INTERNATIONAL
Textile Raw Material Price 2015-11-15
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1065.22 |
USD/Ton |
-0.15% |
11/15/2015 |
|
VSF |
2272.99 |
USD/Ton |
-0.07% |
11/15/2015 |
|
ASF |
2032.53 |
USD/Ton |
0% |
11/15/2015 |
|
Polyester POY |
1016.66 |
USD/Ton |
-0.54% |
11/15/2015 |
|
Nylon FDY |
2467.24 |
USD/Ton |
-0.32% |
11/15/2015 |
|
40D Spandex |
5247.78 |
USD/Ton |
-1.47% |
11/15/2015 |
|
Nylon DTY |
2725.71 |
USD/Ton |
-0.57% |
11/15/2015 |
|
Viscose Long Filament |
5839.91 |
USD/Ton |
0% |
11/15/2015 |
|
Polyester DTY |
1264.95 |
USD/Ton |
-0.31% |
11/15/2015 |
|
Nylon POY |
2294.92 |
USD/Ton |
-0.34% |
11/15/2015 |
|
Acrylic Top 3D |
2208.77 |
USD/Ton |
0% |
11/15/2015 |
|
Polyester FDY |
1073.05 |
USD/Ton |
-0.72% |
11/15/2015 |
|
30S Spun Rayon Yarn |
2835.37 |
USD/Ton |
0% |
11/15/2015 |
|
32S Polyester Yarn |
1707.49 |
USD/Ton |
-0.91% |
11/15/2015 |
|
45S T/C Yarn |
2678.72 |
USD/Ton |
0% |
11/15/2015 |
|
45S Polyester Yarn |
1895.47 |
USD/Ton |
0% |
11/15/2015 |
|
T/C Yarn 65/35 32S |
2302.76 |
USD/Ton |
0% |
11/15/2015 |
|
40S Rayon Yarn |
3007.68 |
USD/Ton |
0% |
11/15/2015 |
|
T/R Yarn 65/35 32S |
2584.73 |
USD/Ton |
0% |
11/15/2015 |
|
10S Denim Fabric |
1.10 |
USD/Meter |
0% |
11/15/2015 |
|
32S Twill Fabric |
0.92 |
USD/Meter |
0% |
11/15/2015 |
|
40S Combed Poplin |
1.01 |
USD/Meter |
0% |
11/15/2015 |
|
30S Rayon Fabric |
0.74 |
USD/Meter |
0% |
11/15/2015 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
11/15/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15665 USD dtd.15/11/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The proposed mega textile cluster for Mysuru will take shape near Hootagalli on the outskirts of the city for which Rs.30 crore has been earmarked as initial investment. A Special Purpose Vehicle (SPV) will be registered under the Companies Act for its implementation and funding. The move, which was mooted in the Union Budget 2014-15, was announced by Pratap Simha, Mysuru MP, at the National Vendors’ Meet which began in the city on Saturday. The project will receive Rs. 50 crore by way of central grant and an additional 25 acres of land is being identified for expansion of the cluster.
Work to start soon
The work on the textile cluster is expected to commence soon after the ground breaking ceremony to be held later this month, said Mr. Simha. Once launched, it would be among the first of the five industry-specific clusters sanctioned for Mysuru. Being a labour-intensive industry, the launch of textile cluster is expected to help generate additional employment in the region, besides fuelling local economy by spanning ancillary industries to support the cluster. Mysuru and its surrounding regions are known for sericulture, and the famed Mysore Silk has been accorded the Geographic Indication tag in view of its uniqueness.
Known for cotton too
Similarly, the area is renowned for cotton. Though cultivated extensively in H.D. Kote region, the bulk of it is supplied to textile units in Tamil Nadu. But once the textile cluster takes shape, local farmers will have a market closer home which will be beneficial to them as it will obviate the need for transportation. Mr. Simha expressed confidence that the mega textile cluster would give a boost to the Make in India campaign. He assured local stakeholders that the proposed printing cluster, which was yet to gain traction, would be expedited and he would intervene to get it started. The two-day national vendors’ meet is being conducted under the joint auspices of the MSME Development Institute, Department of Industries and Commerce, Small Industries Development Bank of India, District Industries Centre, Mysore Industries Association, etc. An exhibition of industrial products is also being held at the Institution of Engineers to engender business. The meet is being held for only the third time in the last few decades and is a platform for buyers and sellers in the industrial sector to explore each other’s needs and tailor the products to match the market requirements.
SOURCE: The Hindu
Indian textile manufacturing will be on a par with Europe in terms of quality in 10 years’ time, according to the Indian Textiles Accessories & Machinery Manufacturers’ Association (ITAMMA). According to Sachin Arora, secretary of the association, the group’s Make in India initiative is the start of a long-term plan to improve the quality of Indian textiles by acquiring knowledge and technologies from other countries. In return, India can offer businesses the convenience of a single-entry point for the entire market, customised working environments for individual businesses and a huge market. Mr Arora says, “India has a population of 1.2 billion people, so it’s a huge market for Europe. We can offer them improved infrastructure, policies, strategies and connectivity, as well as an environment conducive to their business interests.” Mr Arora says the quality of textiles produced in India at the moment was not quite up to European standards, but production was between 10% and 20% cheaper. “Our plan is to gradually improve the quality of textiles produced in India by acquiring new technology, knowledge and skills from other countries,” he says. “We will improve our country’s brand name little by little while striving to keep costs down, so that in 10 years’ time, we will be able to compete with Europe in terms of quality and cost. “There are a lot of Indian companies at this year’s ITMA because we are all pushing for more joint ventures with other countries,” continues Mr Arora. “In India, we are masters of negotiation; we don’t give up. We will come back again and again until we have the right conditions to offer overseas business.”
SOURCE: The CCF Group
Textile and branded apparel maker RaymondBSE 0.01 % is likely to appoint Sanjay Bahl, group chief financial officer at Landmark Retail Group, as its new head of finance and group CFO. Bahl has already put in his papers at Landmark Retail in Dubai and is set to join Raymond next week, people familiar with the matter said. A company official confirmed that Bahl will be replacing M Shivkumar at Raymond. Landmark Group hasn't replied to an email from ET. Bahl and Shivkumar could not be reached for comment. Bahl, a chartered accountant and a commerce graduate from Mumbai's St Xavier's College, has 20 years of experience. He spent 14 years at Hindustan Lever in FMCG businesses such as tea, Kissan Foods, oils and fats, and fertilisers. He also worked for over five years with French conglomerate Saint-Gobain as CFO and director finance. He spent more than six years in 12 countries at Landmark Group.
SOURCE: The Economic Times
The Bombay high court has expressed "great surprise" that a lawyer for US apparel giant Gap Inc had objected to pay Rs 3,000 ($45) towards cost of a court receiver's report in a two-decade-old trademark infringement suit. Giving the Gap lawyer a slight rap, Justice Gautam Patel directed that the company pay the costs sought by the court receiver. "The amount is roughly the price of two cinema tickets in New York," said the judge. The clothing major has a presence in 90 countries and posted net sales of $1.2 billion for its latest October quarter. The suit, filed in 1995 by Gap Inc against Messrs Gap, was itself resolved and disposed of in January 2002 on consent terms, but the receiver appointed in 1996 to take possession of goods, including articles and papers bearing the allegedly infringed mark, had yet to be formally discharged. Last month, the receiver, an officer appointed by the court usually to take custody and manage a litigated property till a final decision is rendered, put up his claim for discharge on payment of his costs, charges and expenses of Rs 5,530. Its lawyer in Mumbai, whose name the HC order passed late last month recorded only as N Jain, instructed by law firm Wadia Ghandy & Co, said there was "no dispute" and that the "company will pay these costs, charges and expenses", but she complained about picking up the tab for the receiver's report. The costs incurred by a receiver are to be paid as per rules framed by the HC. The court receiver had thus prepared his claim of Rs 3,000 for the last report, seeking his discharge. "I am very greatly surprised that she makes a grievance about the amount of Rs 3,000..." said Justice Patel. "Although Jain may not be aware of it, I am mindful of the order passed on October 6, where, too, a grievance was made about the costs and charges of the court receiver." In that case involving L&T Finance, a bench headed by Justice V M Kanade had "expressed its disapproval, in no uncertain terms", of similar grievance for costs claimed by a receiver. The costs there were "far more substantial", observed Justice Patel. TOI found that it was a claim of around Rs 24,000, and the bench had dismissed a challenge raised by L&T Finance to the receiver's claim of 1 per cent commission on the value of the property as permitted under the rules, after expressing its surprise that "the leading finance firm should make such grievance, that too after availing the services of the court receiver". "Today, the grievance is about an amount even more trivial," said Justice Patel.
SOURCE: The Economic Times
The country's largest trade fair started today at Pragati Maidan where as many as 7,000 companies from different countries including China and Pakistan are showcasing their products.Inaugurating the 35th edition of India International Trade Fair (IITF), President Pranab Mukherjee said the fair is an ideal platform for the global fraternity which has a shared interest in trade relations to enhance peace and prosperity. "I am confident that this fair will provide a renewed impetus to trade and commerce and deepen our economic relationship with our trading partners across the globe," he said.'Make in India' is the theme of the annual flagship event of the India Trade Promotion Organisation (ITPO).
Extending India's global appeal for investment in diverse sectors, Smart Cities, Digital India, model villages, Clean Ganga Mission and Jan Dhan Yojana are depicting in the central and state pavilions.The fair would also provide a platform to SME exporters, entrepreneurs and investors. Goa and Jharkhand are Partner States and the 'Focus State' is Madhya Pradesh.Besides domestic companies, firms from countries including Afghanistan, China, Germany, Hong Kong, Indonesia, Iran, Pakistan, Russia, South Africa, South Korea and UAE would showcase their products in the fair.First five days have been reserved for business visitors and then it would be open for public on November 19 till November 27.The ticket rates on public days are Rs 30 and Rs 50 for weekends or holidays. One can also purchase tickets online for business days. The fair will open from 9.30 am to 7.30 pm.There will be free entry for senior citizens and differently-abled from November 19 to 27.While Afghanistan is the 'Partner Country', Bangladesh is the 'Focus Country' for the event.
SOURCE: The Economic Times
The government is taking steps to increase India's total exports to $900 billion by 2020, Commerce and Industry Minister Nirmala Sitharaman said. She said the government is taking steps "to facilitate 'Make in India' and therefore the exports. Every step that we are taking is towards achieving the target set by the Foreign Trade Policy." On April 1, the government announced a slew of incentives and new institutional mechanisms as part of the new Foreign Trade Policy (2015-2020) to nearly double country's goods and services exports to $900 billion by 2019-2020. India exports goods worth around $300 billion per fiscal year, while services exports amounted to around $150 billion annually. The target is ambitious as the country's exports are in the negative zone since December last year.
Contracting for the 10th month in a row, India's merchandise exports dipped 24.33 per cent in September to $21.84 billion, mainly due to steep fall in shipments of petroleum products, iron ore, and engineering goods amid tepid global demand. When asked about slowdown in China and opportunities for India, she said India has an advantage in terms of young population and low cost of production as compared to the neighbouring country. "China is becoming a costlier place to produce. China's population is moving towards retirement...There is a structural adjustment which is happening in China, that is, moving from an export led kind of an economy to a consumer led economy. "A lot of manufacturers are getting out of China because its no longer the place to be in and on the contrary, we have an advantage in terms of young population and cost of production being far lesser and therefore we will be able to attract a lot of manufacturers into India," she said. India had a trade deficit of about $48 billion in 2014-15.
SOURCE: The Economic Times
Indian Prime Minister Narendra Modi and his British counterpart David Cameron on Thursday agreed that the finance ministers of the two nations would hold dialogue on deepening the bilateral trade between the two nations. They also shared their concern on the falling global economic growth and increased risks to the global outlook while welcoming the strengthening of business ties between the two nations, a joint statement said. The two prime ministers at their meeting here agreed to continue working together towards strong, sustainable and balanced growth and committed to strengthen the economic relationship by deepening bilateral trade and investment relationship. They agreed that Indian Finance Minister Arun Jaitley and Chancellor of the Exchequer George Osborne would drive this forward in their forthcoming economic and financial dialogue. The two prime ministers also agreed on the importance of structural reforms and pursuing credible fiscal policies in order to raise the living standards. India invests more in Britain than in the rest of the European Union combined. On the other hand Britain is the largest G20 investor in India. Prime Minister Modi and his British counterpart committed to further strengthening the economic relationship between the two nations through deepening of bilateral trade and investment relationship.
Remaining committed on increase bilateral trade and investment opportunities the two governments underlined the particular importance of the information technology and digital industries in both countries, and the contribution that they make towards strengthening trade ties between the UK and India as a key driver of growth and prosperity. Both sides reaffirmed their commitment to work together to deepen and reinforce bilateral trade in goods and services in this area. India and Britain agreed to facilitate the temporary movement of skilled personnel in accordance with applicable international commitments. The two prime ministers agreed that the City of London should play an important role in channelling investment into infrastructure projects in India, including in the railways sector.
In this context, they also welcomed the announcements by HDFC, Bharti Airtel, State Bank of India and Yes Bank to raise finance through the City of London which also opens up the opportunity for the Indian private sector to raise capital for their investment and growth. Modi and Cameron also welcomed the ongoing collaboration bey the India-UK Financial Partnership led by key industry figures on both sides and welcomed the creation of a new Chevening Financial Services course, sponsored by Standard Chartered, aimed at mid-career professionals wanting to study in Britain. They also welcomed the initiative taken to launch the first-ever exchange programme between the economic services of our two countries to support economic policy making in both countries. They recognised that both India and Britain are thought leaders on development, and agreed to elevate the official-level development talks to a Biennial Ministerial dialogue on Development. The two prime ministers recognised the importance of infrastructure for sustainable development and launched India's first Low Income State Infrastructure Equity Partnership with co-investment from the UK Department of International Development and the State Bank of India. This aims to provide equity partnerships for small infrastructure development in sectors like water and sanitation, clean energy and urban infrastructure.
Prime Minister Modi noted the partnership of Britain and India in efforts to improve the Ease of Doing Business. They announced a new Ease of Doing Business Partnership including several different strands of work which will provide impetus to greater investments. The two prime ministers welcomed the first meeting of the reconstituted India-UK CEOs Forum. This forum will be tasked with advising the prime ministers about the trade and investment opportunities and challenges. The two prime ministers acknowledged the need for technical cooperation between the offices of both the countries on Patents, Trademarks and Designs.
SOURCE: The Economic Times
Projecting India as a pillar of global economic stability, Prime Minister Narendra Modi today said bold reforms has helped the country to clock 7.5 per cent growth that will improve further in coming years. “Through bold economic and governance reforms, we have achieved a growth rate of nearly 7.5 per cent with strong prospects for a higher growth rate in the near future. “Given our size and scale, India can become a pillar of global growth and stability,” he told heads of world 20 leading economies. In his lead intervention at G20 Working Lunch on Development and Climate Change, Modi said India has the world’s largest financial inclusion programme and has “definite target dates” for meeting people’s all basic needs. He said India is promoting growth and investing in skills to create employment for the youth. The country is also increasing the pace and quality of infrastructure expansion, and investing in making far more productive and resilient.
Referring to the Sustainable Development Goals, Modi said India’s development goals are aligned with the SDGs. The SDGs are comprehensive set of goals that places complete elimination of poverty in the world by 2030 as its top goal. And, it creates the right balance between growth, development, human welfare and environment, he added. “G20 must align itself with the SDGs. In doing so, we will also stimulate faster and a more broad-based economic growth,” the Prime Minister said. In the past one year, the Indian government has announced a host of measures to improve ease of doing business, to streamline taxation and to further liberalise the FDI policy, among other steps.
SOURCE: The Financial Express
While foreign flows into India’s equity markets in 2015 may have been the worst in the last four years at just $4.32 billion, the amount is nevertheless the seventh highest among countries tracked by Bloomberg. Further, this is the third largest fund flow among Asian and emerging markets (EMs) after Brazil and Taiwan. As such, experts say, the Indian market continues to be a favoured destination for foreign funds given its fairly strong macroeconomic prospects and potential for growth. Andrew Holland, CEO, Ambit Investment Advisors, attributed the foreign inflows to good prospects for the economy as the reforms process gained momentum. “Investor sentiment about Indian markets is improving as the government is pushing reforms like GST (goods and services tax), allowing FDI (foreign direct investment) into more sectors of economy and the new bankruptcy code. Earnings are also on the verge of improvement. If you see the corporate earnings during Q2FY16, the operating margins of majority of the companies have improved,” Holland said.
After a lull, economic reforms appeared to be picking up again with the government announcing changes in FDI norms across 15 sectors earlier this week, making it easier and more attractive for foreign firms to invest in the country. The 15 sectors included defence, banking, construction, single-brand retail, broadcasting and civil aviation. The Foreign Investment Promotion Board (FIPB) can now clear proposals of up to Rs 5,000 crore, up from Rs 3,000 crore earlier. Foreign portfolio investors (FPIs) invested $16.16 billion in Indian equities in 2014 while the quantum was $19.7 billion for 2013. CY12 was the best year for India in terms of FPI inflows as foreign funds invested $24.54 billion.
During 2015, India accounted for 33.2% of foreign funds across Asia and EMs; it had attracted 33.8% of Asian and EM inflows in 2014 and 62.6% and 44.9% in the years prior. While FPIs had invested more than $7 billion between January and August, sales during August and September amid concerns about China trimmed inflows by nearly 40%. In August alone, FPIs sold equities worth $2.59 billion in the cash segment, making it the worst monthly outflow in more than seven years. In September, the amount of selling was $860.62 million, data showed, impacting India’s share of inflows within the Asian and EM universe.
SOURCE: The Financial Express
India and the UK plan to revive the previously established UK/India CEO Forum, amid hopes that a group with a strong practical focus could help push commercial and trade relations between the two countries. Attending the forum at Downing Street on Friday morning with CEOs from top companies in the UK and India, including the Tata Group, Standard Chartered, and Vodafone, Prime Ministers David Cameron and Narendra Modi urged business leaders to identify ways to improve trade, investment and economic collaboration. The forum will be chaired by Sir Gerry Grimstone, Chairman of Standard Life, and Cyrus Mistry, Chair of the Tata Group. The group of 20 CEOs from each side identified six areas for focus including smart cities, health care, education and skills, engineering, defence and security, and financial services.
Members of the Forum on the Indian side will include Sunil Bharti Mittal, the chair of Bharti Enterprises Ltd; TK Kurien, CEO of Wipro; Tulsi Tanti, CMD of Suzlon Group, and Atul Punj, Chairman of Punj Lloyd. On the UK side they include Sir Martin Sorrell of WPP; Lord Ajay Kakkar of UCL Partners; Sir John Peace, Chair of Standard Chartered; Vittorio Colao CEO of Vodafone; Warren East, CEO of Rolls Royce; Douglas Flint Chair of HSBC; and Ian King, CEO of BAE Systems. Industries on both sides wanted a business environment characterized by “simplicity in structures, and processes, clarity and transparency in decision-making and uniformity and consistency in the treatment of corporates and people across borders,” Mistry said in a statement.
Rahul Roy Chaudhury, senior fellow for South Asia at London-based think-tank the International Institute for Strategic Studies, welcomed the developments. “I think this shows that the importance of the implementation of Business to Business links, and it also indicates the growing focus on Make in India for this group,” he said. “There was a realisation that the earlier business forum was not as effective. It was seen as more of a think tank, a forum for discussion but I am given to understand the focus now is now implementation. There is a much more practical side to this.”
Defends govt agenda
Speaking to a packed hall of business people and financiers gathered at the Guildhall in the heart of the City of London on Thursday evening, Modi mounted a spirited defence of his government’s agenda, and reforms brought in since taking power. The government, he said, had already created the necessary conditions for the “take-off” of the economy, highlighting changes to the tax regime, and transparent auction and allocation systems for natural resources. “Never before, India was so well prepared to absorb talent, technology and investment from outside. I can assure you that it will get better and better in the coming days. We will be open to welcome your ideas, innovations and enterprises,” he said, at the event attended by British Prime Minister David Cameron, and the Lord Mayor of the City of London, Alan Yarrow. He added that the government remained open to making the necessary corrections to policies and procedures.
SOURCE: The Hindu Business Line
India and Bangladesh signed the standard operating procedure (SOP) in New Delhi on Sunday, to operationalise the Agreement on Coastal Shipping, signed between the two countries in June, 2015. The SOP will pave the way to promote coastal shipping between India and Bangladesh and would enhance bilateral trade between the two countries by bringing down the cost of transportation of EXIM cargo. The SOP contains provisions which stipulate that India and Bangladesh shall render same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation. The two sides have also agreed upon the use of vessels of River Sea Vessel category for Indo-Bangladesh coastal shipping. Speaking on the occasion, Nitin Gadkari, Minister of Road, Transport, Highways and Shipping said that once it is operational, the Coastal Shipping Agreement would enable a huge saving in logistic costs of EXIM transport between the two countries. The SOP has been framed as per the terms and conditions of the Agreement on Coastal Shipping and both India and Bangladesh have agreed to its provisions.
The present connectivity through sea route with Bangladesh is through ports of Colombo and Singapore. The long sea route adds significantly to the transportation costs of EXIM trade. There is no significant cargo movement between sea ports of Bangladesh and India as it is not profitable for the big vessels to operate between these sea ports. Under such circumstances, there is a need for smaller ships to provide direct connectivity between the eastern sea ports of India, Chittagong and other ports in Bangladesh. This, besides improving the connectivity would also provide competitive freight rates. The two countries will also hold Shipping Secretary level talks on Monday, which would cover the issues relating to memorandum of understanding (MoU) on passenger and cruise vessel movement, discussion on the protocol to operationalise the MoU on use of Mongla and Chittagong ports, payment of transit fees and bank guarantee, dredging of rivers in the protocol route using Regional International Development Assistance of World Bank Assistance, discussion on various upcoming port projects in Bangladesh.
Advantages of the Agreement:
1) The opening of coastal shipping between India and Bangladesh would enable the movement of cargo to the North East through coastal shipping upto Chittagong and thereafter by road/inland waterways.
2) The deep draft ports on the eastern coast of India can be 'hub ports' for the onward transportation of cargo to Bangladesh via the coastal mode through RSV category of vessels.
3) The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get reduced.
4) The Indian ports serving as trans- shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade.
SOURCE: The Business Standard
Confident that Indian economy is increasingly on a stable footing, IMF today said further progress is required on the long-standing supply bottlenecks and for achieving faster and more inclusive growth. "We are optimistic about India's prospects and view the economy being on an increasingly stable footing," said Kalpana Kochhar, Deputy Director of IMF's Asia and Pacific Department. "Inflation has declined, the current account deficit is in check, international reserves are ample and economic growth is picking up," she added.
Listing out various positive developments, Kochhar said a number of important economic and structural reforms have also been initiated. These include diesel price deregulation, steps to create more flexible labour markets (particularly at the state level), coal sector reforms, adoption of the flexible inflation targeting framework by the RBI, increasing infrastructure spending, and enhancing financial inclusion, Kochhar told PTI in an interview. "But further progress is needed to relax long-standing supply bottlenecks (especially in the energy, mining and power sectors) and achieve faster and more inclusive growth," she said. IMF has often said that India is among the few bright spots in an otherwise gloomier world economy.
In a recent report published ahead of the G20 Summit, which began in Turkey today, the Washington-based multilateral institution said India's growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices. It also projected a 7.5% growth rate for India in 2016, as against China's 6.3%. However, for the current 2015 year, the IMF has projected 7.3% growth rate, which is 0.2% less than its projection made for the year in July. "Growth in China is expected to decline as excesses in real estate, credit, and investment continues to unwind. India's growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices," the report said.
SOURCE: The Business Standard
The Central Board of Excise and Customs (CBEC) has issued some new clarifications on the dispatch of bulk cargo for export under bond, allowed under an earlier notification, 42/2001-CE (NT), dated June 26, 2001. The idea is to avoid examination of the cargo at ports, delaying export consignments. The said notification allows manufacturers to clear their goods from the factory for export without payment of excise duty. The Customs department would otherwise examine any goods before export but in these cases, central excise officers or the exporters themselves may do so and seal the containers or packages at the factory. Usually, such excise-sealed consignments are not opened by Customs for examination. It is, however, difficult to seal in such containers or packages, any bulk cargo - for instance, coal, iron ore, alumina concentrate, heavy machinery and so on. To help exporters of such cargo, the finance ministry on October 30 issued an amendment to the said notification, 42/2001.
The amendment says exemption from sealing of package or container may be granted for bulk cargo on a case to case basis, for a specific period not exceeding a year, by the principal chief commissioner (PCC) or chief commissioner (CC) of central excise, subject to such safeguards as may be specified. These safeguards shall include the method of verification of the quantity and quality of goods, including testing where necessary, at the place of removal or dispatch and at the port of export or special economic zone (SEZ) where the goods are received. No remission of duty shall be allowed for loss of goods in transit. Permission may be withdrawn in case of misuse; additional safeguards may also be specified.
CBEC followed this with a circular asking those who wanted the facility of bulk cargo export without sealing to write to the PCC/CC concerned, with a copy to the jurisdictional assistant/deputy commissioner (AC/DC) of central excise, giving details of what is to be exported, with justification regarding the difficulties faced in sealing. The jurisdictional AC/DC shall, within 15 days of getting the application, send this with comments to the jurisdictional PC or commissioner, who, in turn, will send this on to the PCC/CC with his or her recommendation, within three weeks of getting it, with report from the AC/DC.
The jurisdictional PC or commissioner shall consult the PC or commissioner with jurisdiction over the port of export or development commissioner of the SEZ where the goods will be received, incorporating what they have said in his recommendation. The PCC/CC shall grant or reject the request for waiver of sealing within 15 days of getting the application from the PC or commissioner. CBEC, it appears, prefers that the field formations decide requests on merit, rather than prescribe uniform guidelines. So, it talks of 'due verification as needed', without saying what must be verified and how or what safeguards must be prescribed. Hopefully, the permissions will not contain unnecessarily onerous conditions.
SOURCE: The Business Standard
The main objective of the fair is to project strengths of Indian companies to the Sri Lankan counterparts who are going in for massive sourcing of products and services from other countries. India Sourcing Fair to display products and showcase the activities of handlooms, textiles and handicrafts, micro, small and medium enterprises (MSME) and tourism departments. Odisha would participate as a partner state in the five-day fair with three people from Boyanika, a state-owned leading exporter and manufacturer of handlooms, would also take part. Official sources said that products like sarees, silver filigree and applique worth Rs 30 lakh to Rs 40 lakh would be on display at the fair being organised by the India Trade Promotion Organisation (ITPO). This exhibition will be an ideal networking platform for Indian companies and at the same time it will provide an opportunity for Sri Lankan industrialists and businesses to view the latest innovations, products and services offered by Indian companies.
SOURCE: Yarns&Fibers
Pakistan's textile industry has suspended its several month long agitation for solid business demands as the government promised help to boost production and exports at reduced prices. The government has accepted three out of the eight demands of the industry. But the industry while welcoming this gesture announced that it will continue to agitate for the acceptance of the rest of the demands. The three accepted demands are:
One, raising the regulatory customs duty on import of Indian cotton yarn and fabric-coarse cloth from the present five per cent to 25 per cent - but the government raised it only to 10 per cent, effective from November 1. Two, provision of more and chapter, long-term financing to the ginning and spinning sector. Three, reduction in long-term financing and export financing (ERF) by one per cent.
"Textile industry is hopeful that the rest of the eight demands will soon be considered favourably, and resolved by the government for the viability of the industry and increasing exports off the country," All Pakistan Textile Manufacturers Association (Aptma), the industry leader, said in a statement. The industry and business analysts insist that its products ranging from high value fashion garments to common textiles are enjoying a big boom in markets ranging from the UAE to EU, but it still has to lower its cost of doing business in order to reduce the sale price of its products in the export markets. The industry has been encouraged by its recent holding fashion shows in the UAE, Middle East, EU and elsewhere.
Pakistani fashions and designers are vigorously competing in countries across the globe, ranging from top fashion designer names from France to India and Japan to China. The credit for bringing the industry back to production followed the latest, Pakistan-wide shut down of all textile industrial factories and allied manufacturing and processing units across the country. Prime Minister Nawaz Sharif's pro-business policies and a team of his three negotiators conceded some of the demands. The negotiators included Finance Minister Ishaq Dar, Commerce Minister Khurrum Dastgir Khan and Haroon Akhtar Khan, Special Assistant to Prime Minister on Revenue. Finance Minister Dar says: "We need more revenues and rapidly enlarge our forex earnings to expand nationwide development work and repay foreign loans. But we have chosen to help the textile industry as it is the biggest labour employer and foreign exchange earner through exports." "The export trajectory will now start moving up - making me and the country happy," said Dastgir Khan as textile industry opened the factories after the one-day nationwide strike. "You know, I come in middle of the crossfire because the industry demands a cut down on costs of production and government demands to push exports up," Dastgir said.
The seriousness of the textile industry crisis can be gauged from the fact that its exports have been declining during the last three years - down to a level of around $13 billion a year. Still its significance is that it makes a big chunk of the overall total annual exports, which have also been stagnating at around $24 billion a year. Besides the big role of earning foreign exchange, textile industry is the biggest employer of labour, the largest tax-payer and consumer of most of its 12 to 13 million bales of its home grown cotton. The official statistics indicate that the overall Pakistani textile exports in financial year 2014-15 were down 10 per cent as compared to 2013-14. Even in first quarter of 2015-16 - July-September 2016, the exports were down 14 per cent.
As of September the textile exports picture is almost gloomy reaching a total of just $1.093 billion compared to $1.110 billion in August - down 1.52 per cent according to Pakistan Bureau of Statistics (PBS). "Pakistan's annual imports have stayed back at $40 billion level due to cheaper import pries of oil and commodities, but we have to be ready to face up and pay for imports rising to $45 billion a year, in not too distant a future. We have to earn more forex through larger and high-value added exports to fund that amount of imports," Haroon Akhtar said. Although as far as acceptance or rejection by government of all the remaining demands of the industry is concerned, the decision will several more weeks. These include the demand to reduce the electricity and gas tariff, cheaper bank credit, other incentives to bring down the cost of doing business and banning smuggling-in of foreign textile products. The industry said that the governments of India, China, Bangladesh, Sri Lanka and Vietnam - the principle competitors against Pakistani textile exports - provide all these incentives and facilities. But whatever progress has been made, most sub-sectors of the industry seems to be satisfied. Hover some are not. Javed Balwaani, Chairman Pakistan Apparel Forum (PAF), for instance, is critical of the government for raising customs duty on Indian yarn imports from five to 10 per cent and on Indian and foreign fabrics from 10 to 15 per cent. "The government has not done its homework before raising these duties as it has just obliged the domestic spinner sector, which was facing competition from foreign yarn imports as well as the fabric manufacturers." Aptma chairman Tariq Saud said: "The government seems to be showing some flexibility in connection with bringing down the power tariff and taxes. But it has still to meet several of our key demands, including a reduction in Rs170 billion additional taxes on the textile sector." All this show that the tensions will continue between the government and the industry to meet the remaining demands but there is all the hope that production and exports will start moving up from this quarter - October-December 2015-16.
SOURCE: The Khaleej Times
Bangladeshi readymade garment (RMG) sector the main export earner of the country to streamline, the Directorate of Textiles is going to be vested with the authority to regulate the RMG sector under a new law --- The Textile Industries Establishment Act 2015-would take effect early next year. The new draft law proposed making the Directorate of Textiles under the Ministry of Textiles and Jute as an effective "sponsoring authority" for the apparel industry. It means the directorate would have the authority to control all major activities, including registration, permission for import, utilisation declaration (UD) and even import of capital machinery.
According to the legal provisions, none can establish and run textile and garment factories without registration from the Directorate of Textiles. If anyone violates the law, there is a provision for one-year imprisonment or Tk 100,000 penalty. After enactment of the law, all the new establishments (textiles and garments) would have to register under the act and all the existing factories would have to come under registration with the directorate within six months. As per the proposed law, the directorate will enjoy the authority to suspend or cancel registration of any industry if it finds proper reason to do so after carrying out investigation. The government has already sent the draft of the law to the stakeholders for their comments and held a number of meetings in this regard. State Minister for Textiles and Jute Mirza Azam said that they are working hard to formulate the law and hopeful about enacting the law within this year.
Officials concerned, however, hinted that it might take some more time as they are yet to sit with major stakeholders, including Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), two apex trade bodies of the export-oriented woven and knitwear industries respectively. Most of the stakeholders, including BGMEA and BKMEA, have already opposed the move as they termed some of the provisions of the proposed act detrimental to the overall growth of the industry. BKMEA demanded the scrapping of the provision of recommendation to the customs authorities regarding release of imported capital machinery and indemnity bond.
The Ministry of Textiles and Jute will soon convene an inter-ministerial meeting to discuss the issues elaborately with stakeholders to settle the differences, defuse confusions and finalise the draft law. The draft law will be sent to the cabinet committee hopefully early next month for their approval before going to the cabinet. Officials, however, expected the new law by early next year. After enactment of the law, officers designated from the directorate could inspect factories anytime and the factories would be bound to provide documents as per requirement. According to the draft law, the textile directorate will establish a database of the industries based on the information provided by the factories. The industries will not be able to enjoy any government facilities if found reluctant to take registration. Furthermore, according to the proposed law, all the textile industries excepting silk and handloom ones, have to be registered with the directorate. According to the directorate, there are more than 6,000 RMG factories and about 1500 textile mills, many of which are being operated without proper monitoring. Mohammad Ismail, director of the Directorate of Textiles said that to have a legal ground to control textile industries the government has taken the initiative to formulate a law.
As per the proposed law, it will play the role of coordinator and maintain coordination with the National Board of Revenue, the Export Promotion Bureau, the Registrar of Joint Stock Companies and Firms, the Fire Service and Fire Defence, the Directorate of Labour, the Ministry of Power, the Ministry of Water Resources and other stakeholders. It will also maintain coordination with the Technical Education Board, the University Grants Commission and universities in fixing curriculum related with textile industries. The textile industries had been under control of the Department of Textiles until 1993, when the government transferred the functions of sponsoring authority to the Board of Investment (BoI). But the government again on May 26, 2013 handed over the authority of textile industries to the textile directorate. Now, the ministry is trying to formulate a law for assisting the directorate in ensuring smooth run of textile industries.
SOURCE: Yarns&Fibers
Courtesy: World BankPakistan's economic growth is expected to accelerate from 4 per cent in 2014 to 4.5 per cent in 2016 supported by strong services growth and a slight improvement in the industry sector. What are some reasons for this moderate improvement and how could it unlock its potential to grow even faster in the future? These questions are raised and answered in the latest World Bank report, “Pakistan Development Update", unveiled in Islamabad this week.
Presenting the report's highlights, Muhammad Waheed, Senior World Bank Economist said that there has been an improvement in Pakistan's economic environment due to lower domestic and external risks. Foreign exchange reserves have increased to an appropriate level given the size of Pakistan's imports. Pakistanis working abroad sent home about $18.5 billion in FY2014/15 which contributed to financing the trade deficit. Waheed explained that the government efforts to stabilize the economy have been greatly aided by the decline in international oil prices which has significantly reduced the import bill. This restoration of macroeconomic stability is providing Pakistan with a window of opportunity to focus on more pressing structural bottle necks that are holding Pakistan back from realizing its immense potential and accelerating economic growth.
Development outcomes play a very important role when a country's economy is discussed and in case of Pakistan, these outcomes are weaker than one would expect given the country's income level. These outcomes are mainly related to the social services including health benefits, education and social protection. A large and mainly young population is one of the major assets of Pakistan. This young population will contribute to higher and sustainable growth only if it is healthy and well educated. It will be important for the federal government and provinces to continue working together to improve the decentralization framework and ensure improved service delivery to achieve desired outcomes. It is however, important to make significant public and private investments in health and education to improve Pakistan's competitiveness. The report reveals that the lack of complementary public investments and a weak investment climate are constraining private sector investment. Inconsistent trade and industrial policies create disincentives for investors and contributes to weak business environment. Another reason for the very low investment levels has to do with the low savings rate in Pakistan which is at around 13 per cent of GDP, and compares unfavorably with an average of 23 per cent in South Asia.
The services sector is the main contributor to growth in Pakistan as more than two-thirds of the economy's growth came from it, while industry and agriculture jointly contributed about one-third. In the agricultural sector, crop performance remained weak owing to prolonged adverse weather and two years of relatively low prices. In the industrial sector, the poor performance was primarily the result of weak growth in the large-scale manufacturing sector, which achieved growth of 2.4 per cent against a target of 7 per cent. Ongoing energy shortages, limited external demand and structural bottlenecks also constrained industrial growth. The weak growth in the industrial sector also acted as a drag on related services sectors such as trade and communications, which also posted relatively slow growth. On the positive side, transport, finance and insurance and government services all posted strong growth.
Waheed emphasized that given the shortage of domestic savings, there is an urgent need to attract foreign resources to meet Pakistan's investment needs. FDI has been declining over a number of years and remains extremely low, even at a time when many of Pakistan's peers are attracting large FDI inflows. The report says that the government is implementing a number of reforms to improve the investment climate and diversify the investment portfolio. These include efforts to revive the privatization efforts, which will increase efficiency in management, improve services delivery and make space for private participation. Significant efforts are underway to improve the access to and quality of electricity, and simplifying and making the tax regime more transparent. It will be important to accelerate these and other reforms for growth to create jobs, provide better services to the public and ultimately reduce extreme poverty and boost shared prosperity in Pakistan.
SOURCE: Fibre2fashion
A Chinese technician displays sewing equipment at an expo in Ho Chi Minh City, Vietnam, on Oct 21, 2015. Vietnam is becoming a "hot spot" for Chinese textile manufacturers when they look to build factories overseas. One of the main reasons is that apparel produced in the Southeast Asian country for the United States market will be tariff-free after last month's Trans-Pacific Partnership agreement. Huafang Co, a textile business in Shandong province, plans to set up a high-end fabric factory in Vietnam with a 700 million yuan ($110 million) investment. This will be the company's first overseas factory. Another 150 million yuan will be pumped into a research and development center in Vietnam to look into new technologies covering the whole industry chain, including cotton, spinning, weaving and dyeing.
Huafang, which is listed on the Shanghai Stock Exchange, is planning to issue about 120 million shares for corporate investors, with an issuing price of about 7.4 yuan per share. This will help the company raise 900 million yuan to finance its Vietnamese project. "Before the zero-tariff policy reached by the TPP, many labor-intensive Chinese industries had already shifted to Southeast Asian countries," said Zhang Jianping, a senior researcher at the Institute for International Economic Research under the National Development and Reform Commission. "The labor costs there are four to five times cheaper than in China. "Here, the country is undergoing an economic transformation. In China's developed coastal regions, high-tech industries are springing up to replace labor-intensive industries," he added. "The trend has been gathering pace, and the new policy will speed up the process."
Vietnam has become a major importer of fabrics and a leading exporter of clothing. But weak domestic production has left local companies struggling to cope with international demand. That was another key factor in Huafang's decision to set up a manufacturing center in Vietnam. Now the company plans to set up two production lines, although it will take up to three years to build the plant. Pei Chunqu, former deputy minister of trade and industry in Vietnam, said that in the past decade, the textile industry in the country has been growing slowly. Luen Thai International Group, which is Hong Kong's largest clothing company, Sanshui Jialida TextileCo, based in Guangdong province, and Vietnam's Vinatex Co are planning to establish a textile industrial park.
SOURCE: The Global Textiles
