|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
940.11 |
USD/Ton |
-0.48% |
1/10/2016 |
|
VSF |
1877.18 |
USD/Ton |
-0.16% |
1/10/2016 |
|
ASF |
1891.58 |
USD/Ton |
0.00% |
1/10/2016 |
|
Polyester POY |
931.77 |
USD/Ton |
-0.24% |
1/10/2016 |
|
Nylon FDY |
2244.12 |
USD/Ton |
0.00% |
1/10/2016 |
|
40D Spandex |
4852.16 |
USD/Ton |
0.00% |
1/10/2016 |
|
Nylon DTY |
1005.31 |
USD/Ton |
0.00% |
1/10/2016 |
|
Viscose Long Filament |
2486.73 |
USD/Ton |
-0.61% |
1/10/2016 |
|
Polyester DTY |
5649.73 |
USD/Ton |
0.00% |
1/10/2016 |
|
Nylon POY |
1125.85 |
USD/Ton |
-0.34% |
1/10/2016 |
|
Acrylic Top 3D |
2084.91 |
USD/Ton |
-0.36% |
1/10/2016 |
|
Polyester FDY |
2073.54 |
USD/Ton |
0.00% |
1/10/2016 |
|
30S Spun Rayon Yarn |
2653.53 |
USD/Ton |
-0.57% |
1/10/2016 |
|
32S Polyester Yarn |
1516.3 |
USD/Ton |
0.00% |
1/10/2016 |
|
45S T/C Yarn |
2471.57 |
USD/Ton |
0.00% |
1/10/2016 |
|
45S Polyester Yarn |
1683.09 |
USD/Ton |
0.00% |
1/10/2016 |
|
T/C Yarn 65/35 32S |
2107.66 |
USD/Ton |
0.00% |
1/10/2016 |
|
40S Rayon Yarn |
2820.32 |
USD/Ton |
0.00% |
1/10/2016 |
|
T/R Yarn 65/35 32S |
2426.08 |
USD/Ton |
0.00% |
1/10/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0.00% |
1/10/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0.00% |
1/10/2016 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0.00% |
1/10/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0.00% |
1/10/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0.00% |
1/10/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15163 USD dtd.10/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Member textile mills of Indian Texpreneurs Federation (ITF) appealed to Prime Minister Narendra Modi to rationalise duty structure on Man Made Fibre (MMF), which they claimed can transform the textile industry towards higher growth rate. The appeal was made by 320 members of ITF in individual letters to Modi as part of wishlist for the coming Budget. They said the recent timely support from the government such as interest equalisation scheme, export incentive by MIES and Duty Draw Back, have helped the industry to improve export competitiveness and also increase market share across the globe. One long pending reform in order to transform the industry to higher growth rate was to rationalise the duty structure on MMF, ITF Secretary Prabhu Dhamodharan said. As the Indian textile industry has capacities and raw material availability and also variety of products and efficient manufacturing with sustainable best practices, it should show its strength by way of Yearly Mega Textile and Clothing Fair, Prabhu said. These two things, if announced in the upcoming Budget, will provide transformational change to Indian textile industry, ITF said.
SOURCE: The Money Control
The amended technology upgradation fund scheme (ATUFS) would further encourage investments into the textile sector but total benefits to companies may be lower, India Ratings and Research said. The Cabinet Committee of Economic Affairs had last week cleared the ATUFS for the textile sector which is witnessing sluggish investments. Ind-Ra said the amended scheme is likely to give impetus to modernisation and scaling up of existing production facilities and for green field investments. "The total benefit to textile companies is likely to reduce due to the change in the nature, quantum and target segment for benefits under the scheme (ATUFS)," Ind-Ra said in a statement. It said the subsidy would be largely capital based, a change from the earlier interest and capital base. "The garmenting segment will receive a higher subsidy as compared to the other segments, while the overall quantum of subsidy appears to have reduced," it added. Besides, by capping the subsidy amount, the benefits of the scheme have been channelised towards small to mid-sized enterprises instead of large companies. It said ATUFS stipulates only a capital subsidy, instead of the interest cum capital subsidy prevalent under the earlier version of TUFS. This could be a setback for processors and weavers which enjoyed both capital and interest subsidy. For weavers, the new policy is particularly unfavourable since it reduces the capital subsidy and it also withdraws the interest subsidy, Ind-Ra said.
As per the amended scheme, the subsidy amount is capped, which was not the case earlier. The capping of the subsidy implies that larger projects will be largely self-reliant, while providing higher support to small and medium enterprises. "This is a setback for the large sized projects as it will reduce the subsidy benefit substantially for fresh capex by the larger players.”While capping will help distribute the subsidy amongst a larger number of players, however, there is a possibility of break-up of larger projects into different entities to avail benefit under the scheme," Ind-Ra said. It said India has the largest spinning capacity globally but only accounts for four per cent of the total global garmenting exports, indicating the need to build capacity in the value added segments. Between April-November 2015, India exported textile and allied products worth USD 23.51 billion, which is 13.5 per cent of total exports. It has declined 2.5 per cent year-on-year.
SOURCE: The Economic Times
In a major decision for the textile industry, the BJP-led Maharashtra government has for the first time decided to provide subsidy to textile owners which would not be linked to bank loans. Subsidy for the textile industry was earlier credit-linked and only those who availed a bank loan were eligible for getting the government largesse. A large chunk of powerloom owners in the state are Muslims who had been demanding this delinking as they felt usury and bank loans are against their religion. This had forced a large number of weavers to refrain from modernising their units. In a policy decision taken last week, the state government has decided to provide capital subsidy which would be delinked from bank loans. Spinning mills, cotton ginning, processing and printing units would be given 35% capital subsidy; technical textiles and composite units 30%; and power loom and other textile-related units 25%. Power loom owners from the cotton belts of north Maharasthra, Marathwada and Vidarbha would be eligible for a further 10% capital subsidy. “This is a welcome decision by the government. This had been a long-standing demand of loom owners. Earlier, this proposal had gone till the Centre but no action was taken. This will majorly boost the industry,” Aleem Faizee, Founder-Secretary of Malegaon Industries & Manufacturers Association (MIMA), said. The 24 lakh power looms across the country are part of the textile industry—India’s second largest employment sector directly employing over 35 million people. Maharashtra has a dominating presence in the weaving sector. Of the 24 lakhs powerlooms in the country, nearly half are in Maharashtra with Bhiwandi (8 lakh), Malegaon (2 lakh) and Dhule (10,000), accounting for over 80% of Maharashtra’s power looms and over 40% of India’s power looms. Almost 90% of their owners and workers are Muslims.
Over the past 14 years, the Centre has spent a whopping Rs 75,000 crore under various phases of the Textile Upgradation Fund Scheme (TUFS) to bring India’s textile industry on par with global standards. The scheme was meant to provide subsidy for modernisation and technology upgradation of all sectors in this industry, including spinning, weaving and garments. The state also provides a certain component as subsidy, but almost all government aid is linked to the clause that a power loom owner needs to take a bank loan. Interestingly, the textile ministry itself has acknowledged that its policy could not ensure the desired effect on the power loom sector. “The off-take of the powerloom sector under TUFS has been negligible, less than two per cent. The existing looms are obsolete and high on energy consumption and most units are small with four to eight looms,” a policy document of the ministry states. “The entire subsidy under the scheme is tied to a bank loan. It means you will get the benefit of the subsidy only when you take a loan. Islamic law does not allow a Muslim to take or pay interest. For this reason, many workers have not taken up the scheme,” Khalique Momin, a textile unit owner from Bhiwandi said.
SOURCE: The Indian Express
The subsidy claims made by textile mills for investments made under the Technology Upgradation Fund Scheme (TUFS) during the black-out period (from June 28, 2010, to April 27, 2011) have been rejected by the Indian Government. Claims worth approx. Rs. 1,000 to Rs. 1,200 crore were made during the black-out period, which was referred to as the period when no fresh projects were being sanctioned under TUFS, as the scheme was being converted into a close-ended one. The recent allocation of Rs. 17,822 crore, approved by the Cabinet Committee on Economic Affairs (CCEA), for subsidy payments under the old as well as new schemes did not have any provision for such claims either. The decision of not considering the black-out period cases would further pressurize the Indian textile mills that have taken loans to fund expansion or upgrade. The textile mills affected expressed distress and argued that the scheme could not be halted in between without a formal notification from the Government. However, the then Finance Ministry argued that the textile mills knew about the decision of the Government and that they were not entitled to subsidy. Introduced in 1999, TUFS was aimed at making funds available to the textile industry for upgrading technology at existing units as well as help them setting up new units with state-of-the-art facilities to improve their competitiveness in the domestic and global markets.
SOURCE: The CCF Group
Handlooms, Textiles and Handicrafts Minister Snehangini Chhuria at a review meeting in Sambalpur where many senior officials of the department and district administration were present has directed officials to come out with a Rs 500-crore strategic plan for the betterment of the weavers’ community in Odhisha. According to the Minister, weaving are leaving their traditional profession for various reasons but particularly due to lack of financial support. Hence, the ministry need to take proactive measures to deal with the situation and also to ensure that weavers are not quitting the profession for which Odisha has earned name and fame both nationally and globally. The officials are asked to prepare a report highlighting the problems of the weavers of the state and western Odisha in particular in their day to day life, directing the officials to prepare a plan ensuring holistic development of the weavers’ community in the State. The Minister said that the plan need to be chalked out in such a way that it have to attract the weavers with new idea, financial assistance and better marketing facility.
SOURCE: Yarns&Fibers
Faster refund of state taxes, improved rail-road connectivity, land and environment clearances were among the major issues discussed at a meeting of central and state governments and industry in quest of measures to arrest persistent fall in exports. Besides, the first meeting of the Council for Trade Development and Promotion chaired by Commerce and Industry Minister Nirmala Sitharaman, also deliberated on quality and standards of products, labour issues and the Assistance to States for Infrastructure Development of Exports (ASIDE scheme). Sitharaman said all the state ministers and representatives present in the meeting raised the issue of ASIDE scheme, which is now transferred to states. They suggested that the scheme should be run by the central government only. "ASIDE is something which all states were speaking in one voice. They said you have withdrawn that but we have not actually withdrawn. We have under the 14th Finance Commission's recommendations given away ASIDE funds to the states," she said. She said that while recognising that fact, states still wanted the Centre to deal with export promotion infrastructure. "So most of them have said ... Commerce Ministry should still continue like the old way in which ASIDE was utilised for creating industrial infrastructure for export promotion. So that was one common grievance and suggestion," she added.
Further, the minister suggested the states to hold a bimonthly meeting with exporters to understand their issues and help the country in boosting the shipments. On the declining exports, she said, "I am not saying that the story is all Hunky-dory, its all bed of roses. There is lot of scope for us to improve". She added that exports are concern for some sectors but there are sectors which even in this adverse environment are still holding out well. "For the first meeting of the council, I wished there were more ministers," Sitharaman said. About 10 state ministers including Karnataka's attended the meeting. "The meeting was very productive. The sense was that we can do better but there was no sense that Oh My God, what is happening. There was a sense that we have the capacity, there are landlocked states which might need a bit of transport subsidy, there may be states which have a peculiar need," she old reporters after the meeting. The council, set up last year, provides a platform to state governments, UTs for articulating their perspective on trade policy to help them develop and pursue export strategies in line with national foreign trade policy.
SOURCE: The Economic Times
Notwithstanding the continuous fall in exports, the government has said that India's competitiveness has not reduced and that the cause of declining exports is falling commodity prices and currency fluctuations. "Fall of exports is because of commodity prices, currency fluctuation, not because your competency is down. Currency volatility all over the world is a matter of worry, it is a cause for concern because your exports in terms of quantity in many sectors are remaining the same but you are not earning out of it because of the volatility in the currency," Nirmala Sitharaman said after the first meeting of the Council of Trade Development and Promotion here. Her statement comes a day after commerce secretary Rita Teaotia was reported to have said that India's exports in this financial year may not exceed $270 billion throwing light on the dismal export scenario on which the government had last month commented that "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 situation is now worse than what they faced at the peak of the global financial crisis in 2008-09.
YUAN DEVALUATION
Sitharaman voiced her concern on the biggest fall in the yuan in five months, which pressured regional currencies and sent global stock markets tumbling. "The depreciation of the Yuan is definitely going to make imported goods (from China) cheaper... the fact is my deficit with China will (also) grow," she said. While the government would not rush into any action, it had discussed likely steps it could take to counter an expected flood of cheap steel imports with domestic producers and the finance ministry, she said.
SOURCE: The Economic Times
India on Friday called the slide in China's yuan a "worrying" development for its flagging exports and said it was discussing possible measures to deal with a likely surge in imports from its northern neighbour. Trade Minister Nirmala Sitharaman said the yuan's fall would worsen India's trade deficit with China. While the government would not rush into any action, it had discussed likely steps it could take to counter an expected flood of cheap steel imports with domestic producers and the finance ministry, she said. The comments came a day after China allowed the biggest fall in the yuan in five months, pressuring regional currencies and sending global stock markets tumbling as investors feared it would trigger competitive devaluations. "My deficit with China will widen," she told reporters. India's trade deficit with China stood at about $27 billion between April-September last year compared with nearly $49 billion in the fiscal year ending in March 2015.
SOURCE: The Economic Times
India will undertake a “stock-taking exercise” for a free trade agreement with the EU later this month, after a gap of three years, and pitch for greater market access in services once the stage is set for further negotiations, a senior commerce ministry official said. Before engaging in serious formal talks on the EU-India Bilateral Trade and Investment Agreement (BTIA), a “stock-taking exercise” will be undertaken, as some contours of the earlier negotiations have to be altered, keeping in view the changes that have taken place since the talks were stuck in 2013, Arvind Mehta, additional secretary in the commerce ministry, told FE. For instance, India has further liberalised many sectors for foreign investments, including some of the areas where the EU had interests, over the past three years. For instance, the FDI cap in insurance has been raised to 49% from 26% and 100% FDI is allowed in telecoms. In private sector banking, full fungibility of foreign investment is now permitted and accordingly FIIs/FPIs/QFIs can now invest up to a sectoral limit of 74%, with certain conditions. While India feels the flexibilities shown by it in further opening up to foreign investments should be considered positively by the EU, it also expects some reciprocal measures by the 28-member bloc to address its concerns, especially on data privacy and market access in the services sector. However, there will be no binding commitments until India’s core concerns are addressed suitably, Mehta said. The BTIA negotiations cover boosting goods and services trade as well as investment. India seeks a data secure status because the high compliance cost with EU’s data protection laws will hit small and medium enterprises (SMEs) of India and make them un-competitive. Mehta said India will be betting for a trade facilitation agreement (TFA) in services at the World Trade Organisation — similar to the TFA in goods — that would focus on liberalised visa regime, long term visas for business community and freer movement of professionals for the greater benefit of both India and the world. India will pursue it vigorously in negotiations for the BTIA as well as Regional Comprehensive Economic Partnership. RCEP is a proposed FTA between the Asean members and the six states with which it has forged FTAs, including India.
India is keen on services, as they account for over a half of its GDP. The EU is India’s largest trade partner, accounting for close to 15% of trade in both goods and services. It is a major market for Indian textiles, garments, pharmaceuticals, gems and jewellery and IT. The EU is also the largest source of FDI inflows to India, accounting for over one-fourth of the total. However, India ranks only ninth among the EU’s top trade partners, making up for just about 2% of its total merchandise goods in 2014. BTIA talks were to be revived last year, but the EU’s surprise ban on 700 products of GVK shocked India, which then called off the negotiations. Prior to that, the negotiations centred around India’s demand for. The EU is interested in further liberalisation of FDI in multi-brand retail and insurance, and closed sectors like accountancy and legal services. The underutilised private banking space in India is another draw. India’s intellectual property regime (IPR), which is unlikely to allow ever-greening of patents, remains a concern for European pharma majors. Moreover, the EU has been seeking a cut in the high import duties on assembled vehicles and wines and spirits. In case of assembled vehicles, the import duties remain in the range of 60-75%.
SOURCE: The Financial Express
The rupee was trading lower by 29 paise at 66.92 against the American currency in early trade on MOnday at the Interbank Foreign Exchange market as the dollar strengthened overseas. Forex dealers said increased demand for the US currency from importers and dollar’s gains against other currencies overseas put pressure on the rupee. On Friday, the rupee had gained 30 paise to end at 66.63 against the American currency following a heavy dollar selling by banks and exporters. Meanwhile, the benchmark BSE Sensex fell by 335.43 points, or 1.34 per cent, to 24,598.90 in opening trade today.
SOURCE: The Financial Express
Government is organising a national conclave on skill development in Mumbai on January 12, to bring all the stakeholders, including representatives from various government departments and industry on the same platform. “Union Government is organising a National Industry Conclave on Skills on January 12, 2016 at Mumbai… The conclave is aimed at ensuring that the industry joins the Skill India Mission in a big way. It is a meeting of industry leaders who are the stakeholders in the skill ecosystem, to conceive and partner towards realising the vision of Skill India,” an official statement said. Minister of State for Skill Development and Parliamentary Affairs Rajiv Pratap Rudy said: “The conclave will be an annual feature to review the work done across sectors and regions. This will be a good platform to bring about synergies and convergence across all and contribute collectively to the success of Skill India.” Public Private Partnership in Skill Development, Skill imperative for industrial growth, Improving Livelihood of Rural India through Skill India are some of the topics that will be discussed during the day long conclave.
Government representatives include Maharashtra Chief Minister Devendra Fadnavis, Minister of Urban Development and Parliamentary Affairs Venkaiah Naidu, Defence Minister Manohar Parrikar, Minister of Road Transport & Highway and Shipping Nitin Gadkari and Minister of State for Finance Jayant Sinha. The conclave is also expected to bring together industry captains and professionals to deliberate on important issues related to Skill Development in India. “Industry leaders from corporates like Tata, TCS, Reliance Communication, Bharti Airtel, JSW Steel, Reliance Industries, GVK, GMR, Essar and more will also take part at the conference,” statement added.
SOURCE: The Financial Express
The Finance Ministry will exempt payments to Iran from hefty withholding tax if the Persian Gulf nation were to receive full payment for oil it sells to India in rupees. With sanctions against Tehran blocking payment channels, 45% of the oil India imports from Iran are settled in rupees since January 2012. The remaining gets accumulated and cleared as and when easing of sanctions opens payment window. In June last year, Iran agreed to receiving all of the payment in rupees but wanted waiver of 40% withholding tax. Finance Ministry is agreeable to such waiver, a senior government official said. "The Budget for 2012-13 had exempted Indian refiners from paying withholding tax when paying 45% of dues in rupees to Iran. The same benefit will be extended to 100% payments made in rupees," he said. As of now, Indian refiners owe Iran $5.8 billion.
Cabinet approval for exempting payments to National Iranian Oil Co (NIOC) would be sought, he said. But Iran may no longer be keen on taking payments in rupee when the option of getting payment in hard tradable currencies like US dollar and Euro is on the verge of opening. Oil and banking sanctions against Iran may be lifted as early as this month following a historic deal the Persian Gulf nation reached with the US and other western powers in July last year. Sanctions are to be lifted on Iran agreeing to limit its nuclear programme. Sources said Iran was using the rupee payment it received since January 2012 to pay for imports from India. It had planned to use the full payment received in rupee for the same purpose. Rupee is not freely traded on international markets.
In March 2012, the Finance Ministry had issued a notification exempting 45% of payments made to Iran in rupee from any local tax. The notification, under Section 10 (48) of the Income Tax Act, related with tax exemptions in regard to foreign oil companies selling crude oil in India has notified the National Iranian Oil Company has as a "foreign company". This followed fears that the money paid to NIOC may be considered as income generated by Iranian firm in the country and liable to be taxed. Iran is India's 5th largest crude oil supplier, selling 6.53 million tons of oil in the first half of 2015-16. Iranian supplies made up for 6.6% of the 99.36 million tons of oil India imported during April-September. Iran was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 and made up for 12% of India's oil needs. But sanctions relegated it to 7th spot last fiscal with supplies of 10.95 million tons. This year it has regained some lost ground.
SOURCE: The Business Standard
India will be a “star performer” among emerging market economies and is expected to clock 7.7 per cent growth in 2016, outshining China for the second consecutive year, a PwC report says. According to the global consultancy firm, of the emerging economies, only India is expected to grow faster in 2016 than its long-term average growth rate. Among the seven emerging economies (China, India, Brazil, Mexico, Russia, Indonesia and Turkey), India will be a “star performer”, while the Brazilian and Russian economies will contract and China will slow down, the report said. “For the second year in a row, we expect India to grow faster than China, expanding by around 7.7 per cent in real terms,” it said. While the G7 economies (the US, the UK, Japan, Germany, France, Italy and Canada) are expected to grow at fastest rate since 2010, led by the first two, the E7 emerging economies will grow slower than their trend rate (but still faster than the G7). “We expect the US recovery to switch into a higher gear in 2016, while the UK will also enjoy continued consumer-led growth. We should also see at least the beginning of the end of the Eurozone crisis. The once-mighty BRICs, however, will have another tough year in 2016, with the notable exception of India,” PwC UK Chief Economist John Hawksworth said.
According to PwC, the Chinese GDP growth will ease to 6.5 per cent in 2016, as growth in manufacturing and exports will continue to slow gradually. The report further noted that India will continue to reap the benefits of recent reforms. “The cut in the policy rate by the Reserve Bank of India from 8 per cent to 6.75 per cent last year will help support consumption and investment growth this year,” PwC said, adding that FDI in the country’s “underdeveloped” manufacturing sector should also pick up as foreign investment caps have mostly been lifted. Geopolitics, rather than economics, will be at the top of policymakers’ agendas, the report noted. The migrant crisis in Europe, the response of the international community to the crisis in the Middle East and the referendum on the fate of the UK’s membership of the European Union, will be the three major geopolitical issues to dominate the news headlines. Meanwhile, commodity prices are expected to remain lower for longer. “This will be good news for most businesses, households and policymakers in commodity importing economies, but a challenge for countries that rely heavily on commodity exports,” the PwC report added.
SOURCE: The Financial Express
Prime Minister Narendra Modi will inaugurate the 'Make in India' week in Mumbai on February 13, being jointly organised by the Centre and the Maharashtra government. The event will showcase India's potential under the theme of innovation, design and sustainability across focus sectors. Maharashtra is the host state, while CII is partner for the proposed event. Chief Minister Devendra Fadnavis today formally launched its logo and released the week-long programme. The Make In India week will feature over 100,000 sq mt of exhibition and conference, 10 exhibition halls, over 500 exhibitors, 42 seminars and panel discussion and Maharashtra pavillion. Investors from India and abroad and global CEOs will participate in seminars on selected sectors including auto and auto components, defence and aerospace, food processing, construction equipment, infrastructure, chemicals and petrochemicals, electronics and IT, pharmaceuticals, textiles and industrial equipment and manufacturing. Maharashtra, Gujarat, Harayana, Chattisgarh and Jharkhand will separately hold an investors' summit.
Additionally, a special session will be held on global brand building. An interactive session is being organised on empowering through design in roads and highways, auto and auto components, shipping and ports, space technology and construction, equipment material and technology. Besides, a specialised exhibition ''Make In India Centre" will take place at the MMRDA grounds in the sprawling Bandra Kurla Complex to focus on success stories and showcase the changing Indian manufacturing landscape. Fadnavis said the choice of Mumbai as the host city is a testament to its continued stature as India's commercial capital.
SOURCE: The Business Standard
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$ 30.02 per barrel (bbl) on 08.01.2016. This was higher than the price of US$ 29.24 per bbl on previous publishing day of 07.01.2016.
In rupee terms, the price of Indian Basket increased to Rs 2001.28 per bbl on 08.01.2016 as compared to Rs 1956.65 per bbl on 07.01.2016. Rupee closed stronger at Rs 66.67 per US$ on 08.01.2016 as against Rs 66.91 per US$ on 07.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 08, 2016 (Previous trading day i.e. 07.01.2016) |
Pricing Fortnight for 01.01.2016 (Dec 12 to Dec 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
30.02 (29.24) |
33.58 |
|
(Rs/bbl |
2001.28 (1956.65) |
2234.08 |
|
|
Exchange Rate |
(Rs/$) |
66.67 (66.91) |
66.53 |
SOURCE: PIB
The textile industry will soon close down if the government continues to delay extending the clothing manufacturers rebate by another 12 months, industry officials have warned. Finance Minister Patrick Chinamasa, in his 2015 budget statement, extended clothing manufacturers’ rebate facility by 12 months in order to help capacitate the sector. Industry officials say the sector needs the facility to be extended again by a similar period. The clothing manufacturing sector now only employs about 8,000 workers compared to more than 40,000 workers during its peak period. The sector currently operates at below 30% capacity.
In an interview with NewZimbabwe.com National Union of the Clothing Industry secretary general, Joseph Tanyanyiwa, said companies in the clothing sector will also soon send home more workers as the industry struggles with various challenges. “Some companies have already failed to resume operations after the festive season due to a number of factors,” he said “Day in, and day out, people are talking about secondhand clothes bringing the sector to its knees. “There are unscrupulous companies and individuals who escape duty after they smuggle clothes into the country and label them as if they have been locally seamed. “Our borders are very porous and aided by corrupt customs and immigration officials.” Tanyanyiwa said the government should also speed up introduction of an import policy that would allow the sector to import textile materials duty free. “Any delay would worsen the situation and soon the remaining companies will soon close shop,” he said. “As the National Union of Clothing Industry, we want the window for clothing and textile employers to continue to import duty free or else we risk the danger of the industry shutting down again.” According to Tanyanyiwa, more than 200 clothing manufacturing companies have since stopped operations.
SOURCE: The New Zimbabwe
Irish market research firm Research and Markets in its report has mentioned that Global Textile Machinery Market will grow at an expected CAGR of 11 per cent in 2016-20. Growth in the market will be driven by the soaring demand for nonwoven fabric which is a web structure of the individual fibres that are neither woven nor knitted. The textile manufacturing process comprises web formation, web bonding, and finishing, thus require textile machinery at each and every step of production. Another factor which will boost sales of textile machinery in the global market is the demand for textiles from industries like automotive, construction among others. These technical textiles have increased conductivity, filtration, flexibility, lightweight, reinforcement, resistance, and strength. The manufacturing of these textiles needs precision, compelling OEMs to design machines that are effective in terms of precision operation and ensure low wastage of textile, the analyst mentions. The Market researcher has also projected that Asian region will account for a market share of more than 90 per cent of the total market share by 2020. The forecasts for growth in this market are driven by the domestic demand and exports to countries like the US and Europe. Additionally, the upsurge in manufacturing activities and infrastructure developments across the globe will lead to extensive growth of textile machinery market in the coming years.
SOURCE: The CCF Group
Political uncertainties, security concerns and worries about the economic slowdown in China and the rest of the world have dominated headlines this week. The World Bank also predicted India would outpace the Chinese dragon in the next three years. The first week of this year has not started very well for the global economy or India. Political uncertainties, security concerns and worries about the economic slowdown in China and the rest of the world have dominated headlines. The stock market crash in China reverberated through all other equity markets. China suspended trading on Monday and pumped in a lot of money to contain the damage and reworked some rules. However, after a brief respite, the prices again fell sharply and trading had to be suspended on Thursday. China's manufacturing sector growth is weak, which means its economy might not surge enough to boost global commodity prices. On Thursday, its currency depreciated by 0.6 per cent in the onshore markets but in the offshore ones, the yuan fell 8.5 per cent. Further, the depreciation can push India and other developing economies to act likewise. In any case, the countries dependent on export of commodities or intermediates to China seem headed for a year of low growth.
Saudi Arabia executed a well-known cleric and 46 others on charges of terrorism. Iran reacted strongly and, in turn, Saudi Arabia and a few other countries snapped diplomatic ties with it. The Saudi-Iran conflict sets the stage for a deeper Shia-Sunni divide in a region already torn by civil wars and terrorism. Unless the tensions are contained, the destabilised region can have wider impact on oil prices, growth prospects and security concerns. North Korea conducted a nuclear test, sparking a global sell-off in equity markets. It is difficult to gauge the economic impact of that country's enhanced nuclear capabilities but it heightened nuclear proliferation worries, partly reflected in Wednesday's panic in global equity markets. The World Bank cut its global economic growth forecast for the year.
At home, the terrorist attack on military targets in Pathankot cast a shadow on the Indo-Pak talks scheduled in mid-January. The government initially appeared to stay the course but later veered toward putting the talks on hold. Even if these resume, the expectation of any quick breakthrough on critical issues has significantly receded and any further liberalisation of trade or economic cooperation with Pakistan may not happen soon. On Thursday morning, the benchmark Sensex slipped below 25,000 and the rupee inched closer to 67 a dollar. To add to the gloom, an earthquake of fair intensity hit parts of our country in the northeast and the chief minister of the most sensitive border state passed away. Looking for silver linings, the World Bank projected that India would grow by 7.8 per cent in 2016 and 7.9 per cent annually in the next two years. The Bank also predicted that India would be the fastest-growing economy in the world in the next three years, outpacing China. Prime Minister Narendra Modi set up eight groups of secretaries to come up with ideas to drive growth. Crude oil prices fell below $33 a barrel. Overall, exporters and domestic producers can expect one more difficult year. Hopes rest on better performance in developed countries, increased spending by the government in infrastructure projects that can boost productivity, further reform of tax laws and better agriculture output this year. The circumstances warrant a growth-oriented Budget.
SOURCE: The Business Standard
Crude oil prices fell over 2 per cent on Monday as China’s economic slowdown dented the outlook for demand and traders are placing record bets on even lower prices as they increasingly lose faith in a significant market recovery. Global benchmark Brent was down 89 cents, almost over 2.6 per cent, to $32.66 per barrel at 0319 GMT, and US West Texas Intermediate (WTI) crude was down about 2.3 per cent to $32.39.
Goldman Sachs estimates
Monday’s decline adds to last week’s more than 10 per cent drop in both Brent and WTI prices to start the year. Traders and investors have wondered how long and deep the slide may go with Goldman Sachs saying oil could hit $20 a barrel. Goldman analysts had further said in a note on Friday that sustained lower prices are needed to in the first quarter “so producers will move budgets down to reflect $40 a barrel oil for 2016’’.
China slowdown
Other oil market analysts are pointing to China’s slowdown, which saw a slide in the yuan and two emergency suspensions in stock trading markets last week, as the main reasons for lower oil and commodity prices. “China macro trends to remain in the driving seat for commodities,’’ Singapore Exchange (SGX) said on Monday in its 2016 commodity outlook. “With a slowing domestic economy, mounting deflationary pressures, rising capital outflows, growing credit risks, a continued nationwide anti-corruption drive and rising US interest rates, there is perhaps plenty of scope for volatility to stage a return,’’ SGX said.
Net-short positions
Oil market speculators have increased their net-short positions, which would profit from prices falling lower, to a record high in the week to last Tuesday, in a sign that they are losing faith in a price rise anytime soon, a weekly report from a US government agency that tracks commodity markets activity showed on Friday. At the same time, speculators have cut their net-long positions to fewer than 50,000 contracts, or the equivalent of 50 million barrels, according to the trading data. Longs are bets on higher prices, while shorts are wagers that the market will fall. The net position squares off the two. Oil prices have already fallen over 70 per cent since the downturn began in mid-2014 as soaring global production sees hundreds of thousands of barrels of crude produced every day without a buyer, leaving storage tanks filled to the brim.
Adding to overproduction is slowing demand, especially in China where growth has dropped to its lowest rate in a generation and experts see few signs of improvement for the next few years. “Chinese oil data are finally starting to reflect weak economic activity. Implied oil demand in China contracted 4.9 per cent (537.3 thousand barrels per day) month-on-month and 2.0 per cent (216.7 thousand barrels per day) year-on-year in November, the first decline since July 2014,’’ Barclays bank said in a note late on Friday. “We expect further compression in growth rates this year, with an average of 300 thousand barrels per day (2.7 per cent),’’ it added.
SOURCE: The Hindu Business Line
