|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
932.73 |
USD/Ton |
-0.16% |
1/17/2016 |
|
VSF |
1833.55 |
USD/Ton |
0.00% |
1/17/2016 |
|
ASF |
1895.08 |
USD/Ton |
0.00% |
1/17/2016 |
|
Polyester POY |
934.25 |
USD/Ton |
0.00% |
1/17/2016 |
|
Nylon FDY |
2217.89 |
USD/Ton |
0.00% |
1/17/2016 |
|
40D Spandex |
4785.17 |
USD/Ton |
0.00% |
1/17/2016 |
|
Nylon DTY |
2460.94 |
USD/Ton |
0.00% |
1/17/2016 |
|
Viscose Long Filament |
5660.17 |
USD/Ton |
0.00% |
1/17/2016 |
|
Polyester DTY |
1127.93 |
USD/Ton |
0.00% |
1/17/2016 |
|
Nylon POY |
2065.98 |
USD/Ton |
-0.73% |
1/17/2016 |
|
Acrylic Top 3D |
2077.37 |
USD/Ton |
0.00% |
1/17/2016 |
|
Polyester FDY |
1007.16 |
USD/Ton |
0.00% |
1/17/2016 |
|
30S Spun Rayon Yarn |
2643.23 |
USD/Ton |
0.00% |
1/17/2016 |
|
32S Polyester Yarn |
1519.10 |
USD/Ton |
0.00% |
1/17/2016 |
|
45S T/C Yarn |
2460.94 |
USD/Ton |
0.00% |
1/17/2016 |
|
45S Polyester Yarn |
1686.20 |
USD/Ton |
0.00% |
1/17/2016 |
|
T/C Yarn 65/35 32S |
2111.55 |
USD/Ton |
0.00% |
1/17/2016 |
|
40S Rayon Yarn |
2795.14 |
USD/Ton |
-0.54% |
1/17/2016 |
|
T/R Yarn 65/35 32S |
2415.37 |
USD/Ton |
0.00% |
1/17/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0.00% |
1/17/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0.00% |
1/17/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0.00% |
1/17/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0.00% |
1/17/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0.00% |
1/17/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15191 USD dtd.17/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Cabinet Committee on Economic Affairs (CCEA) decision to introduce the Amended Technology Upgradation Fund Scheme (ATUFS) and approved R12,671 crore for its “committed liabilities” under the old scheme completely rejects 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. The allocation of a total of R17,822 crore approved by the 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 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. 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. The owner of a textile mill to be affected by the move said that in all likelihood they would challenge such a decision in the court. 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.
SOURCE: Yarns&Fibers
Union Textile Minister Santoshkumar Gangwar will be the chief guest at a function 'Make India-Textile Industry Strategies to Growth', organised here on January 21. The industry captains will discuss ways and means to make the textile industry achieve Make in India vision through Collaborative Approach and wanted the Centre to guide the process, Indian Texpreneuers Federeation Secretary Prabhu Dhamodharan, the organisers, said. Tamil Nadu textile industry, which is 127 years old, is focusing on manufacturing excellence, diversifying new markets, highest quality standards and new product innovation, he said.
On industry status, Prabhu said Tamil Nadu is having one-third of Indian textile industry, contributing 60 per cent to total yarn exports, having 47.5 per cent of cotton spinning capacity and 30 per cent of total cotton consumption in India. Moreover, its earns Rs 75,000 crore foreign exchange and Rs 30,000 crore value added garments and home textile exports per year, Prabhu said.
SOURCE: The Business Standard
The government last week notified the Amended Technology Upgradation Fund Scheme (A-TUFS) for textile sector but did not mention about the committed liabilities during 'blackout and leftout' period in 2010-11. Union Minister Santosh Gangwar said that the government is making efforts towards resolving the issue of settlement of committed liabilities of around Rs 3,000 crore arising out of 'blackout and leftout' period cases under technology upgrade scheme for textile industry. Government has brought A-TUFS in place of the Revised Restructured TUFS (RRTUFS) for technology upgradation of textiles industry, a move expected to boost job creation and exports in the sector.
During 2010-11, the RRTUFS was suspended for 10 months but eventually restored as a closed-ended scheme and restricted to future sanctions and committed liabilities reported by banks for sanctions already issued. The closed ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions. So those who had invested in those 10 months in the so called blackout period of 2010-11 were leftout and are still awaiting a decision on the eligibility of TUF scheme on the black out period.
Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said that the industry is happy that the government has recognized the twin potential of the textile sector to generate maximum employment and economic development. However, they hope that the government will take care of the committed liabilities in coming days. He pegged the quantum of liabilities under the blackout and left-out period cases at around Rs 3,000 crore. The amended scheme would give a boost to Make in India initiatives in the sector and is expected to attract investment to the tune of Rs 1 lakh crore and create over 30 lakh jobs.
Under the new scheme, there will be two broad categories -- apparel, garment and technical textiles -- where 15 per cent subsidy would be provided 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 subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crore on similar lines. A-TUFS will be credit-linked and projects for technology upgradation covered by a prescribed limit of term loans sanctioned by the lending agencies will only be eligible for grant of benefits under it. The implementation of the scheme would be executed and monitored online under iTUFS, launched in April 2015. A-TUFS scheme will be effective for a period of seven years, up to March 31, 2022.
SOURCE: Yarns&Fibers
Indian textiles are going through a lean phase since the last few years and the government’s measures have done little to help the industry’s cause. The list of woes is also a long one - falling exports of cotton yarn and apparel, growing competition from China, negative impact of global economic slowdown, mounting inventories, lack of capital infusion for technology upgradation and volatile stock markets among others. The current Chinese economic slowdown is a fresh phenomenon, but the Indian textile industry, mainly cotton yarn producers and apparel exporters, are on tenterhooks since long on account of escalating raw material prices and falling overseas demand.
The Chinese threat
The yuan depreciation is alarming for Indian textile value chain as China accounts for 40% of India’s total exports of cotton yarn. Sinking yuan may result into oversupply of cotton yarn in domestic market. The Chinese currency has fallen nearly 5.6% since August 2015, while the Indian rupee too, has slumped 4.5% against the US dollar in the same period. Due to sluggish demand from the US and European markets, India’s apparel exports grew 7-8% till December 2015 as against an estimate of 13-15%. Besides, both India and China have common access to bigger markets of the US and the EU, which will intensify the competition on export front and devaluating yuan, will be China’s dumpcart. With plummeting yuan, India is on the verge of witnessing huge dumping of man-made fiber from China. India’s textile and clothing exports stand at US$ 40 billion, of which apparels account for US$ 16 billion.
Will ATUFS work?
In order to increase job creation in the Indian textile industry, the government has notified the Amended Technology Upgradation Fund Scheme (ATUFS), under which one-time capital subsidy will be provided for employment generation and technology upgradation. However, there has been no mention on the committed liabilities of more than Rs. 3,000 crore falling under cases in the blackout and left-out period. In response to declining exports, the cabinet government withdrew focus market scheme for the textile sector. However, now with global economic slowdown intensifying, exports orders remain dismal at present. Further duty drawback and interest subvention have scaled up new challenges for the industry.
Increase in numbers of defaulters
In Indian textile industry, many firms trade raw material or finished products on a 30-day credit, but a significant increase in defaulters has now added to the industry’s woes. Recently, the Gujarat Garment Manufacturing Association decided to blacklist such defaulters from the market access and have officially intimated another 25 to 30 garment markets about such defaulters. In Ahmedabad, nearly 8 defaulters have been blacklisted. Generally, a 30 day credit is given to the parties, but if they fail to make payments for 120 days, the Association is forced to take such penal action.
SOURCE: India Infoline
Garment manufacturers here are trying to get the detailed project report (DPR) of the ‘Vision 2020’ document, prepared to outline the industrial growth trajectory of Tirupur knitwear cluster, released by Prime Minister Narendra Modi.
Common facility centres
The document prepared by Sripuram Trust, a body formed of different textile stakeholders, Confederation of Indian Industry (Tirupur district council) and NIFT-TEA Knitwear Institute, had highlighted the need for common facility centres such as design studio, skill development hubs, housing facilities for migrant workforce and freight corridor from cluster to sea ports especially to Tuticorin, among others. “We are trying to get the release done by Mr. Modi as projects, which are aimed at achieving the over all turnover from the cluster (both domestic and exports pout together) to touch Rs. 1,00,000 crore per annum by 2020, needed government intervention for its execution”, Raja Shanmugam, chief mentor of NIFT-TEA Institute and state committee member of CII, told The Hindu. A key area of focus, as described by the detailed project report, in the coming years would be lean manufacturing practices so to enhance profits from the production. Energy security would also be given more attention to in the cluster.
Design studio
Of the projects envisaged in the detailed project report, Union MSME Minister Kalraj Mishra, during a recent visit to Tirupur, had already announced the government’s willingness to set up the design studio in Tirupur knitwear cluster.
SOURCE: The Hindu
When 2009 arrived, 40-year-old DM Kumar, a garment entrepreneur in Tamil Nadu's textile hub of Tirupur, was caught unawares. His Rs 10-crore business was drying up thanks to the global economic meltdown. Clients from foreign shores stopped orders as their pockets emptied. Kumar struggled through until 2011, when the second blow fell. The Madras High Court, in February 2011, decreed that all dyeing units in Tirupur would have to shut down for violating pollution norms. They would only be reopened when they implemented zero-discharge protocols in order to protect the surrounding farmlands and rivers. "The dyeing industry is the backbone of the textile industry in Tirupur," said Kumar, chief executive of Eastern Global Clothing. "Smaller players like us usually work with limited capital. We generally put in 25 per cent of our own capital and the remaining 75 per cent comes from institutional loans and credit from our suppliers. My Rs 10-crore company was forced to drastically scale down to Rs 2-3 crore. Small timers simply went out of business," he stated.
Textile makers began to send their goods to Ludhiana, Kolkata and Ahmedabad for dyeing since most units in Tirupur were forced to shut down. This meant delays, quality shortcomings and upset customers. Transport by air freight alone comprised 10 per cent of the final fabric price. Industry leaders say that 25-30 per cent of garments in Tirupur were airlifted between 2011 and 2014 to avoid delays. "Most of us were forced to bring the dyed textile by air freight due to huge delays," said Kumar. "Air freight meant we had to pay cash on the spot. Since we were new customers for dyeing units in the other states, they demanded cash-and-carry. We had a terrible fund crunch," he added. The price of one T-shirt when exported worked out to $3. The same T-shirt when sold in the domestic market fetched $1. "Beg, borrow or steal, I had to export," said Kumar. "I had to minimise the losses." State government records show that close to 40,000 families working in the garment units surrendered their ration cards and headed back to their native villages in the southern districts in search of employment. In reality, though, says industry, the numbers could be double the official records. Growth of the sector was severely arrested, with export turnover remaining stagnant for about four years, hovering around Rs 12,000 crore.
Limping Back
The grit and enterprise of the textile makers of Tirupur though is legendary. Reeling from the blow by the Madras High Court, large and small businessmen quickly came together to find a solution. There was now an urgent need to invest in pollution control norms since their livelihoods depended on it. "Honestly none of us knew anything about pollution or the harmful effects of the effluents when we began our businesses way back in the 1970s," said S Nagarajan, president of the Dyers Association of Tirupur. "We got together and shared knowledge. Through a series of trial and error, we borrowed technology from various parts of the world and came up with our own version of effluent treatment plants," he said. These effluent treatment plants are of two types — Individual Effluent Treatment Plants and Common Effluent Treatment Plants (IETPs and CETPs, respectively). Larger manufacturers set up IETPs to process their waste, while smaller units came together to route their polluting effluents through a single CETP. Today, there are 18 CETPs in Tirupur. The first stage of treatment of the polluting effluent — the biological stage involving bacteria to break down the dyes — was copied from a similar method used in Italy. The second stage — reverse osmosis to cleanse the water — was picked up from desalination plants. The third stage — evaporation, to remove the sludge — was a local innovation. These effluent treatment plants are, to put it simply, a result of South Indian 'jugaad'. "We are now recycling 92 per cent of the water that is discharged as effluent," said a proud Nagarajan. "We are able to reuse the same water a thousand times without a problem. We are also recycling the salt used. Only 0.5-1 per cent of the dye used is removed in the treatment process and sent for use in cement factories. We have attained zero liquid discharge," he said. These effluent treatment plants, he says, have helped conserve 10 crore litres of water a day.
Costly Conservation
All of this though has come at a price. Grants from the Centre and the state government of Tamil Nadu totalled Rs 300 crore. The state government also arranged for interest-free loans to industry to the tune of Rs 200 crore. Out of a total of Rs 1,070 crore, close to Rs 600 crore was pumped in by industry and private loans from banks. Tirupur's industrialists have managed to pay back most of the loans. Now, a sum of Rs 250 crore (inclusive of interest) remains pending with banks, which are threatening to shut down the effluent treatment plants if loans are not repaid. "Banks have started issuing notices to seize assets now," said Nagarajan of the Dyers Association of Tirupur. "All 18 CETPs are of NPA (non-performing asset) status in the banks," he added. "Nobody in the government took responsibility to help us out," said R Raj Kumar, managing director of Best Corporation, who is also a joint secretary of the Tirupur Exporters' Association. "Everything fell on the entrepreneurs. The government should have at least told us what to do, helped us out in terms of research and development. Industry is willing to be responsible and comply," he said.
Industry leaders say that the cost of setting up these effluent treatment plants is equal to the cost of setting up a new textile-making unit itself. Power usage too has shot up as a result of the treatment plants — 50 per cent of power used by industry goes into these plants alone. As a result, the industry as a whole, they say, has become less competitive due to a forced additional 4 per cent hike in the final garment price. Tirupur's entrepreneurs had pinned their hopes on a grant of Rs 200 crore made to them by the 13th Finance Commission. With the change in government at the Centre, the Finance Commission was disbanded before the funds could be disbursed and the NITI Aayog came into being. "We have been asking the government to release the Rs 200 crore promised to us by the erstwhile Finance Commission," said Nagarajan of the Dyers' Association of Tirupur. "This would help us tide over the crippling bank loans." The textile industry also wants a 'green tag' to be issued by the Centre for textiles being exported from Tirupur. "Our international clients who are leading garment brands are now insisting on compliance with environmental norms and we have managed to do the compliance all by ourselves," said R Gopalakrishnan, chairman of Royal Classic Mills, a Rs 600-crore firm. "Green tags would help us greatly in marketing our product internationally and bring in more clients," he said.
Tirupur's textile industry is also hoping for quick implementation of Free Trade Agreements (FTAs) with Europe and the US so as to enable their goods to avail of a 9-12 per cent slash in import duties in these countries. "If these Free Trade Agreements are signed, Tirupur's capacity will simply not be enough," said V Elangovan, member of the executive committee of the Apparel Export Promotion Council (AEPC), a body sponsored by the Union textiles ministry. "Today, Tirupur's export turnover is over Rs 21,000 crore. FTAs can take it to Rs 1 lakh crore in just three years. We are requesting the Centre to implement at least sectoral agreements for the garment sector if the FTAs are taking too long," he added.
A Global Outlook
Tirupur contributes 75 per cent to India's total garment exports. India currently stands at sixth position globally in terms of garment exporting countries. With the double whammy faced by Tirupur in 2009 and 2011, smaller countries like Bangladesh and Vietnam have raced ahead, say industry experts. "We are losing a fortune to Bangladesh," rues Elangovan of the AEPC. "Bangladesh is moving towards $50 billion in garment exports while India is still at $23 billion," he said. Elangovan adds that the textile industry is the second largest employer after agriculture in the country. And in the bustling little town along the banks of river Noyyal, small and large entrepreneurs speak the same language. "Pakistan and Bangladesh are our direct competitors," argued DM Kumar of Eastern Global Clothing. "Earlier there used to be only two seasons — summer and winter. Now leading global brands are placing orders for 16 seasons in a year! Can you imagine the volume of business? Every four weeks a new delivery has to be made. We can put India on the global trade map," he said. As discussions on the Union budget get underway, Tirupur's industrialists hope that in an election year, the Centre and the state would look favourably upon their gritty sector and give it a much-needed leg up for the future.
SOURCE: The Economic Times
Ministry of textiles is likely to give the textile units in Sanganer Rs160 crore for setting up a zero liquid discharge (ZID) plant to keep pollution under control. These units were served closure notices by the Rajasthan state pollution control board (RSPCB) just some time back for violation pollution norms. This will get them a new lease of life.A final approval on the grant is expected next week in a meeting called by the ministry. If approved, this would be the third ZLD in the state, and also the country. The discharge plant will have a capacity to treat 18 million litres per day (MLD).As per a study, the 650 units discharge 12.3 MLD of waste. However, officials said that the actual figure is much higher, pegging the figure at more than 17 MLD.Zero-liquid discharge plants make use of the most advanced waste water treatment technologies to purify and recycle virtually all of the waste. One such plant is already operational in Balotra which is also the first such plant in the country. It has the capacity of 18 MLD though requirement at the place is for 48 MLD.
More than 739 textile units in Balotra and its surrounding areas of Jasol and Bithuja had to be shut after NGT orders. The operations at some of these stared again after a discharge plant was put in place. Several other are on the verge of resuming operations. This scheme was launched by the ministry last year. State government added some funds to the scheme and planned to apply it to four places - Jaipur, Jodhpur, Pali and Balotra. Of the four, a discharge plant was first set up in Balotra. For Pali, an approval in principle is already in place. The plant here will have a 12 MLD capacity. It will be the second such plant in the country. For Jodhpur, a decision on the same is pending while the plant for Jaipur is expected to get approval soon.
SOURCE: Yarns&Fibers
Oriental Chamber of Commerce (OCC) has suggested to the West Bengal Government to set up a “textiles hub” at Garden Reach in Kolkata. Kolkata-based OCC, which was born in 1932 as “Muslim Chamber of Commerce”, said city and surrounding areas such as Garden Reach, Metiabruz, Santoshpur, Akra and Budge Budge lacked adequate social and physical infrastructure. All these areas have large concentration Muslim population. At the 83rd AGM of OCC on Saturday, its President Shoib Ahmed Faisal said, “A few lakhs workers, including ready-made garments workers, are employed here (in these areas)”. However, the areas have poor roads, health and education facilities. He also suggested formation of an “advisory committee” for recommending “improvement of social, educational and economic growth of such localities”.
OCC President also suggested urgent repair of roads leading to trade transit points on the Indo-Bangladesh border. “The road at Ghojadanga (transit point) is in a very bad condition. Particularly during monsoon, every month 8-10 trucks slide down each side of the road”, he mentioned. State Wakf Board Chairman Justic Abdul Gani said his organisation was recovering ‘encroached’ Wakf properties. He said a significant portion of the 1.43 acres of Wakf land in the State remained encroached by unauthorised occupants. Bandhan Bank CMD Chandra Shekhar Ghosh said his bank was working for financial inclusion among the economically backward minority communities.
SOURCE: The Hindu Business Line
Maharashtra Minister of State for Co-Operation Dadabhau Bhuse inaugurating a Buyer-Seller meet in Malegaon on Friday urged the local weavers and entrepreneurs to create own brand so as to earn identity and reputation in the competitive market. As the grey and ready-to-wear fabrics manufactured in Malegaon have potential to attract global market. There are fabrics and sarees being sold in local and international markets that are manufactured by people of Malegaon. But, since the powerloom weavers in Malegaon do not have a brand name, the sellers are using their own name and selling these quality products earning handsome profits, Dada Bhuse said. Taking a cue from ‘Make in India’ and ‘Make in Maharashtra’ campaigns, the minister said that they need to start ‘Make in Malegoan’ campaign. The skill and potential the local weavers and powerloom owners have will be a great hit. The minister further said that he earnestly wishes that local grey cloth and ready-to-wear sarees and fabrics are exported directly from Malegaon with their own brand names. Local MLA Asif Shaikh Rasheed in his speech called upon the local entrepreneurs to establish textile processing units in Malegaon.
Recalling how the local industry was hit by closure of textile processing units in Pali, Balotra and other neighboring cities in Rajasthan Asif Shaikh said that the local weavers should stop depending on other cities for their survival. It is high time that some of the local weavers form a group who work for the establishment of top-class and modern textile processing units here itself, he said. He also requested Minister Dada Bhuse to get suitable land reserved for processing units at the upcoming MIDC area in Malegaon. In his address Ravikumar, Office In-Charge Textile Commissioner Office Navi Mumbai, promised to extend all support for the development and growth of Malegaon textile industry. He also briefed the weavers about the existing schemes by the Ministry of Textiles and urged them to take benefit from these schemes. On the first day of the Buyer-Seller meet Friday a huge crowd gathered, besides local manufacturers, powerloom weavers from Varanasi, Kolkata and other textile clusters have also put up their stalls to showcase their products. The 3-day Buyer-Seller meet jointly organized by the Regional Textile Commissioner Office Navi Mumbai and Powerloom Development and Export Promotion Council (PDEXCIL),
SOURCE: Yarns&Fibers
With a view to giving a concerted push to India's declining exports, the Narendra Modi government has asked states to formulate respective export promotion policies focusing on products or services of interest to supplement the Centre's efforts at boosting the country's outbound shipments. "We have asked every state to come out with an export policy identifying product and services of interest that have significant potential in the global arena. Ultimately, it is the states who deal with land, electricity, water and value-added tax (VAT)," said a senior commerce department official. The move was discussed with the states in the first meeting of the Council for Trade Development and Promotion chaired by Commerce and Industry Minister Nirmala Sitharaman earlier this month. The Centre and states would have to work together to improve export performance, added the official cited above.
Exports for the current financial year are expected to be below $300 billion, after being above it since 2012-13. Intense competition from China, on account of the latter's highly devalued currency, has out-priced New Delhi's exports from the global market, resulting in the 12th straight month of export decline in November 2015, with outbound shipments down 17.2 per cent in the first eight months of FY16. The government is expected to announce the trade numbers for the first nine months of the current year on Monday.
Centre pushes states to form export policy The commerce department had asked the states to outline the enabling environment they would create for the export growth of the identified products and services, besides streamlining VAT waivers or refunds processes electronically. States have also been asked to come up with a single-window mechanism for coordination of the Centre and state support for export promotion. The role of states is seen as crucial with infrastructure, VAT, land and environmental clearances, and labour, under the domain of states. A few states, such as Jharkhand and Karnataka, already have export policies while Gujarat, Kerala, Andhra Pradesh and Punjab are in the process of formulating it. "Some states have come out with export policies and we have had a look at those. Only a very few of them are of acceptable level, while for the rest we have given our recommendations," said the official. The commerce department has found the export strategy to be at the acceptable level for Karnataka, Assam, Arunachal Pradesh, Chhattisgarh, and Gujarat. The effort is also to make it easy to do business through a 98-point reform action plan across eight sectors. These include setting up of business, registration, compliance with tax procedures, and complying with labour regulations.
Jharkhand, in its policy announced in 2015, extended a number of fiscal incentives including electricity duty exemption, allotment of land for exporting units, and transport subsidy for shipment to ports up to Rs 10 lakh per exporter. It also extended a marketing development fund for exhibitions and fairs. Jharkhand aims to increase its share in the country's exports to two per cent by 2019 from less than one per cent now. In the Council for Trade Development and Promotion meeting, most landlocked states asked the Centre to provide transport subsidy, which was more than the freight cost in many cases. Karnataka has focused on export sectors including services, silk and engineering, besides others. Gujarat is in the process of finalising the export policy, targeting to increase share in the country's outbound shipments to 33 per cent in five years from 22 per cent now. It is looking at extending a set of fiscal incentives including tax exemptions for units located there, besides support in trade fairs and exhibitions. "The Centre can only look at the macro level, while it is for the states to focus on potential goods and services in their export strategy by identifying constraints, potential markets and technical barriers to enter those markets," said Ajay Sahai, director-general and chief executive officer, Federation of Indian Exports Organisations.
The Centre unveiled its five-year foreign trade policy for 2015-20 last year, aiming to double exports (merchandise and services) to $900 billion by 2019-20. Under the foreign trade policy, the government provides tax incentives through the Merchandise Export from India Scheme and the Services Exports from India Scheme, in the form of fully transferable duty credit scrips with reward rate ranging between two per cent and five per cent. Exporters can use these scrips to offset service tax, excise duty, or customs duty.
SOURCE: The Business Standard
Lauding the outcome of Prime Minister Narendra Modi’s strategic global visits, Governor of Goa, Mridula Sinha on Saturday said that the success of Startup India and Make In India lies in the long-term impact created by the premier during his foreign tours over the past year. Sinha said this during the promotion of the book ‘Indian Industrialisation: Trajectory Redefined’ authored by technocrat Dr A K Agarwal. “India is known for it’s hospitality and sense of brotherhood and this message has been made alive by Narendra Modi. We witness the success of PM Modi’s global tours through the mammoth crowds that assemble to greet him on all of his visits.” said, Sinha. During the event at the ITPO International Business lounge, Pragati Maidan, the National Book Trust Chairman, Baldeo Bhai Sharma stressed on the importance books play on inspiring individuals and transforming lives. Refuting claims, that books are well past their shelf life, he said that technology cannot erode their importance. Dr A K Agarwal said, “In this changing world, it is imperative today to develop deep-rooted strategic engagement of nations for mutual benefit, peace and prosperity. This is exactly the policy that Modi government is pursuing.” ‘Indian Industralisation’ is an analytical book on Modi’s visits and discusses the probable outcome of his strategic tours to diverse parts of the globe.
SOURCE: The Financial Express
Asserting that the slide of the indian rupee was a good sign for India, Assocham said the country must allow the currency to depreciate to help exports remain competitive. “Any depreciation in rupee on account of China-led turmoil in the global financial markets should only be welcome sign for India, else Indian exports will suffer more at the hands of China and other emerging countries witnessing correction in their currencies. “India should allow its currency to slide while the RBI should use ample foreign exchange reserves to defend the currency only if there is a rout situation. However, there is a distinct possibility that rupee could actually strengthen over the medium term,” the chamber said. The rupee dipped by 30 paise to fresh 28-month low at 67.59 on Friday due to fresh dollar demand from importers in view of persistent foreign capital outflows amidst sharp fall in equities. Finance Ministry had said it along with the Reserve Bank was keeping a close watch on the currency movement and asserted that current account deficit will remain well under control.
Assocham said India must ensure that its exports get back their competitiveness even in the midst of global slowdown. The major challenge, it noted, is coming from China in various forms with sizeable influence on the currency valuation. Yuan devaluation, third in the last five months, will negatively impact Indian firms which have export exposure to China in sectors such as tyres, pharmaceuticals, steel and organic chemicals textiles due to a volatile change in terms of trade, the chamber said. “The biggest concern is the steadily deteriorating balance on the merchandise trade account with China,” Assocham President Sunil Kanoria said.
In 2014-15, the bilateral trade between the countries stood at $72.3 billion with the trade gap at $49 billion. The government and the Indian industry have time and again raised concerns about the widening deficit. Earlier this month, China’s central bank devalued its currency by 0.51 per cent to 6.5646 per cent against the dollar, the lowest since March 2011. “The latest round of devaluation can make India’s trade imbalance with China even worse. In any case, the deterioration has been rather steady and secular in the last few years with exports to China dropping,” the chamber said. “Going forward, the situation does not look good; rather it has deteriorated with the Chinese demand for primary goods declining and crash in prices,” it added.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 26.40 per barrel (bbl) on 15.01.2016. This was lower than the price of US$ 26.43 per bbl on previous publishing day of 14.01.2016.
In rupee terms, the price of Indian Basket increased to Rs 1780.00 per bbl on 15.01.2016 as compared to Rs 1773.19 per bbl on 14.01.2016. Rupee closed weaker at Rs 67.43 per US$ on 15.01.2016 as against Rs 67.10 per US$ on 14.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 15, 2016 (Previous trading day i.e. 14.01.2016) |
Pricing Fortnight for 16.01.2016 (Dec 30 to Jan 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
26.40 (26.43) |
30.63 |
|
(Rs/bbl |
1780.00 (1773.19) |
2040.26 |
|
|
Exchange Rate |
(Rs/$) |
67.43 (67.10) |
66.81 |
SOURCE: PIB
Thailand has a fully integrated textile industry with its many weaving, spinning, and garment enterprises. Fibre2Fashion finds out about the challenges faced and the potential Thailand's textile and apparel manufacturing sector holds. The western world has dominated the textile and apparel industry ever since the 1800s, but if businesses have tried to ignore the eastern hemisphere, they have been doing that at their own peril. One of the major players to emerge in the non-western world on the textile and apparel front is Thailand. The country has more than 2,000 garment companies and about the same number of firms flourishing in the textile industry, most of them located around Bangkok and in eastern Thailand.
Comprehensive structure
Industry in Thailand is proficient in producing fabric, sportswear, casualwear, kidswear and womenswear. The force behind the industry lies in the cluster of the country's textile sector, making it one of the few countries to handle all aspects from production, design and sale to home textiles. Thailand is a world-renowned silk producer and also produces spin or twist yarn. The country excels in eco-friendly finishing, dyeing, and printing services which meet global standards. However, the country has to deal with some issues.
Imports offsetting exports lead
Thailand's garment industry supports anywhere between 800,000 to 1 million employees, while the textile industry employs 200,000 people, making these two industries the second-most important employment sector in the country. While Thailand seems to be a robust place to support a huge population working in the textile sector, the major disadvantage is that it has to rely heavily on imports of cotton, yarn and fabric to produce textiles and garments. In 2014, Thailand exported US$ 7.52 billion of garments and textiles, according to WITS data. Of that, US$ 3.42 billion of textiles and clothing were exported to east Asia and the Pacific, while US$ 1.24 billion worth of material was shipped to the United States of America. According to Thaitradeusa.com, apparel forms 90 per cent of the exports, followed by brassieres and other types of clothing items. But these top export numbers are offset by imports worth US$ 4.71 billion made in 2014. Again, most imports were made from east Asia and the Pacific market. China is a major purchasing market for textiles.
Why this imbalance?
Thailand's economy is not yet in a favourable place, in comparison with other Asian giants like China and India. So, its people seem to have less purchasing power. The lack of domestic purchasing power directly results in weak domestic demand, one of the reasons Thailand has to scour foreign markets to sell its textile and apparel products. Another reason that weakens Thailand's position is the scarcity of raw material. For example, Thailand's textile industry needs about 500,000 tonnes of cotton, but it only produces two per cent of the raw cotton it uses.
What is Thailand aiming at?
Thailand targets the United States of America, Japan and the United Kingdom to export most of its garments. It is also eyeing the Russian market. The garment industry is expanding its footprint globally, while the government is trying to become more involved with the industry by providing export credits and development of vocational training. The private sector has partnered with the government to boost innovation in the textile industry and to bring in modern technology into weaving, finishing, printing, knitting and dyeing. The focus is on modernising technology for greater efficiency, as well as improving skills of people working in the sector and competence of the businesses in the textile and apparel industry.
Looming threats
What proves to be an advantage to Thailand is its strategic location to become a distribution centre in the Association of Southeast Asian Nations (ASEAN). However, with globalisation comes the risk of global competition, different trade blocks and group agreements. The implementation of ASEAN Economic Community at the end of 2015 could bring advantages and disadvantages. The deal could shift production capacity to low-wage countries and at the same time value-added products could develop in new markets, posing problems for the Thai textile and apparel industry.
One of the major competitors could be Myanmar, after it came under the generalised system of preferences of the European Union in 2013. Cheap labour in countries like India, China, Vietnam, Indonesia and Pakistan could challenge Thai industry. Another basic problem lies within the country. The younger generation in Thailand does not want to enter labour intensive industries. An executive director at the Thai Garment Manufacturers Association said the problem is not related to minimum wage but shortage of workers. As the gap widens, some local garment manufacturers are shifting their operations to Myanmar, Cambodia and other ASEAN countries, the director said.
High fashion appeal
The broader fashion industry in Thailand is blossoming, as showcased in the 33rd Bangkok International Fashion Fair held in 2015. Over 500 companies participated, up 17.5 per cent from the previous year. Young Thai fashion designers presented their collections with the aim of attracting international clients. "Sixty per cent of my clients are from overseas, mostly from Japan, Malaysia and Austria," a Bangkok designer was quoted as saying by Horizon Thailand. "The fashion industry in Thailand is growing; the young generation is more interested in fashion than ever. The feedback that I get from the (Bangkok International Fashion Fair) has been better and better every year," the designer is quoted. Despite various threats jeopardising market deals and domestic issues, Thailand is set to create its own niche in the textile and apparel markets, complemented by the country's growing retail sector.
SOURCE: Fibre2fashion
The taxing structure and surcharges have heavily affected Pakistan’s textile industry, making the trading atmosphere uncompetitive for Pakistani textile manufacturers and traders. A research done by All Pakistan Textile Mills Association (Aptma) suggested that 5 per cent taxes and surcharges are imposed on the export sector in the country. The Indian counterparts, on the other hand, enjoy a tax-free regime on the export of textile products. The taxes in Bangladesh and China are also close to 1 per cent. The report, quoting the World Trade Organization, suggested that the country registered only 18 per cent growth in the textile and apparel industry from 2006 to 2014, while Bangladesh, China and India registered 175 per cent, 107 per cent and 96 per cent respectively in the same period. “Other irritants include energy tariff, under-utilisation of power generation capacity and energy shortage,” the report stated. The textile export of Pakistan rose to $13.8 billion in 2010/11 and continued its momentum till 2013/2014. But, the exports experienced a slump of $13.5 billion in 2014/15. The textiles ministry of Pakistan aimed to double value-addition to two-billion dollars, which will increase the annual exports to $26 billion during the five years. The All Pakistan Textile Mills Association (Aptma) aimed to target $20 billion worth of textile export by 2018 in order to create eight million value chains. For this, they sought immediate withdrawal of surcharges on gas and electricity.
SOURCE: The CCF Group
An MoU was signed between the Ministry of Commerce China, Weihai and the All Pakistan Textile Mills Association (APTMA)on Saturday to explore the potential of joint ventures and investment opportunities in textile sector of Pakistan. A 20-members Chinese delegation from the Ministry of Commerce Weihai, China visited the APTMA Punjab headed by Ms Zhang Buwen of Shandog Hushan Group was welcomed by Chairman APTMA Punjab Aamir Fayyaz. The Ministry of Commerce China, Weihai has invited the APTMA to visit China in May this year. While making a detailed presentation, Chairman APTMA Punjab highlighted the significance, structure, strength and sustainability of the textile industry in Pakistan. He said that they is great potential for the foreign investment in textile industry of Pakistan, as it enjoys the GSP plus market access to the EU. Converting of surplus basic textile into clothing carries a potential of $15 billion increase in exports from Pakistan.
Chairman APTMA offered to act as focal organization to facilitate match making of Chinese investors with local textile groups under the joint ventures initiative. The Chinese delegation agreed to the offer and appreciated the spirit and expressed the hope that both sides would help each other in expansion of trade and investment. Head of the visiting Chinese delegation thanked the APTMA leadership for a detailed presentation and hoped that it would play pivotal role in the expansion of trade and investment between the two countries. The China-Pakistan Economic corridor sees enhancing trade and bilateral relations further to new horizons.
SOURCE: Yarns&Fibers
Vietnam is sharpening its competitive edge as an export hub, attracting a flood of overseas investment. Among the influx of eager investors are Japanese textile companies. Many of these manufacturers are hoping to get a boost from the proposed Trans-Pacific Partnership free trade agreement -- to which Vietnam is a party -- and are ramping up production and exports in the Southeast Asian country with an eye toward boosting U.S.-bound shipments. For textile companies, the excellent technical capabilities of Vietnamese workers is a big drawing point, even if the labor costs are higher than those in Bangladesh and Myanmar.
Kuraray Trading, an Osaka-based trading house under synthetic fiber maker Kuraray, will spend 300 million yen ($2.51 million) to install a production line for sportswear at an affiliate in the city of Danang, a commercial hub along the coast of central Vietnam. Production is scheduled to start in July. The Japanese company will produce the sportswear using fabric imported from Japan and export the finished products to the U.S. With this move, Vietnam will account for over 60% of Kuraray's total sewing work, up from the current 55%. The company is also considering investing billions of yen in textile operations, such as weaving and dyeing, in the Ho Chi Minh City area. Major Japanese trader Itochu has been building up its presence in Vietnam since well before the TPP began gathering steam. In 2014, the company established a weaving mill there with a monthly capacity of 500,000 meters of fabric. Itochu also produces shirts at the facility under other brands and ships them to the U.S. and elsewhere. Having doubled the mill's capacity, the company is considering investing in more facilities to enhance its ability to quickly respond to jumps in demand from customers.
Fiber maker Toray Industries has recently been increasing production at a local sewing unit established in Ho Chi Minh City by its trading arm, Chori. The company plans to make the plant a key group production site. Chori ships the finished goods to the U.S. and other markets. To enhance and expand the factory's capabilities, Toray makes a point of recruiting highly skilled individuals from across Southeast Asia. Japanese cotton spinner Shikibo will lower output at its Chinese sewing factory and increase production at a partner plant in Vietnam. The company will soon start producing bedding fabrics at the latter site. It may turn out that this "go south" trend among Japanese textile companies will become something of a business model -- one that could very well help revamp the flagging industry.
More enticements
Companies in other Japanese manufacturing sectors are making similar moves. Major clockmaker Rhythm Watch, for example, will transfer production of wristwatches and desk clocks for the U.S. market from China to Vietnam. At the moment, the U.S. imposes a 7% tariff on imports of finished clocks.Perhaps the biggest reason foreign companies are increasing investment in Vietnam is that labor costs there are only half those in China. Government deregulation efforts are adding to the country's appeal. Last year, for example, Vietnam began allowing foreigners to own property for 100 years, as well as hold 100% stakes in local publicly traded companies, up from the previous 49%. Further enhancing the country's drawing power is the fact that in addition to being a member of the TPP and the ASEAN Economic Community, Vietnam also has free trade agreements with South Korea and the European Union.
SOURCE: The Asian Review
Japan is expected to benefit greatly from the Trans-Pacific Partnership trade liberalization pact and boost its gross domestic product by an additional 2.7%, more than twice the average expansion of all 12 members by 2030, according to the World Bank's latest estimate. With the projected benefits including not only an increase in exports of goods but also an acceleration of market advances by retailers and other services companies into Southeast Asia, Japan needs to act quickly through an early effectuation of the accord in order to meet the projection. The TPP will not only prompt an expansion of trade in goods by lifting tariffs but also enable businesses to promote cross-border operations through deregulation. The 12 member states are entering the final stages of negotiations and could possibly sign the agreement in New Zealand on Feb. 4. The World Bank estimated the effects of the TPP in 2030 based on the member states' GDP and export value in 2014. While the Japanese government's estimate, released last December, included the effects of related domestic countermeasures such as reinforcement of the agricultural sector, the bank did not include them in its projection. The bank forecast that the TPP will raise the 12 members' GDP by an additional 1.1% on average. Vietnam will be the biggest beneficiary with a gain of 10% in GDP, resulting largely from an increase in textile exports to the U.S. and the removal of restrictions on foreign capital. The pact will also spur growth in Malaysia and Brunei, which are second and third to Vietnam with respective GDP increases of 8% and 5%.
Japan ranks sixth among the 12 countries with GDP growth of 2.7%, which is worth an estimated 13 trillion yen ($108 billion). The benefits of the TPP for the U.S., Canada and Mexico will be limited as trade among the three has already been liberalized under the North American Free Trade Agreement, according to the World Bank, which forecasts respective additional gains of 0.4% and 1.2% in GDP for the U.S. and Canada. Exports from the 12 members are forecast to increase an average 12% in value. Vietnam is expected to log the biggest gain of 30.1%, followed by Japan at 23.2%. The bank expects Japan to benefit significantly from the TPP as advances in deregulation in Southeast Asia will expand business opportunities for Japanese companies. Convenience store operators and banks will be allowed to make new market entries or expand operations in the region. The bank concluded that the removal or lowering of nontariff barriers will generate greater economic effects than the elimination of tariffs. While the removal of tariffs will contribute to some 15% of the bloc's projected GDP growth, the remaining 85% will come from measures such as eliminating limits on foreign capital, removing complicated customs procedures and standardizing product specifications.
The Japanese government's estimate forecast that the TPP will raise Japan's GDP by 14 trillion yen thanks to combined effects of both. Although analysts criticized the estimate as excessive, it is almost the same as that of the World Bank. The World Bank, however, maintains that the TPP's real effects remain unclear. The key to the accord is whether it can show actual benefits through its early effectuation, said Junichi Sugawara, a senior research officer at Mizuho Research Institute.
Adverse effects on Thailand, South Korea
While the TPP will exert no major effects on most non-member states, Thailand and South Korea stand to lose out significantly by not being part of the accord, the World Bank said, forecasting that the two countries' GDP growth will be pushed down by 0.9% and 0.34%, respectively. South Korea already has a free trade agreement with the U.S. and thus is currently in a more favorable position than Japan in terms of automobile and other exports to the American market. But the bank claims it will lose that position when the TPP, more liberal than the U.S.-South Korea FTA, takes effect. Thailand, which hosts Honda Motor, Nissan Motor and other major automakers' manufacturing plants, will lose its competitive edge if Malaysia and Vietnam become more attractive to foreign manufacturers under the TPP, the bank added.Not being members and potentially missing out on the economic benefits of the agreement has apparently prompted a sense of crisis within South Korea and Thailand. On Oct. 6, 2015, the day after the broad agreement on the TPP was reached; the South Korean government announced the start of earnest preparations for joining it. While Thailand had maintained a guarded stance on the TPP, Deputy Prime Minister Somkid Jatusripitak said last November that the Thai government would positively study its participation. Countries such as Indonesia and the Philippines have also declared their intention to join the TPP. To further increase the membership of the TPP, the accord needs to take effect as soon as possible and allow its member states to see tangible benefits from taking part.
SOURCE: The Asian Review
