INTERNATIONAL
Textile Raw Material Price 2015-11-29
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1041.39 |
USD/Ton |
0.15% |
11/29/2015 |
|
VSF |
2243.59 |
USD/Ton |
-0.35% |
11/29/2015 |
|
ASF |
2025.79 |
USD/Ton |
0% |
11/29/2015 |
|
Polyester POY |
999.23 |
USD/Ton |
0.79% |
11/29/2015 |
|
Nylon FDY |
2420.02 |
USD/Ton |
-0.64% |
11/29/2015 |
|
40D Spandex |
5230.36 |
USD/Ton |
0% |
11/29/2015 |
|
Nylon DTY |
5820.53 |
USD/Ton |
0% |
11/29/2015 |
|
Viscose Long Filament |
1245.14 |
USD/Ton |
0% |
11/29/2015 |
|
Polyester DTY |
2248.27 |
USD/Ton |
-0.35% |
11/29/2015 |
|
Nylon POY |
2201.43 |
USD/Ton |
0% |
11/29/2015 |
|
Acrylic Top 3D |
1044.51 |
USD/Ton |
0% |
11/29/2015 |
|
Polyester FDY |
2701.05 |
USD/Ton |
0% |
11/29/2015 |
|
30S Spun Rayon Yarn |
2825.95 |
USD/Ton |
0% |
11/29/2015 |
|
32S Polyester Yarn |
1654.98 |
USD/Ton |
0% |
11/29/2015 |
|
45S T/C Yarn |
2669.82 |
USD/Ton |
0% |
11/29/2015 |
|
45S Polyester Yarn |
2997.70 |
USD/Ton |
0% |
11/29/2015 |
|
T/C Yarn 65/35 32S |
2576.15 |
USD/Ton |
0% |
11/29/2015 |
|
40S Rayon Yarn |
1826.72 |
USD/Ton |
0% |
11/29/2015 |
|
T/R Yarn 65/35 32S |
2263.89 |
USD/Ton |
0% |
11/29/2015 |
|
10S Denim Fabric |
1.09 |
USD/Meter |
0% |
11/29/2015 |
|
32S Twill Fabric |
0.92 |
USD/Meter |
0% |
11/29/2015 |
|
40S Combed Poplin |
1.00 |
USD/Meter |
0% |
11/29/2015 |
|
30S Rayon Fabric |
0.74 |
USD/Meter |
0% |
11/29/2015 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
11/29/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15613 USD dtd. 29/11/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Rajasthan has not just emerged as a textile hub over the last few decades which provides direct and indirect jobs to nearly seven lakh people and contributes 17percent to the state’s exports but nationally, the state has emerged as the largest producer of polyester viscose yarn and synthetic suiting material in the country with Bhilwara becoming the leading centre. Bhilwara and Kishangarh are major power loom centres in the state. Over 20,000 functional looms and over 95 crore metres of different blends of polyester faBRICS such as polyester wool, polyester viscose modal, and polyester viscose elastane are produced annually in the state. While Barmer has been added in the list of towns of export excellence, Pali and Balotra have been planned to be developed as centers of excellence for textile processing. Besides PV suiting, the state has also made a name for itself in the processing of low-cost and low-weight fabric.
Jodhpur, Pali, Sanganer, and Kota are better known for traditional handloom, fabric and printing, Jaipur is being increasingly accepted as a fashion garment hub. Further, with established backward and forward linkages, Rajasthan's textile industry offers significant competitive advantages. Rajasthan has also emerged as one of the major cotton cultivating states recently. Cultivation of quality cotton is being largely promoted in the districts of Bhilwara, Chittorgarh, Ajmer, Jodhpur, Bikaner, Nagaur, Ganganagar and Hanumangarh. The state is producing an estimated 20 lakh bales of cotton per annum now, against a mere 9 lakh bales in 2003-04. Easy availability of raw material has increased the interest of investors in setting up cotton yarn and denim units in the state.
At the same time, Rajasthan contributes about 85% of the country's annual wool production. The wool yield of the Western belt of Rajasthan is 1700 gram per annum against an average of 400-500 gram per annum from the rest of the country. The quality of wool produced in the western belt is ideal for carpet weaving. The Centre has established Wool Development Board of India, headquartered in Jodhpur for growth and development, marketing, testing of raw materials, marketing intelligence, price stabilization, product development, and for advising the government on policy matters and coordination.
Considering the importance and potential of the textiles sector in the state's economy, textiles, including technical textiles have been included in the state's list of thrust sectors in the Rajasthan Investment Promotion Scheme, 2014 Various concessions and incentives, like interest subsidies ranging from 5% to 7%, 50% concession on VAT, and 50% concession on entry tax on capital goods are provided for textile units under the Rajasthan Investment Promotion scheme. Environment-friendly products like recycled fiber have been covered under the scheme. The government has introduced a special provision for 20% capital subsidy subject to an upper limit of Rs 1 crore for setting up zero liquid discharge based effluent treatment plants (ETPs)
Technical textile units coming up in the state are eligible for 7% interest subsidy. Concessions on stamp duty, conversion charges and electricity duty are also provided under the scheme. There are six integrated textile parks have been sanctioned in Rajasthan with product categories ranging from hand printed fabrics, garments, weaving, spinning, and carpets to textile processing units. Out of the six textile parks, four parks are operational and two are at various stages of development. Textile is one of the focus sectors under the sector-specific skill development training programmes initiated under the Integrated Skill Development Scheme - a joint initiative of the Centre and the state.
To further promote textile sector, the Rajasthan government at an event held in Delhi in August signed MoUs worth Rs 2,530 crore with several private companies envisaging establishments in various textile units, which would generate about 8,000 direct jobs and thousands of indirect ones. The investment proposals cover technical textile, recycled fibre, spinning, yarn, seamless garments, denim fabric, etc. Arun Puglia, spokesperson, Association of Garment Exporters, Sitapura said that like tourism, textile is also a vibrant part of the desert state’s trade and commerce. The potential of the textile sector is well known to all but to increase the sector’s attractiveness, MoUs signed by the government in the sector need to be converted into real investment for which the government will have to provide common infrastructure.
SOURCE: The CCF Group
Emphasising on the need for India to become a quality competitive exporter, Finance minister Arun Jaitley has said that it is a challenge to expand trade at a time when global trade is sluggish. "Since purchasing power of global buyers is contracting, expansion of domestic and international economic activity is challenging...We have to create an ecosystem which can create a new market for India," Jaitley said at an event organised at the India International Trade Fair here. He said that India's exports have been declining in value due to falling global prices of oil, gas and commodities such as food and metals. India's exports have been on a decline for the last eleven months highlighting the stiff competition faced by the country in a weak global economy. Exports fell 17.5% year on year in October at $21.35 billion and outward shipments declined in 20 out of the 30 industries due to sluggish global demand, an overvalued rupee, declining imports from China and devaluation of the Chinese currency. The finance minister said that the world wants good products at cheaper prices. India should become a competitive exporter in both cost and quality competitive.
SOURCE: The Economic Times
Top politicians of India’s ruling coalition boast that China’s economic crisis should be viewed as an opportunity for India to capture a bigger global export share in manufacturing, and grow faster. With India being the only BRIC nation growing by 7 per cent plus, it is not long before India will overtake China economically, they argue. In 2014, China’s GDP at current prices was $10.38 trillion — roughly five times India’s GDP at $2.04 trillion. Even if India grows at CAGR of 10 per cent (best case scenario) and China at 3 per cent (worst case scenario), it won’t be able to overtake China before 2038. Yet, India can take on China, but not by blindly following the now obsolete export-led growth model that made China the world’s factory.
Export prospects recede
Why? Because India is not China, and today’s world is quite different from what it was when China embarked on its export-led growth path. India is a multi-party democratic with all kinds of pulls and pressures that make effective implementation of the Chinese growth model difficult. Export-led growth strategy — aided by artificially undervalued currency — won’t work when world trade grows at slower rates than world GDP. Each country is relying on currency devaluation to capture a bigger slice of the sluggish global demand. Mega trade pacts such as the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) will further deprive India from accessing overseas markets.
Moreover, India can’t compete with LDCs in low-cost-labour-intensive manufacturing for long. Its labour cost is lower than in China but far higher than in countries such as Bangladesh, Ethiopia or Myanmar. India’s badly conceived trade pacts will kill low-tech manufacturing that depends upon labour cost advantage. Well, it doesn’t make much difference to India’s growth ambition, as there isn’t much money left in low-tech manufacturing, such as leather footwear or apparel-making. Instead, it’s the pre- and post-manufacturing services that capture maximum value in the global value chain. Pre-manufacturing services comprise R&D, design and testing. Post-manufacturing services capture value through branding, marketing and retailing.
Creating and building brands is a long-drawn process that India can’t afford either in terms of time or money. Many of India’s key exports such as . apparel are low-margin contract manufacturing that does not make much money for manufacturers, because manufacturers don’t own the brands. A suit being retailed for $2500 in Tokyo or London gives just $250 to its makers in Tirupur. Logistics related inefficiencies further squeeze margins. Moreover, India also has to deal with manufacturing through robotics and 3D printing that are going to take away the advantage that comes from labour abundance.
For a new approach
India should focus on high value jobs in pre-manufacturing services such as research, engineering and design by capitalising on its comparative advantage — actual or potential — given the availability of low cost technically qualified manpower. The Internet of Things is another big opportunity to tap. That, in turn, calls for overhauling of the education system which is focused on rote learning and scoring high marks in exams, and not on questioning and critical thinking — prerequisites for innovation. Further, the government should focus its energy on five or six strategic sectors that have strong backward and forward linkages with other sectors. These sectors are automobile, defence, housing and infrastructure, pharmaceuticals, electronics, and agro-processing and retail.
India’s automobile sector depends on duty protection. Defence production is so shackled that private sector participation is nil. The infrastructure sector is marred by under-bidding and difficulties in getting land and environmental clearances. Housing is a good example of how lack of effective regulation can limit the growth potential of a sector. Unscrupulous builders are taking their customers for a ride without any accountability. That reduces its multiplier effect for India’s overall economic growth. The pharmaceutical sector depends upon on generics. With the US pushing for a tighter IPR regime through data exclusivity and patent linkages under its mega-regional trade pacts, it would make things difficult for Indian pharma companies, with their poor R&D base. Electronics manufacturing is hampered by inverted duties — lower duty on finished products, as against higher duties on components. The agriculture and food processing sectors remain largely untapped because of poor regulation and poorer compliance that impedes growth of manufacturing ( demand for equipment and chemical fertilisers) and services (such as retailing and transportation).
Entrepreneurial spirits
With the right policy environment, these sectors can grow at a CAGR of 20 per cent plus, and pull up a number of upstream and downstream industries without government support. Double digit growth will require an ever growing number of entrepreneurs. The government can help unleash India’s animal spirits by making it easier for first-time-entrepreneurs to start and run businesses. This will require actions beyond getting a higher rank on ease of doing business, even if the improvement in the country’s ranking is genuine. Going forward, India will not benefit much from access to global markets primarily because of slower expansion of world trade, and also because of its being blocked out in mega-regionals like the TPP. It makes sense for India to tap its large but somewhat fragmented domestic market. Given the size and complementarities of its provincial economies, early implementation of GST will create a pan-India common market of $2 trillion GDP and 1.2 billion people — a big attraction for investors — and add as much as 2 per cent to GDP by freeing up interstate trade.
World trade in services is growing faster than merchandise trade. Yet, India remains hesitant in joining the pluri-lateral agreement on trade in services (TISA) that can open up immense possibilities for pushing export of non-IT services and reduce over-dependence on remittances and IT exports for managing current account balances. India needs a bolder FDI policy. An overcautious approach of raising FDI caps — from 0 to 26 to 49 to 51 per cent — won’t work. Tax terrorism, including the practice of retrospective taxation has to end. There is a long way to go before India overtakes China, but let us at least give China a serious fight.
SOURCE: The Hindu Business Line
A day after Prime Minister Narendra Modi reached out to the Opposition over the passage of the GST Bill, Union minister for Parliamentary Affairs M Venkaiah Naidu today said the Goods and Service Tax Bill will be rolled out in the next financial year. “The (GST) bill will be implemented next year as it will be passed in the ensuing Parliament session,” Naidu said on the sidelines of an event here. The minister said the GST will be the biggest tax reform since independence as it subsumes all indirect taxes to create one rate and integrates country into one market. Though Lok Sabha has approved the GST Bill, the Opposition in Rajya Sabha referred it to the select committee even though the standing committee had already approved it, he said, adding the select committee has completed its study and made recommendations to Rajya Sabha for its passage. M Venkaiah Naidu said the BJP government wanted to pass the GST Bill with broad consensus as this kind of tax is operational in 160 countries across the globe.
SOURCE: The Financial Express
Taking a dig at the economic policies of the previous United Progressive Alliance government, Union Minister Rajnath Singh on Saturday exuded confidence that in a few years, India’s economic growth would in double digits. Singh said a number of significant steps were taken when the Atal Bihari Vajpayee government came to power in late 1990s, due to which the GDP growth rate had touched 8 per cent. “But after 2004, even though there was growth initially, the momentum lost gradually. The country could not achieve the desired growth. ” The UPA government was in power between 2004 and 2014. The home minister said that after the NDA government assumed charge in May 2014, the economy was put back on track and now the GDP growth rate is 7.5 - 7.6 per cent. “India has become the hot favourite destination for foreign investors. I am sure in a few years, India’s economic growth would in double digit,” he added. Singh, however, said he would not like to claim that prices of all essential commodities have come down but asserted that prices of many goods have fallen significantly. "Our political opponents say that prices of pulses have gone up, vegetable prices have gone up. They create a hue and cry over it. But we have taken a number of steps to reduce the prices. We have imported many essential commodities so that prices are under control," he said. Singh said Prime Minister Narendra Modi has already made it clear that the prime objective of the government was to speed up the economic engine. The government has taken several significant steps and as a result not only domestic investors but foreign investors were getting confidence, Singh said. "There is a sense of confidence among investors. This government means business, this government is business friendly, this government is investors friendly, a decisive government," he said.
SOURCE: The Business Standard
After the seven per cent growth in the first quarter of the current financial year (FY16), most economists estimate gross domestic product (GDP) growth in the second quarter at 7.3-7.6 per cent. The projected growth would be way below the 8.4 per cent witnessed in the second quarter of FY15. In fact, high GDP growth a year ago would also make economic expansion in the second quarter of this financial year look smaller, due to what is called 'base effect' in technical jargon. The GDP data for the second quarter will be out on Monday. The first quarter number might also see a revision. While most economists forecast the growth to be 7.3 per cent, Care Ratings Barclays and India Ratings put it bit higher. While Care Ratings expected the growth to be 7.4 per cent, Barclays projected it to be 7.5 per cent and India Ratings forecast it at 7.6 per cent. India Ratings (Ind-Ra) pegged the growth higher than other economists, as it believes the economy expanded that much in volume terms (GDP growth is taken without inflation).
Madan Sabnavis, chief economist at CARE Ratings, said the economy might have grown 7.4 per cent in the second quarter owing to high government expenditure and increase in manufacturing. After two years of squeeze, the government expenditure rose 6.9 per cent to Rs 4.79 lakh crore in the second quarter of FY16 against the corresponding period a year ago. Expenditure had risen 4.2 per cent at Rs 4.3 lakh crore in the first quarter of FY16 compared to the corresponding quarter of the previous year. GDP growth seen at 7.3-7.6% in July-September Similarly, manufacturing rose 4.5 per cent in the quarter under review against 3.7 per cent a year ago, if the index of industrial production (IIP) is taken into account.
D K Joshi of CRISIL pegged the GDP expansion at 7.3 per cent on the likely growth of industry and services. Industry, as represented by the IIP, rose 4.6 per cent in the second quarter against 3.2 per cent in the first quarter of FY16. The broad gauge of the services sector is available from Nikkei Purchasing Managers' Index (PMI), though its methodology is not comparable to that of GDP data. PMI stood at 51.3 points on an average during July-September against 49.9 in April-June of 2015-16. It should be noted that a PMI below 50 points is contraction and one above that reading connotes expansion. Aditi Nayar, senior economist with ICRA, also projected the economy to grow 7.3 per cent in the second quarter. She said IIP expanded at a faster pace in the second quarter than the previous one and each broad segment within the index rose at a higher rate. Manufacturing growth is already given above. Besides, mining output rose 2.7 per cent in the second quarter of 2015-16 against 0.4 per cent in the first quarter. Similarly, electricity rose 6.8 per cent against only 2.3 per cent in the same period.
Arun Singh of Dun & Bradstreet also pegged the growth at 7.3 per cent for the quarter under review, but cautioned it might drop to 6.9 as qualitatively, the three months do not look quite different from the first quarter. Most economists believed it would take time for private investments to revive, the signs of which would be available from the second half. Moody's Analysts, too, expected the GDP to have expanded at 7.3 per cent in the second quarter. "Though the headline growth appears high, India is still operating under a negative output gap. Consumption will likely be a key driver to output in the September quarter," it said in a note.
When asked why Ind-Ra sees economic growth at a higher 7.6 per cent in the second quarter than what most economists believed, chief economist Devendra Pant attributed it to volume growth in the economy. For instance, he said, consumption of petroleum rose 8.5 per cent in the first half but because of price collapse of 20 per cent, there was contraction in value terms of 11 per cent. The government had earlier projected the economy to grow 8.1-8.5 per cent in 2015-16 against 7.3 per cent the previous year. However, surprised by a seven per cent growth in the first half, ministry officials said the growth would be 7.5-8 per cent. There is no official revision, though. The new projection would be disclosed by the ministry after the second quarter GDP numbers are released.
SOURCE: The Business Standard
The New Development Bank (NDB), referred to as BRICS bank, may give the first batch of loans to India and China in their respective currencies in April, sources said, even though the default operating currency of the NDB is US dollar. The move is aimed at allowing the new multilateral agency headquartered in Shanghai to use a larger basket of currencies for lending and borrowing. The NDB could raise funds by issuing rupee bonds in India or rupee-linked bonds overseas (masala bonds) for its rupee loans operations in the country.
In the past, the Asian Development Bank (ADB) has issued both domestic and overseas rupee bonds to finance projects in India. The NDB, set up earlier this year, has an authorised capital of $100 billion. To start with, the it would begin with $50-billion subscribed capital, split equally among BRICS (Brazil, Russia, India, China and South Korea) countries. It will scale up later by inducting more countries as members and raise resources from the market. India, which needs $1-trillion investment in infrastructure in five years through 2017, could be one of the big beneficiaries of the new institution. The country is already the largest borrower of the World Bank and the ADB. Even though NDB, sources said, is likely to give loans in local currencies to India and China, it would stick to US dollar as the default currency for raising funds from global markets as well in its lendings to countries. Exceptions will be made depending on the appetite for local currency loans in member countries, sources said. With the process of operationalising the NDB (on the lines of the World Bank) gathering momentum, its board of directors met on November 20 to discuss and frame draft lending, borrowing and environmental policies for the bank before it commences operations in early 2016. These norms will be ratified by the board of governors in March-April.
In the meantime, a pipeline of projects are being readied to seek the board of governors’ approval. India has already submitted three proposals including the Centre’s Green Energy Corridor and Grid Strengthening Project for evacuation power from renewable energy sources such as solar. In this project, the NDB could be a co-financier along with the World Bank and the Asian Development Bank, sources said. Two other projects sent to the NDB relate to a power project as well as an irrigation project in Rajasthan. More projects will be sent to the bank after state governments submit their proposals to the Centre, sources said.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 41.01 per barrel (bbl) on 27.11.2015. This was lower than the price of US$ 41.61 per bbl on previous publishing day of 26.11.2015.
In rupee terms, the price of Indian Basket decreased to Rs 2737.54 per bbl on 27.11.2015 as compared to Rs 2769.21 per bbl on 26.11.2015. Rupee closed weaker at Rs 66.75 per US$ on 27.11.2015 as against Rs 66.55 per US$ on 26.11.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on November 27, 2015 (Previous trading day i.e. 26.11.2015) |
Pricing Fortnight for 16.11.2015 (Oct 29 to Nov 10, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
41.01 (41.61) |
45.58 |
|
(Rs/bbl |
2737.54 (2769.21) |
2993.24 |
|
|
Exchange Rate |
(Rs/$) |
66.75 (66.55) |
65.67 |
SOURCE: PIB
Indonesian company Indorama Synthetics has commissioned its 100,000th 2Impact FX compact spindle, a spindle from Zinser and a Saurer Group company. “With spinning mills in Indonesia, Uzbekistan, Sri Lanka and Turkey, Indorama Synthetics is one of the top ten manufacturers in the industry,” a press release from Saurer informed. Zinser has been supplying Indorama with ring spinning machines since the 1980s and the company has now commissioned its 100,000th Zinser spindle, a 2Impact FX compact spindle. At a ceremony at ITMA 2015, Dr Martin Folini, CEO of Saurer and Saurer Schlafhorst and Henri Wiggers, regional sales & service director of Schlafhorst Zinser, presented the Golden Zinser Spindle to Indorama Synthetics. The director of the Spun Yarns Division of Indorama, Anupam Agrawal and manufacturing head Virender Kumar Bhalla accepted the award on behalf of Indorama.
According to Saurer, this year, Zinser delivered over 40,000 2Impact FX compact spindles to Indorama and the 100,000 spindle milestone was achieved on delivery of the fifth machine. “Following the installation of all machines, Indorama now has around 140,000 Zinser spindles,” the press release added. The compact spinning machines process 100 per cent combed cotton to produce particularly high-quality compact yarn in counts ranging from Ne 20 to Ne 40. They are integrated into a fully automated linked system extending from the Zinser roving frame to the Autoconer package winder from Schlafhorst. “For many years, Indorama has been producing 100 per cent polyester yarns on Zinser 351 ring spinning machines,” Anupam Agrawal said. "For years, we have been producing over 100,000 tons of ring yarn from polyester, viscose, cotton and blends on these fantastic machines,” he added. “The Zinser compact spinning machine was considered for our new production project for its self-cleaning compact spinning technology, which guarantees desired compact yarn quality,” Agrawal observed. “That was important to us, because we want to impress our international clients with unparalleled quality, reliability, adherence to deadlines, continuity and service," he stated. Dr Martin Folini said, "The commissioning of the 100,000th Zinser spindle at one of the biggest, most demanding textile companies in the world is a wonderful endorsement of our work.”
SOURCE: Fibre2fashion
Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Chief Coordinator Ijaz A Khokhar urged the prime minister to intervene and frame a policy for a reduction in input costs, otherwise industrial units would not only close down, but millions of workers would also lose their jobs. The government need to address the problems of the value added textile industry sector on an urgent basis as there is a sharp drop seen in the current exports of textile and clothing during the first four month (July-October) of 2015 which may widen further in the next quarter. The prime minister had committed to hold meeting with the export-oriented industries on a quarterly basis but no such meetings have taken place so far, Khokhar said.
On a monthly basis, exports dropped 10.63% to $1.051 billion in October compared to $1.176 billion in the same month last year. This is because of the fact that the value added textile sector is burdened with multiple taxes with high cost of inputs, tariffs of gas, electricity, raw material, etc, and is further harassed due to short supply of all these most essential utilities. The government has increased the sales tax from 2% to 3% in the budget, which led to piling up of exporter’s refunds with the tax department. The government has also imposed 10% regulatory duty on yarn imports from India, mostly used by knitwear and woven apparel segments, to further increase the cost of doing business. Thus, price of domestically produced yarn increased manifold.
According to Pakistan Knitwear and Sweater Exporters Association North Zone chairman, Shahzad Azam Khan, observation the country will face a drastic decline in its export following the attacks on France. The exports have dropped by 10.63% to $1.051 billion monthly in October 2015 from $1.176 billion in the same month last year in spite of GSP plus status granted to Pakistan. Quoting latest figures, he said that exports of value-added textile sector, after increasing for three consecutive months, also witnessed a negative growth due to harsh decisions against the value-added sector. The sector exports had grown by 3% in July-Sept 2015-16. But during October 2015, readymade garments exports fell by 0.36%, knitwear 9.5% and bedwear by 8.92%. The textile exports of Pakistan got a boost of 13% due to import duty concessions under the European Union’s (EU) Generalised System of Preferences (GSP) scheme in the outgoing fiscal year. It is observed that the value-added textile sector is not against spinning sector but it wants that whole textile chain be safeguarded because the sector has a tough competition in garments with regional competitors like Bangladesh, China and India.
Shahzad Azam suggested that import of yarn should be totally tax-free besides the imports of garments and unstitched clothes should be banned, so that the local industry could be boosted. When Pakistan was granted GSP Plus status by the EU the Indian government immediately announced incentives for its exporters to compete Pakistan. And again the Indian government announced rebate for its yarn exporters when Pakistan imposed additional 10 percent duty on import of yarn from the neighbouring country. Also demanded the liberal import policy for raw materials for re-export like duty-free import of faBRICS and accessories same as Bangladesh. According to PRGMEA NZ Chairman Sohail Sheikh, besides improving law and order, and providing non-stop gas and electricity supply, the government would have to relax import policy to empower value-added textile industry to get the maximum benefit of GSP Plus status, as the country had no raw material except cotton. The bleak exports figures clearly indicate that the country’s value-added textiles are falling to an alarming level.
SOURCE: Yarns&Fibers
