|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
951.26 |
USD/Ton |
-0.32% |
1/7/2016 |
|
VSF |
1893.36 |
USD/Ton |
-0.80% |
1/7/2016 |
|
ASF |
1904.81 |
USD/Ton |
0.00% |
1/7/2016 |
|
Polyester POY |
940.57 |
USD/Ton |
0.49% |
1/7/2016 |
|
Nylon FDY |
2259.81 |
USD/Ton |
0.00% |
1/7/2016 |
|
40D Spandex |
4886.08 |
USD/Ton |
0.00% |
1/7/2016 |
|
Nylon DTY |
1012.33 |
USD/Ton |
0.00% |
1/7/2016 |
|
Viscose Long Filament |
2519.39 |
USD/Ton |
0.00% |
1/7/2016 |
|
Polyester DTY |
5689.23 |
USD/Ton |
0.00% |
1/7/2016 |
|
Nylon POY |
1137.54 |
USD/Ton |
0.00% |
1/7/2016 |
|
Acrylic Top 3D |
2107.12 |
USD/Ton |
0.00% |
1/7/2016 |
|
Polyester FDY |
2088.04 |
USD/Ton |
0.00% |
1/7/2016 |
|
30S Spun Rayon Yarn |
2687.34 |
USD/Ton |
0.00% |
1/7/2016 |
|
32S Polyester Yarn |
1526.90 |
USD/Ton |
0.50% |
1/7/2016 |
|
45S T/C Yarn |
2488.85 |
USD/Ton |
0.00% |
1/7/2016 |
|
45S Polyester Yarn |
1694.86 |
USD/Ton |
0.00% |
1/7/2016 |
|
T/C Yarn 65/35 32S |
2122.39 |
USD/Ton |
0.00% |
1/7/2016 |
|
40S Rayon Yarn |
2840.03 |
USD/Ton |
0.00% |
1/7/2016 |
|
T/R Yarn 65/35 32S |
2443.04 |
USD/Ton |
0.00% |
1/7/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0.00% |
1/7/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0.00% |
1/7/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0.00% |
1/7/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0.00% |
1/7/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0.00% |
1/7/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15269 USD dtd.7/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Hundreds of textile traders are in trouble as fabrics worth Rs 40 crore are gathering dust in the rented godowns, sealed by Surat Municipal Corporation (SMC) here. Around 60 godowns of the textile goods transporters located at Bhatena and Kinnari Talkies on Ring Road were sealed by the civic body for flouting rules and causing traffic jam here on Sunday. The civic body has laid down the condition to open the seals of the godowns. The transporters have been asked to pay a fine amount of Rs 26,000 per godown and submit a letter on the stamp paper stating that they will shift elsewhere before March 31. Textile traders associations and Federation of Surat Textile Traders Association (FOSTTA) have started contacting transporters to accept the terms laid down by the civic body in order to get the the fabric stock worth crores of rupees lying unattended to in the godowns released. FOSTTA member Jay Lal said, "We have asked the transporters to comply with the condition laid down by the civic body, so that the goods could be released and dispatched to their destinations. There are many traders who may suffer a huge loss if the godowns are not opened early."
Surat Textile Goods Transporters Association president Yuvraj Deshle said, "We are trying to convince the transporters to pay the fine amount and give the undertaking that they will close the godowns before March 31." The civic body had sealed the godowns in Bhatena area on Sunday alleging traffic jams and other traffic-related issues. Sources said the action was taken after municipal commissioner Milind Torawane was reportedly stuck in traffic when he was going to attend a public function.Over 400 trucks supply textile goods worth Rs 70 crore every day to various destinations across the country.
SOURCE: The Times of India
Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of cellulosic fibers. Fiber is one of the oldest businesses of the Aditya Birla Group that commenced in 1954. Birla Cellulose is a world leader in viscose staple fibre (VSF) with its production spread across six countries viz. Canada, Thailand, India, Indonesia, China and Laos. The Group independently fulfills India's entire VSF requirements. A move is being driven by Birla’s to create a one stop platform for fabric makers to reach out directly to women’s wear exporters and international brands. The move is an expansion of its ongoing LIVA Accredited Partners Forum (LAPF) initiative to aggregate the top talent in fabrics industry. Birla Cellulose would bring together LAPF partners and international brands at Delhi-NCR tomorrow, which is also the country's garment industry capital. The mega event is being held in collaboration with the Society of Noida Apparel Export Cluster, Manohar Samuel, Birla Cellulose President for Marketing and Business Development, said.
Around 40 LAPF partners would be attending the Noida conclave and showcase their innovative products to over 160 garment exporters, including global brands like Marks & Spencer, Macy's, and GAP, apart from domestic players like Shahi Exports, Orient Craft, Pearl Global and Richa & Co. Leading global buying-houses such as Triburg, Impulse, Li Fung, and Asmara, and domestic brands such as Biba and ITC are also attending the event, he said. The initiative is part of the USD 41 billion group's ongoing efforts to nurture various textile value chain partners in the garment export sector, amid struggling garment exports from the country, as the world markets see lots of cheap imports from China and other South Asian manufacturers. The Noida leg is the third one in the LAPF series. The first conclave was held in Jaipur in association with the Garment Exporters Association of Rajasthan last August, whereas Coimbatore witnessed the second LAPF conclave early December 2015.
Leading domestic brands like Pantaloons, Van Heusen, Allen Solly, People, Global Desi, Lifestyle, Melange, Shoppers Stop, Reliance Trends, Wills Lifestyle, Desi Belle Chemistry, 109F, Fusion Beats, FBB and Max use LIVA-branded fabric. Birla Cellulose enjoys 93 percent share of the global VSF industry. During the January-September 2015 period, of the overall garment exports of around USD 13.3 billion, women's wear market constitutes 80 percent. Out of this, man-made cellulose fibre-based garments constituted USD 1.85 billion. According to industry data in the same period, the total textile exports inched up 3.6 percent, while man-made cellulose-based garments exports increased by 34.5 per cent. To be the world leader in man-made cellulosic fiber, the Birla’s believes in value-creation for all its stakeholders, through innovative research and development initiatives which in-turn develop the market for man-made cellulosic fibers.
SOURCE: Yarns&Fibers
The government has rejected claims of textile mills that had sought subsidy against investments made under the Technology Upgradation Fund Scheme (TUFS) during the so-called black-out period, a senior official said, reports Banikinkar Pattanayak in New Delhi. The subsidy claims are to the tune of R1,000-1,200 crore, according to an industry estimate. The blackout period (from June 28, 2010, to April 27, 2011) refers to the time when the government had stopped fresh sanctions of projects under TUFS, seeking to change the contours of TUFS from an open-ended scheme to a closed-ended one, and launched the revised scheme only from April 2011. The allocation of a total of R17,822 crore approved by the Cabinet Committee on Economic Affairs (CCEA) last week for subsidy payments under both the old and the new schemes also didn’t make any provision for such claims, the official added. The CCEA last week decided to introduce the Amended Technology Upgradation Fund Scheme (ATUFS) and approved R12,671 crore for its “committed liabilities” under the old scheme. It provided another Rs 5,151 crore for subsidy payment under the new scheme (ATUFS) over a period of seven years, much less than the allocation seen in recent years. The government’s decision to not consider the black-out period cases as “committed liabilities” would further pressure textile mills, which have taken loans to fund expansion or upgrade and have been facing the brunt of a global slowdown, liquidity crunch and volatile raw material prices for at least three years now. “In all likelihood, we would challenge such a decision in the court,” said the owner of a textile mill to be affected by the move. He didn’t want to be named until a formal notification on the decision was out.
According to industry executives, in 2010, the textile commissioner sent a letter to banks, asking them not to make any fresh sanction of projects under the scheme. The next year, the government introduced the revised scheme, which took effect only prospectively, leaving the fate of the mills that had made investments during the interim period undecided. The textile industry argues that the scheme can’t be halted midway through a letter from the textile commissioner to banks, as a formal notification informing the government’s decision was not put out in the public domain. The finance ministry, under then finance minister Pranab Mukherjee, argued that since the mills knew about the decision of the government that the scheme had been stopped (through the commissioner’s letter to banks), they are not entitled to the subsidy, said another source. Mills, however, claimed they were unaware of any such decision of the government, as a letter from the commissioner to banks had neither the sanctity nor the clarity of a formal official notification. Under the old scheme, the government used to provide interest subsidy up to 6%, capital subsidy up to 30% in the form of a grant and support under the margin money scheme (another form of capital subsidy) for investments under TUFS, depending on the segment in which investments have been made. However, under ATUFS, there will be two broad categories: Apparel, garment and technical textiles segments will be provided 15% subsidy on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years; the remaining sub-sectors would be eligible for capital subsidy at a rate of 10%, subject to a ceiling of Rs 20 crore on similar lines. TUFS was introduced in 1999 to make available funds to the textile industry for upgrading technology at existing units as well as to set up new units with state-of-the-art facilities to improve viability and competitiveness in the domestic and international markets.
SOURCE: The Financial Express
Exports in this financial year may not exceed $270 billion, a senior commerce department official said on Thursday, making clear the dismal picture of the country's outbound merchandise shipments. According to an official, the figure was mentioned by commerce secretary Rita Teaotia at a meeting with the Confederation of Indian Industry ( CII) and the Federation of Indian Chambers of Commerce and Industry, ( Ficci) among other groupings. "Commerce secretary told us today (Thursday) that exports are not expected to exceed $270 billion and imports will be around $390 billion. The only silver lining is that the trade deficit will be in the $120-125 billion range," said the official, who attended the meeting. India's merchandise exports were $310.5 billion in 2014-15. The secretary's statement throws light on India's dismal export performance in the wake of slowing global demand. Only last month, the government had said: "There is no crisis in India on the export front and while there is a need for caution, there is no need for alarm." Exports have fallen over the past one year and in November, they shrank by a quarter from a year earlier to $20 billion, while imports declined 30% to almost $30 billion. Exporters believe the current situation is now worse than what they faced at the peak of the global financial crisis during 2008-09. Only seven of India's top 30 export goods, including carpets, jute products and tea, registered an increase in November, compared with nine goods in October. "Falling imports and exports have an impact on manufacturing and this is substantiated by the manufacturing data," said Ajay Sahai, director general of the Federation of Indian Export Organisations. "If this continues, then job losses may happen, particularly in those small units which are only in exports."
Manufacturing activity in the country fell into the contraction zone in December, ending a 25-month expansion run, according to the Nikkei India Manufacturing Purchasing Managers' Index. Sahai said the last time exports were less than $270 billion was in 2008-09, when outbound shipments were $210 billion. The secretary's comments came a day before the first meeting of the National Council for Trade Development and Promotion to discuss export strategies of states and streamline them with Foreign Trade Policy. As per the official, commerce minister Nirmala Sitharaman, who chaired the meeting, allayed fears about the Trans Pacific Partnership agreement and said the industry shouldn't panic because the accord will take many years to materialise. Sitharaman said the issues discussed included improving imports, the competitiveness of specific sectors and increasing foreign direct investment, besides the industry's concerns over foreign trade agreements. On concerns about FTAs affecting exports and market access, the official said the minister assured the industry associations that the government would do a better job of inking fresh trade pacts and reviewing existing ones than the previous regime.
SOURCE: The Economic Times
The 17th edition of global textile event Tex-Styles India will be organised by the India Trade Promotion Organization (ITPO) from 22 to 24 February 2016 in New Delhi. Tex-styles India will have exhibitors from all across the textile supply chain covering yarns to finished products. The display categories include apparel, outerwear and jackets, pants, skirts, one-piece dresses, blouses, shirts, tunics, cut and sewn garments, textile gifts, knits, shawls, yarn, fibres, threads, trimmings, embellishment and accessories. The event has witnessed an excellent turnout of business visitors, including 730 foreign visitors from 86 countries in its previous edition in 2010. The 3-day event is supported by major textile bodies like the Textile Committee, Ministry of Textiles, The Cotton Textile Export Promotion Council (TEXPROCIL), Synthetic and Rayon Export Promotion Council (SRTEPC), Powerloom Development and Export Promotion Council, Indian Silk Export Promotion Council, and Wool and Woollen Export Promotion Council.
SOURCE: Fibre2fashion
Representatives of industry raised concerns about the impact of various free-trade agreements (FTAs) on the country’s trade and sought more clarity on guidelines governing e-commerce in a meeting with commerce and industry minister Nirmala Sitharaman on Thursday. The important issues flagged by industry also include ways to promote start-ups, a surge in imports, competitiveness of some sectors and boosting investments, Sitharaman said after the meeting. India has already forged free trade pacts with countries like Japan, Singapore and South Korea, as well as Asean. Domestic industry has often complained that partner-nations have benefited more from such pacts than India, which has also contributed in good measures to trade deficit. India’s trade deficit touched a record $190 billion in 2012-13 before easing to $137 billion in 2014-15. Between April and November this fiscal, it stood at $88 billion, thanks to lower commodity prices. The minister is also learnt to have assured them to look at their demand on the abolition of the inverted duty structure in some sectors which are affecting manufacturing. She asked industry to improve competitiveness but sought to allay fears about the impact of the proposed Trans-Pacific Partnership (TPP) trade deal between the US and 11 others, said a source. She reiterated India’s increased focus on nations such as Cambodia, Laos, Myanmar and Vietnam. Senior ministry officials also apprised industry of topics such as Start-up India and Make in India.
The chambers suggested further easing of the foreign direct investment (FDI) regime and sought more clarity on e-commerce. CII president-designate Naushad Forbes said regulatory burden on the firms that are below a certain threshold, say with less than R5 crore capital, be removed to make the start-up space more attractive. Former Ficci president Harsh Pati Singhania said: “On start-ups, we suggested looking at several issues such as facilitating start-ups and closing of start-ups, funding and tax ambiguity for those who fund them.” Ficci also suggested that the government could consider permitting 100%FDI in multi-brand retail in non-food segments such as electronics, apparels and fresh food product. Ficci pitched for allowing FDI in multi-brand retail in B2C e-commerce in a phased manner, and “there could be a requirement to source significantly from within India”. Ficci also said the services provided by the marketplace model on a par with brick and mortar stores can be treated in a similar manner, since both serve consumers. “Thus, apt treatment should be made under the relevant Acts governing internal trade, like the Consumer Protection Act, 1986 and Drugs and Cosmetics Act,” it said.
SOURCE: The Financial Express
The World Bank has warned that failure to pass the goods and services tax (GST) Bill by Parliament could hamper the government’s ability to ramp up spending on infrastructure. “Failure to pass GST could hamper the government’s ability to preserve the status quo of fragmented domestic markets,” it added in its Global Economic Outlook report. The risks are mostly of domestic origin and mainly on the downside, the report said. The Constitution Amendment bill to roll out GST is stuck in the Rajya Sabha where the ruling NDA does not have a majority of its own. The bill is being opposed by Congress although many other opposition parties are on board. Congress is seeking three changes in the bill, including a constitutional cap on the GST rate, to support it.
In its report, the World Bank said that risks are mostly of domestic origin and mainly on the downside. "Slow progress on land reforms could add to investment delays, and private investment growth may be unable to build further momentum," the report said, adding that the financing of public-private partnerships also remains a challenge. It said although India has made good progress on reducing external vulnerabilities and strengthening the credibility of the macro policy framework, high levels of nonperforming loans in the banking sector, concentrated in construction, natural resource and infrastructure sectors, could impede a pickup in investment if left unaddressed. "There are also downside risks to growth in the near term from sub-par monsoon rainfall across most of India, and farm output growth may prove weaker than projected," it added.
SOURCE: The Business Standard
Weak growth among major emerging markets will weigh on global growth in 2016, but economic activity should still pick up modestly to a 2.9 per cent pace, from 2.4 per cent growth in 2015, as advanced economies gain speed, according to the World Bank's January 2016 Global Economic Prospects. Simultaneous weakness in most major emerging markets is a concern for achieving the goals of poverty reduction and shared prosperity because those countries have been powerful contributors to global growth for the past decade. Spillovers from major emerging markets will constrain growth in developing countries and pose a threat to hard-won gains in raising people out of poverty, the report warns. “More than 40 per cent of the world's poor live in the developing countries where growth slowed in 2015,” said World Bank Group President Jim Yong Kim. "Developing countries should focus on building resilience to a weaker economic environment and shielding the most vulnerable. The benefits from reforms to governance and business conditions are potentially large and could help offset the effects of slow growth in larger economies."
Global economic growth was less than expected in 2015, when falling commodity prices, flagging trade and capital flows, and episodes of financial volatility sapped economic activity. Firmer growth ahead will depend on continued momentum in high income countries, the stabilization of commodity prices, and China's gradual transition towards a more consumption and services-based growth model. Developing economies are forecast to expand by 4.8 per cent in 2016, less than expected earlier but up from a post-crisis low of 4.3 per cent in the year just ended. Growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016. The South Asia region, led by India, is projected to be a bright spot. The recently negotiated Trans-Pacific Partnership could provide a welcome boost to trade. “There is greater divergence in performance among emerging economies. Compared to six months ago, risks have increased, particularly those associated with the possibility of a disorderly slowdown in a major emerging economy,” said World Bank Group Vice President and Chief Economist Kaushik Basu. “A combination of fiscal and central bank policies can be helpful in mitigating these risks and supporting growth.”
Although unlikely, a faster-than-expected slowdown in large emerging economies could have global repercussions. Risks to the outlook also include financial stress around the US Federal Reserve tightening cycle and heightened geopolitical tensions. According to the report's Regional Outlook, South Asia is projected to be a bright spot in the outlook for emerging and developing economies, with growth speeding up to 7.3 per cent in 2016 from 7 per cent in the year just ended. The region is a net importer of oil and will benefit from lower global energy prices. At the same time, because of relatively low global integration, the region is shielded from growth fluctuations in other economies. For FY 2016-17, India, the dominant economy in the region, is projected to grow at a faster 7.8 per cent and growth in Pakistan (on a factor cost basis) is expected to accelerate to 4.5 per cent.
SOURCE: Fibre2fashion
The rupee on Thursday ended 0.14 per cent down at 66.93 a dollar, after China let the yuan depreciate against the US currency to protect its falling economy. China adjusted the central parity rate of the yuan by 0.5 per cent to 6.5646 against the dollar, allowing the currency to rise or fall by two per cent of the mid-point on each trading day. The rupee opened at 66.87 a dollar, against its previous close of 66.83, and hit a low of 66.97 a dollar before Reserve Bank of India's (RBI) intervention infused some strength in the currency. However, the currency came under selling pressure and ended at 66.93 a dollar.
Currency dealers said the movement in the rupee was sentiment-driven and the local currency can test the 67.50-level in the coming days before strengthening back. "Fundamental is in favour, but sentiment is negative and is aligned with other emerging markets currencies. Once the sentiment turns neutral, the focus will go back to fundamentals and then exporters will find value around the current level to sell their dollars," said Harihar Krishnamurthy, head of treasury at First Rand Bank. The dollar index, which measures the US currency's strength against global majors, was trading at 98.698, down 0.49 per cent from its previous close.
Against the dollar, on Thursday, the Taiwanese dollar fell 0.303 per cent, the Thai baht 0.099 per cent, the Philippine peso 0.117 per cent, and the South Korean won 0.267 per cent. However, the Japanese yen rose 0.757 per cent and the Indonesian rupiyah 0.115 per cent against the dollar. The fall in global markets, fuelled by China, is a sign of global distress and the rupee wouldn't be immune to it, currency dealers said. But a fall in oil prices was still favouring India. Even as foreign investors are bearish on emerging market equities and the Indian stock market has also seen some fall, they are bullish on Indian debt. Foreign investors on Monday bid aggressively to reserve their rights to buy freshly opened up bond limits. Against Rs 7,396 crore on offer, the investors bid for Rs 14,285 crore, paying as high as 82 basis points to reserve their rights for investment.
SOURCE: The Business Standard
The Reserve Bank of India (RBI) on Thursday relaxed three provisions for setting up of bank branches in International Financial Services Centres (IFSC). It has allowed IFSC Banking Units (IBUs) to open foreign currency current accounts of units operating in IFSCs and of non-resident institutional investors to facilitate their investment transactions. “It is again clarified that the IBUs cannot raise liabilities from retail customers including high net worth individuals,” the RBI said, adding that no cheque facility will be available for holders of current accounts in IBUs and all transactions through these accounts must be undertaken through bank transfers. IBUs can now raise short-term liabilities from banks and RBI will not prescribe any limit for raising short-term liabilities from banks.
SOURCE: The Financial Express
China’s Ministry of Industry and Information Technology (MIIT) is expected to release its development plan for the textile industry soon. According to sources it will be released in the first half of 2016 during the 13th Five-Year Plan period (2016-2020). China’s textile industry is expected to have a double-digit growth during the period and is likely to take various measures to improve the sluggish textile industry. According to a source within the China National Textile and Apparel Council, “China’s textile industry will focus on industrial transformation and upgrading and move towards a high-end direction. Given the rapid growth of the automotive industry, textiles for automobile use will embrace huge development in coming years.” According to experts, several developments that have taken place last year have been discussed, and were supposed to be reflected in the plan. The industry experts have presumed that these developments may have been considered by China’s Ministry of Industry and Information Technology (MIIT) while constituting the plan.
Earlier, the establishment of a recycling system for waste textile was underway and industry insiders reckoned that pilot and demonstration programmes for waste textile recycling will be launched during the 13th Five-Year Plan period (2016-2020), and that the government will give guidance to leading enterprises to set up parks and industrial bases for waste textile recycling. Similarly more and more textile manufacturing companies were supposed to move to Xinjiang Uygur Autonomous Region, located in the far west of China. Xinjiang was planned to become a major textile base by 2020 to facilitate exports to its western neighbours.
SOURCE: The CCF Group
The Trade Development Authority of Pakistan (TDAP) – the top government body responsible for promoting exports – expects to double Pakistan’s exports to Sri Lanka to $500 million from the current $267 million within a year. “Pakistan can easily double exports to Sri Lanka in a year’s time by effectively using the duty concessions under the Free Trade Agreement (FTA),” said TDAP Secretary Rabiya Javeri Agha in an interview with The Express Tribune. After the initial success, both countries failed to fully utilise the FTA that came into effect in 2005. As a result, bilateral trade remains range bound with an average of $350 million for the last six years. The trade balance is heavily in favour of Pakistan. Its exports to Sri Lanka amounted to $267 million while Sri Lankan exports to Pakistan were worth just $58 million, according to the Pakistan Bureau of Statistics data (2014-15). Pakistan plans to organise a single-country exhibition from January 15-17 in Colombo with an aim to boost exports. The TDAP has prioritised sectors such as textile, pharmaceutical, engineering goods and small and medium enterprises (SMEs) for the exhibition. “We have given priority to these sectors as we believe these are the areas where Pakistan has the potential to multiply its exports,” said Agha. “Our next target will be to increase exports to $1 billion but that obviously will take a few more years.”
Out of the total $267 million worth of exports to Sri Lanka in fiscal year 2014-15, $89 million or 33% constituted only cotton cloth – a traditional Pakistani export item. The second and third top exported items to Sri Lanka were cement ($37 million) and pharmaceuticals ($20 million). Other mentionable products were vegetables, rice, value-added textile, bed wear and other commodities. Pakistan has only utilised 29% of the FTA concessions so far, therefore, its target is to utilise the FTA first by exporting those products that have huge demand in Sri Lanka, explained Agha. “Sri Lanka mainly exports textile products like men’s T-shirts while it imports bed wear, trousers, silk and synthetic textile and other ready-made garments. Pakistan’s exports are slowly growing and it can further increase its share.” However, she added Pakistan needed to move from traditional cotton cloth to value-added garments to increase its exports. “Moreover, the engineering sector has a huge potential among top-25 products that Sri Lanka imports and Pakistan exports.”
In May 2015, the Pakistan Business Council (PBC), a not-for-profit research-based business advocacy forum that represents Pakistan’s 47 largest businesses, noted that Pakistan and Sri Lanka had the potential to increase bilateral trade over six times to $2.7 billion by just effectively utilising the FTA. Agreeing with the findings of the PBC report, Agha said both countries should establish connections between business communities that have been one of the top hindrances in the way of bilateral trade. The PBC report also noted the absence of single-country exhibitions in each other’s country. Pakistan’s exports to Sri Lanka grew from $154 million in 2004 to $316 million in 2013, an increase of 105% in nine years. Pakistan only accounted for 1.7% of total Sri Lankan imports from the world in 2013. On the other hand, Sri Lankan exports to Pakistan grew from $46 million to $63 million, an increase of just 37%. Sri Lanka had only 0.14% share in Pakistan’s imports from around the world in 2013, according to the PBC report.
SOURCE: The Tribune
The United States has threatened to suspend the duty-free status of South African agricultural products after the country was reported to have failed to resolve the outstanding issues necessary for it to meet President Barack Obama’s deadline and maintain all of its benefits under the AGOA. Therefore should South Africa end up losing its AGOA eligibility, the Swazi economy would be put in disadvantaged position. According to Southern African Research Foundation for Economic Development (SARFED) Regional Co-ordinator George Choongwa , Swaziland, besides the fact that it has been importing close to 80 percent of its consumables from South Africa, has also been contributing to that country’s expanded export market. However, in the event that South Africa is completely written off, it means Swaziland will have to reduce its production lines and this will subsequently result in many people losing their jobs amidst the existing economic challenge of high cost of living in the country. This will in turn greatly exacerbate the instability of this already volatile economy for a considerable period of time. Choongwa said that the AGOA trade network has also subsequently benefited southern African economic development initiatives such as Southern African Development Community (SADC) and Southern African Customs Union (SACU) of which Swaziland is a member of both blocs. Swaziland also lost its AGOA eligibility after the decision that came into effect from January 1, 2015 after a grace period of almost six months to meet the deadline for its AGOA review elapsed and the country failed to comply with laid out provisions.
According to the International Monetary Fund (IMF) Article IV report, 2015, Swaziland’s loss of eligibility for trade benefits under the African Growth Opportunity Act (AGOA) has adversely affected exports and employment. This has led to a drastic decline in textile exports to the US market, leading to layoffs, though its impacts on overall growth and exports are modest, given the relatively small size of the textile sector, and owing to increased exports to the South African market, as the weakening of the rand has made Swazi exports more competitive compared with dollar-priced exports from other countries. In order for the country to survive the looming crisis it should start considering developing alternative development and investment strategies.
SOURCE: Yarns&Fibers
Oil fell below $33 a barrel on Thursday for the first time since April 2004 as a fall in Chinese shares rattled investors already concerned by near-record production and massive stockpiles of unwanted crude and refined products. Oil prices have fallen by around 70 per cent since mid-2014, hurting oil companies and governments that rely on crude revenue. China let its yuan currency slip on Thursday, sending regional currencies and stock markets globally tumbling. The offshore yuan fell to its lowest since trading started in 2010. China's stock markets were suspended less than half an hour after opening on Thursday after sharp falls triggered a new circuit-breaking mechanism for a second time since its introduction this week. "Negative sentiment is hurting demand expectations, growth is easing in China and there is a spillover from the inventory build in (US) gasoline stocks from Wednesday and this is reflected in prices," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.
Brent fell more than five per cent to a low of $32.16 before paring some of its losses. It stood down 3.4 per cent at $33.07 at 1230 GMT. US crude futures hit a low of $32.10, their lowest since late 2003, before bouncing slightly to $32.72. Prices trimmed early losses, with violence in the West Asia and north Africa offering a measure of support for the market. A military training centre in the Libyan town of Zliten was hit by a truck bomb on Thursday, causing dozens of casualties, witnesses said, while dozens of air strikes hit the Yemeni capital Sanaa.
Oil slides below $33 to near 12-yr low as China turmoil rattles investors However, oil's rapid fall has made a prediction that Goldman Sachs made last year that crude could fall as low as $20 per barrel seem less outlandish than it then seemed. On Wednesday, US government data showed a 10.6-million-barrel surge in gasoline supplies, the biggest weekly build since 1993. Analysts said further builds in global inventories are possible, putting more pressure on prices. "All looks set for yet higher oil inventories on top of already record high levels," said Bjarne Schieldrop, chief commodities analyst at SEB in Oslo. "European crude and product inventories are close to full with Asian inventories moving closer to capacity during Q1 2016, with global residual surplus most likely having to be stored in the US, resulting in a potentially rapidly rising US oil inventories." Technical analysts also said there was little to stop the price tumbling further. "The 'bear-fest' has now begun," PVM technical analyst Robin Bieber said. "The trend is down and likely to accelerate lower - it is not advised to be long. There are targets lower and these are likely to be mere staging posts on a much bigger move south." Exacerbating the oil market woes is weakening demand, especially in Asia including China, which is seeing its slowest economic growth in a generation.
SOURCE: The Business Standard
China accelerated the devaluation of the yuan on Thursday, sending currencies across the region reeling and domestic stock markets tumbling, as investors feared the Asian giant was kicking off a virtual trade war against its competitors. Trading on China's stock markets were suspended for the rest of the day, for the second time this week, as a new circuit-breaking mechanism was tripped less than half an hour after the open. The People's Bank of China again surprised markets by setting the official midpoint rate on the currency at 6.5646 yuan per dollar, the lowest since March 2011. That was 0.5 percent weaker than the day before and the biggest daily drop since last August, when an abrupt near 2 percent devaluation of the currency also roiled markets. The impact was immediate as regional currencies went into a tailspin. The Australian dollar, often used as a liquid proxy for the yuan, fell half a U.S. cent in a blink. Shanghai stocks slid 7 percent to trigger the halt in trading, a repeat performance of Monday's sudden tumble. Japan's Nikkei shed 1.8 percent in sympathy. A sustained depreciation in the yuan puts pressure on other Asian countries to devalue their currencies to stay competitive with China's massive export machine. It also makes commodities denominated in U.S. dollars more expensive for Chinese buyers, which could hurt demand and thus further depress commodity prices in a vicious chain reaction.
SOURCE: The Times of India
