|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
978.20 |
USD/Ton |
-0.16% |
12/22/2015 |
|
VSF |
2018.11 |
USD/Ton |
-0.91% |
12/22/2015 |
|
ASF |
1924.77 |
USD/Ton |
0% |
12/22/2015 |
|
Polyester POY |
910.31 |
USD/Ton |
-0.84% |
12/22/2015 |
|
Nylon FDY |
2345.21 |
USD/Ton |
0% |
12/22/2015 |
|
40D Spandex |
4937.28 |
USD/Ton |
0% |
12/22/2015 |
|
Nylon DTY |
5748.85 |
USD/Ton |
0% |
12/22/2015 |
|
Viscose Long Filament |
1149.46 |
USD/Ton |
-1.97% |
12/22/2015 |
|
Polyester DTY |
2175.49 |
USD/Ton |
0% |
12/22/2015 |
|
Nylon POY |
2109.92 |
USD/Ton |
0% |
12/22/2015 |
|
Acrylic Top 3D |
992.86 |
USD/Ton |
-0.46% |
12/22/2015 |
|
Polyester FDY |
2607.50 |
USD/Ton |
0% |
12/22/2015 |
|
30S Spun Rayon Yarn |
2746.36 |
USD/Ton |
0% |
12/22/2015 |
|
32S Polyester Yarn |
1558.33 |
USD/Ton |
-0.98% |
12/22/2015 |
|
45S T/C Yarn |
2530.36 |
USD/Ton |
0% |
12/22/2015 |
|
45S Polyester Yarn |
2190.92 |
USD/Ton |
0% |
12/22/2015 |
|
T/C Yarn 65/35 32S |
2931.51 |
USD/Ton |
0% |
12/22/2015 |
|
40S Rayon Yarn |
2499.50 |
USD/Ton |
0% |
12/22/2015 |
|
T/R Yarn 65/35 32S |
1728.05 |
USD/Ton |
0% |
12/22/2015 |
|
10S Denim Fabric |
1.08 |
USD/Meter |
0% |
12/22/2015 |
|
32S Twill Fabric |
0.91 |
USD/Meter |
0% |
12/22/2015 |
|
40S Combed Poplin |
0.98 |
USD/Meter |
0% |
12/22/2015 |
|
30S Rayon Fabric |
0.73 |
USD/Meter |
0% |
12/22/2015 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
12/22/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15429 USD dtd.22/12/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The country’s export scenario isn’t as bad as it looks on the surface. Barring oil, and gems and jewellery exports, where raw material prices have plunged drastically...
The country’s export scenario isn’t as bad as it looks on the surface. Barring oil, and gems and jewellery exports, where raw material prices have plunged drastically, driving down finished product rates, the fall in outbound shipment between April and November was just 9.7% in dollar terms and just 3.7% in rupee terms, the commerce ministry said on Tuesday. When the export figure in rupees terms is compared with the average WPI inflation rate of -3.3% during the April-November period, the fall in exports in real terms is likely to be negligible, the ministry said in a statement. According to the official data released last week, overall merchandise exports dropped 18.5% during the April-November period from a year before. However, while exports of petroleum product have fallen by 52%, those of gems and jewellery dropped 9.5% due to a plunge in gold prices compared with last year. Although several sectors have shown declines, some such as ready-made garments, carpets, handicrafts, jute manufacturing, drugs and pharmaceuticals, ceramic products & glassware, tea, cereal preparations and miscellaneous processed items have witnessed a rise. Even industrial production rose 4.8% during the April-October period from a year before, more than double the growth of 2.2% recorded a year before. This suggests the country isn’t doing as bad as it may seem to be. “The fall in exports has to be viewed in the context of sluggish global trade volumes. If the drop in export is resulting in increased current account deficit or/and reduction in growth of the gross domestic product (GDP) then there could be a need for alarm,” it said.
The commerce ministry has renewed its demand that developers of special economic zones (SEZs), as well as the units in these enclaves, be given exemption from minimum alternate tax (MAT) and dividend distribution tax (DDT). In a pre-Budget paper submitted to the finance ministry, the ministry also said that if removal of MAT is not possible at this stage, at least the rate could be cut to the original level of 7.5%.The commerce ministry has renewed its demand that developers of special economic zones (SEZs), as well as the units in these enclaves, be given exemption from minimum alternate tax (MAT) and dividend distribution tax (DDT). In a pre-Budget paper submitted to the finance ministry, the ministry also said that if removal of MAT is not possible at this stage, at least the rate could be cut to the original level of 7.5%. According to the commerce ministry, SEZ units should be permitted to sell goods in the domestic market at the lowest import duty that the country offers to its free trade partners. “The department of industrial policy and promotion (DIPP) has also supported the commerce department’s proposals,” an official said. The government imposed 18.5% MAT on SEZ developers and units and DDT on developers in 2011-12 when Pranab Mukherjee was the finance minister, after the revenue department had complained of massive revenue losses to the exchequer due to such exemptions. The latest recommendations followed several rounds of meetings held by the commerce ministry with developers and officials from Export Promotion Council for Export-oriented Units & SEZs (EPCES), who have been complaining that the imposition of MAT and DDT has eroded the investor-friendly image of SEZs and created uncertainty in the minds of investors. Before the MAT and DDT were imposed in 2011-12, growth in exports from SEZs was as high as 121% (2009-10) and 43% (2010-11), far exceeding the increase in the country’s overall goods exports for these years. Such high growth rates dropped consistently since the taxes were imposed and finally exports contracted by 6.6% in 2013-14, compared with the 4.7% rise in overall merchandise exports for that fiscal. While the tax exemption will improve export competitiveness, permission to sell goods in the domestic tariff area (DTA) will boost manufacturing by helping SEZ units utilise idle capacities at a time when demand in the global market remains weak and the government is making all-out efforts to promote the ‘Make in India’ initiative, the official said. The move to allow sale of goods at the DTA at the lowest possible tariff will also result in foreign exchange savings for the country, apart from creating domestic employment, he said. This will partly address the concerns expressed by the Comptroller and auditor general (CAG) last year that most SEZ units belong to the IT/ITeS sector, and not the manufacturing sector. The CAG had said almost 57% of the country’s SEZs catered to the IT/ITeS sector and only 9.6% to the multi-product manufacturing sector. According to the current norms, SEZ units have to pay the regular customs duty on a particular product if they sell it in the domestic market. This is because an SEZ is a specifically delineated duty-free enclave and is a deemed foreign territory for the purpose of trade operations, duties and tariffs. Accordingly, goods and services from the DTA to SEZ are to be treated as exports and goods coming from SEZ into DTA are considered imports.
However, according to a finance ministry official, endorsing both moves suggested by the commerce ministry will not just cause huge revenue losses to the government, but also harm domestic manufacturers, especially if the SEZs are allowed to sell goods in the DTA at zero duty (the rate at which most products are imported from India’s FTA partners). This is because SEZ units will have “an unfair” advantage against domestic manufacturers, as the latter are subjected to higher taxation levels, he added. But the commerce ministry official said the argument of revenue losses in such cases doesn’t cut much ice, as the country also loses indirect tax revenue when it imports from FTA partners.
Source: Financial Express
Expanding the tax base has to be the central medium-term objective as we have such few taxpayers relative to voters, said Arvind Subramanian, Chief Economic Adviser
Nominal GDP growth in the next fiscal “might not be significantly greater” than the sharply reduced estimate of 8.2% for the current year, the government’s chief economic adviser, Arvind Subramanian, told FE on Monday, citing conjectures that oil could touch even $20 a barrel. Asked whether a resultant tapering of tax buoyancy would necessitate tax rate increases, he rather stressed expanding the tax base as the central medium-term policy objective, but indicated that many commodities that are currently taxed at lower rates could come under standard rates. “The real deal is to have more taxpayers,” he asserted in an interview, pointedly referring to personal income tax. Subramanian also said that if the quality of expenditure achieved this year could be improved further next year, then it could add to the case flagged in his recent Mid-Year Economic Analysis report for re-assessing the FY17 fiscal consolidation target. Asked about the practicality of reducing the subsidy on urea in FY17, which is key to curbing growth in revenue expenditure, he said the quality of government spending involved “more public (capital) investment and (lower) subsidy and finding more room for (achieving) both.” “Certainly, all these things should be on the table in the course of the next Budget discussion,” he said.Describing the direct benefit transfer (DBT) scheme for LPG subsidy a success, (it allowed savings of about R15,000 crore in FY15), he said the DBT programmes for kerosene and food, which is fraught with different issues like states being the implementers, ought to be accorded top priority.The coming Budget, he hinted, would give a boost to the agriculture sector. “We need to focus on agriculture, both to raise productivity and to cushion people against any downside (from farm-sector crises).” Helped by better performance in livestock products, forestry and fisheries, the gross value addition in the agriculture and allied sectors grew 2% in the first half of FY16. “Latest data for the rabi season suggests that net sown area is lower than for the same period of last year; this combined with likely adverse productivity effects from four consecutive seasons of weak rainfall create downside risks to agricultural production for this fiscal year,” the mid-year report said. The CEA reiterated that this year’s fiscal deficit target of 3.9% of GDP would be achieved without significant expenditure cuts. “There is always a bit of natural slack in the system (when it comes to spending the budgeted amounts) but you won’t have anything like a draconian cut (as witnessed in recent years),” he said. Last year, the Centre had to compress expenditure by Rs 1.5 lakh crore from the budgeted level to reduce the fiscal deficit to 4%. It had cut expenditure by Rs 1 lakh crore in FY14.In the mid-year report, the CEA and his team in the finance ministry had said that for India to move rapidly to a medium-term growth trajectory, supply-side reforms – which would help engender private investment cycle — and demand management would be essential. “On aggregate demand, both fiscal and monetary policy stances will need to be carefully re-assessed, to ensure they strike the appropriate balance between the short-term need to sour demand, especially private investment and exports, and the longer-term needs of preserving fundamental macroeconomic stability.” The mid-year report revised the real GDP growth estimate for the current fiscal by a percentage point to 7-7.5% and the forecast of nominal GDP expansion even more sharply, from 11.5% to 8.2%. Though economic recovery was underway, it largely hinged on private consumption and government investment and mixed signals emanated from various sectors.
Textile and Weavers Welfare is setting up a textile park at Madikonda in Warangal. The Telangana state government to provide help to weavers has decided to allocate 161 acres of land for the same, said Deputy Chief Minister Kadiam Srihari on Sunday. The State Government would also give Rs 10 crore to weavers to set up their own powerloom units in the park. This textile park will provide employment to 2,000 people directly and 10,000 indirectly, Kadiam said. He also went to inspect the site for the proposed textile park. This textile park has nothing to do with the textile industry proposed by the State Government. 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. Kadiam further added that those who migrated in search of work to Surat and others places would be brought back.
Source: Yarn and fibre
Are India’s economic policymakers all on the same page? May be not. An official statement from the Commerce Ministry about India’s exports suggests otherwise. Days after the Chief Economic Advisor, Arvind Subramanian, pin-pointed in the mid-year analysis of the economy that falling exports were a “drag on India’s growth,” Commerce Ministry issued a statement on Tuesday saying: “There is no crisis in India on the export front and while there is a need for caution, there is no need for alarm.” The mid-year economic analysis tabled in Parliament by Union Finance Minister, Arun Jaitley, last week estimated an “exports drag” of about one percentage point on India’s GDP growth relative to last year.
GDP growth
GDP growth in the first half of financial year (April-September 2015) slowed to 7.2 per cent from 7.4 per cent in the corresponding period last year. This, the analysis argues, is in contrast to the boom years, from 2004-05 to 2011-12, when exports were one of the four components (others being private consumption, investments and government expenditure) that powered India’s GDP growth. The Ministry sought to counter the analysis in Tuesday’s statement: “Drop in export has not reduced the pace of growth in the economy and it has been compensated by domestic demand”. The drop, according to the Ministry, reflects the plummeting prices of raw materials that go into producing India’s biggest export items, petroleum products and gems and jewellery. Since gold and crude oil cost less, India’s exports basket has shrunk in value terms, it said. The CEA’s analysis concludes that exports volumes fell because of the deflation in the prices of tradable goods but predominantly owing to shrinking world demand. “Regardless of the causes, the effect has been a drag on growth…this drag has been about 1.0 percentage point even relative to last year.” It found no significant loss of global market share at least until the end of 2014, a finding contrary to that in the World Bank’s latest India Development Update.
Released in October, the analysis had cautioned: “India has lost market share in the global export market as India’s exports have become uncompetitive.” It had also said that although India may be able to achieve fast GDP growth without export growth for a short period, sustaining high rates of GDP growth over a longer period will require a recovery of exports. There is no crisis in India on the export front and while there is a need for caution, there is no need for alarm.
Source: The Hindu
India’s industry lobbies have started an online campaign to petition political parties and parliamentarians to pass the Constitutional Amendment Bill for the Goods and Services Tax with more than 40,000 people having signed a petition initiated by the Confederation of Indian Industry (CII) on change.org. The Bill is unlikely to get cleared by the Rajya Sabha in Parliament’s winter session that ends Wednesday. “At this point of time it is imperative to move forward with GST. It is the need of the hour to pass the Bill and implement GST without any further delay,” according to a CII statement. All trade bodies had jointly resolved to pursue the passage of the GST bill with political parties last week. The new indirect tax system would help improving governance and facilitate India becoming a single integrated market, according to the CII. During the monsoon session, industry captains had initiated a similar petition against constant disruptions in Parliament that made it difficult to pursue reforms.
Source: The Hindu
Given that US shale production has barely fallen as most had predicted, despite oil prices falling to an 11-year low, and Iranian oil getting back on track following the lifting of sanctions, crude oil may just fall to the $20 levels that Goldman Sachs and CLSA are predicting, especially given the low global demand. The immediate impact on India will be positive since the current account imbalance will further reduce, and finance minister Arun Jaitley will get another oil bonanza of the sort he has got this year—with crude oil prices falling from an average of $85 for FY15 to $50 for FY16, Jaitley will get an additional R65,000 crore through additional imposts on oil; a fall to $20 in FY17 will afford him the chance to do this again, though the magnitude will be proportionately lower. Given the economy is likely to continue to be weak, Jaitley is likely to continue to spend the money on additional capex as opposed to routine expenditure though just the additional expenditure on the pay panel and the defence force’s OROP will cost around R1 lakh crore extra, or around 0.7 percentage points of GDP. The larger implications of cheap oil are, however, less comforting. Since sub-40 oil means a weak global economy, exports will suffer even more and, with economies in the Gulf badly affected, there could be an impact on India’s $65-70 billion of annual remittances. More problematic is the likely impact on India’s crude oil production since the public sector ONGC’s break-even cost is around $40—that means a significant part of its expansion plans, such as the $6-8 billion for the 98/2 field could get pushed back a few years. Given this, it is amazing that the government is locked in a court battle with its largest private-sector producer Cairn India over not extending the latter’s production sharing contract—Cairn’s average oil production cost is $20-22 for existing fields and while it will rise for new exploration, break-even costs will be lower than for ONGC. Not only has the oil ministry not taken a decision on extending Cairn’s contract in the Rajasthan basin, it continues to charge a cess on production that was fixed at a time when crude was trading at over $100 as compared to today’s $36—the cess was raised from R1,800 per tonne to R2,500 in 2006 when oil prices rose from $35 to $65, and then again to R4,500 in 2013 when prices crossed $100, but was not revised downwards as it should have been automatically; that means domestic oil producers pay a cess equal to around 26% of current crude oil costs. This makes production uneconomical and means it is cheaper to import. More shocking, while the government dithers over lowering this unjustifiable levy, other countries like the US, the UK, Russia and Argentina are improving their fiscal terms in order to ensure oil producers don’t slash their exploration budgets dramatically—most oil firms have reduced their exploration budgets in the face of collapsing oil prices. A useful lesson for oil minister Dharmendra Pradhan is that long periods of low-priced oil are followed by long periods of high-priced oil since it takes several years for oil to flow after the investment cycle resumes. If India doesn’t do its best to ensure exploration investment remains at a certain base level—the government is also locked in a legal battle with Reliance Industries on gas pricing—it will be caught short when crude prices start rising and local production stagnates. The same thing will happen to subsidies, if in the window available; the government doesn’t free-up pricing of LPG and kerosene.
Source: Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 32.61 per barrel (bbl) on 21.12.2015. This was lower than the price of US$ 33.62 per bbl on previous publishing day of 18.12.2015. In rupee terms, the price of Indian Basket decreased to Rs 2162.73 per bbl on 21.12.2015 as compared to Rs 2232.85 per bbl on 18.12.2015. Rupee closed stronger at Rs 66.32 per US$ on 21.12.2015 as against Rs 66.42 per US$ on 18.12.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 21, 2015 (Previous trading day i.e. 18.12.2015) |
Pricing Fortnight for 16.12.2015 (Nov 27 to Dec 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
32.61 (33.62) |
39.02 |
|
(Rs/bbl |
2162.73 (2232.85) |
2603.80 |
|
|
Exchange Rate |
(Rs/$) |
66.32 (66.42) |
66.73 |
Source: Ministry of Textiles
The home ministry has been doing its bit to encourage private investment, according security clearances to twice as many projects this year as in 2014, including proposals by Chinese and Hong Kong companies that usually get stuck at this stage. In fact, the 19 approvals to Greater China entities exceed the 18 for those from the US in the year to December 18, according to a home ministry document that ET has reviewed. As many as 1,671 proposals have been cleared this year, up from 815 all of last year. That's after the Rajnath Singh-led union home ministry streamlined security checks for companies looking to invest in India, officials said. Chinese companies such as Huawei and ZTE have previously come under particular scrutiny over national security implications. Projects by both companies are said to be among those cleared this year
The number of proposals cleared by the former United Progressive Alliance government in 2013 was 712. Out of the 1,671 proposals cleared, 85 were of foreign entities. While Hong Kong got the nod for 11, China's eight projects were cleared. The rest included France (nine), Germany (six), UK (four), Japan (three) and Malaysia (three). They were among the 26 nations given faster security clearances with the aim of promoting the government's Make in India initiative, said the official cited above. Private investment has been a laggard, according to the mid-year economic review, which has meant that India's growth is being supported largely by consumption demand and government spending. The Make in India initiative is aimed at turning the country into a manufacturing hub, thus generating job and raising income levels. The home ministry efforts are significant in this context, analysts said. More than 1,500 proposals by Indian companies have been cleared, with the largest number having been forwarded by the ministries of finance and information and broadcasting. Among these, the most were for up linking and down linking of TV channels (258), followed by community radio stations (167) and cable operators (91). According to data for 2015, the home ministry also gave a positive reply to 58 Foreign Investment Promotion Board ( FIPB) proposals forwarded by the finance ministry, 192 from the Department of Industrial Policy and Promotion (DIPP) and 108 from the ministry of petroleum and natural gas, in line with the government's push to improve ease of doing business. The home ministry revised guidelines for security approval in May. Clearances from agencies such as the Intelligence Bureau, Central Bureau of Investigation and Enforcement Directorate would only be sought in case serious breaches needed to be inquired into. This change in policy also resulted in the automatic clearance of 543 proposals, said a government official. The home ministry revised guidelines for security approval in May. Clearances from agencies such as the Intelligence Bureau, Central Bureau of Investigation and Enforcement Directorate would only be sought in case serious breaches needed to be inquired into. This change in policy also resulted in the automatic clearance of 543 proposals, said a government official.
Source: Economic Times
A group of 10 CEOs will be accompanying Prime Minister Narendra Modi for the annual Indo-Russia on Wednesday, to give a much needed push to trade and investment ties. This will be Modi’s first state visit to Russia.B Ashok (chairman, Indian Oil Corporation), Adi Godrej (chairman, Godrej Group) and Jethabhai Patel (chairman, Gujarat Cooperative Milk Marketing Federation) are also part of the group thatg will be meeting with top industry captains of from Russia. The Russian side will have captains of industry including, Alekperov Vagit Yusufovich (president, PJSC Lukoil), Gurko Alexander Oelgovich (president, management board chairman, NP GLONASS), Yevtushenkov Vladimir Ptrovich (board chairman,board strategy committee chairman, AFK Sistema), Konov Dmitriy Vladimirovich (president, PJSC Sibur). According to officials, the CEOs’ meeting is very important for both sides as a lot of Russian companies are interested to be part of Modi’s ‘Make In India’ initiative, and are seeking joint ventures with Indian firms in various sectors for the joint manufacturing of components and parts for both civil and military programmes in India. During his meeting with Putin, on the sidelines of the BRICS summit in July, Modi expressed a desire to visit Astrakhan and even suggested the coming India-Russia summit be held there. Astrakhan is Russia’s gateway to the Caspian Sea, with its vast oil reserves and sturgeon stocks. It was during the annual summit in 2014, when the two sides announced a ‘Druzhba-Dosti’c vision. Leaders of both sides recognised that it was time to significantly broad-base the existing bilateral cooperation. They agreed that strengthening economic relations would be an important pillar of the strategic partnership, Russian ambassador to India, Alexander Kadakin said recently.
Source: Financial Express
India negotiated ‘hard’ at the recently concluded WTO ministerial conference in Nairobi, the government informed Parliament on Tuesday, a day after being lambasted by civil society experts for not standing its ground on critical issues. Commerce and Industry minister Nirmala Sitharaman said in the Lok Sabha, "India negotiated hard to ensure that the WTO continues to place the interest of developing countries and LDCs (Least Developed Countries) at the centre of its agenda". Sitharaman is expected to address these issues at a press briefing on Wednesday as it was postponed on Tuesday due to a Cabinet meeting. Core demands raised by the developing bloc, like an unanimous reaffirmation of the commitment to the Doha Development Agenda, have not materialised at Nairobi. Trade experts have called for serious introspection as to what went wrong. Adopted in 2001, the DDA had promised developing nations trade benefits in the form of lower tariffs and greater equity in trade. Developed countries led by the United States have suggested discontinuing or diluting the DDA due to slow progress and need for introducing newer issues such as market access for deliberations. Sitharaman said the ministerial declaration at Nairobi acknowledged wide difference of opinion over the DDA but noted strong commitment of all members to advance negotiations on the remaining Doha issues. However, this might not materialise as progress because current procedures at the WTO mandate any new resolution must garner the unanimous support of all member countries before being adopted. A senior commerce ministry official had said, “There’s no reason to expect sudden changes in WTO policy now that the fight has again been transferred back to Geneva.” While India has succeeded in preventing the DDA from being killed, in reality it has been put on the back burner. Sitharaman had tweeted after the closing ceremony at Nairobi that she was ‘utterly disappointed’ at the outcome with regards to Doha issues. “The lack of consensus among WTO members effectively ends the DDA.” said JNU Professor Dinesh Abrol, convener of the National Working Group on Patent Laws. He argued the government had failed in exercising its legal rights by agreeing to a ministerial declaration which it could have abstained from, thus preventing the skewed declaration from being adopted. Developed nations have bargained for substantial reduction in farm subsidies by developing countries as a bargaining chip in DDA discussions, Sitharaman informed Parliament. This includes India’s minimum support price programme, paid to farmers in distress. However, developed countries have refused to bring up the subject of domestic subsidies they offer to farmers which are often in the range of 80-90 per cent of production costs. On the demand for a Special Safeguard Mechanism (SSM) for agricultural products, demanded by a large number of developing countries, Sitharaman said India’s negotiations had led to the WTO recognising developing countries’ right to have recourse to an SSM. However, the recognition does not guarantee an SSM, which helps countries to raise tariffs in case of a sudden surge in imports or a dip in global commodity prices. Creation of SSM is still subject to future negotiations.
"Members will continue to negotiate the mechanism in dedicated sessions of the Committee on Agriculture. The WTO General Council has been mandated to regularly review progress of these negotiations," the minister said. On the critical issue of public stockholding for food security, Sitharaman said the ministerial decision had reaffirmed to finding a permanent solution. This again is based on future negotiations with no fixed deadline, with the 2017 deadline set earlier at Bali ignored.
India had pushed for a speedy solution to the issue.
Sitharaman said all countries agreed to the elimination of agricultural export subsidies subject to the preservation of special and differential treatment for developing countries such as a longer phaseout period for transportation and marketing export subsidies. However, the 2023 deadline agreed to by India is an earlier date than had been decided during the Bali ministerial. “Completely eliminating export subsidies by 2023 will further aggravate the crisis in the sugar sector," said JNU Professor Biswajit Dhar. He added while developed countries had also committed to reduction, they had stayed silent on the more trade-distorting issue of domestic subsidies. Sitharaman pointed to the decision extending the relevant provision to prevent 'ever-greening' of patents in the pharmaceuticals sector to ensure accessibility and affordability of generic medicines. "The decision would help immensely in maintaining affordable as well as accessible supply of generic medicines," she said. India supported outcomes on issues of interest to LDCs, including enhanced preferential rules of origin for LDCs and preferential treatment for LDC services providers, Sitharaman said. India already offers duty-free, quota-free access to all LDCs, which provides a comprehensive coverage with simple, transparent and liberal rules of origin. As regards negotiations on subsidies on fisheries, she said India argued strongly for special and differential treatment. On rules on anti-dumping, India strongly opposed a proposal that would give greater power to the WTO's anti- dumping committee to review members' practices.
Source: Business Standard
Vietnam's textile and garment exports to the US from January to November 2015 have reached US$9.98 billion, a year-on-year increase of 11.7 percent. It is expected to gain much higher with the Trans Pacific Partnership (TPP) taking effect. According to the Vietnam Textile and Apparel Association (Vitas), during the 11 months, Vietnam’s textile and garment export value to its other major export markets was also optimistic with $3.09 billion to the EU, $2.53 billion to Japan and $1.98 billion to South Korea. Luong Hoang Thai, head of the Ministry of Industry and Trade's Multilateral Trade Policy Department and the deputy head of Viet Nam's negotiator delegation at the TPP deal, said that the tax value that Vietnamese textile, garment, leather and footwear exporters currently have to pay for the US, is higher than that of other TPP member countries. The local enterprises must pay a total tax value of $1.17 billion for exporting textile and garment products to the US market. Therefore, Viet Nam was successful in negotiating with the US to reduce the tariff for Vietnamese textile, garment products from an average rate at 17 percent to zero under commitments of the TPP, Thai said. To join the zero tariffs, the local exporters must meet origin regulations from material for production under TPP agreement to prevent neighbouring countries from exporting their products to Viet Nam and then shipping to other countries. The TPP agreement also has flexible mechanisms for Viet Nam in supplying material when Viet Nam does not yet have enough domestic material supply. The General Department of Customs said that the country's export value of textile and garment reached $20.6 billion in the first 11 months. Therefore, the local textile and garment industry needs a total export value of $2.4 billion in December to meet the yearly target in textile and garment for this year at $23 billion. Tran Viet, head of Vinatex's Legal and General Affairs Department at its press conference on production and business of the group this year held in Ha Noi yesterday said that Viet Nam National Textile and Garment Group (Vinatex), Viet Nam's largest textile and garment producer, was estimated to achieve a year-on-year export value of 10 per cent to $3.4 billion for this whole year. However, the group's pre-tax profit was predicted to reach VND1.35 trillion ($60 million) for this year, similar to the rate in 2014, because depreciation of currencies in some other textile and garment exporting countries such as China, India and Indonesia affected Vinatex's production and business results in 2015, he said. This year, the group's exports to major markets was expected to gain, including a growth rate at 12.95 percent to the US, 5.96 percent to the EU, 7.95 percent to Japan and 8.77 percent to South Korea against 2014. The growth was due to positive production and business from large Vinatex's member companies, including Phong Phu Joint Stock Company, Hoa Tho Textile and Garment Joint Stock Corporation, and Viet Tien Garment Corporation, in addition to Garment 10 Corporation and Duc Giang Corporation. With positive forecasts for domestic garment exports, Vinatex expected next year's growth of 8 per cent in its total revenue and 10 percent in total export value against 2015.
Source: Yarn and fibre
The European Commission has launched a public consultation on a possible restriction of hazardous substances that are carcinogenic, mutagenic or toxic to reproduction (CMRs) used in textile articles, an industrial news website has reported.The EU has already compiled a preliminary restricted substances list. Textile articles and clothing were selected as a first test-case because of the high likelihood of consumer exposure to CMR substances potentially present in those articles. The consultation will close on 22nd January 2016. The Commission is in collaboration with the European Chemicals Agency (ECHA) and member states' competent authorities to identify a preliminary list of 291 CMR substances in categories 1A (substances known to have carcinogenic potential for humans) and category 1B (substances presumed to have carcinogenic potential for humans) which may potentially be present in textile articles and clothing. The listed substances include dyes, pigments, colorants, phthalates, solvents, flame retardants and PAHs, the report said. The list of CMR substances include classified dyes and carcinogenic amines, petroleum and coal stream substances. The possible restriction would cover clothing and footwear articles that consist of at least 80 per cent of textile fibers by weight, or articles that contain a part that consists of at least 80 per cent of textile fibers by weight.
The possible restriction covers raw, unfinished, semi-finished and finished goods, whether or not coated or laminated, including articles such as clothing, footwear, accessories, interior textiles, fibers, yarn, fabric and knitted panels. Articles intended to be covered include underwear, nightwear, swimwear, garments, scarves, ties, handkerchiefs, hats, gloves, socks, footwear made of synthetic/artificial leather or artificial furs or hides. Interior articles such as hangings and curtains, carpets and other floor coverings, table mats, table cloths, towels, bed linens, pillow cases would also come under the purview. Articles excluded from the possible restriction include footwear, clothing or their parts and accessories made of real leather, natural furs or hides. Toys are also excluded. A public consultation has been launched in order for the Commission to collect relevant information on considering the proportionality and enforceability of a possible restriction in the textile sector and the possible socio-economic effects of the ban.
Source: Fibre2fashion
An array of global economic concerns cut into demand for U.S. goods overseas and contributed to weaker domestic growth in the third quarter. U.S. consumers fueled what growth there was.The Commerce Department reported Tuesday that the U.S. economy expanded at a slightly slower pace than initially estimated last quarter. Gross domestic product (GDP), or the total value of all goods and services produced in the U.S., increased at a seasonally-adjusted annual rate of 2.0% from July through September. That’s down from last month’s revised estimate of 2.1%, as healthy spending by consumers and businesses was offset by efforts by companies to reduce inventories. It also marks a sharp slowdown from the 3.9% rate of growth in the second quarter. The latest 2.0% reading slightly beat the Thomson Reuters estimate of 1.9%. U.S. companies are scaling back on inventory because overseas demand has weakened as economies large and small – from Europe and China to emerging markets in South America and Africa – struggle with their own growth problems. Another factor eating into demand is the strong U.S. dollar, which makes it more expensive to sell U.S. goods in foreign markets. “The estimated inventory deceleration was more dramatic than previously reported,” economists at IHS Global Insight said in a research note. And fourth quarter GDP isn’t looking much brighter – the BofA Merrill Lynch analysts have it forecast at a tepid 1.5% as inventories continue to decline and warm weather throughout much of the U.S. and falling oil prices cuts into energy production. The economy grew at an average pace of 2.3% in the first half of the year after expanding 2.4% in all of 2014. Corporate spending on equipment advanced at a 9.9% annualized pace, according to the Commerce Department, adding 0.6 percentage point to growth and the biggest gain in a year. Household purchases, which account for almost 70% of the economy, rose at a 3% annual pace, the same as previously estimated. Personal consumption added 2 percentage points to growth. Thank goodness for a healthy U.S. labor market, which has contributed to consumer optimism as monthly job creation has been strong throughout the second half of 2015 and the unemployment rate continues to fall. There have even been signs that long-stagnant wages are beginning to rise.
Obviously, when consumers feel their jobs are safe or that they can go out and find a better job they are much more likely to buy a new car or go to the mall and spend money. The sharp decline in energy prices has also put more money in U.S. consumers’ pockets. The sustained strength of the U.S. dollar is being cited as a major culprit for the downturn in economic growth during the second half of 2015, specifically in the area of weaker exports. As other currencies are being devalued around the world by central banks looking to boost their regions’ economy by spurring exports, currency investors have been targeting the U.S. dollar, boosting its value and keeping it at an elevated rate throughout 2015. The downside to a strong dollar and weakened foreign currencies is that it makes it more expensive to buy U.S. goods in foreign markets, which has cut into exports and hurt the U.S. manufacturing sector. The soft GDP figure is expected to be temporary, however, not least because consumer demand has remained strong. Inventories are subject to roller-coaster cycles, which always have a dramatic but usually short-lived impact on GDP, and the dollar isn’t expected to rise much further.
Source: Financial Express
India has eased the process of issuing visas to Iranians after Prime Minister Narendra Modi promised the same to Iranian President Hassan Rouhani in the backdrop of easing of Western sanctions against Tehran. Iran is now out of the restricted prior referral category (PRC) of countries for issuing visas, sources familiar with the development told ET. In the case of PRC countries, India grants visa only after its mission or consulate in that country runs a thorough background check on the individual applicant. Countries in the PRC list include Pakistan, Afghanistan, Yemen, Somalia and China. Visas for Chinese tourists have also been eased, officials said. When Modi met Rouhani in Ufa, Russia, in July days ahead of the historic nuclear deal between Tehran and the world powers he had assured that the visa process for Iranians would be eased. An official said the idea is to bring in a liberalised visa regime for the Iranians. India had been considering taking this step to enhance economic and strategic relations with Iran.
The Indo-Iran Joint Commission meeting, to be led by foreign minister Sushma Swaraj and the Iranian economic minister, in Delhi later this month is expected to give a fillip to economic ties between the two countries. Iranian officials have earlier told ET that keeping the country in the PRC category was an impediment to fostering relations as both sides are keen to realise untapped potential in trade, investments, connectivity and security. India and Iranian officials are hopeful of concluding a contract next month for Indian assistance of $100 million for expanding Iran's Chabahar port after prolonged delay.
Source: Economic Times
