The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 21 DECEMBER, 2015

NATIONAL

 

INTERNATIONAL

 

 

Textile Raw Material Price 2015-12-20

Item

Price

Unit

Fluctuation

Date

PSF

986.30

USD/Ton

-0.23%

12/20/2015

VSF

2043.55

USD/Ton

-2.14%

12/20/2015

ASF

1924.02

USD/Ton

0.00%

12/20/2015

Polyester POY

917.67

USD/Ton

-0.83%

12/20/2015

Nylon FDY

2359.72

USD/Ton

0.00%

12/20/2015

40D Spandex

4935.36

USD/Ton

0.00%

12/20/2015

Nylon DTY

2606.49

USD/Ton

0.00%

12/20/2015

Viscose Long Filament

5746.61

USD/Ton

0.00%

12/20/2015

Polyester DTY

1172.15

USD/Ton

0.00%

12/20/2015

Nylon POY

2174.64

USD/Ton

0.00%

12/20/2015

Acrylic Top 3D

2109.10

USD/Ton

0.00%

12/20/2015

Polyester FDY

1000.18

USD/Ton

-0.23%

12/20/2015

30S Spun Rayon Yarn

2760.72

USD/Ton

-0.56%

12/20/2015

32S Polyester Yarn

1573.15

USD/Ton

0.00%

12/20/2015

45S T/C Yarn

2529.37

USD/Ton

-0.61%

12/20/2015

45S Polyester Yarn

1727.38

USD/Ton

-0.88%

12/20/2015

T/C Yarn 65/35 32S

2190.07

USD/Ton

0.00%

12/20/2015

40S Rayon Yarn

2930.37

USD/Ton

0.00%

12/20/2015

T/R Yarn 65/35 32S

2498.53

USD/Ton

0.00%

12/20/2015

10S Denim Fabric

1.08

USD/Meter

0.00%

12/20/2015

32S Twill Fabric

0.91

USD/Meter

0.00%

12/20/2015

40S Combed Poplin

0.98

USD/Meter

-0.31%

12/20/2015

30S Rayon Fabric

0.73

USD/Meter

0.00%

12/20/2015

45S T/C Fabric

0.74

USD/Meter

0.00%

12/20/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15423 USD dtd. 20/12/2015)

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

 

Surat textile supplies to Delhi likely to be hit hard over SC order

Major blow for textile traders and transporters from Surat, who supplies man-made fabrics (MMF) including saris and dress materials worth Rs 20 crore to the national capital Delhi on daily basis as Supreme Court (SC) order ban entry of goods vehicle in Delhi and hiking environment compensatory charges by 100 percent. Textile traders believe Supreme Court's orders will increase the prices of textile goods supplied from Surat and other textile manufacturing centers. According to Southern Gujarat Chamber of Commerce & Industry's (SG textile committee chairman Devkishan Manghani, it's going to be tough for wholesalers in Delhi to manage loading and off-loading of textile goods. The overhead expenses, including transport and labour costs, will increase drastically. The wholesalers in Delhi will have to bear extra expense of Rs 200 per parcel - one parcel contains roughly 150 saris and dress materials.

Industry sources said that the textile goods from Delhi, country's biggest market for the low-cost saris ranging from Rs 200 to Rs 300, are further supplied to Chandigarh, Himachal Pradesh, Haryana, Bihar, Uttar Pradesh, Rajasthan and West Bengal. The court clarifies that no vehicle registered in 2005 or prior years shall be allowed to enter Delhi even after payment of enhanced green cess. For the rest of the commercial vehicles registered after 2005, the cess has now been doubled - Rs 700 to Rs 1,400 for light commercial vehicles and Rs 1,300 to Rs 2,600 for heavy commercial vehicles.

STGTA president Yuvraj Deshle said that around 400 trucks leave for Delhi with textile goods daily. Most of these transport trucks are registered prior to 2005 and hence will not be allowed entry into Delhi. These vehicles will have to dump the goods on national highway outside Delhi. They have conveyed this to textile traders who will ask their parties in Delhi to make alternative arrangement for loading and off-loading of the goods. As over 75 percent of transport trucks that carry the textile goods from Surat are registered before 2005 they can't sell their old transport trucks to do business in Delhi.

SOURCE: Yarns&Fibers

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Textiles Minister lays foundation stone of Integrated Textile Office Complex at IIHT, Varanasi

The Government of India has decided to set up an Integrated Textile Office Complex (ITOC) at Indian Institute of Handloom Technology (IIHT), Varanasi. The proposed office complex will house all offices in Varanasi under the Ministry of Textiles, which work for the welfare of weavers. The Union Textiles Minister Shri Santosh Kumar Gangwar laid the foundation stone for the integrated complex at IIHT. Co-location of offices of various allied agencies under Ministry of Textiles in the proposed building will provide a common platform to all stakeholders, including weavers, exporters and marketing agencies. This will enable them to better reap the benefits of Government schemes and with less effort, resulting in saving of time and money. This will thereby contribute to higher productivity, income and better livelihoods for weavers.

In addition, situating ITOC in the IIHT campus will facilitate obtaining of necessary approval for starting the Degree course B. Tech in Handloom & Textile Technology" at IIHT Varanasi campus on the lines of the course in IIHT Salem. This in itself will fulfill the long-felt need for such a course in this part of the country. Furthermore, bringing a NIFT extension counter in the IIHT campus will not only catalyze the students learning process, but will also bring in better synergy between their academic projects and the design related activities of Weavers Service Centre, resulting in value-addition to the weavers products. The proposed Integrated Textile Office Complex (ITOC)" is expected to be ready within two years. The construction will be undertaken by CPWD, at an estimated cost of 64 crore rupees.

The 5-floor building will have a total plinth area of 13,799 square metre. It will house offices of IIHT, Weavers Service Centre, Central Silk Board, NITRA Powerloom Service Centre and NIFT extension centre. The building will also provide for educational facilities for IIHT, such as classrooms, laboratories and library; and common facilities such as auditorium, seminar hall, cafeteria, sports club, gymnasium and guest house. Varanasi Mayor, Shri Ram Gopal Mohale; MLA from Varanasi North, Shri Ravindra Jaiswal; Secretary, Textiles, Dr. S. K. Panda and Development Commissioner (Handlooms), Shri Alok Kumar were also present on the occasion. During this visit to Varanasi, the Textiles Minister also launched an ERP system for National Handloom Development Corporation (NHDC) today.

Background

The glorious history of IIHT, Varanasi dates back to 1911 with the inception of an experimental weavers training centre. The then Govt. Central Weaving Institute became Indian Institute of Handloom Technology in a phased manner, in the year 1956. Functioning under the aegis of the Office of Development Commissioner (Handlooms), Ministry of Textiles, Government of India, the Institute has been offering three-year Diploma in Handloom Technology since 1959. Considering industry requirements, a one-and-a-half year Post Diploma in Textile Chemistry had also been started in the year 1982. With the fast growing technological developments in the field of Handloom & Textile Technology, the curriculum of both courses have been revised from time to time resulting in the present nomenclature of Diploma in Handloom & Textile Technology and Post Diploma in Textile Processing respectively. A Weavers Service Centre and Eco-Lab of Central Silk Board also started functioning in the same premises in 1956 and 1992 respectively.

 

The building infrastructure in the IIHT campus has been developed in a phased manner. For maintaining the educational values and standards, it has become imperative to expand the building infrastructure to accommodate latest machinery and equipment. Requirement of a higher education course in the field of handlooms strengthened the case for a new building, to satisfy the norms and standards of AICTE for starting a four-year degree course in Handloom & Textile Technology. In addition, keeping in view the Governments thrust on launching various schemes for the welfare of handloom weavers, such as cluster development, implementation of CFCs, introducing certificate course for Handloom Entrepreneurs, the infrastructural facilities in the Institute and Weavers Service Centre need to be expanded further to deliver effective output in terms of both quantity and quality. Apart from the above, it is also relevant to consider that other offices like NITRA Powerloom Service Centre and Central Silk Board, functioning under the aegis of the Ministry of Textiles, are also striving for the welfare of the weaver community in the area. In the present scenario, the weavers need to visit different offices for availing benefits. The Integrated Textile Office Complex (ITOC), housing all allied offices at one location, would end this hardship being faced by the weaver community.

SOURCE: PIB

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Textile processing sector moving towards common facilities

Textile processing, which is spread across Tirupur, Erode, Salem, Namakkal and Karur districts, has been a focus area not only for the industry but also for the Government. Efforts are on across the region to set up common facilities to treat the effluents and manage the waste generated from the treatment plants. The State Government announced Rs. 700 crore scheme in 2014 to address the pollution problem in four districts (Erode, Salem, Namakkal and Karur) in the region and rehabilitate the small and medium-scale processing units. The Tamil Nadu Water Investment Company was involved to prepare the feasibility study.

Processing parks

Apart from this, the Southern India Mills’ Association has also proposed two processing parks – one at Cuddalore and another at Ramanathapuram. While the Cuddalore park is for large-scale processing units, the one at Ramanathapuram is for small and medium-scale processors. At least four units are ready to invest in the Cuddalore Park immediately. The association is continuing discussions with the State Government for the park proposed at Ramanathapuram, say sources in the association. However, it is planned to go in for marine discharge of the treated effluents in these projects. The association has appealed to the Union Government to permit marine discharge system, apart from zero liquid discharge systems, they say.

SOURCE: The Hindu

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Textile park in Madikonda soon

The State Government has decided to allocate 161 acres of land to the Kakatiya Textile and Weavers Welfare Society for setting up a textile park at Madikonda in the district, said Deputy Chief Minister Kadiam Srihari on Sunday. He went to inspect the site for the proposed textile park. The State Government would also give Rs 10 crore to weavers to set up their own units in the park. “The State Government is providing help to these weavers to set up power loom units here and this has nothing to do with the textile industry proposed by the State Government. This textile park will provide employment to 2,000 people directly and 10,000 indirectly,” he said adding that those who migrated in search of work to Surat and others places would be brought back. The integrated textile industry proposed by the State government requires 3000 acres and the land acquisition process was still underway. So far, in the first phase, 364 handloom workers were sanctioned lands at the proposed site and by December next year, they will be handed over the lands complete with layouts and basic facilities like roads, streets light, drainage.

SOURCE: The Hindu

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Areas identified in Chennimalai, Bhavani to set up CETPs

In Erode and Perundurai, there are over 600 textile dyeing, bleaching and printing units - 568 in Erode Taluk and 127 in Perundurai Taluk. Those in Erode taluk are mostly concentrated in the city limits and the units in Perundurai taluk are spread over SIPCOT Industrial Estate, and Chennimalai and Bhavani blocks. While it is mandatory for all the registered units to go in for effluent treatment plants with zero liquid discharge (ZLD) system, some of them that release untreated effluent come under adverse notice at periodic intervals. In Erode taluk, all the units have individual effluent treatment plants (IETP), and among the 40 units in the SIPCOT Industrial Estate five units together operate a common effluent treatment plant (CETP). The rest have IETPs.

According to official sources, locations have been identified in Chennimalai and Bhavani for establishing CETPs under the State Government’s Rs. 700 crore proposal for pollution mitigation in the Western districts. There are 36 units in Chennimalai and 51 in Bhavani. The textile units have been facing difficulty in complying with ZLD norms. While 90 per cent water is recovered through reverse osmosis system, solar-evaporation treatment of the remaining 10 per cent with high concentration of effluent turns costly. A plea has been made by the textile units in SIPCOT Industrial Growth Centre for establishing a common facility for reject management, sources added. The sludge generated by the effluent treatment plants are utilised by cement industries for co-processing.

SOURCE: The Hindu

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Efforts on to identify unauthorised textile units

In Salem and Edappadi, there are 130 textile processing units with individual effluent treatment plants. Apart from these, it is estimated that there are more than 90 unauthorised units in the district. In Namakkal district, 90 units are functioning in Tiruchengode while there are more than 200 unauthorised units in Pallipalayam and Komarapalayam. The unauthorised units in Namakkal are said to be discharging untreated effluents into River Cauvery for many years now. Though TNPCB officials frequently demolish these units, they continue to operate in small farm lands. Most of the unauthorised units in Salem and Edappadi are involved in silk yarn dyeing that function even in houses with family members involved in the process. These units continue to discharge untreated effluents in the drains polluting the ground water in the areas concerned. Though local residents have been complaining about the effluent discharge, no action has been taken against the units. Officials said the list of unauthorised units in Edappadi has been finalised, while the number of unauthorised ones in the city would be finalised in a week. The Chief Minister had in 2014 announced setting up of common effluent treatment plants (CETP) with zero liquid discharge in Edappadi, Salem and Pallipalayam. Officials said the Tamil Nadu Water Investment Company Limited is in the process of identifying the unauthorised units functioning in the two districts and would submit a detailed project report for establishing the CETPs in these areas

SOURCE: The Hindu

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High cost for ZLD worries industry

Tirupur, which is one of the major textile processing clusters in the region, has 429 dyeing and bleaching units in operation. The pollution problem in the cluster started more than a decade ago and now 92 units have individual treatment plants and the rest are attached to 18 common effluent treatment plants. The units have gone in for treatment plants with zero liquid discharge systems. S. Murugasamy, secretary of Dyers Association of Tirupur, told The Hindu that the biggest issue faced by the dyeing units is the high cost incurred for achieving the zero liquid discharge (ZLD) during the effluent treatment process as stipulated by the Madras High Court. “Since the same ZLD norms are not enforced in other clusters in the country, we are becoming increasingly uncompetitive cost-wise. Our competitors still enjoy the privilege of not having to fully treat the effluents before discharging them into the water bodies. We have now requested the Union Government to enforce the ZLD norms across the country”, he said. There are complaints from farmers and environmentalists at periodic intervals on discharge of untreated effluent. Officials of the Tamil Nadu Pollution Control Board say they continue to take action.

SOURCE: The Hindu

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Centre extending support to boost merchandise exports: Sitharaman

The Centre is working to help small and medium enterprises tide over the sharp downtrend in global demand and boost exports from the country. Speaking on the sidelines of an event to inaugurate the country’s first Special Notified Zone for viewing rough diamonds at the Bharat Diamond Bourse here on Sunday, Nirmala Sitharaman said exports, especially of merchandise goods, have fallen sharply in the last 11 months and the government has announced special incentives for exporters and is open for more support, if need be, to reverse the declining export trend. “End of the day, we should also understand that demand in the global markets is depressed and there is no pick up in last 10 months. We are hopeful the tide will change soon,” she said.

Drawing the industry’s attention on how the government is delivering on its promises, Sitharaman said Prime Minister Narendra Modi, during his visit to Russia last December, promised Russian President Vladimir Putin that a centre would be created to facilitate diamond miners to sell their roughs in India. Andrey Polyako, Vice-President, Alrosa, said the company has signed an agreement with 12 Indian companies to supply roughs. Urging the Centre to clear bottlenecks on taxation and  finance to small enterprises, Praveenshankar Pandya, President, GJEPC, said once the operations of the SNZ in Mumbai are fine-tuned, GJEPC would set up a gem bourse for diamond at Surat in Gujarat and another one for coloured gemstones at Jaipur in Rajasthan.

SOURCE: The Hindu Business Line

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CBEC extends deadline for filing excise returns

The Central Board of Excise and Customs has extended the last date for payment of Central excise duty and service tax for the month of November for assessees in Puducherry to December 20. It has also extended the deadline for filing the central excise return from November to December 31.

SOURCE: The Hindu Business Line

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To share up fee income, SBI set to increase service charges

Come January 1 and State Bank of India will up the charges on a range on services including safe deposit lockers, transaction decline at ATMs due to insufficient balance, select debit card issuances, and also re-introduce processing fees for home and car loans. India’s largest bank had last revised the service charges in November 2014. The revision in charges is apparently aimed at shoring up the fee income, which nudged up a tad to Rs. 3153 crore in the second quarter of FY2016 from Rs. 3111 crore in the year ago period. In the metro & urban centres, depending on the size of the safe deposit locker, the annual rent (excluding service tax) will be hiked in the 12.35 per cent to 35 per cent range. The rent for lockers in semi-urban & rural areas will be up by 5 to 19 per cent.

For example, the annual rent on a small sized locker in metro & urban centres and semi-urban and rural areas will be Rs. 1100 (Rs 979 now) and Rs. 800 (Rs 756), respectively. Safe deposit lockers in SBI come in four sizes – small, medium, large and extra-large. If a transaction is declined at an ATM due to insufficient balance, the customer will be charged Rs. 22.9 per transaction, against Rs. 17 now. In the case of select debt card issuances such as gold and platinum debit cards, the new charges will be Rs. 114.5 (Rs 100 now) and Rs. 343.5 (Rs 306), respectively.

For home and car loans, SBI will be re-introducing processing fee, which it had waived on loan proposals sourced up to December 31 as part of the festival offer, from January 1. The home loan processing fee will be 0.35 per cent of the loan amount plus service tax. The minimum and maximum processing fee will be Rs. 2,000 (plus service tax) and Rs. 10,000 (plus service tax), respectively. The car loan processing fee will be 0.50 per cent of the loan amount plus service tax. The minimum and maximum processing fee will be Rs. 950 (plus service tax) and Rs. 9,100 (plus service tax), respectively.

SOURCE: The Hindu Business Line

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China and India vying to replace Turkish textile sales to Russia

A press conference was held by Hikmet Eraslan, CEO of Dosso Dossi Holding to kick off the biannual Dosso Dossi Fashion Show in the resort city of Antalya. Speaking at the press conference, Erasland said that textile firms from China, India, Italy and others to boost its presence in the Russian marketing have starting meeting business delegations in Russia in a bid to utilize the absence of Turks in the market, following the jet crisis, wherein Turkey shot down a Russian fighter jet over an airspace violation along its Syrian border on Nov. 24, an unexpected development that has prompted Moscow to introduce a number of economic sanctions against Turkey in retaliation.

The Dosso Dossi fair, where manufacturers and thousands of client firms from different countries meet as the fair serves as an intermediary platform in supply chains where the products end up in Russia, Belarus, Kazakhstan or elsewhere. The fair is held in the industry to support the opening of new markets, domestically and sector heads from abroad , bureaucrats, businessmen, academicians, bringing the industry to create an international platform to shed light on the development, sales and bilateral negotiations for partnerships and organizations performing organization is to make both participants and visitors in terms of the most efficient.

At the previous fair [in June] they made $55 million in revenue, due to the jet crisis aim to reach around $50 million this time as Russian firms attending have dropped from 1,500 to between 1,000 and 1,100 when compared to the previous fair. Eraslan said that the holding received calls from several participants who wanted to inform them that they would not be in attendance at the fair. The press conference was also attended by two textile producers who have been working with Dosso Dossi for years: Talat Kümek, an employer of 200 workers, and Behçet Kaya, with between some 300 employees, who both said they had to mark down the selling price of their products. Eraslan said that they do not believe that the coming period will be fruitful, underlining that small firms will see bleaker results if the crisis lingers on. Owners of textile shops in İstanbul's Laleli district also told Sunday's Zaman earlier this month that they had to knock down their prices in order to recoup losses amid the rising bargaining power of their customers.

Since Russia still maintains its grip over former soviet countries, embargoes aimed at Turkey are expected to spread to such countries as well. Belarus has already followed suit and banned chartered flights to Turkey, also restricting the access of some Turkish products. When asked if Turkish textile producers could diversify their export partners, Eraslan underlined that the main collections of Turkish sellers are designed for Russian consumers, who have been loyal customers to Turkey for years. There is a Russian perception that Turkish products are of higher quality. The opportunity that this opinion gives might now be missed following the jet crisis. Having officially banned many fruit and vegetable imports from Turkey, the sanctions also included tightened custom checks on textile products, which have resulted in Turkish trucks lining up along the Russian border, unpaid invoices and the cancellation of orders. The textile sector also expects a direct ban effective Jan. 1 if there are no signs of easing the spat. According to official statistics, Turkey's ready-to-wear textile exports have already slid by 10.3 percent year on year in the first 11 months of 2015, totaling $15.6 billion. The jet crisis, meanwhile, came amid the downturn in foreign sales. The total volume of Turkish exports dropped by 8.6 percent to stand at $132 billion between January and November, compared to the same period a year ago.

SOURCE: Yarns&Fibers

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Industries body wants reopening of trade route to Pakistan

A delegation of an industries association will travel to Delhi next month to seek a meeting with Prime Minister Narendra Modi over their demand for reopening of the trade route from KutchBSE 4.96 % in Gujarat to Pakistan. The Federation of Kutch Industries Association (FOKIA) delegation was eager to meet Modi in Kutch, where he has been camping for last three days in connection with the annual DGPs (Directors General of Police) meet, but it could not materialise. "Our delegation will go to Delhi in January next year to meet PM Modi there. We will make a request to the Prime Minister for opening of the road route through Kutch for trade with Pakistan," FOKIA president Nimish Fadke said.

A trade route was operational between Diplo (Pakistan) and Khavda Naka (India) in Kutch district even about a decade after Independence. This trade route is not operational for more than last 50 years, Fadke said. "During our delegation's visit to New Delhi, we will earnestly request Prime Minister Modi to reopen this trade route and set up an Integrated Check Post (ICP) at Khavda, to provide an easy access of Pakistan market for the industries of Kutch and western part of India," he said. "This will help industries in India to avoid expensive and long trade routes via Dubai or sea route," he said. "The only direct export route to Pakistan as of now is through Wagah border in Punjab. The other option is to route our exports via Dubai, but this is proving costly," he said. If the Kutch route is reopened, it can help textile, ceramic and chemical industries of Kutch to find overseas market, Fadke added.

SOURCE: The Economic Times

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FDI focus to improve external finances, bolster rupee: Moody’s

Describing India’s focus on FDI as “credit positive”, Moody’s Investors Service said improvement in the external situation will also provide support to the rupee. “If recent changes in the policy successfully shift the composition of foreign capital inflows towards foreign direct investment, it would lower capital account volatility, a credit positive,” Moody’s Investors Service VP (Senior Research Analyst) Rahul Ghosh told PTI. The government has last month significantly liberalised the foreign direct investment (FDI) regime, putting most of the sectors on the automatic route.

According to officials, as much as 90 per cent of in-bound FDI comes through the automatic route. Ghosh further said the improvement in India’s external accounts in recent quarters, coupled with the country’s growth outperformance against major emerging markets, should provide a measure of support to capital inflows and, by extension, the rupee. In the past, Ghosh said “these (external flows) were skewed somewhat towards portfolio investment, raising balance of payments risks from reversals in investor sentiment”. The government, in the mid-year economic analysis 2015-16, said India’s external position “appears robust”, with the current account deficit (CAD) at a comfortable 1.2 per cent of GDP. It further said foreign exchange reserves have risen to USD 352.1 billion (as on December 4), which “seem ample”.

The net FDI inflows have grown from USD 15.8 billion in first half of 2014-15 to over USD 17 billion in April- September of the current fiscal, which “is note-worthy against the background of uncertainty in other capital inflows”. The analysis added that the nominal value of the rupee against a basket of currencies has remained steady or strengthened. “The rupee has gone from being one of the worst performing currencies to one of the best-performing against the dollar this year,” it said.

SOURCE: The Financial Express

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‘Make in India, Digital India will transform country’

The “Make in India” and “Digital India” initiatives will transform the country not only into a global design and manufacturing hub but also empower citizens to access digital services, knowledge and information, BJP spokesperson Nalin Kohli has said. He was speaking at a seminar recently on “Reflection on Make in India and Digital India” organised by O.P. Jindal University, Sonipat, Haryana. “It is an ambitious programme, which is already in progress and at least what has been achieved over the last year is a good indication,” Kohli said. “The vision of Prime Minister Narendra Modi will get implemented and hopefully by the end of his tenure, we will be able to understand that whether we have been able to achieve a good part of it or not,” he added. “‘Make in India’ is an idea to try to make it more easy for setting up factories in India and create employment and how to get manufacturing better organised,” he added. Kohli said these initiatives of the National Democratic Alliance government were a wider set of nation-building initiatives. “These initiatives will transform India into a global design and manufacturing hub and empower every citizen with access to digital services, knowledge and information. “These schemes will strengthen our democracy as bridge the gap between the lowest class and the powerful class,” he added. On the alarming pollution situation in Delhi, Kohli said: “If you live in Delhi, you have no choice. Courts have stepped on environmental issues which is good sign. Urbanisation is a problem but we can plant more trees to reduce it.” He was replying to a question if the government had any plan to begin a “Green India” programme.

SOURCE: The Financial Express

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Global Crude oil price of Indian Basket was US$ 33.62 per bbl on 18.12.2015 

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$ 33.62 per barrel (bbl) on 18.12.2015. This was higher than the price of US$ 33.33 per bbl on previous publishing day of 17.12.2015.

In rupee terms, the price of Indian Basket increased to Rs 2232.85 per bbl on 18.12.2015 as compared to Rs 2221.08 per bbl on 17.12.2015. Rupee closed stronger at Rs 66.42 per US$ on 18.12.2015 as against Rs 66.65 per US$ on 17.12.2015. The table below gives details in this regard: 

Particulars

Unit

Price on December 18, 2015 (Previous trading day i.e. 17.12.2015)

Pricing Fortnight for 16.12.2015

(Nov 27 to Dec 11, 2015)

Crude Oil (Indian Basket)

($/bbl)

33.62             (33.33)

39.02

(Rs/bbl

2232.85         (2221.08)

2603.80

Exchange Rate

(Rs/$)

66.42             (66.65)

66.73

 

SOURCE: pib.nic.in/

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Dumping weighs down exporters

Last week, the Union commerce ministry reported a fall of 24 per cent in exports during November, a twelfth month of a continuing decline. The situation calls for a sympathetic appreciation of the plight of exporters. Obviously, the main reason is the contraction in global demand and consequent crash in commodity prices. Competing economies like China have been dumping goods to keep their factories running, at prices Indian exporters find difficult to match. It appears the position will continue for more time. Meanwhile, exporters who have taken on an obligation under the duty exemption scheme and Export Promotion Capital Goods (EPCG) scheme are unable to fulfil these, even after the extensions allowed under the Foreign Trade Policy (FTP). Export Oriented Units (EOUs) and units in Special Economic Zones (SEZ) are also finding it difficult to maintain their net foreign exchange (NFE) earning commitment.

In 2002, the Directorate General of Foreign Trade (DGFT) decided to treat 2001-2002 as a blank year and monitoring of NFE of EOU and SEZ units was deferred for a year (between April 2001 and March 2002). In 2009, when the global financial crisis hit export demand, the government extended the export obligation period of all advance authorisation to 36 months. A similar initiative is called for today, when the trading environment is worse than it was then. So, DGFT should extend the export obligation period of all advance authorisations by at least a year, without exporters having to seek any endorsements. Similarly, the export obligation period of all EPCG authorisations should be automatically extended by one year. DGFT should treat 2015-16 as a blank year, deferring the monitoring of NFE of the EOU and SEZ units. The export promotion councils and the Federation of Indian Export Organisations must represent the difficulties of their members effectively. Not doing so will mean many exporters getting declared as defaulters, any number of representations for policy relaxation, more battles to stay out of the 'denied entities list' and a lot of unnecessary paperwork.

Anup Wadhawan, the new DGFT, started off well by allowing benefits under the Merchandise Exports from India Scheme (MEIS) for shipments in April and May 2015 to all cases where exporters had inadvertently mentioned 'N' instead of 'Y' in the box meant to indicate claim of incentives in the shipping bills. Later, he extended the relaxation to similar cases for shipping bills filed till end-September. The MEIS benefit was also extended to more countries and more products. The government has made available the interest subvention scheme to select sectors with effect from April 1 and the Reserve Bank issued the necessary circular on December 4. These helpful steps should be followed by an appreciation that timely relief must be given to exporters at a time when out markets are yet to see any significant revival in demand. The medium-term strategy is in improving of productivity and increased market access. The commerce ministry has articulated these challenges in its FTP statement this April. However, short-term relief is necessary now.

SOURCE: The Business Standard

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India disappointed over non-reaffirmation of Doha round at Nairobi WTO ministerial

India on Saturday expressed “disappointment” over the lack of a unanimity in re-affirming to conclude the 2001 Doha Development Agenda at the Nairobi ministerial of the World Trade Organisation (WTO), although it managed to secure commitments to allow developing nations to use a special safeguard mechanism (SSM) to protect their farmers from a spurt in imports and for a work plan on a permanent solution to the issue of food security. However, developed nations refrained from making any commitment to trim massive trade-distorting farm subsidies offered by them, despite hectic negotiations that exceeded the scheduled closing of the ministerial by almost a day from December 18. According to a commerce ministry statement here, while the majority–consisting of the G-33, including India, least-developed countries and the African group–wanted a reaffirmation of the Doha round mandate, a few members opposed it. “This marks a significant departure from the fundamental WTO principle of consensus-based decision making,” the statement said. However, despite the difficulty in negotiations, the draft Declaration “reflects India’s demand for a reaffirmation from all members to work towards a permanent solution on public stockholding (PSH)”, according to the statement. The draft also provides a “ministerial affirmation” that till such time a permanent solution is found, the current peace clause shall continue to be in place.

A peace clause means no WTO member can drag India to the dispute panel for offering more product-specific support to farmers through procurement of grains than stipulated under the WTO until a permanent solution is found. The declaration also reflects India’s demand for a ministerial decision to develop an SSM for agricultural products, in step with the special safeguard mechanisms enjoyed by the developed nations, that will be available to developing countries. Commerce and industry minister Nirmala Sitharaman tweeted: “Wish to say that SSM was not even on the cards when we arrived at Nairobi. India got it in & ensured a decision for a work plan too notwithstanding a lack of consensus, even as the language was getting developed on the ‘factual’ narrative paras on the DDA, India ensured that on PSH & SSM the relevant decisions of Bali, GC, & ref to DDA were brought in as the necessary & reassuring links.” “That all unfinished pillars of DDA shall be carried forward was also ensured.The special & differential treatment shall also be carried on,” she said in the tweets.

India, along with other developing countries known as the G33, has been vociferously seeking an SSM to protect farmers against a sudden spurt in dumping, especially from developed nations, including the US and the EU, that offer massive trade-distorting subsidies to farmers. Analysts said the US and the EU provide massive farm subsidies, in the range of 57-215% of the value of production of several key commodities. The declaration at Nairobi, which also marked the 20th anniversary of the WTO, reflected the importance of multilateral rules-based trading system and reaffirmed the pre-eminence of the WTO as the global forum for trade rules setting and governance, in an apparent hint of supremacy of the negotiations at the WTO vis-à-vis agreements like the Trans-Pacific Partnership (TPP). The yet-to-be-implemented TPP between the US and 11 other Asia-Pacific nations represents roughly 40% of global gross domestic product and one-third of world trade.

SOURCE: The Financial Express

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EU pushes for circular economy for textiles

The European Union has embarked on an ambitious €11 million research project, Resyntex that aims to produce secondary raw materials from textile waste. The project's objective is to create a new circular economy concept for the textile and chemical industries through industrial symbiosis, members of the executive board said after their first meeting in Bled, Slovenia. Resyntex joins the ranks of projects focusing on textile recycling innovations such as Worn Again, Re:newcell or Evrnu. It is led by Germany's Soex Group, which is active in high quality collection, sorting and processing of used textiles the global level. “With Resyntex, we want to develop and demonstrate a new strategic design for textile recycling throughout a complete value chain. The focus is on reprocessing blends and pure components of unwearable textile waste,” said Pailak Mzikian, Head of Recycling and Sustainability at Soex Group said.

The project is being co-ordinated by the Institute for Environmental Protection and Sensors (IOS). It is divided into ten work packages, each of which focuses on a specific goal such as the development of industrial applications for recovered feedstocks or the assessment of the economic and environmental performance of newly developed processes. The work package leaders are scheduled to meet again in June in Slovenia to evaluate the progress of the project IOS. “We look forward to bringing the project leaders together for our meeting in Slovenia. Also, we are excited to see the project's first reports and findings,” said Aleksandra Lobnik, R&D Manager at IOS.

SOURCE: Fibre2fashion

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Vietnam garment industry joins global supply chain

Vietnam’s garment industry, which until now did not have much of a role to play, has revamped its production process to join the global supply chain, experts said. Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas), said the local garment industry has been one of the leaders in export value, but the industry has just joined the processing stages of cutting and sewing in the global supply chain. The industry depends on imported material from abroad, especially from China, which accounts for 50 per cent of the material for the industry's production, he said. However, if the markets providing material for Vietnam's garment industry showed any abnormal fluctuations it impacts the local industry adversely. In addition, the local textile and garment sector has not seen much cooperation between manufacturers to create a production chain and a sustainable development strategy in the long term, he said.

Tran Thu Hien, director of Nha Be Garment Corporation's branch in Hanoi, said Vietnam's garment enterprises have focused on developing only their strengths, and have not paid attention to demand or lack of raw materials. Nor have they sought ways to ensure the supply of raw materials, she said.  Nha Be Garment imports 70 per cent of its raw material, and sources the remainder locally.  Truong Thi Thanh Ha, general director of Dong Xuan Knitting, said Vietnam requires 400,000 tonnes of cotton each year, but the local supply is just about 3,000 tonnes. The reminder has to be imported.  Most of the machines, chemicals and textile dyes that Vietnam's garment industry uses also need to be imported, which means the supply chain remains a weak point in Vietnam's garment sector. Phan Chi Dung, head of the Light Industry Department under the Ministry of Industry and Trade, said the development of the world garment industry would result in the development of supply chain and e-commerce transactions. These were challenges for the local garment sector so it must reform itself in future, he said. However, 21 per cent of small- and medium-sized enterprises (SMEs) in Vietnam have joined the global supply chain, which is lower than Thailand and Malaysia, where 30 per cent and 46 per cent, respectively, of its SMEs are part of the chain.

Vietnamese enterprises have joined the lowest stages of the supply chain of processing and supply of alternative parts. but have not joined major production stages such as production of materials and design, he said. Giang said to boost the industry's added value, its enterprises must focus on developing production of material and changing production methods. These solutions would improve the quality of exported textile and garment products and encourage cooperation among garment enterprises to create a domestic supply chain, he said. Le Tien Truong, general director of the Vietnam National Textile and Garment Group (Vinatex), said local textile and garment firms should change their strategies in production and management, and develop skilled workers to create favourable conditions for firms shifting the production modality from cut-make-and-trim to free-on-board practice and original design manufacturing.

Vinatex is planning to invest in a series of plants in central Ha Tinh province to form a competent production chain serving domestic and foreign markets. At a total capital of nearly 1 trillion dong ($45.14 million), four factories, wastewater treatment and water supply centres will be built in the local Nam Hong industrial park, covering 19 hectares. The construction of two sewing plants, Hong Linh 1 and 2, costing 190 billion dong, will start in February 2016 and early 2017 respectively. In late 2017, the Hong Linh plant for scarf weaving, with design capacity of 1,500 tonnes per year, will be built under a 314-billion dong investment. The last of the four is a factory for dyeing and knitting worth 410 billion dong ($18.5 million), which is capable of turning out 1,400 tonnes of products annually. Vinatex has launched a drive to increase productivity which is vital when the country accelerates international integration.

SOURCE: The Nation Multimedia

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US Senate passes IMF reform in favour of emerging markets

The US Senate ratified reforms to boost the representation of emerging economies at the International Monetary Fund as part of a budget bill that will clear the way for new industrial powerhouses like China and India to have more clout at the international lender. A sprawling budget deal to keep the US government operating through next September contained a measure to put Brazil, China, India and Russia among the IMF's top 10 shareholders and give emerging markets more influence at the global lender. The legislation will now go to President Barack Obama. Plans agreed in 2010 to give emerging markets more voting power and double the Fund's resources have been delayed by Congress. Under the new regime, China's vote at the IMF would increase to 6 per cent from 3.8 per cent.

China's central bank welcomed the move in a statement on Saturday and said China would become the third-largest shareholder under the changes, from its previous sixth position. "The 2010 reform plan will improve the representation and voice of emerging markets and developing countries in the International Monetary Fund and is conducive to protecting the IMF's credibility, legitimacy and effectiveness," said the central bank. The reforms are the biggest change in the governance of the Fund since it was established after World War Two. "These reforms represent an important step but still only constitute a partial shift in making the IMF's governance structure fully representative of emerging markets' growing influence in the world economy," said Eswar Prasad, Professor of Trade Policy at Cornell University.

Under the reform, all 188 members' quotas will increase as the Fund's quota resources rise to about 477 billion special drawing rights, the IMF currency, ($659.67 billion) from about 238.5 billion, the Fund said in a statement. Under the new proposals, the International Monetary Fund board will be entirely elected.

SOURCE: The Business Standard

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Sri Lankan Government hopeful on regaining GSP Plus Status

Sri Lanka is hopeful to regain the European Union’s trade concession GSP Plus Status, which is supposed to balance out the effects of Trans-Pacific Partnership (TPP) agreement. At the inaugural ceremony of the annual event, ‘Ransalu Textile Expo’ in Colombo, Rishad Bathiudeen Sri Lanka’s Industry and Commerce Minister said, “We are inaugurating this (Ransalu Textile Expo) textile event at a time when our world-class apparel industry is becoming increasingly hopeful on regaining the GSP PLUS facility. There are concerns in trade sectors across the world that Trans-Pacific Partnership agreement could have a negative impact.”  Rishad Bathiudeen further pointed out that the Sri Lankan Government under the guidance of Prime Minister Ranil Wickremesinghe is making efforts to position Sri Lanka among the top 10 high-quality apparel manufacturing countries in the world by 2020.

Sri Lanka’s apparel industry has set a new export target of US $ 10 billion by 2025 and the Government supports it. In 2014, Sri Lanka’s apparel export values summed up to US $ 4.9 billion. The country lost the GSP Plus status in 2010 due to the United Nations Human Rights Council (UNHRC) alleging violations of Human Rights during the civil war. But the new Sri Lankan Government started demanding the regain of GSP plus status owing to fall in country’s apparel export.

SOURCE: The CCF Group

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Pakistan Textile industry can be rescued through policy interventions

Trade statistics for the first four months of the current fiscal year, released by the Pakistan Bureau of Statistics, show a steep decline in the country’s exports. Total exports are down 13% compared to the corresponding period of last year. Major export items including textiles, rice, sports goods and cement have all shown downward movements both in terms of value and volumes. The key concern has been the downward journey of textiles for the last two years. The textile sector, contributing nearly 60% to the exports of Pakistan, had a substantial competitive advantage in cotton-based textiles. Pakistan is the world’s fourth largest producer and third largest consumer of cotton. The cotton industry from production of fibre to manufacturing of value-added products provides livelihood to 25 million people and contributes 10% to the gross domestic product. Pakistan’s advantage in the textile industry lies in the lower segment of the value chain, predominantly the cotton spinning industry, where 500 units contribute 5% of the global spinning capacity. To fulfill raw material needs, the industry imports on an average one million bales of cotton mainly from India, the US and Central Asia.

Year 2015-16 will be tough for the industry due to the decline in cotton production both locally and globally. According to the industry forecast, global consumption will surpass production in 2016 due to a drop in the cotton plantation area by 6%. Pakistan will miss the production target by 5 million bales. China has been one of the biggest buyers of Pakistan’s cotton yarn. In 2014, Pakistan exported cotton yarn worth $1.4 billion, 20% lower than exports in 2013. In 2015, the figure is also lower as Vietnam and India have been able to grab a substantial market share of Pakistan.

Tariff protection

In the domestic market, the spinning sector is also under pressure from cheaper imports from India. To protect the sector, the government had to take extraordinary measures by imposing a 10% regulatory duty on the import of cotton yarn and processed fabric. This increased the overall tariff protection to the industry to 15% as the regulatory duty was over and above 5% customs duty on imports. Although the textile value-added sector was not in favour of the regulatory duty as it wanted cheaper inputs, especially yarn and fabric, the government had to come to the rescue of the spinning sector due to its substantial contribution to production and exports. The textile industry is also suffering due to chronic energy shortages. The government had imposed a gas supply quota for the industry to meet 25% of its gas needs in winter and divert the rest to domestic consumers. This year has been particularly difficult as the quota has been reduced to 17%. This would further dampen the industry’s confidence, especially the value-added sector, and will increase the cost of doing business.

Impediments

The electricity shortages have also created sustainability issues for the industry. The magnitude of shortages has turned into a national energy crisis. At present, the country faces a demand and supply gap of 5,000 megawatts with demand growing in double digits annually. The industry has to make arrangements for in-house power generation through imported furnace oil. This has impacted competitiveness and increased the transaction cost for production. Textile exports from Pakistan also face tariff barriers in markets of major trading partners. There has been a temporary relief for the industry in the European Union through tariff preference under the GSP Plus scheme. The textile industry has also been complaining about sales tax refunds and duty drawbacks pending with the Federal Board of Revenue. According to industry sources, more than Rs100 billion in sales tax refunds are pending. The industry would obviously like to see expeditious clearance of all refunds so as to solve its liquidity problems.

Export-led growth model

The declining trend in exports, especially of the textile industry, should be a cause for concern for the policymakers as the country is pursuing an export-led economic growth model. The major challenge is the energy shortages which may not be solved in the short term as most of the projects including the recently inaugurated Tapi project will not be online before 2018. In the short run, there may not be many options other than manipulating the exchange rate to promote exports. Most economists believe that the rupee is overvalued by 15% which is hurting exports. There are compelling reasons for rescuing the textile industry through policy interventions. The rupee devaluation could be one of the viable options. The writer is a development professional with over 20 years of experience in public and development sectors

SOURCE: The Tribune

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Latest ministerial text shows WTO still divided on reaffirming Doha

Sharp divisions persisted among Worlt Trade Organisation member nations on reaffirming a pro-development global trade deal even as the hectic parleys continued for the fifth day. The third revision of the draft Nairobi ministerial clearly stated that many members want to reaffirm the Doha Development Agenda and carry out the work on the basis of the agreed structure but some want to go for a new architecture and not reaffirm it.  Though the five page text touches upon all issues that concern developing countries including India such as permanent solution for food security and special safeguards mechanism, and the demands of developed countries such as export competition, it lacks details and refers to separate texts for each of these issues.  Sources said the text is likely to have emerged from the G-5 meeting among India, China, the US, EU and Brazil and would then be circulated to other members for their comments.

The marathon G-5 meeting has been going on since Friday morning and no clarity seems to be emerging despite intense negotiations.  "SSM and Doha are difficult issues and the two countries discussing them - India and the US have binary and polar views," said an official.  The first draft of the ministerial declaration was completely silent on the public stockholding issue, the second one mentioned the peace clause but didn't reiterate 2017 as the deadline for finding a permanent solution thereby indicating the developed countries' lack of inclination to Include these issues in the declaration.

SOURCE: The Economic Times

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