|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
931.12 |
USD/Ton |
0.00% |
1/26/2016 |
|
VSF |
1869.85 |
USD/Ton |
0.57% |
1/26/2016 |
|
ASF |
1896.45 |
USD/Ton |
0.00% |
1/26/2016 |
|
Polyester POY |
953.17 |
USD/Ton |
0.48% |
1/26/2016 |
|
Nylon FDY |
2189.09 |
USD/Ton |
0.00% |
1/26/2016 |
|
40D Spandex |
4788.63 |
USD/Ton |
0.00% |
1/26/2016 |
|
Nylon DTY |
2462.72 |
USD/Ton |
0.00% |
1/26/2016 |
|
Viscose Long Filament |
5664.27 |
USD/Ton |
0.00% |
1/26/2016 |
|
Polyester DTY |
1124.95 |
USD/Ton |
-0.34% |
1/26/2016 |
|
Nylon POY |
2037.07 |
USD/Ton |
0.00% |
1/26/2016 |
|
Acrylic Top 3D |
2078.87 |
USD/Ton |
0.00% |
1/26/2016 |
|
Polyester FDY |
1026.14 |
USD/Ton |
0.00% |
1/26/2016 |
|
30S Spun Rayon Yarn |
2645.15 |
USD/Ton |
0.00% |
1/26/2016 |
|
32S Polyester Yarn |
1520.20 |
USD/Ton |
0.00% |
1/26/2016 |
|
45S T/C Yarn |
2432.32 |
USD/Ton |
-0.62% |
1/26/2016 |
|
45S Polyester Yarn |
1687.42 |
USD/Ton |
0.00% |
1/26/2016 |
|
T/C Yarn 65/35 32S |
2097.88 |
USD/Ton |
0.00% |
1/26/2016 |
|
40S Rayon Yarn |
2797.17 |
USD/Ton |
0.00% |
1/26/2016 |
|
T/R Yarn 65/35 32S |
2417.12 |
USD/Ton |
0.00% |
1/26/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0.00% |
1/26/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0.00% |
1/26/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0.00% |
1/26/2016 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0.00% |
1/26/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0.00% |
1/26/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15202 USD dtd.26/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In a bid to salvage the dwindling cotton yarn exports, the textile industry has sought extension of the three per cent interest subvention, along with other export benefits to cotton yarn under MEIS and IES on a par with other textile products from the ministry of textiles. In representations by industry bodies led by the Southern India Mills Association, the government has been asked to announce measures to salvage the textile value chains and dwindling exports. The industry has sought a reduction in central excise duty from 12.5 to six per cent and removal of the five per cent import duty and four per cent special additional duty levied on the import of man-made fibre. Currently, Indian man-made fibre are 23 per cent more expensive globally. "We are thankful to the ministry for taking measures such as announcing the Amended TUF Scheme with a record allocation of Rs 17,822 crore and taking efforts for promoting coastal movement of cotton from Gujarat to Tamil Nadu in a cost effective manner, apart from enhancing duty drawback rates for various textile products, particularly garments," the industry stated in its representation letter to the ministry. "While highly appreciating the Ministry of Textiles for its unstinted and tireless efforts to safeguard the mother industry, we humbly appeal to the (textile) minister to kindly address the following issues — create a level playing field in globalised environment and to enable the industry to achieve the vision of $300 billion textile business size by 2023 from the current level of $110 billion as set by the Prime Minister," it further stated. Among other measures, the industry has demanded fixing of lowest slab for textiles in GST, apart from seeking implementation of the Direct Payment Deficiency System in lieu of MSP operations being exercised by CCI and other federations in order to compensate farmers directly whenever the cotton market price rules below MSP. Meanwhile, the industry has also suggested a mandatory duty of two per cent to be levied across the man-made fibre textile value chain right from yarn to finished goods which would fetch more revenue to the Government beyond the compensatory value for the proposed reduction.
SOURCE: The Business Standard
Terming their demands as reasonable, Union Minister Santosh Gangwar today assured the captains of the textile industry of looking into their demands and grievances, as also discussing their issues with the commerce and finance ministries. After hearing views of major industry associations in the region, he said all their fifteen demands are very reasonable and assured them steps would be taken to find a solution. The associations thanked Gangwar for announcing Amended TUF Scheme with a record Rs 17,822 crore allocation, extending export incentives for textile products under Interest Equalisation Scheme, enhancing duty drawback rates for various textile products and steps to promote coastal movement of cotton from Gujarat to Tamil Nadu in a cost effective manner. They urged the minister to address some more issues to create a level-playing field in globalised environment and enable the industry achieve the target of USD 300 billion textile business size by 2023 from the current level of USD 110 billion as set by the Prime Minister. The demands include continuation of Optional CENVAT route, fixing lowest slab of GST for textile industry, extending export incentives for cotton yarn export, reduction of excise duty on Man Made Fibres from 12.5 to six per cent and compensate farmers directly whenever the cotton market price rules below MSP.
SOURCE: The Economic Times
Government needs to change policies, particularly labour laws, to take the country to the number one position in the textile sector, beating China, Union Minister Santosh Kumar Gangwar said. There was a huge gap between number one and two position and to overcome this there was the need to change the policy, particularly in the field of labour laws, he told reporters here on the sidelines of Diamond Jubilee celebrations of South India Textile Research Association (SITRA). Stating that the Government--the labour ministry, was in the process of amending the labour laws, in consultation with all stakeholders, he said that once this was done, India would start climbing to the top slot in textile sector in the World. Asked about opposition from several parties and organisations to the move, Gangwar said, "No problem. We will take all together." To a question on implementation of the Amended Technology Upgradation Fund Scheme, Textile Commissioner, Kavita Gupta, who was also present, said the notification had already been issued and the guidelines would be in place in 10 to 15 days. On setting up processing parks, Gangwar said that the ministry had announced six such parks, including one for Tamil Nadu, under Integrated Processing Development Scheme, at a cost of Rs.75 crore each. Earlier inaugurating the diamond jubilee celebrations, the Minister lauded the contributions of SITRA in making the Indian textile sector scale new heights. Joint Secretary, Ministry of Textiles, Anu Garg said the ministry was in the process of setting up standards for textile products in a phased manner to get HSN Code, which was expected in four or five months' period.
SOURCE: The Economic Times
Under the Amended Technology Upgradation Fund Scheme, 16 percent subsidy for investment in technical textile has been announced by the government as the technical textiles industry is projected to grow at 20 percent year-on-year and the segment’s potential is largely untapped in the country, said Union Minister of State for Textiles Santosh Kumar Gangwar on Thursday. The Centre of Excellence for Industrial Textiles/Home Textiles at PSG College of Technology would have plug-and-play facilities (focus incubation centre) for potential entrepreneurs in technical textiles, Gangwar said. The Ministry is streamlining issues at Sardar Vallabhbhai Patel International School of Textiles and Management and has worked out a plan to strengthen the institute. It has formed a panel of guest lecturers so that students are not affected, according to Kavita Gupta, Textile Commissioner. She said that demand for technical textiles takes a leap when the monthly per capita income was at about Rs. 11,000.
A country’s economic growth was determined by industrial growth and the Centre of Excellence here for industrial textiles would provide textile solutions required for all the industries. There would be an agreement between the Centre of Excellence and the Sardar Vallabhbhai Patel Institute so that the students of the institute could make best use of the facilities. The Centre of Excellence at the institute has state-of-the-art facilities and production lines for wet wipes and coir mats. Anu Garg, Joint Secretary, Ministry of Textiles, said that the Centre of Excellence was part of the Technology Mission for Technical Textiles. From domestic growth to export to import substitution, the segment had huge potential in the country. The industry should harness the facilities created through the Centres of Excellence for technical textiles. She further said that the industry should leverage on the focus incubation facilities and the centres should continuously update, make cost effective products and develop prototypes.
SOURCE: Yarns&Fibers
Union Textile Minister Santosh Kumar Gangwar addressing the 'Make in India-Textile Industry- Strategy for Growth' function, organized by Indian Texpreneurs Federation ((ITF) yesterday said that Prime Minister Narendra Modi will be dedicating eight garment units in the north eastern state in a month. Each of which will be set up at a cost of Rs18.18 crore, work for the units is going in full swing and will become operational in another one months time. Gangwar on hearing the grievances and suggestions from ITF said that he would depute officials in the rank of Secretary or Joint secretary level or he himself will visit the city once in three months to learn and solve the problems faced by the industry, which plays a major role in the Indian economy. On demands by the industry to rationalize duty on Man Made Fibre, abolition of Hank yarn Obligation and signing of Free Trade Agreements with European Union and emerging markets, he said that his ministry had already taken up the issue with the Commerce and Finance Ministries. On problems due to effluent discharge and achieving Zero Liquid Discharge, Gangwar said that he would consult environment and pollution ministries and give feedback to the industry. Gangwar also inaugurated a worker’s hostel in the park and an additional hostel block with 66 rooms, constructed at a cost of Rs6 crore, with 50 percent subsidy under Scheme for Textile Industry Workers Accommodation. Earlier in the day, Gangwar visited Palladam High Tech Weaving Park, about 35 km from Coimbatore, as the centre showed keen interest on developing the technical textile sector in a big way.
Tamil Nadu textile industry, which is 127 years old, is focusing on manufacturing excellence, diversifying new markets, highest quality standards and new product innovation. On industry status, Indian Texpreneuers Federeation Secretary Prabhu Dhamodharan said that Tamil Nadu is having one-third of Indian textile industry, contributing 60 percent to total yarn exports, having 47.5 percent of cotton spinning capacity and 30 percent 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. Indian textiles sector on the whole has contributed 60 percent of cotton products and 40 percent of man-made fibre products, while it was the reverse in other countries.
SOURCE: Yarns&Fibers
Nine months after the new foreign trade policy (FTP) was introduced, garment exporters have called for changing key operational mechanisms in the export process. The Apparel Export Promotion Council (AEPC) has asked the textiles ministry to simplify the policy’s authorisation, inspection and classification norms. Among their requests is to withdraw the need for a landing certificate for exported goods, required as proof to claim benefits under the Merchandise Exports from India Scheme (MEIS). Introduced in April 2015, the scheme aims to boost sagging exports, covering tariff lines for 5,012 items that earn duty credits. Exporters have said getting the documents to show proof of landing at the destination country entails cost and delay. AEPC says electronic shipping bills should be sufficient for declaration of intent. While filing the said bills, exporters are required to declare they are claiming rewards under MEIS and to mark ‘Y’ in the reward item box. Recently, many had complained of inefficient Customs house agents inadvertently ticking ‘N’. Thus, though the item in many cases was eligible, once an ‘N’ had been ticked, such shipping bills were not transmitted to the online system run by the directorate general of foreign trade (DGFT).
To help exporters claim MEIS benefits in such cases, DGFT has allowed them to give physical copies of the shipping bills after filing an MEIS application to its regional authorities. However, this relaxation is restricted to exports made in April and May in 2015. An extension on this has been demanded. Though the country's cumulative export in apparel was about $12.1 billion for the current financial year till December 2015, the industry has been spooked by Vietnam securing zero-duty access to the European Union market from 2017. Vietnam has already ousted India as the world’s third largest garment exporter. Indian products face restrictions such as a 9.6 per cent import duty, as an India-EU broad-based trade and investment agreement (BTIA) has yet to be finalised. Also worrying is that the Trans Pacific Partnership Agreement allows export opportunities by Vietnam to the US with 17-30 per cent export duty relief. The US has accounted for 22-30 per cent of India’s garment exports in recent years. Indian exporters have to pay duty in the range of 14-32 per cent. Analysts have warned some Indian companies might shift base to Vietnam, as they did some years ago to Bangladesh to grab a duty advantage in export and in lower labour cost.
AEPC Chairman Ashok G Rajani has called for a stimulus from the government, saying the garment export industry has the potential to generate 2,200 jobs on every investment of Rs 30 crore. To facilitate easier transportation and to avoid corruption, the government has been requested to learn from long-term rival Bangladesh, allowing vehicles carrying finished export merchandise and headed towards exit points like sea ports, airports and rail heads to display ‘On Export Duty’ signage. So, too, for vehicles carrying input material for production of export merchandise, with a signage of ‘On Export Processing Duty’. Calls for proper identification and classification of goods have also been requested, from the current challan system followed by the government. To boost competitiveness, AEPC also wants the norms for advance authorisation for annual requirement be relaxed. Required for all duty exemption schemes, it has asked the authorisation be allowed for garment exporters only based on past performance.
SOURCE: The Business Standard
Exports of half of the sectors out of the 30 closely monitored by the Commerce Ministry were in the negative zone in December due to a fall in global prices and demand. Outbound shipments of as many as 15 key sectors, including petroleum, engineering and leather, dipped last month, according to the ministry data. Exporters' body FIEO said that although the pace of fall has moderated in December, the government should take steps in the Budget to boost the shipments. India's exports declined about 15 per cent in December to $22.2 billion, pushing up the trade deficit to $11.66 billion, highest in the last four months. In November, it declined by 24.43 per cent. The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit. "The government should address the inverted duty structure in many sectors in the Budget besides exempting exports from service tax and create a export development fund," Federation of Indian Export Organisations President S C Ralhan said.
During the month, top two sectors - engineering and petroleum products - contracted 15.68 per cent and 47.69 per cent, respectively in December 2015. Gems and Jewellery exports too shrank by about 7.75 per cent to $2.46 billion in the last month. These three sectors make up about 55 per cent of the country's total exports in 2014-15, when it stood at $310.5 billion. Agri-products, which constitute over 10 per cent of the country's total shipments, too recorded a negative growth during the month under review. Overall, seven out of 13 main agriculture products slipped into negative territory. Exports of rice, cashew and oil meals fell 35.58 per cent, 15.38 per cent and 83 per cent, respectively. Other products that have reported a negative growth include cereals, oil seeds, fruits and vegetables, marine products and iron ore.
Decline in these exports has been instrumental in dragging down India's overall merchandise exports. Due to continuous dip, the total merchandise shipments are expected to reach a figure of $270 billion in 2015-16. India has aimed at taking exports of goods and services to $900 billion by 2020 and raising the country's share in world exports to 3.5 per cent from 2 per cent. The exports in the past four financial years have been hovering at around $300 billion. On the other hand, exports of pharmaceuticals, textiles, plastic, carpet, chemicals, tea and coffee have recorded positive growth in December 2015.
SOURCE: The Economic Times
Indonesia wants to trade with Surat in the field of textiles, along with diamonds and tourism, Saur Siringoringo, counsel general, Indonesia has said, according to media reports. The Indonesian government is working to create a direct connectivity between Bali and Delhi and Bali and Mumbai in order to promote bilateral trade between both the countries. Siringoringo is with Hariyanta Soetarto, consul (economics), and Siti Fatimah, vice-consul (economics), as part of the Indonesian delegation in Surat for the ongoing international industrial exhibition, Udyog 2016. Fatimah said, “There is immense scope for Indonesian companies to export and import textiles and textile machineries and diamonds to the city. Tourism too has a great potential.” The ASEAN-India free trade agreement (AIFTA) has provided a boost to the trade ties between India and Indonesia. The trade between both the nations has increased to $16.20 billion in 2014 compared to $4.79 billion in 2009.
SOURCE: Fibre2fashion
The Centre is making all-out efforts to take India to the top position in textile exports, Union Minister for Textiles Santosh Kumar Gangwar said here. Recalling the efforts being taken to beat China for the top slot, Gangwar conceded to the huge gap between China and India in textile exports. “To overcome this, we need to bring in some changes in our labour laws,” the Minister said on the sidelines of a function organised to mark the diamond jubilee celebrations of SITRA (The Southern India Textile Research Association). “The Labour Ministry is in the process of amending the laws in consultation with the stakeholders. Once this is done, India will start inching its way to the top in textile exports,” he added. To a query on implementation of the Amended Technology Upgradation Fund (ATUF) Scheme, Textile Commissioner Kavita Gupta said the guidelines would be in place within the next fortnight or so, as a notification has already been issued. Gangwar pointed out that the ministry had announced the setting up of six textile processing parks, including one in Tamil Nadu, to strengthen the textile value chain. The proposed outlay for each of these parks under the Integrated Processing Development Scheme is Rs. 75 crore. Inaugurating SITRA’s diamond jubilee celebrations, the Minister lauded the association’s technological contribution to the sector.
SOURCE: The Hindu Business Line
French President François Hollande is in India to be chief guest at the Republic Day Parade. Though leaders of both nations are desirous of greater economic ties, economic and commercial relationships between the two haven’t strengthened over the past few years.
TOP EXPORT ITEMS
TOP IMPORT ITEMS
Source: Commerce ministry
Bilateral trade is less than $10 billion, well shy of the roughly $12-billion target set by both governments. There is no indication of the target being achieved in the immediate future. India’s exports to France rose marginally from $4.98 billion in 2012-13 to $5.1 billion in 2013-14 but declined to $4.95 billion in 2014-15. By comparison, imports fell from $4.65 billion in 2012-13 to $3.69 billion in 2013-14, rising thereafter to $4.4 billion in 2014-15. France is the ninth largest investor in India with total FDI inflows at $4.76 billion (April 2000 to September 2015). While FDI inflows from France more than doubled from $305 million in 2013-14 to $635 million in 2014-15, the country accounts for only two per cent of all FDI inflows to India. Figures on outward bound FDI aren’t anything to write home about. According to the French embassy, in 2013, India was the 47th largest foreign investor in France with cumulative FDI inflows amounting to $410 million. Business Standard looks at the trade relationship between the two countries.
SOURCE: The Business Standard
President Barack Obama today promised to "look at" export controls to make sure Indian firms have the same access to American technologies as "closest allies" and expressed the hope that the New Year will see deals for the US companies to build new reactors in India. Welcoming Prime Minister Narendra Modi's efforts to cut red tape and make it easier for doing business in India, he said both countries can do even more to increase the trade and investment that creates jobs for people in both nations. He said the bilateral trade "is still just a fraction of what it could be" and both countries can do more.
Bilateral trade between India and the US is now around $100 billion - rising five-fold in the last decade. Obama and Modi have set a goal of taking it to $500 billion in the next few years. "Under our civil nuclear agreement, we're hopeful that this year will see deals for US companies to build new reactors, which will mean more reliable electricity for Indians. "For our part, the United States continues to look at our export controls to make sure Indian companies have the same access to American technology as our closest allies," Obama told PTI in wide-ranging interview. The US, he said, continued to welcome trade arrangements that meet high standards as well as reforms to protect intellectual property and promote a predictable and a consistent business environment that truly welcomes investments.
Asked how he would like India-US relationship to be remembered as and the things he would like to achieve in the last year of his Presidency, Obama said there is much more that the two countries can do as global partners. "As leaders in science and technology, we can expand our efforts to combat disease and promote public health in Africa and beyond. "With collaborations like Mission Innovation, we can be leaders in clean energy and spare our people the worst effects of climate change. As members of the G20, we can work together to boost global growth. By moving ahead with our joint vision, we can ensure the security, prosperity and dignity of people across the Asia Pacific," he said. Given the momentum of the past year, Obama said the new year is an opportunity to lock in the gains and put the US-India relationship on a new trajectory for years to come. "I believe there's still so much more we can be doing together to realise the full potential of our partnership in the three areas I identified last year," he said.
SOURCE: The Economic Times
India and France on Monday affirmed commitments for a resumption of the stalled negotiations on India’s free trade agreement with the European Union (EU) as soon as possible. “(Prime Minister Narendra Modi and French President Francois Hollande) underlined the importance of the dialogue on trade issues through the India-France Joint Commission, as well as their strong commitment to the European Union-India Broad Based Trade and Investment Agreement (BTIA),” according to a joint statement issued following the state visit of Hollande here. Last week, India and the EU took stock of “outstanding issues” for the BTIA after a gap of almost three years which included the EU demand for a reduction in the duties on automobiles, wines and spirits, and Indian demand for greater movement of professionals.
Following the exercise, the EU has suggested holding a secretary-level meeting for this purpose, which is yet to be scheduled. As many as 16 rounds of negotiations took place between 2007 and 2013 for the proposed BTIA, but the negotiations were stuck after that. Commerce secretary Rita Teaotia last week said India had moved ahead on many issues, including easing foreign direct investment norms in insurance, telecoms and banking, which were in sync with the demands of the EU. “In addition to that, we have now a model Bilateral Investment Treaty approved by the Cabinet and that forms the basis on which investment discussions can also go on,” she said. India wants data security status, relaxations in movement of professionals, real market access in terms of sanitary and phyto-sanitary (norms related with plants and animals); and technical barriers to trade measures adopted in EU.
The negotiations were expected in August last year, but they were deferred by India, expressing disappointment and concern over the EU banning sale of around 700 pharma products, clinically tested by GVK Biosciences. India and France also hailed the convening of a dialogue on economic and financial issues at a higher level on cooperation in economy and finance. “This framework will be the forum to discuss, on an annual basis, global and financial governance issues as well as bilateral economic and financial matters, to promote exchanges and cross investments between our two countries and address any hurdles between French and Indian businesses and industries,” the joint statement said.
SOURCE: The Financial Express
In the historic novel The Tale of Two Cities, Charles Dickens wrote the following lines: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” The recent developments in India have been incredibly similar. India has had many things going its way, reflecting the best of times—a government voted to power with a clear majority, soft oil and commodity prices, low inflation, demography, and an entrepreneurial spirit. At the same time, the government has taken many initiatives to realise its stated objectives of Make in India and the Ease of Doing Business in India. In this context, timely repealing of the archaic indirect tax regime and replacing it with a modern Goods and Services Tax (GST) was critical. The discussions on GST have been under way for more than a decade. There have been many occasions in the past when it appeared that GST will be ushered in. GST is acknowledged by all to be an important economic legislation to remove distortions and spur growth. However, GST in India has remained a story of so near and yet so far. The time has come to bring GST into force before everyone despairs. Pegging the Revenue Neutral Rate (RNR) under GST in the range of 15% to 15.5% is a precursor to the economic buoyancy that GST would bring about.
Yet the GST as proposed is not an ideal GST. The sectoral exclusions proposed in the 122nd Constitution Amendment Bill would keep significant tax revenues outside GST. Many state taxes would continue to be levied separately as they are not subsumed in GST. Tax cascading would be removed only partially. Dual GST with dual control is not exactly measuring up to the objective of Ease of Doing Business in India. A band of rates is allowed to states, which would not help in creating a single national market. Yet a good GST is still possible by implementing common rates across all goods and services in all states. The interface of taxpayers should be with a single agency. CGST and IGST, which are central levies, should be administered under a single registration. The non-creditable 1% additional tax to be assigned to the state of origin should be withdrawn. Concerns of states should be addressed by a commitment to compensate the loss. GST should be simple, not complicated by place of supply rules and valuation guidelines. Sectoral exemptions should be limited. Threshold exemption limit should be lowered gradually to expand the coverage. The business processes should be business friendly, reflecting a refreshing change from the present. GST should be a trade-facilitation law, not one that inhibits trade.
SOURCE: The Financial Express
Indian economy is less vulnerable to external shocks as it is mainly driven by household consumption and government spending, and not dependent on hot money which can move out quickly, Standard & Poor’s Rating Services said. The US-based rating agency expects the current account deficit (CAD), which is the difference between inflow and outflow of foreign exchange, to remain at a modest level of 1.4 per cent at the end of current fiscal and would continue at similar level till 2018. “We see India as having limited vulnerability to external economic or financial shocks. This is because growth in the economy is mainly driven by domestic factors, such as household consumption and government spending. “At the same time this is a country that has low reliance on external savings to fund its growth. In other words, the banks are mainly deposit funded and don’t rely on wholesale funding to grow their loan books,” S&P Rating Services India Sovereign Analyst Kyran Curry told PTI. He said India’s capital markets are diversified and deep enough for companies to raise funding.
“Another favourable aspect of India external settings is that it is generally not subject to hot money inflows that can turn into outflows with shifts in investor sentiment. As such we see the external risks for India to be relatively contained,” Curry said. He said while export growth may be disappointing, the current account deficit likely to be a modest 1.4 per cent in 2015, with similar levels through 2018. “Our forecasts are partly informed by our view of increased monetary credibility, which dampens the demand for monetary gold imports. In addition, we expect India to fund this deficit mostly with non-debt, creating inflows,” Curry added. The CAD in the first half of current fiscal stood at 1.4 per cent of GDP, lower than 1.8 per cent in the same period last fiscal. For full 2014-15 fiscal, the CAD stood at 1.3 per cent of GDP.
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$ 26.63 per barrel (bbl) on 26.01.2016. This was lower than the price of US$ 26.87 per bbl on previous publishing day of 22.01.2016.
In rupee terms, the price of Indian Basket decreased to Rs 1801.19 per bbl on 26.01.2016 as compared to Rs 1820.43 per bbl on 22.01.2016. Rupee closed stronger at Rs 67.64 per US$ on 26.01.2016 as against Rs 67.75 per US$ on 22.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 26, 2016 (Previous trading day i.e. 22.01.2016) |
Pricing Fortnight for 16.01.2016 (Dec 30 to Jan 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
26.63 (26.87) |
30.63 |
|
(Rs/bbl |
1801.19 (1820.43) |
2040.26 |
|
|
Exchange Rate |
(Rs/$) |
*67.64 (67.75) |
66.61 |
SOURCE: PIB
The World Bank today warned that slowing emerging-market economies were hampering an oil recovery, and prices could sink further in a blow to a “fragile” global economy. Crude oil in 2016 is projected to come in at USD 37 a barrel, down from its October estimate of USD 51, the World Bank said in a new quarterly report. “A faster-than-expected slowdown in major emerging markets economies – especially if combined with financial stress – could further reduce commodity prices considerably, setting back growth in commodity exporters and the global economy,” it said in the Commodity Markets Outlook report. Oil prices fell below USD 30 a barrel in mid-January to lows last seen more than 12 years ago amid a global oversupply and weakening demand. The World Bank recently downgraded the growth projections for emerging-market and developing economies, after they slowed to a 3.3 per cent pace last year, their weakest showing since 2010. Emerging-market economies have been the main drivers of commodity demand growth since 2000, a reason why their weakening growth prospects are weighing on commodity prices, the World Bank said. “Low commodity prices are a double-edged sword, where consumers in importing countries stand to benefit while producers in net exporting countries suffer,” said Ayhan Kose, director of the Bank’s Development Prospects Group. “It takes time for the benefits of lower commodity prices to be transformed into stronger economic growth among importers, but commodity exporters are feeling the pain right away.”
The World Bank explained its stiff 27.5 per cent downgrade on 2016 oil prices reflects a number of supply and demand factors that emerged in the past three months. US oil production has shown greater resilience due to cost cuts and efficiency gains, it said. Other factors cited include the “sooner-than-expected” resumption of Iranian oil exports after international sanctions were lifted and mild winter weather in the northern hemisphere that reduced demand for heating. Oil prices, which fell by 47 per cent in 2015, are expected to decline at a slower pace, by an additional 27 per cent this year, the report said. “The sharp oil price drop in early 2016 does not appear fully warranted by fundamental drivers of oil demand and supply, and is likely to partly reverse,” it said.
SOURCE: The Financial Express
Even as many of its peers are betting crude as low as USD 10-20, British brokerage major HSBC sounded a tad optimistic but has pegged down the average Brent crude prices at USD 45 a barrel for 2016 from USD 60. The brokerage has also revised downward its price projections for the fuel to USD 60 for 2017 from USD 70, and at USD 75 by 2018 from USD 80 noting that crude prices have halved since mid-2015 and there is no end seen for the fall yet. The report is based on Brent prices, which used to be the traditional price benchmark for Indian crude basket. But more and more domestic companies are now buying from Dubai as it is cheaper than the Brent prices by USD 2-3 a barrel. Though longer-term thesis of oil market rebalancing remains valid, the process will likely remain difficult and volatile, HSBC said as its rationale for revising downward its price outlook to USD 45 a barrel for 2016 in a report. It can be noted that since crude began to fall in June 2014, it has dropped over 72 per cent, with today marking a steep 5 per cent dip to USD 27-28 a barrel. Its pessimism comes from the fact that crude supply has stayed at levels ample enough to keep visible OECD inventory in surplus while incremental oil demand growth remains relatively robust, estimated at over 1 million bpdin 2015 and in 2016, but not robust enough to drain the surplus. Factors keeping the market in surplus include hedging, service deflation, and efficiency gains against already brimming storage capacity, the report said. Accordingly, it expects downstream oil and gas companies profitability to fall to levels not seen in over a decade.
SOURCE: The Financial Express
At the 50th anniversary celebration of the Ghana Textile Printing (GTP) in Tema, Mr Kweku Ricketts Hagan, the Deputy Minister of Trade and Industry said that the government is committed to revive the textile industry to produce more for exports. The move would also help create more jobs for the Ghanaian youth. He also said that the Ministry of Trade and Industry is working assiduously to revamp the Juapong and Volta Star textiles factories to augment the efforts of the Ghana Textile Printing (GTP) company. For a country such as Ghana whose imports exceeds its exports, it is imperative to add value to its raw materials. This would turn the country’s economy around and as such the Ministry is doing everything possible to revive dormant manufacturing companies to make Ghana an export rather than import oriented nation. Government is also taking steps to invest in the local textile industries to promote it in the international market. The Deputy Minister said that electricity and regular power supply has been the major concern of manufacturing companies adding that government has initiated some measures to solve the situation.
Mr Kofi Boateng, the Managing Director of GTP, said that the pirating of their designs has negatively affected their sales. Also it has not been easy for the manufacturing companies over the past few years mainly due to unstable power supply. But this year they are hopeful it would be better for the company. Government of Ghana would also help revive the cotton industry to ensure that most of the lint is produced in the country and reduce the exportation of primary goods to other countries. The manufacturing companies are urged to increase their production to meet international standards. Since the cotton industry in Ghana serves as the raw material base and is receiving a good response, the Government of Ghana plans to extend its focus to finished products.
SOURCE: Yarns&Fibers
America's National Council of Textile Organizations (NCTO) has voted to formally support the Trans-Pacific Partnership (TPP) free trade agreement. In an article on its website, the NCTO said the decision to support TPP came after an exhaustive analysis determined that its principle objectives were met as part of the finalized terms of the agreement. The objectives include a strong yarn forward rule of origin for the vast majority of textile and apparel products, reasonable, multi-year tariff phase-outs for sensitive textile and apparel products and terms that provided for the stability of the Western Hemisphere textile and apparel production chain. “Due to the inclusion of Vietnam and other major textile and apparel exporting countries, the TPP agreement is the most significant trade policy initiative to confront the US textile sector over the past 25 years,” said Jeff Price, NCTO Chairman and President of the Specialty Fabrics Division at Milliken and Company. “As such, it was critical for our government to produce a final agreement that appropriately reflected the needs of US textile manufacturers and the hundreds of thousands of workers we employ nationwide. We believe that the agreement concluded late last year in Atlanta meets our core objectives and is worthy of our full support.” “With legislative review and action expected in 2016, NCTO looks forward to working with congressional leadership, the committees of jurisdiction, our supporters on Capitol Hill, and the Obama Administration on a path forward for TPP,” he added. The US textile and apparel industry is a significant contributor to the country's economy, producing over $70 billion in annual output and employing nearly 500,000 workers nationwide. In addition, the US textile and apparel sector exported more than $24 billion in goods in 2014. Headquartered in Washington, D.C., the NCTO is the national trade association representing the entire spectrum of the textile sector in the US.
SOURCE: Fibre2fashion
Ahead of the signing of the Trans Pacific partnership (TPP), Malaysian textile manufacturers are optimistic that the industry can grow by at least 30 per cent once the agreement comes into effect. “We are very optimistic, our growth is going to be much more that what is projected by the economists, because we are on the ground, we know. Our capacity utilisation is already very high, so once we build up our capacity, getting orders is not a problem, pricing is not a problem right now, but it will be much better when the TPP is signed,” Malaysian Textile Manufacturers Association (MTMA) president Datuk Seri Tan Thian Poh said. He said MTMA was involved in the TPP negotiations at various levels, providing industry expectations, reference, technical assistance and support to Malaysia's negotiation team. “We expect that TPP will bring a new breath of life to the industry. Based on the cost-benefit analysis carried out by the Institute of Strategic and International Studies and PricewaterhouseCoopers, the textile and apparel industry is expected to be the biggest gainer from the TPP,” Tan said at a press conference in Kuala Lumpur after a dialogue on potential economic impact of TPP on Malaysia's textile and apparel industry.
Tan's comments backed Malaysian Knitting Manufacturers Association (MKMA) president Tang Chong Chin, who said he was confident that the textiles and apparel industry would be able to grow at least 30 per cent immediately upon implementation of the TPP. “As a player in the market, with that kind of elimination of duty, given the Yarn Forward Rule (YFR) and Short Supply List (SSL), we are quite positive to achieve this given the sufficient labour force to support our industry,” Tang said. Tang also said that once the TPP is implemented, Malaysian export-based manufacturers will see a tariff reduction between 70-90 per cent from the TPP members. The US, which is the largest trading partner of Malaysia, would reduce 73.7 per cent of tariff. Both Tang and Tan called upon the government to provide sufficient labour force for the industry, to increase capacity. The declaration of support by MTMA and MKMA came barely a week before the Parliament expected to vote for the agreement. Ministry of International Trade and Industry (MITI) Deputy Secretary-General (Strategy and Monitoring), Datuk J. Jayasiri, said the US procurement sector provided a huge market that was not previously accessible by Malaysia. He said Malaysian textiles and apparel companies could bid to supply uniforms to the army, hospitals and schools. But while the MTMA and MKMA have backed the TPP to the hilt, the Malaysian Small and Medium Enterprises Association had said about 30 per cent of small and medium enterprises (SMEs) risk going under once the TPP comes into force in two years as they would have trouble meeting higher labour and environmental standards under the agreement.
SOURCE: Fibre2fashion
