NATIONAL

• SRTEPC calls for extension of interest equalization scheme on exports of synthetic and blended yarns
• Indian textile industry’s future to have less labour intensive machinery
• Arvind plans major expansion drive
• India business confidence at lowest since Feb 2014: MNI Indicators
• To meet Cong halfway, govt may accept 18% rate for GST
• GST most crucial economic reform, says new Assocham president
• Global crude oil price of Indian Basket was US$ 41.61 per bbl on 26.11.2015

INTERNATIONAL

• 'Pakistan has allocated Rs 65 billion for textile sector'
• Tunisia: Textile and Clothing Exports Edge Up 8.3 Percent in October 2015
• Spain show interest to improve its trade relation with Pakistan

Textile Raw Material Price 2015-11-26

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15628 USD dtd. 26/11/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

SRTEPC calls for extension of interest equalization scheme on exports of synthetic and blended yarns

The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) has called upon the Finance Ministry to include synthetic and blended yarn exports for Interest Equalisation Scheme (IES) which will be implemented shortly effective from April 1, 2015. Mr. Anil Rajvanshi, Chairman, SRTEPC, said that the council welcomes the decision taken by the government in introducing IES to exporters for pre and post export credit which would help the exporters across the country. The council, he said, firmly believes that government should extend the scheme to the synthetic and blended yarn also considering the following facts:

• The exports of synthetic and blended yarns have huge potential as world consumes 70% of textiles made of synthetic yarns as compared to 30% made of cotton yarns.
• The exporters of synthetic yarns pay the mandatory excise duty of 12.5% on purchase of synthetic fibres such as polyester and viscose (unlike cotton which has zero excise duty) required to produce polyester/viscose or blended yarns. Many of the exporters are not fully compensated by way of drawback as the excise chain breaks at yarn level.
• Synthetic filament and textured yarns are exported under stiff competition and most of the countries have levied antitrade measures on these yarns. Indian exporters passing through a difficult phase have to forgo their margins in order to export.
• The extension of Interest Equalisation Scheme on pre and post export credit will make India’s synthetic and blended yarn exporters competitive in international markets.

With the recent duty draw back rates reduced for synthetic yarns substantially, the IES is the only option left for such exporters, Mr. Rajvanshi stressed and therefore called upon the Finance Ministry to include synthetic and blended yarn exports for Interest Equalisation Scheme (IES).

SOURCE: The Tecoya Trend

Back to top

Indian textile industry’s future to have less labour intensive machinery

ITMA 2015, the biggest international textile machinery exhibition which recently concluded at Milan, witnessed a footfall of around 1.23 lakh visitors from world over. Among them were from India, Trident group, Chairman, Rajinder Gupta representing Ludhiana at this exhibition. In today's scenario, with the world's focus shifting towards the usage of green energy and environment conservation and less labour-intensive machinery to cope with competition from other nations and ITMA was one such place where all such solutions were displayed. The stalls at ITMA 2015 displayed equipment for recycling, waste reduction and pollution prevention were thronged by a large number of visitors. It was very interesting to see the latest breakthroughs and innovations in all the sections, whether it was machinery for spinning preparation or software for design and data monitoring. By visiting such events, one can keep himself abreast of the latest and the best aspects of the industry and it is heartening to see that participation of city industrialists in such events is on the rise. Now, they are looking forward to the next edition of ITMA, which is scheduled to take place in Barcelona, Spain in June 2019. According to Rajinder Gupta, as far as the future of Indian textile industry is concerned in the next 5 years everyone's focus is going to be and should be on lesser input costs, less wastage and, most importantly, on the usage of less labour-intensive machinery. Without these essentials, Indian textile industry won't be able to move forward. Twenty years ago, Indian textile industry required 1,000 to 1,200 workers for 25,000 spindles but now it requires only 600 people for 2 lakh spindles. In order to further uplift and modernize the textile sector, especially the micro, small and medium enterprises (MSME), new schemes and incentives need to be introduced along with the existing Technology upgradation fund scheme (TUF), which can make purchase of high-quality machinery easy and affordable for the businessmen. All these are wonders of less labour-intensive machinery is perhaps the only way to solve the problem of labour shortage, which is ever-increasing in Punjab, especially Ludhiana.

SOURCE: Yarns&Fibers

Back to top

Arvind plans major expansion drive

Arvind Limited has unveiled plans for its premium brand Tresca an offering in Giza cotton and Linen base and an ambitious drive to expand its retail network, according to media reports. Tresca has shown an impressive growth of 100 per cent on a CAGR basis. The company intends to carry out a separate drive for Tresca's growth through new product launches and a boost in its distribution network. In order to expand its retail base, the company is banking heavily on Tresca, which is available in shirting, suits, linen as well as wool blends. Arvind is targeting aggressive penetration for Tresca in Tier-II and Tier-III cities, and will increase its distribution over the next two years exponentially. The Print fabric market on high quality Giza Cotton base/Linen base is approximately 1 million metres annually in India, and is likely to get doubled in next one year. Also, Linen shirting has started contributing close to 30-40 per cent to the premium shirting fabric sales in India. The $1billion textile and apparel company has already added 300 multi-brand outlets across the county over the last two months, said Susheel Kaul, CEO - Lifestyle Fabrics (Shirting, Khaki and Knitwear) Arvind Limited. Shridhar Soni, Head - Sales and Marketing, Arvind DTR business said Tresca is the only premium brand to come out with a print collection while other brands in this category are only limited to yarn-dyed offerings. To expand its overseas base, the company plans to take Tresca to Bangladesh, Sri Lanka and West Asia. Arvind has a portfolio of owned and licensed brands and retail formats. Its own brands include Flying Machine, Colt, Ruggers, Excalibur amongst others while its licensed list has Arrow, Gant, Izod, Elle, Cherokee and US Polo Association.

SOURCE: Fibre2fashion

Back to top

India business confidence at lowest since Feb 2014: MNI Indicators

The busy festival season failed to bring cheer to India’s largest companies in November, as business sentiment fell to the lowest level since February 2014, with companies also seeing little chance of a revival over the coming months, according to research firm MNI Indicators. The MNI India Business Sentiment Indicator, a gauge of sentiment among BSE-listed companies, fell to 60.9 in November from 62.3 in October, to stand 11.6% down on the year. The fall in sentiment was observed across both manufacturing and construction companies, while sentiment among service sector companies rose for the first time in five months, it said. According to MNI Indicators, new orders fell slightly between October and November, leaving orders down 11.1% on the year. Export orders fared better, putting in a rise of 5.3% on the month, although were still 9.4% below the same level in November 2014. The production indicator fell for the second consecutive month and was down 14.1% on the year. Companies were less optimistic about the next three months with the Expectations Indicator falling to 72.2 in November from 75.1 in October. The only real positive came from an improvement in company’s balance sheets, with the decline in commodity prices and interest rate cuts pushing the Financial Position Indicator higher for the second month in a row. It now stands above its series average, although companies have been reeling under the pressure of high debt and low sales for most of 2015. “Weak demand means that companies are unable to capitalise on the positives of lower input costs and looser monetary policy,” said MNI Indicators chief economist Philip Uglow.

SOURCE: The Financial Express

Back to top

To meet Cong halfway, govt may accept 18% rate for GST

Willing to meet the Congress halfway on the goods and services tax (GST), the NDA government is weighing the option of accepting a revenue neutral rate of 18 per cent and announce it during the ongoing session of Parliament. While the government and industry are in favour of a slightly higher rate of 20 per cent to 22 per cent for GST, the Congress has been demanding that the rate be kept at 18 per cent. “With the proposal to subsume petroleum and tobacco products into GST at a later date under consideration, accepting a revenue neutral rate of 18 per cent is viable as these products would be taxed separately,” said a person familiar with the development, adding that an announcement to this effect would be made during the ongoing Parliament session.

Panel proposal

Eighteen per cent is also what the panel headed by Chief Economic Adviser Arvind Subramanian to finalise the revenue neutral rate for GST is likely to propose. The panel is expected to submit its report shortly. Sources close to the development said that this would be the closest that the government is willing to go to accede to the Congress demand. “It should not be seen as the government bending backwards on the Congress demand. While accepting the rate, the government will still not include it in the Constitutional Amendment Bill for GST but will notify it separately,” said the source. Finance Minister Arun Jaitley has already questioned the Congress demand to include GST rates in the Constitutional Amendment Bill and said it would lead to a flawed architecture for the tax. The Finance Ministry also plans to call a meeting of the Empowered Committee of State Finance Ministers soon to start a discussion on the revenue neutral rate.

New chairman needed

“A meeting with States will have to be called soon — to appoint a new chairman (after Kerala’s KM Mani resigned) who can initiate talks on the rates,” said the source. Experts believe that States may agree to the proposed 18 per cent tax rate provided the Centre compensates them adequately. “I think the States can accept the rate although it would be lower than the current VAT rate of 13.5 per cent. On an average, an 18 per cent rate translates into 9 per cent at the state level. But as long as the Centre is willing to stick to its promise of compensating them for the revenue loss, there should be no problem,” said Mahesh Purohit, director, Foundation for Public Economics and Policy Research.

SOURCE: The Hindu Business Line

Back to top

GST most crucial economic reform, says new Assocham president

Successfully passing the Goods and Services Tax (GST) bill should be the first priority of the lawmakers across parties, the new president of industry body Assocham, Sunil Kanoria said on Thursday. Speaking at a press briefing a day after talking charge, Kanoria said speedy implementation of a fair GST regime which was beneficial for both industry and common people is the most important economic reform the country can undertake at this juncture. The winter session of parliament, which began on the same day is set to discuss the GST bill, which had been consistently blocked by principal opposition Congress party who had initially authored the legislation. Kanoria said it was difficult for economic growth in the current fiscal to reach the government’s expectations of a 7.8% rise in Gross Domestic Product (GDP), instead stressing it will be a maximum of a 7-7.3% rise. However, he said GST might also help out in this regard. “Our GDP growth can rise by 1-1.5% by GST alone, going up to 9% by 2018-19”, he said. However, he maintained it should be passed in an equitable form. He said the GST rate, which according to recent reports is going to be settled on 18% was fair. He added stipulation of additional 1% duty would not help industry.

On the present state of the economy, the president said one of the main worrying aspects is lack of appetite for fresh investment which is further discouraged by lack of demand as is evident from the latest IIP numbers showing the slowest growth industrial output in four months (3.6%) during September. Kanoria, who is Vice Chairman and Managing Director of SREI Infrastructure Finance, said promising reforms have however been made in the road sector where a marked rise in public investment will stimulate private investments by the coming year.

On another serious issue of bank NPAs, he said, “We cannot afford to delay the full recapitalisation of the banks while concerted efforts should continue to address the structural problems of the sector like steel, power, roads, highways where the maximum level of stress assets is locked up." In this regard, he argued for the Bankruptcy Law to be passed urgently for assets locked in bad loans to be released and given to new promoters. In response to a question on the raging issue of growing intolerance in the country, Kanoria said stray incidences should not merit enough importance to paint India as intolerant.

SOURCE: The Business Standard

Back to top

Global crude oil price of Indian Basket was US$ 41.61 per bbl on 26.11.2015

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$ 41.61 per barrel (bbl) on 26.11.2015. This was lower than the price of US$ 41.80 per bbl on previous publishing day of 25.11.2015.

In rupee terms, the price of Indian Basket decreased to Rs 2769.21 per bbl on 26.11.2015 as compared to Rs 2775.04 per bbl on 25.11.2015. Rupee closed weaker at Rs 66.55 per US$ on 26.11.2015 as against Rs 66.38 per US$ on 25.11.2015. The table below gives details in this regard:

SOURCE: PIB

Back to top

'Pakistan has allocated Rs 65 billion for textile sector'

As Pakistan's textile industry grapples with high energy costs, falling exports and an economic atmosphere that makes business difficult, President Mamnoon Hussain has said the government has allocated Rs 65 billion for the textile sector under a new policy, according to Pakistani media reports. At the Textile Exports Excellence Awards Ceremony in Faisalabad, he also said the Government was determined to put the economy on right track and all resources are being utilized to develop industrial sector. The President urged the businessmen to cooperate with the government for the revival of economy and suggest remedial measures for the solution of problems related to the industrial sector. He said interest rate has been reduced and several power projects are underway to speed up industrialization in the country. Hussain said China-Pakistan Economic Corridor will generate huge economic and job opportunities in the country. The President said Trade Development Authority is being activated to explore new markets in the world.

SOURCE: Fibre2fashion

Back to top

Tunisia: Textile and Clothing Exports Edge Up 8.3 Percent in October 2015

The value of Tunisia's textile and clothing sector exports and imports have increased by 8.3% and 6.3%, respectively in October 2015, compared with the same period in 2014, Minister of Industry, Energy and Mining Zakaria Hamad said. Speaking at a national day on the theme "which strategy of the development of the textile and clothing sector," Hamad pointed to the fall in the sector's exports which amounted to EUR 1,855.5 million in the first ten months in 2015, down 4.1% compared to the same period in 2014.

SOURCE: The All Africa

Back to top

Spain show interest to improve its trade relation with Pakistan

Spain has shown interest to improve its trade relation with Pakistan, said Carlos Morales, Spanish envoy. He further added that his embassy would be in touch with the chamber to increase the bilateral ties and bridge the gap between the business communities of both the countries. He said that Pakistan must take advantages of GSP plus status to capture European trade markets for which they could provide assistance in energy sector in Pakistan especially in wind power as country was facing immense energy crisis.  He added next that Spain has a fastest growing economy and it is among the 11th largest investors in the world. He was exchanging these views with the President Rawalpindi Chamber Mian Humayun Parvez during his visit to the Rawalpindi Chamber of Commerce and Industry here on Tuesday.

Earlier the Ambassador was welcomed by RCCI President. A brief presentation on RCCI current activities and upcoming events was shown to the Ambassador. The Spanish envoy thanked the chamber president and members for inviting him and said that Spain always get an overwhelming response from Pakistani business community and his country is eager to increase the trade volume in textile, agro, engineering, gem and jewellery, leather and marble sector. The ambassador paid a huge compliment to the RCCI on its efforts and dedication to promote business and commerce through the exchange of visits and expos between the two countries. Last year the trade volume between Pakistan and Spain was $1 billion and this year it surpassed the number.

SOURCE: Yarns&Fibers

Back to top