rayon Fabric |
0.75 |
USD/Meter |
0% |
10/13/2015 |
|
45S T/C Fabric |
0.76 |
USD/Meter |
0% |
10/13/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15790 USD dtd. 13/10/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Union Minister of State for Textiles Santosh Kumar Gangwar will on Wednesday inaugurate the 40th edition of the IHGF Delhi Fair Autumn 2015, which is expected to see the participation of over 5,000 global buyers like Walmart and Carrefour. The five-day event, claimed to be the world's largest handicrafts and gifts fair, is being organised by the Export Promotion Council for Handicrafts (EPCH) at the India Expo Centre and Mart in Greater Noida near here. "Over 2,700 exhibitors of handicrafts from all over the country will exhibit a wide range of products spread over 14 halls covering around 1,90,000 square metres," the textile ministry said in a statement. More than 5,000 overseas buyers, including major brands like Walmart and Carrefour, are expected to source their requirements from this fair. "These volume buyers will be from countries like the United States, the United Kingdom, Japan, France, Italy, Canada, Switzerland, Norway, Sweden, China, Australia and many more," the statement said.
Buyers from the Latin American region, particularly Argentina, Colombia, Brazil, Panama, Chile and central Asia, Africa and the Middle East will also be sourcing their requirements at the fair. During 2014-15, handicrafts exports recorded a growth of around eight percent in rupee terms and nearly seven percent in dollar terms. The EPCH was established in 1986 by the ministry of textiles to promote exports of handicrafts. It is also a registering authority for exporters of handicrafts.
SOURCE: The SME Times
The Indian Embassy in Oman is organising textile exhibition Vastram:Splendid World of Indian Textile in cooperation with the Indian Council of Cultural Relations (ICCR) where thirty seven traditional textiles from India will be showcase at the Oman Avenues Mall from Thursday. H E Indra Mani Pandey, the Ambassador of India to Oman addressing a press conference on Sunday said that the ten-day event is part of the celebrations to mark the 60th year of India-Oman diplomatic relations. H E Pandey said that Indian textiles were traded in a big way in the pre-industrial age and were known for their intricate weaving patterns, colour, rich variety in design and considered to be unrivalled in the world. The exhibition, Vastram: Splendid World of Indian Textiles, is being curated by Shelly Jyoti, a fashion designer, visual artist and poet. The collection will have painted, printed, woven, non-woven, embroidered and embellished textiles. It will showcase the influence of new materials, machine and handspun yarn and use of dyes in Indian textiles. The textile exhibition run by ICCR will later travel to Ethiopia, Turkey, Fiji and Nepal. The exhibition highlights the role of the Indian government in promoting textile industry since independence.
SOURCE: Yarns&Fibers
India is in a Goldilocks period of low inflation coupled with gradual recovery and the country is expected clock a GDP growth rate of 7.6 per cent this fiscal year, says a report. According to Japanese financial services major Nomura, despite slowing external demand, the domestic growth cycle is improving. As per official figures, India’s industrial output rose to nearly three-year high of 6.4 per cent in August on improvement in manufacturing and capital goods while retail inflation rose to 4.41 per cent in September. These data “reinforce our view that India is in a Goldilocks period of low and stable inflation juxtaposed with a gradual growth recovery,” Nomura said in a research note adding that while external headwinds have risen, domestic demand is still holding up well. “We expect GDP (at market prices) growth to recover to 7.6 per cent YoY in FY16 from 7.3 per cent in FY15,” the report said. The April-June quarter GDP slipped to 7 per cent from 7.5 per cent in the preceding quarter.
On inflation the report said that going by the daily retail food prices, there is an indication of an upside risk to food inflation in the coming months, due to the adverse impact of deficient monsoon. “We continue to believe that further sustained disinflation is unlikely, as cyclical drivers of disinflation are now stabilising. We expect underlying inflation to remain around 5 per cent, although higher food prices will push YoY CPI inflation to above the underlying trend in coming months,” the report said. According to the global brokerage firm, the Reserve Bank has already “front-loaded” rate cuts, and the central bank is likely to keep policy rate on hold until end-2016. Reserve Bank Governor Raghuram Rajan on September 29 effected a more-than-expected interest rate cut of half a per cent to boost the economy.
SOURCE: The Financial Express
Taking their bilateral ties to the next level, India and Singapore are expected to sign a strategic partnership pact during prime minister Narendra Modi’s visit to that country from November 23 to 25. The broad contours of the agreement were also discussed during the fourth India-Singapore joint ministerial committee meeting held here on Tuesday. It was co-chaired by external affairs minister Sushma Swaraj and her Singaporean counterpart Vivian Balakrishnan. The strategic partnership agreement would comprise expansion of cooperation in five main areas: Scaling up investment and trade; speeding up air and maritime connectivity; smart city development and urban rejuvenation; skills development and capacity building, and state focus on strengthening business and cultural links, according to a press release issued by the Singapore High Commission. "The strategic partnership will come with deliverables and concrete outcomes, with focus on urban solutions, smart cities and knowledge and skill transfer,'' Balakrishnan told reporters after the meeting.
Balakrishnan also highlighted the need to enhance connectivity between India and Singapore, particularly in the aviation sector. He also highlighted Singapore’s contributions to India in the areas of smart cities and skills development. “Both ministers agreed on the need to enhance economic cooperation, including expanding trade and investment between both countries,” the release stated. This will be Modi’s second visit to Singapore as India’s prime minister. He last went there in September to attend the funeral of Singapore’s founding father Lee Kuan Yew. Singapore is planning for a similar reception Modi had received in San Jose in US last month. He has also been chosen to deliver the prestigious “Singapore Lecture” during the visit.
SOURCE: The Business Standard
Asserting that Indo-US economic ties are "not a zero-sum game", a top American diplomat has said that 'Make in India' and 'SelectUSA' initiative to attract investment in the United States are "mutually compatible" as evidenced by the increase in bilateral trade. "We are strongly supportive of the 'Make in India' as we are of other drives like 'Digital India', 'Clean India', financial inclusion...and in 'Make in India' we see several sectors like in advance nuclear energy, among other areas ...and we will continue to support the drive. "But, it ('Make in India') in no way subtracts or minimises our efforts to attract Indian investment in the US. In fact they are actually very mutually compatible and reinforcing... That is why you see the two-way trade figure going up," US Ambassador to India Richard Verma said. He was addressing a press conference here on the 'SelectUSA' holding its first-ever road show in India, that kicked off from New Delhi today. The roadshow from October 13-16 will after Delhi travel to Mumbai, Chennai and Kolkata.
'SelectUSA' a programme under the US Department of Commerce seeks to promote, attract, retain and expand business investments to and within the US. "It is pertinent that the recent Indo-US Strategic Dialogue that covered a wide range of important issues on framework on which India and the US continue to build bilateral relations. "And, we have made great progress in a relatively short period of time in the two-way trade...While our bilateral trade in 2000 stood at $19 billion, in 2015 it has reached over $100 billion and both President Obama and Prime Minister Modi have targetted to raise it to $500 billion," Verma said.
On a question as to whether 'SelectUSA' would affect the 'Make in India' vision of the government, he said, "We are growing together in bilateral trade as natural partners... But, this does not have to be a zero-sum game...a winner here and a loser here. We seek to push economic ties in both destinations, and data and the economics has proven it be true." "Also, the number of Indian companies in the US have risen from less than 50 in 2000 to over 200 in 2015. And, while 4,000 people visited in 2010, 1.2 million people visited this year across categories," Verma said. Also, a vast majority of Indians constitute for both H1B and L1 visas...and, need for the reform of the immigration system...and encourage strong positioning of India, he said.
SOURCE: The Economic Times
Ecuador is looking to boost trade relations with India, eyeing greater investments from Indian businesses in coming years, with the two countries signing a pact to set up a Joint Economic and Trade Committee (JETCO). "The fact that in 2014-15 Indian companies were seeking to invest in Ecuador is a tremendous testimony to the strength of our ties while we also noticed bilateral trade interest between the two countries, proving a two-way relationship. "As India is an interesting market for our exportable offer, we will explore various avenues to maximise our resources and the service sector in Ecuador," Ambassador of Ecuador in India Mentor Villagomez said. The JETCO agreement was inked between India and the South American nation here last week.
In 2014-15, the bilateral trade stood at USD 1.29 billion. Trade Commissioner of the Commercial office of Ecuador, Hector Cueva said: "At a time when global FDI flows have fallen, investors from India understand that Ecuador is welcoming, diverse and open to business. We will create great opportunities for India and help in increasing the bilateral relationship between India and Ecuador." Sectors like pharmaceuticals, food and drink, wood and IT services hold a significant potential for trade and investment in Ecuador. Imports of Ecuadorian cocoa, in particular, saw an exponential growth in 2014. During the said period, India imported Ecuadorian cocoa worth USD 12.39 million. The objective of JETCO is to create a mechanism to discuss initiatives to improve economic relations between the two countries, including facilitation of trade and investments. The first meeting of JETCO is proposed to be held in February 2016 in India.
SOURCE: The Economic Times
Iran has accorded India priority status for trade and investment in acknowledgement of the country's support during tough times when the United States and European Union had imposed economic and military sanctions on it. India is among the three countries, along with Turkey and China, with which Iran wants to collaborate in seven sectors including mining, petrochemicals and food. A delegation led by the Federation of Indian Export Organisations (FIEO) president SC Ralhan recently visited Iran, while the Iranian minister for trade is expected to visit India next month. The two nations are likely to have a joint consultative meeting in January next year to thrash out the details of the proposed engagement. "Iran wants to reinforce its relationship with countries which stood by it during its difficult times. Hence, it is reciprocating by giving preference to them," said Ajay Sahai, director general of FIEO.
In 2006-07, when the United States and the EU had imposed sanctions on Iran, India kept exporting commodities like rice, sugar and soybean, along with textiles, and also importing crude oil in large quantities. Earlier this year, the government had issued guidelines to allow third country exports of humanitarian goods such as food, medicines and medical equipment to Iran as part of oil payments due to that country.
In 2014-15, India's exports to Iran stood at $4.17 billion while the imports amounted to $8.95 billion, an increase from $1.44 billion and $7.61 billion, respectively, during 2006-07. Among other sectors, Iran is also looking at cooperation in agroprocessing, information technology, steel and hotels/tourism. India, on its part, is also eyeing investments in Iranian ports. Road transport, highways and shipping minister Nitin Gadkari has said that India plans to invest almost Rs 2 lakh crore at Chabahar port in Iran in various infrastructure projects. India has been in talks with Iran to set up a gas-based urea manufacturing plant at the port which is being developed as both a strategic and economic asset, efforts for which were initiated in 2001 when the then Prime Minister Atal Bihari Vajpayee visited the Persian Gulf country. Post nuclear deal with the US, Iran is likely to want to renegotiate terms with India, as it shops around for the best options. Sectors like pharma and IT are new areas which India could explore, while expanding existing opportunities. For India, Iran can provide the market that could provide an impetus for its Make in India initiative. While the past is something that New Delhi can, and must, leverage, it also needs to move decisively to secure opportunities for its businesses, and to secure its strategic interests in Central Asia.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.82 per barrel (bbl) on 13.10.2015. This was lower than the price of US$ 50.10 per bbl on previous publishing day of 12.10.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3109.58 per bbl on 13.10.2015 as compared to Rs 3242.81 per bbl on 12.10.2015. Rupee closed weaker at Rs 65.02 per US$ on 13.10.2015 as against Rs 64.73 per US$ on 12.10.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 13, 2015 (Previous trading day i.e. 12.10.2015) |
Pricing Fortnight for 01.10.2015 (Sep 12 to Sep 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.82 (50.10) |
45.27 |
|
(Rs/bbl |
3109.58 (3242.81) |
2991.44 |
|
|
Exchange Rate |
(Rs/$) |
65.02 (64.73) |
66.08 |
SOURCE: PIB
Over the next 5 years, Vietnam's clothing and textile industry will be able to avail of loans up to $2 billion from the Bank for Investment and Development of Vietnam (BIDV)to increase their productivity and achieve their potential, a Vietnamese newspaper has reported. At a recent conference in Hanoi, BIDV Chairman Tran Bac Ha said, “BIDV has committed to providing loans of up to $2 billion to support domestic companies in the clothing and textile industry over the next five-years.” He also said that once the Free Trade Agreements are in place, Vietnam would have access to a wider market, and investors would prefer to gradually shift their manufacturing base to the Vietnam. Bac Ha presumption was that this would only happen if businesses restructure and enhance their competitiveness. But other speakers at the conference were not as optimistic as Bac Ha.Most of the speakers felt that despite having an average growth rate of 18.4 per cent for the past five years with exports reaching a record high $24.7 billion in 2014, Vietnam's clothing and textile industry hasn't realized its full potential.
Manufacturers in the industry remain largely non-competitive in the global market place, relegated to performing work considered menial low level outsourcing with low added value and scant profits, they said. In order to prepare for the onset of FTAs in the offing, domestic firms in the industry working in concert with the government need to take the initiative to resolve problems plaguing it. “The use of outdated technology, shortage of funds for investment, and weak management capacities are the most significant challenges facing companies in the industry,” said National Garment and Textile Group (Vinatex) Chairman Tran Quang Nghi. General Director Truong Thi Thanh Ha of the Dong Xuan Knitting Company stressed the point that domestic clothing and textile companies have not kept pace with the latest technologies. “In fact far too many companies in the industry are still using old dilapidated machinery and equipment purchased decades ago,” Ha said.
In view of the upcoming challenges arising from the trade deals, the Vietnam government should ease the financial burden by easing the tax burden and land rentals, he said. Ha said this move would allow the companies to use these monies to fund new modernized state-of-the-art machinery and equipment. Phan Chi Dung of the Ministry of Industry and Trade (MoIT) said many domestic companies depend extensively on imported raw materials, which along with low productivity will make it extremely difficult for them to take full advantage of FTAs.
Dung said despite the high growth rates seen over recent years – the added value in the clothing industry is still far too limited. Further, there are only a few companies fully integrated that can manufacture their own yarn, and knit, dye and finish in their own factories. There are roughly 5,000 businesses, most of them small, in the industry creating jobs for an estimated 2.5 million people. The government has targeted to increase the country's textile and clothing exports to $35 billion by 2020 and further to $60 billion by 2030. The BIDV's $2 billion commitment would contribute significantly to achieving these goals, Dung said.
SOURCE: Fibre2fashion
Pakistan Tehreek-e-Insaf (PTI) lawmaker Asad Umar on Tuesday flayed the incumbent regime for having tilted towards the Indian textile sector by imposing duty on local textile products despite the rising cost of doing business and energy shortage. The PTI legislator lamented that the gas prices have been increased despite a fall in the global gas premiums, adding that the industry has to pay $6.7 per mbtu after the imposition of gas development infrastructure cess (GDIC), while an Indian textile manufacturer pays the gas price at $4.2 and that the same in Bangladesh pays $3.1. Umar said, "The incumbent regime is allowing Indian yarn imports at 5% duty whereas the Pakistani yarn being exported to India has to pay 28% duty, making the Pakistani market a 'dumping ground'."
Umar said that the electricity tariff being paid by the local textile manufacturers averages at 14.5 cents, which is way too high as compared with the regional competitors. He grieved that the largest industrial employer in the country is being deprived of its rights as it continues to face hardships against inappropriate government policies, adding that the textile counterparts in the neighbouring countries are free from such hardships. He lamented that the Pakistani global textile share has fallen from 2.2% to 1.8%, while at the same time, the Indian global textile share rose from 3.4% to 4.7% and that the Bangladeshi global textile share rose from 1.9% to 3.3%. He expressed sorrow that the country has lost an opportunity for increasing the global textile share, which in turn would have created thousands of jobs and a rise in exports worth billions of dollars. He said that the local textile exports have declined despite the fact that the country enjoys the generalised system of preferences (GSP) plus status. He further grieved that the existing textile units operating countrywide are running below capacity while many have shut their operations and retrenched thousands of workers. He said, "The incumbent regime is happy to borrow huge sums at exorbitantly high interest rates from the foreign lenders, which only sinks the country deeper into the debt trap and at the same time the unemployment countrywide is reaching an alarming rate."
SOURCE: The Daily Times
The interest displayed by the federal government in reviving Nigeria’s ailing textile industry, seems to be ushering renewed hope for the moribund sector, writes Obinna Chima.There appear to be some glimmers of hope for Nigeria’s ailing textile sector. THISDAY learnt that as part of efforts to unlock the potential of the sector, the Central Bank of Nigeria (CBN) is currently assessing the activities of the sector in order to know how best to intervene. The move is also with a view to preparing operators in the sector to benefit from the central bank’s N300 billion real sector support facility (RSSF). The RSSF attracts an interest rate of nine per cent per annum payable on a quarterly basis. The guidelines for the facility also stated that the fund would be used to support large enterprises for start-ups as well as expansion financing needs of N500 million up, to a maximum of N10 billion. The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors. The textile industry was one of the booming sectors of the economy in the post-independence era. But today, the industry has been brought to its knees by dearth of infrastructure, low patronage and cheap imports from abroad. In fact, at the peak of the industry in Kaduna State alone, over 30,000 people were employed. But today, the textile industry is down to only 1,500 employees and with only two mills partly operating in the state.
Central Bank’s Move
In line with its resolve to support the revitalisation of critical sectors in the economy as well as to promote locally made goods, the central bank recently initiated a meeting with operators in the sector. CBN Governor, Mr. Godwin Emefiele, said at a meeting with cotton, textile and garment industry stakeholders in Lagos, that the apex bank would provide single-digit interest rate and long-tenored loans to operators in the industry. Emefiele, however, stressed that the problems that had stunted the contribution of the textile industry to Nigeria's growth, were far beyond funding. He also disclosed that he recently met with the Comptroller-General of the Nigeria Customs, as part of a collaboration to tackle smuggling of textile goods. "Mr. President is committed to the rejuvenation and revival of this sector and he is desirous of bringing this industry back to life," he said.
According to Emefiele, it was disheartening that an industry that literally touched the fabric of the entire country now pales in the shadow of its past success. "A sub-sector that once employed over one million hardworking Nigerians is now almost completely dominated by imports from Asia. We are all aware of the challenges that have beset and continue to plague the industry and I am under no illusion that this meeting will immediately resolve these issues. "The central bank under my leadership is prescribing to work with the industry to come up with holistic solutions for the long-term sustainable development of the sector. I can assure you that the Bank is ready to provide funding under our Real Sector Support Facility for the industry. "This in my humble opinion is the crux of this meeting, which I will like us to keenly deliberate upon. How for instance, can we get cotton farmers to increase their output, reducing dependency on imports? Or how can all stakeholders form a strong advocacy to create a more enabling environment for the sector to thrive once again? I am confident that with our collective efforts, we can finally change the sad narrative about this industry," he added. Continuing, the CBN governor pointed out that the human needs for clothing and the competitive advantage of the country made the sector formidable and key in our path to industrialisation in the 1970s and 1980s.
During this era, he noted, that the textile industries were spread across the country, with many mills located in Kaduna, Lagos, Funtua, Gusau, Asaba, Aba, Kano and a host of other cities. There were well over 159 vibrant textile mills operating at close to full production capacities. “Indeed, Kaduna was known as the 'Textile City' of the country, because of the preponderance of huge integrated textile mills domiciled in the city. "Unfortunately, these glory days are now distant memories. I recall with bittersweet memories, many years ago as a credit manager when I traversed Lagos, going from Anthony Village, to Oshodi all the way down to Amuwo Odofin and Mile 2, appraising loan requests from textile companies. “As a credit manager, it was a race against time, as if you didn't have a textile company in your loan portfolio you were deemed to have underperformed. "Now, these days, as I drive past these factory locations, I shudder with sadness at the abandoned and dilapidated structures. Indeed, many of the premises have been leased or sold to other companies, who are involved in importation of various commodities like rice, tomatoes, textiles, dairy, products and even automobiles. "Sadly, from a pinnacle of 150 vibrant mills, the sector can only boast of less than 20 textile companies still managing to stay afloat. While the resolution of many of these challenges is well outside the purview of the CBN, it will be expedient to explain how the Bank can complement the effort of other agencies in ameliorating these challenges. "Key among these issues has been policy somersault by various governments. The country today officially and unofficially imports millions of dollars of textile products into the country. Since the CBN has no mandate to out rightly ban the importation of any product into the country, the Bank recently included textiles as one of the 41 items excluded from forex sales from the Nigerian forex market,” he added.
Operators’ Concerns
The Textile Industry Association Chairman, Mrs. Grace Adereti said the industry is currently in a state of coma, as less than 20 textile companies are operational compared to more than 150 mills that were once operational. In the first quarter of 2015, Nigerian textile, apparel and footwear segment produced goods worth N460 billion, accounting for 21.7 per cent of the country's manufacturing output. “At this period, we are really fed up with the industry because if I go through the memory lane, the sector used to be the second largest in terms of employment generation, next to the government in those days. “We have made serious efforts in the past. When it first started with the counterfeiting of products, we cried to the Standards Organisation of Nigeria, but nobody seemed to be listening to us. We believe that if this sector comes back on its feet, we would generate employment. “Finance is very important, but another challenge we face is low patronage. Government does not patronise. But today we are very happy that we have a CBN governor who feels the pain of the sector and I don’t have any doubt that you will do the things possible to bail us out. Our problem is not finance alone, we need very good business environment, we need tax holidays, and I am sure if all these are done, the good days of the textile industry would be back,” Adereti said.
Also, the Secretary General, National Union of Textile, Garment and Tailoring Workers, Mr. Issa Aremu, stressed that one of the things hindering the growth of the sector remained the absence of long-term cheap funding, saying that the vision of the CBN governor was in line with the resolve the president to turn-around the sector. “We need to produce what we consume and at the same time consume what we produce. You will be shocked with the type of jobs that we would create when we revive the textile industry. This is a refreshing move by the CBN and we would cooperate with you to make this possible,” he added.
SOURCE: This Day live
Pakistan and Korea, having bilateral trade and diplomatic relations for over three decades, are very much ambitious to sign Free Trade Agreement (FTA) to enhance investment and trade volume. However it will take years to attain the objective, as both the countries have to examine minutely the FTA proposal exchanged by them July this year. Pakistan’s Commerce Minister had visited Republic of Korea in July to discuss bilateral trade and possibilities of FTA. Muhammad Waseem Vohra, CEO, Eastern Enterprises, and Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the apex trade body of country said that it will take at least four to five years, as the process is still at initial stage. The two countries would have to compare trade figures and scrutinize certain other implications before finalizing the matter.
Pakistan has to negotiate the FTA carefully in view of its experience with China. Benefitting from zero tariffs under FTA the China exports goods to Pakistan worth 12 to 13 billion dollars annually against Pakistan’s exports amounting hardly to 2.5 billion dollars causing closure of several local industries here. This shouldn’t happen in case of FTA with Republic of Korea, he added saying that the current trade volume of Pakistan with Republic of Korea is around one billion dollars, which could be enhanced to a great level if the Korea allows access to its market. There are a number of items including textiles, readymade garments, handicrafts, minerals and rice that could find place in Korean market.
The Korean Ambassador Dr. Jong Song Hwan while addressing the Pakistani textile exporters in March last had expressed concern that Pakistani exports to Korea were declining. Similarly, exports from Korea to Pakistan had gone down by three percent in 2013 and six percent in 2014 while exports from Pakistan to Korea had decreased by 33 percent in 2013 and another cut by 23 percent in 2014. Korea and Pakistan are not only good friends but also two leading trade partners but for the last two years this trade partnership after touching the two way trade volume $1.6 billion in 2012 has witnessed downward slide to $1.3 billion in 2013 and further to $1.17 billion in 2014.
The South Korean companies are already present in Pakistan. They export electronic items, machinery, spare parts, paper, chemical etc and have captured a wide market of 200 million people. The role of South Korean companies in Pakistan is commendable as they had been working on several mega projects in energy, roads and other sectors and the Korea Trade Centre KOTRA is playing vital role in enhancing the trade relations between two countries, but more Korean investment is needed here. The Republic of Korea invests 45 billion dollars annually in different countries of the world of which hardly 500 million dollars in Pakistan.
Establishing industries in Pakistan would benefit Republic of Korea, as it can export its goods to China with zero tariffs under FTA. The Korean companies could also avail the benefit of Pakistani labor, which is cheaper than rest of the world, Vohra suggested. Talking about access to Pakistani labor to Korea, the FPCCI official said that the number of Pakistanis working in Korea in 2005 was hardly 7000 and now it might be around 20, 000. Pakistanis can contribute towards progress of Korea. The FPCCI official referring to the Korean Prime Minister’s visit to Pakistan a couple of years back, said that the visits of leaders from two countries would help further cement their friendly relations.
SOURCE: Yarns&Fibers
The Pacific Ocean has proved to be troublesome for India’s economy. The El Nino phenomenon, which is caused by warmer than normal waters in the Pacific Ocean, has been a critical ‘X’ factor in the behaviour of the Indian monsoons over the years, including the latest one. Now, another threat has emerged from the Pacific theatre, so to say, in the form of the Trans Pacific Partnership or TPP, a trade agreement between the US, Japan and ten other nations on the Pacific Rim including Australia, Singapore and Malaysia. When these nations announced on October 5 the successful culmination of talks that had been dragging for over five years, the world woke up to the reality of a formidable trade bloc that will account for 40 per cent of the global economy.
Challenge to trade
The TPP pushes the envelope on contentious subjects such as intellectual property (IP) rights and the freedom of multinationals to sue governments. Multinational corporations can cramp and even hinder the sovereign right of governments to frame regulations in the interest of citizens when they foresee a threat to their profits. Prices of biosimilars, or drugs that are derived from living biological organisms, may also rise in the TPP member countries as a fallout of the 5- to 8-year protection period that has been granted to companies that have patented the drug. The signing of the TPP is a major challenge to India’s trade interests. It comes at a time when the country is grappling with issues relating to subsidies on food procurement and storage at the WTO. The multilateral trading system under the WTO, which is already under siege with the raft of regional and bilateral trade agreements that have been signed in recent times, faces a challenge like never before with the entry of the TPP. But that’s a subject for another discussion.
For India, the crucial point to note is that among the signatories to the TPP are its important trading partners such as Japan, Australia, Singapore and Canada, in addition to the US. According to a DBS Bank report, the US and Asean together account for almost a quarter of India’s merchandise exports with Latin America accounting for about 4 per cent. This means that TPP members account for almost 30 per cent of the country’s merchandise exports which could now come under the shadow of the agreement. Nowhere will the effect be felt more than in textiles and leather exports, two important items in India’s export basket. Competition, which is already stiff from Vietnam and Malaysia in these segments, will now acquire a new dimension as exporters from these two countries to the US, Canada, Japan and Australia will enjoy either nil or marginal duty status.
India restrained
There may also be problems for yarn exports to Vietnam and Malaysia if rules of origin kick in under the TPP preventing garment manufacturers from importing yarn from other countries. It may be a long-term threat but the relaxation in duties for car imports by the US from Japan over the next 25 years can constrain the emergence of India as a manufacturing base for cars. Over the last few years, multinationals such as Ford, Suzuki and Hyundai have been manufacturing in India for export markets. India did not attempt to join the TPP for obvious reasons: the possible gains from opening up markets for its merchandise exports would have been nullified by the concessions that the country would have had to grant in the realm of intellectual property rights, especially in the important segment of drugs. Having foregone that option, the only other choice left for India is to stitch up free trade agreements with individual member countries of the TPP. It already has such agreements with Singapore, Malaysia, Japan and the ASEAN — four of whose members are part of the TPP. However, proposed agreements with Australia, Canada and the US are still works in progress.
Given the hard line adopted by both India and the US in the matter of IP rights, protection for drug companies and movement of workers, it is anybody’s guess whether a CEPA with the US will happen anytime soon. That said, India should speed up its ongoing talks with Australia and Canada and sew up agreements quickly. The process for forging a Regional Comprehensive Economic Partnership (RCEP) between the Asean, China, Japan, Australia, New Zealand, South Korea and India is also currently on. With seven of these countries already a part of the TPP, it will be interesting to watch how talks on the RCEP, nine rounds of which are already over, now progress. The tenth round is scheduled for this month and expectations, at least until the TPP was concluded, were that the RCEP could be stitched together by 2016. It is in India’s interest to push for early and successful conclusion of the RCEP.
Reopening negotiations
In addition to these, India should also restart negotiations with the EU, which have been stalled for the last two years due to disagreement over duties on automobiles, wines and spirits, and data security and immigration. More recently, the EU ban on sale of 700 items of drugs clinically tested in India has prevented the resumption of talks. Prime Minister Narendra Modi is understood to have raised the issue with Chancellor Angela Merkel recently and hopefully talks will resume soon. The time is opportune now because the EU is vulnerable after the TPP especially because the Trans Atlantic Trade and Investment Partnership is nowhere near conclusion. Of course, India will have to walk the tightrope while engaging in negotiations, whether it is with the EU, the RCEP or others, and may have to adopt an approach of ‘give some and take some’. Such an approach is integral to trade and India has no choice but to push forward making some concessions along the way if its objective of achieving $900 billion in exports in the next five years and increasing its share of world trade from 2 per cent to 3.5 per cent by 2020 is to become a reality.
SOURCE: The Hindu Business line
Messe Frankfurt France organised the first Avantex trade fair dedicated to high-tech fabrics and R&D at the Le Bourget Exhibition Centre from September 14-17, 2015. “Avantex was perceived as a significant indicator and catalyst of an ongoing trend in the fashion industry towards more technological, more connected and multi-functional aspects,” a Messe Frankfurt press release stated.
According to Messe Frankfurt, by the evening of September 17, 13,075 visitors from 109 countries had walked through the doors of the exhibition hall. 17 exhibitors from Taiwan exhibited multifunctional fabrics, highly technical and high-performing, featuring moisture transfer, quick drying, UV protection, insulation, anti-bacterial, deodorizing and other fabrics. Companies from China showed their specialisation in mystical motifs, while Thailand based Everest displayed products dealing with the problems of moisture and water produced with an environmentally-friendly process. While, Microsystem Technology Centre from Belgium, German laboratory Novanex, Lenzing Innovation from Austria and French organisation Fashiontech, promoted techwear and fair trade fashion. Swiss studio, Development Never Stops which is closely associated with Forster Rohner Textile displayed developments in luminous embroidery, and heating and smart textiles.
Dr. Jan Zimmerman, head of the textile division at Forster Rohner said, "I am grateful to Avantex because we made some very good contacts.” “We were as close to fashion as possible, which is what we wanted as Avantex creates a link with research, while actually, fashion and research are worlds apart, each moving at their own pace, with contradictory concerns,” he added. "We wanted Avantex to drive fashion into the future, which was exactly what fashion product designers and directors wanted,” Michael Scherpe, CEO of Messe Frankfurt France said. “With the invaluable support of the Taiwan Textile Federation, we brought together 28 exhibitors who offered a host of techniques; encapsulation, intelligent micro systems, conductive textiles, etc,” he too added. “We are very pleased with the general level of enthusiasm whipped up by the offer at Avantex and the associated programme of presentations which spread across all the Texworld Paris trade fairs,” Scherpe informed.
SOURCE: Fibre2fashion
Italian textile firms are showing their finest production at Milano Unica China VIII, a three-day trade event that began in Shanghai. The 94 Italian firms participating in the eighth edition of the tradeshow are showcasing their fall-winter 2016-17 textile/accessories' collections for the top-end Chinese clothing market, according to a press release from Milano Unica, which is organising the fair with support from the Italian Ministry of Economic Development and in collaboration with Agenzia ICE and Sistema Moda Italia (SMI). Like the previous edition, this expo also includes FILO, featuring 7 Italian spinning firms, in an area adjacent to the Milano Unica Pavilion. “Italy has a unique core of enormous value recognised throughout the world, and its strong point lies in the unification of intentions and actions. Milano Unica has taken enormous steps over the past few years: we have come to China; we have begun a new experience in the American market with the first edition of Milano Unica New York which will be held again in January 2016; we have opened up to international exhibitors with the Japan and Korea Observatories at MU Milano; we have developed a successful experiment called Prima MU, dedicated to pre-collections, which will be held again in July 2016; we have begun collaborating with other Italian protagonists, demonstrated by the presence of the Italian production chain at Intertextile. Above all, Milano Unica has become an international event, following economic trends that place emphasis on export,” comments Silvio Albini, former President of Milano Unica. China, together with Hong Kong, is the second-largest market for Italian textiles. As per SMI data, Italian exports to the US increased by 15.2 per cent in the first five months of 2015, followed by China with 12.7 per cent and Hong Kong with 9.8 per cent.
SOURCE: Fibre2fashion
