|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
929.35 |
USD/Ton |
0% |
2/1/2016 |
|
VSF |
1881.40 |
USD/Ton |
0.49% |
2/1/2016 |
|
ASF |
1888.22 |
USD/Ton |
0% |
2/1/2016 |
|
Polyester POY |
948.27 |
USD/Ton |
-0.08% |
2/1/2016 |
|
Nylon FDY |
2179.58 |
USD/Ton |
0% |
2/1/2016 |
|
40D Spandex |
4767.84 |
USD/Ton |
0% |
2/1/2016 |
|
Nylon DTY |
2452.03 |
USD/Ton |
0% |
2/1/2016 |
|
Viscose Long Filament |
5639.67 |
USD/Ton |
0% |
2/1/2016 |
|
Polyester DTY |
1120.06 |
USD/Ton |
0% |
2/1/2016 |
|
Nylon POY |
2028.22 |
USD/Ton |
0% |
2/1/2016 |
|
Acrylic Top 3D |
2069.85 |
USD/Ton |
0% |
2/1/2016 |
|
Polyester FDY |
1021.68 |
USD/Ton |
0% |
2/1/2016 |
|
30S Spun Rayon Yarn |
2633.66 |
USD/Ton |
0% |
2/1/2016 |
|
32S Polyester Yarn |
1528.74 |
USD/Ton |
1% |
2/1/2016 |
|
45S T/C Yarn |
2421.76 |
USD/Ton |
0% |
2/1/2016 |
|
45S Polyester Yarn |
1680.10 |
USD/Ton |
0% |
2/1/2016 |
|
T/C Yarn 65/35 32S |
2088.77 |
USD/Ton |
0% |
2/1/2016 |
|
40S Rayon Yarn |
2785.02 |
USD/Ton |
0% |
2/1/2016 |
|
T/R Yarn 65/35 32S |
2406.62 |
USD/Ton |
0% |
2/1/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0% |
2/1/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0% |
2/1/2016 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
2/1/2016 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
2/1/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0% |
2/1/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15136 USD dtd.2/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Micro textile parks are soon likely to come up in Tiruvannamalai district of Tamil Nadu, as district collector A Gnanasekaran has asked entrepreneurs to jointly come forward to set up such parks in the district, a leading daily said in a report. Gnanasekaran had organised a meeting of interested entrepreneurs, after chief minister J Jayalalithaa's announcement of providing grant for setting up infrastructure in micro textile parks. The Rs 2.5 crore grant announced by the chief minister will be provided to those entrepreneurs who would collectively come forward to set up micro textile parks. The grant would be to facilitate provision of water, electricity, construction of teleconference facility, marketing centres and common amenities in the micro textile parks set up out of the towns. Gnanasekaran asked the participants for the suitable proposals to set up micro textile parks with details like type of the project, sustainability and feasibility. The proposals should be sent to director, Handloom and Textile, Chennai, he added. (NA)
SOURCE: Fibre2fashion
The central government has decided to set up 20 textile parks to boost textile industry in the country for which the centre is in talks with Uttarakhand and some other states so that land for these projects can be allotted. The proposed parks will eventually develop industrial hubs across the country, said Union Minister for Textiles Santosh Gangwar during his visit to Haridwar on Sunday to take feedback of people for the upcoming Union Budget. While apparel garment units are being set up to promote the textile sector. A special emphasis is being laid on the technical textile sector. Gangwar further added that India has emerged as the new growth engine under Prime Minister Narendra Modi. The NDA government has launched several remarkable schemes such as the Namami Gange, the Bharat Swachh Abhiyan and Startup India have been launched. Haridwar MP Ramesh Pokhriyal Nishank was also present.
Regarding the Union Ganga Rejuvenation and Water Resources Minister Uma Bharti’s assurance of ensuring the cleanliness in the Ganga before the start of Ardh Kumbh, the Union minister said that he would take up the issue with her. He, however, said a comprehensive plan was being made under the Namami Gange project to clean the Ganga. On the delay in the release of funds for Ardh Kumbh under Niti Ayog, the Union minister said that sooner or later, the funds would be provided to the Uttarakhand government. MP Ramesh Pokhriyal Nishank was also present said that he would also take up the issue with officials concerned and Chief Minister Harish Rawat to know where problems were coming in receiving the Kumbh grant. On the non-inclusion of Dehradun in the first list of top 20 smart cities, he said various factors were considered during the selection process. The city may be included in the next list.
SOURCE: Yarns&Fibers
Commerce and Industry Minister Nirmala Sitharaman has convened a meeting of export promotion councils on Tuesday to discuss ways to promote India's exports, which have remained in the negative zone since December 2014. The councils attending the meeting include Council for Leather Exports and Engineering Export Promotion Council, an official said. Besides issues related to inadequate infrastructure, the exporters would raise matters related to timely refund of tax claims and more support in the forthcoming Budget. "During the meeting, we are going to raise the issue of affordable credit to exporters. The council will also ask the government to create a Rs 100 crore market development fund particularly for MSME sector," Council for Leather Exports Chairman Rafeeq Ahmed said. He said the issue of timely refund of claims would also be raised in the meeting.
The Commerce Ministry is doing several consultations with industry and state representatives in order to find ways to enhance the outbound shipments. India's exports contracted for the 13th month in a row, dipping about 15 per cent in December to USD 22.2 billion due to steep decline in engineering and petroleum shipments. The cumulative exports during the April-December period declined by 18.06 per cent to USD 196.6 billion. Outbound shipments of as many as 15 key sectors, including petroleum, engineering and leather, dipped last month. The government, however, is hopeful that the incentives such as 3 per cent interest subsidy scheme and enhanced duty drawback rates would help in pushing the exports.
SOURCE: The Statesman
The output of the eight core industries grew 0.9 per cent in December 2015 on the back of a strong showing by the coal, power and fertiliser sectors. This performance was much better than in November 2015, when the cumulative output contracted by 1.3 per cent. However, the growth in December 2015 was lower than the 3.2 per cent growth posted in December 2014.For the April-December period this fiscal year, the core industries’ output grew 1.9 per cent, much lower than the 5.7 per cent growth in the corresponding period last year. In December 2015, coal output grew a robust 6.1 per cent, higher than the 3.5 per cent growth in the previous month. For the month under review, fertiliser output grew 13.1 per cent (13.5 per cent in November 2015), electricity output grew 2.7 per cent (0 per cent) and cement grew 3.2 per cent (-1.8 per cent). Steel output contracted 4.4 per cent, largely due to increased competition from imports and some cases of dumping. Refinery products output grew 2.1 per cent in December 2015.
Expert views
Commenting on the latest data, Devendra Kumar Pant, Chief Economist, India Ratings & Research, said that the core sector numbers point towards a mild expansion in industrial output in December 2015. After negative growth in November 2015, mild growth provides some relief to industrial output in December, he said. The eight core industries’ have 38 per cent weightage in the overall index of industrial production.
CIL boost
Despite limited private sector mining, Coal India’s efforts have resulted in growth in domestic coal production and a reduction on the reliance on imported coal, Devendra said. Aditi Nayar, Senior Economist, ICRA Ltd, said that the muted 0.9 per cent core sector growth for December 2015 is disappointing, particularly as it has fallen short of the average of 1.9 per cent for the first three quarters of 2015-16. “Notwithstanding the weak core sector growth print for December 2015, we continue to expect the Reserve Bank of India to desist from monetary easing until greater clarity emerges regarding the fiscal consolidation path of the Union Government post the presentation of its Budget for 2016-17,” she said.
Meanwhile, CARE Ratings said in a statement that the steel sector had registered six successive months of negative growth, which is a concern. IIP (Index of Industrial Production) growth for December would again be subdued with higher growth possible only in consumer goods and capital goods, the CARE Ratings statement said. Prima facie a growth rate between 2-3 per cent could be expected based on past trends, it added.
SOURCE: The Hindu Business Line
To support domestic manufacturing, the government on Monday barred duty-free import of capital goods for power generation and transmission projects under the Export Promotion Capital Goods Scheme. The EPCG scheme allows zero-duty import of capital goods on the condition that goods produced be exported worth six times of the duty saved under the scheme in six years. "Authorisation under the EPCG scheme shall not be issued for import of any capital goods for generation/transmission of power (including captive plants and power generator sets of any kind)," the Directorate General of Foreign Trade said in an order. The impact of the DGFT notification is minimal on domestic producers because they do not export much to comply with the obligation under the EPCG scheme. Besides, in an earlier notification two years ago, the government had clarified that power supply to special economic zones and export oriented units would not qualify as exports to comply with the outbound shipment obligation under the EPCG scheme. Import of duty-free capital goods for power sector banned The EPCG scheme was launched by the government in the early 1990s with an aim to allow exporters to import machinery and equipment at affordable prices to facilitate production of quality products for the export market. A senior executive at BHEL said the order would not have a major impact on the company as power equipment does not fall under its purview. BHEL is the largest manufacturer and EPC contractor for the power sector.
Ajay Sahai, director-general and CEO of FIEO, said the notification was in line with the objective of plugging misuse of the scheme as power generators or suppliers were not really exporters. "The scheme should be applicable for power generators as well and the power supply to SEZs and EOUs should be allowed to meet the export obligation condition. This would ensure smooth power supply to manufacturing units in these export zones, considering that they pass on the capital goods duty benefit in the form of lower tariff," Sahai added. However, small capital goods producers hailed the move. "The decision will have a positive impact on the indigenous power equipment industry. In the past few years, the domestic power equipment capacity was underutilized as cheap imports flooded the market and orders shrank," said Babu Babel, president, Indian Electrical & Electronics Manufacturers' Association (IEEMA). "This order would not only provide us the much-needed level playing field but encourage 'Make in India'. We would like to also convey that the Indian power equipment industry is prepared to meet the demand," Babel added. IEEMA is the representative association for the whole value chain in power generation, transmission and distribution equipment manufacturers. The government has set a target of 88,537 MW capacity addition for the 12th Plan period ending 2016-17. Till December, 72,240.12 MW, or 81.59 per cent of the target, has been achieved, according to the Central Electricity Authority. In the Foreign Trade Policy 2015-20 the government reduced the export obligation for those procuring capital goods domestically to 4.5 times of imports as against 6 times under the EPCG scheme, which will encourage the domestic capital goods industry.
SOURCE: The Business Standard
The manufacturing sector is back into expansion mode in January on the back of new orders from domestic and overseas clients, a private business survey showed on Monday. The Nikkei India Manufacturing PMI — a composite monthly indicator of manufacturing performance — posted a reading of 51.1 in January, up from 49.1 in December, a month that saw a contraction due to flooding in Tamil Nadu. Pollyanna De Lima, economist at Markit and author of the report, said the opening month of 2016 saw a rebound in new business — from both domestic and external clients — leading manufacturers to scale up output. “Whereas the trends in the growth rates are relatively weak in comparison with the long-run series averages, January’s PMI data paint a brighter picture of the economy,” she said. Although the rate of expansion was modest, it was the sharpest in four months, the survey, conducted by financial information services provider Markit, said. The consumer goods sub-sector remained the principal growth engine, seeing substantial expansion in both output and new orders. In contrast, the producers of investment goods saw output and new orders fall, while production volume stagnated in the intermediate goods category. The survey also revealed that January saw mild job creation in the manufacturing sector, with headcounts added across the consumer, intermediate and investment goods categories. The trend in new export order inflows strengthened. The level of incoming new export business has now risen in each of the past 28 months.
‘No rate cut likely’
Although the RBI is likely to continue its monetary policy loosening cycle in 2016, February’s meeting will probably see the repo rate remain unchanged at 6.75 per cent, according to Pollyanna. This is because the central bank is expected to remain wary of inflationary pressures building up in the country.
SOURCE: The Hindu Business line
Mega trade agreement TPP will certainly have an impact on India's exports in sectors such as pharmaceuticals, textiles and chemicals, Commerce and Industry Minister Nirmala Sitharaman said today. She, however, said that the country is preparing itself to deal with the adverse impact of the Trans Pacific Partnership (TPP), a mega trade deal among 12 countries, including the US. "We have certainly started looking into all the implications of any possible diversion in trade ... so keeping that diversion possibility which will happen and which can negatively affect India we are certainly looking at those sectors which will be bearing the brunt immediately after the TPP comes into the force," she told reporters here. She said that the government is also looking and identifying countries where Indian investments for manufacturing can happen.
Talking about negative impact of Trans Pacific Partnership (TPP), she said there also will surge in imports into India. "The TPP will certainly have an impact on India's exports and it is most likely to affect sector like leather goods, plastics, chemicals, textiles and clothing," she said. On investments, the minister said the investor-State dispute mechanism will have a "serious bearing" on countries like India which are not part of the TPP. Besides, India would have to look at the labour laws, rules of origin of products, intellectual property rights and product standards. She said that this trade pact could impact the overall trade scenario and countries like India would have to look at their policy stance to cope up with the implications.
To deal with the situation both the industry and the policy makers will have to work together in this situation, she added. The TPP is a trade agreement among 12 countries, including Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. The TPP agreement has been concluded but is not yet ratified for implementation by the participating countries.
SOURCE: The Economic Times
Lines of credit extended by the Export Import Bank of India (Exim Bank) have helped many Indian exporters enter new and non-traditional markets, External Affairs Minister Sushma Swaraj said today. The Minister today interacted with top management of the bank, Exim Bank said in a statement. Swaraj also noted Exim Bank's initiatives under GoI's 'Act East' policy in assessing business opportunities for India in Cambodia, Lao PDR, Myanmar and Vietnam (CLMV), it said. Swaraj was briefed about the recent initiatives of the Bank for export promotion and facilitation through the Bank's range of products and services like the Overseas Investment Finance Programme, Project Exports Finance, Buyers' Credit under the National Export Insurance Account (NEIA), Lines of Credit (LOC) and advisory services, the statement said. The statement further said the minister was also apprised of the Exim Bank's issuance of Green Bonds in 2015. Export-Import Bank of India (Exim Bank) is engaged in financing, facilitating and promoting India's international trade and investment.
SOURCE: The Economic Times
CBDT has signed bilateral Advance Pricing Agreements (APAs) with two UK-based firms, a move that will help reduce transfer pricing disputes concerning intra-group transactions. "The two bilateral APAs were signed with two Indian group entities of a UK-based multi-national company. The APAs cover the period 2013-14 to 2017-18 and also have a rollback provision for two years (2011-12 and 2012-13)," a finance ministry statement said today. With the signing of the bilateral APAs on January 29, the two Indian companies have been provided with tax certainty for 12 years each (5 years under Mutual Agreement Procedure and 7 years under APA). "This is a significant step towards providing a stable and predictable tax regime," the statement added. This takes the total number of bilateral APAs signed by CBDT to three. The first bilateral APA was signed with Japan in December 2014.
An APA, usually for multiple years, is signed between a taxpayer and the tax authority (Central Board of Direct Taxes in India) on an appropriate transfer pricing methodology for determining the price and ensuing taxes on intra-group overseas transactions. "The APAs have been entered into soon after the Competent Authorities of India and UK finalised the terms of the bilateral arrangement under the Mutual Agreement Procedure (MAP) process contained in the India-UK DTAA," it added. Transfer pricing disputes on the same transaction were recently resolved under MAP for each of these two companies for the years 2006-07 to 2010-11. "The two APAs are also significant because they address the issues of payment of management, service charges and payment of royalty. These transactions generally face prolonged and multi-layered transfer pricing disputes," it added. CBDT has in all signed 41 APAs out of which 38 are unilateral and 3 are bilateral.
SOURCE: The Economic Times
The Karnataka government is looking to attract twice the Rs 1.30 lakh crore investment it has wooed in the last two years at the upcoming global investors meet which will begin on Febuary3, 2016. Chief Minister Siddaramaiah said that with a thriving eco-system for investment the state's expectations were "realistic". Several mega investment projects would be announced at the meet. The government hopes to mobilize investments in 116 investible projects identified already. Finance Minister Arun Jaitley would inaugurate the event, which will also see the presence of several union ministers including Nirmala Sitharaman, Suresh Prabhu and Nitin Gadkari. The CM further said that the government is expecting to attract double the investment received so far. Also the state would reach the targets set in the new 2014-19 industrial policy, one year ahead of the timeframe. The new policy envisages 12 percent industrial growth, Rs 5 lakh crore investments and generation of 15 lakh jobs.
On the common refrain by the corporate sector regarding non-availability of land, he said that the state cabinet had recently decided to hand over 13,000 acres to Karnataka Industrial Area Development Board. Land is not a problem as Karnataka has already created a land bank of 26,268 acres, noted Rathna Prabha, Additional Chief Secretary (Industries and Commerce). Over 100 top global and Indian leaders, including marquee investors, would take part in the meet, besides CEOs of domestic and global corporations, he pointed out. Among the attendees would be Ratan Tata, Kumar Mangalam Birla, Anil D Ambani, Gautam Adani, Uday Kotak, N R Narayana Murthy, Sajjan Jindal and Baba Kalyani, officials said.
Fourteen sectors, including textile and defence, have been identified for the meet, for which seven partner nations - France, Germany, UK, Italy, Sweden, Japan and South Korea - are arriving with huge delegations, Minister for Large and Medium Industries R V Deshpande said. Both Siddaramaiah and Deshpande described as "tremendous" the response to the event, preceded by roadshows held within the country as well as overseas. They are confident that it will be hugely successful. Incentives and concessions are not the only answers for investment, he said, emphasizing that Karnataka has historically been a progressive state with a vibrant and productive industrial ecosystem. On infrastructure bottlenecks, particularly in Bengaluru, a main source of concern for the investors, the government is trying to overcome them. Karnataka with its inherent strengths and advantages continues to draw investment despite states like Andhra Pradesh and Telangana vying with it.
SOURCE: Yarns&Fibers
Foreign direct investment (FDI) attracted by India has improved considerably over the past 15 months after the launch of the 'Make in India' campaign by the Narendra Modi-led government, according to the Reserve Bank of India data. Prime minister Narendra Modi's 'Make in India' initiative is aimed at turning the country into a global manufacturing hub to generate jobs, raise incomes and drive growth. From September 2014 when the campaign was launched till November 2015, India received $62.6 billion in FDI, which is 31 per cent higher than the $47.6 billion FDI inflows registered in the preceding 15 months. This is more than thrice the amount of net portfolio inflows of $14.3 billion in the same period. An analysis of the monthly trend in foreign investment shows that portfolio inflows has been more volatile while the long-term FDI was stable in most of the months during the 15-month period. The government has been bringing persistent efforts to bring investment as a part of the 'Make in India' campaign. The surge in FDI is largely due to these initiatives by the government to attract investment in the manufacturing sector. The surge in FDI in India is noteworthy given that investment across the world has fallen by 16 per cent, said Amitabh Kant, secretary, Department of Industrial Policy and Promotion, at a recent event. A sizeable amount of FDI is estimated to have gone to the manufacturing sectors. However a portion of the FDI has come in as private equity and venture capital funding, which helps finance entrepreneurs. The country's growth is being driven by public spending and consumption with private investment yet to commence substantially.
SOURCE: Fibre2fashion
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 31.63 per barrel (bbl) on 01.02.2016. This was higher than the price of US$ 31.05 per bbl on previous publishing day of 29.01.2016.
In rupee terms, the price of Indian Basket increased to Rs 2140.77 per bbl on 01.02.2016 as compared to Rs 2107.56 per bbl on 29.01.2016. Rupee closed stronger at Rs 67.67 per US$ on 01.02.2016 as against Rs 67.88 per US$ on 29.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 01, 2016 (Previous trading day i.e. 29.01.2016) |
Pricing Fortnight for 01.02.2016 (14 Jan to 27 Jan, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
31.63 (31.05) |
26.05 |
|
(Rs/bbl |
2140.77 (2107.56) |
1763.06 |
|
|
Exchange Rate |
(Rs/$) |
67.67 (67.88) |
67.68 |
Source: Ministry of Textiles
An unofficial ban on the import of raw textile materials from Turkey has left Russian textile enterprises struggling to find alternative supplies among local manufacturers and maintain their production cycles. The situation has escalated so far that Russia's ministry of industry and trade has recently asked industry representatives to compile a ‘white list’ of Turkish exporters who would be able to continue shipments to Russia, while the government in Moscow weighs the possibility of an official embargo on Turkish textiles. Russia mounted sanctions against a number of Turkish industries, mainly agriculture and tourism, after a Sukhoi Su-24 bomber plane was shot down over Turkey in late November. Although textiles were not formally included on the list, shipments of Turkish textiles have been blocked at the Russian border since November and the few shipments that manage to make it past the Federal Customs Service of Russia undergo long inspections that result in significant delivery delays. These issues have become so systemic that on 13 January, the ministry of industry and trade tasked the Russian
Union of Entrepreneurs of Textile and Light Industry with creating this “white list” of Turkish manufacturers that should supply raw textile materials to Russian factories, hopefully without experiencing significant delays. “At the moment, we don't have an official embargo on textile materials that are produced in Turkey,” says Andrey Razbrodin, the union's president. “Nevertheless, we believe that we should be ready for this. We are preparing a list of companies that are currently working with the Russian factories, those that have shown good results, so that if there is an official embargo we will have a transitional period or even keep some companies exempt from the embargo altogether.”
Turkey accounts for 10% to 12% of total light industry imports to Russia, according to Moscow textile analytics agency Anitex. At the end of the third quarter of 2015, Turkey's share in Russian imports was 11% for fabrics made from chemical fibres and threads; more than 40% for warp-knit fabrics; and about 25% for yarns made from synthetic and artificial fibres. Finished products make up the majority of Turkish textile imports to Russia, while raw materials amount to roughly 30% of the total import volume, according to the Union of Entrepreneurs of Textile and Light Industry. However, despite their small volume, Razbrodin cautioned against blocking these raw materials at the border, warning this has a very negative effect on Russian factories. “Raw textile materials from Turkey are not a big segment, but there are already set mechanisms in place for them; logistics, payment systems and deliveries. It is impossible for Russian enterprises to switch to new materials in such a short time,” says Razbrodin. Moreover, there are few local alternatives available to Russian enterprises who have had their deliveries of Turkish textiles cut off. Experts say that Russian textile manufacturers still don't have the capacities to substitute for Turkish imports.
SOURCE: World Textile Information Network (WTIN)
The Federal Government of Nigeria has been urged to ban import of foreign fabrics to revive the nation’s ailing textile mills. According to Alhaji Sani Muhammad, the Administrative Secretary of Zamfara Textile Industry located in Gusau, importation of textile materials had led to the collapse of the nation’s textile sector. Muhammad lamented that Zamfara Textile, established in 1965, had layed off over 2, 500 workers in 2004. It is unfortunate that the industry is not able to come back fully. ZTIL has a ginnery and spinning and weaving facilities for the production of high quality grey baft. It supplies the bulk of the fabric requirements to Supertex in Kaduna. He described plan by the government to improve power and fuel supply as a `welcome development’, adding that if the importation of textile goods were not stopped, surviving local mills would be operating at a loss. Cotton farmers, who produced raw materials for the mills had moved to other crops with the collapse of the sector. He, therefore, urged the government to provide improved cotton seeds and modern textile machines for Nigerian fabrics to favorably compete with foreign ones. The Chairman, Ginners Association of Nigeria in the state, Alhaji Sani Dahiru, blamed poor cotton production on the neglect of the agricultural sector and collapse of the textile industries.
Out of the 15 ginneries operating in the state, only two offered skeletal services. Dahiru urged the government to provide trained agricultural extension workers to assist farmer to cotton famers meet the needs of the surviving mills. The Director, Federal Ministry of Agriculture in the state, Alhaji Musa Raji, said that despite government’s efforts to encourage cotton farmers, there was no much progress. The ministry, which supplied improved seeds and fertilizer to the farmers, was always ready to offer professional advice to farmers.
SOURCE: Yarns&Fibers
ASEAN garment products likely to flood the Vietnamese market and directly compete with domestic products following the country’s accession to the ASEAN Economic Community (AEC) and Trans Pacific Partnership (TPP) treaty due to which Vietnamese textile and garment companies might face a huge challenge. According to Nguyen Thi Dien, chairwoman and executive director of the An Phuoc Shoes Sewing and Embroidering Company, the customers will support domestic goods but the most important factor to retain Vietnamese clients is to assure quality. Since competition with garment products from other ASEAN countries would be unavoidable, local companies should improve their quality and expand models to strengthen their competitiveness. Since 1995 Viet Tien Garment Joint Stock Corporation has set up a distribution chain with 1,390 shops and agents around Viet Nam. Besides the famous Viet Tien brand name, the corporation also owns various fashion brands for both adults and children. With over 200 shops, Blue Exchange has a big market share of garments for young people.
Hong Ve Dung, deputy general director of the Viet Nam Garment and Textile Corporation, said that in recent years demand for garment products has increased by 10 – 15 percent annually. Promoting new design, strengthening brands and expanding the distribution system are the best ways to cope with the effects of the free trade agreements. Dung said that local companies hope for lower interest rates to cut their expenditure and improve their competitiveness. An Phuoc has kept its growth target of 15 -17 percent, despite the fact that the market is set to become more competitive, This year it plans to open 10 more shops to add to its 105 existing ones.
SOURCE: Yarns&Fibers
In order to help exporters upgrade factories and boost investments, government of Bangladesh is set to revive the option of reduced corporate tax rate for the garment sector. From fiscal year 2005-06 till 2013-14, the sector paid corporate tax at a reduced rate of 10 percent. However, this provision was expired on 1st July, 2014 and the government did not extend it again, meaning the sector paid tax at the 35 percent rate in fiscal 2014-15. Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association, said that the garment industry is going through a tough time and the factories will have to be relocated or upgraded, so a higher corporate tax will be counterproductive: it will neither attract investment nor generate employment. Consequently, since past four months, the sector's leaders have urged the finance minister to soothe the burden of extra tax and help in aiding the garment sector of the country.
Tofail Ahmed, commerce minister of Bangladesh, supported the demand for reduced corporate tax rate but from this fiscal year and not from fiscal 2014-15 since the tax assessment for fiscal 2014-15 has been already completed by the National Board of Revenue, so the facility cannot be revived from July 1, 2014. In a meeting yesterday, the sector's three trade bodies and Finance Minister AMA Muhith, Industries Minister Amir Hossain Amu and Commerce Minister Tofail Ahmed presented a number of demands, including cash incentives. Around 61 percent of the garment exports go to the European Union and in the last five years, the euro has eroded 21.35 percent against the dollar. In the last one year, the taka appreciated 3.27 percent against the euro, which also affected garment exports. Subsequently, they demanded that the exports to the Eurozone be given a cash incentive at the rate of 3 percent.
SOURCE: Yarns&Fibers
Textile industry suffering even in Free Zone the state of textile and garment industry even in free zone enclaves is poor. The minister for trade and industry, Dr. Ekow Spio-Garbrah said this during a tour of the Tema Free Zone Enclave. Ghana’s once vibrant textile industry has suffered, many reverses since the country adopted a liberalization programme. Part of the liberalization programme was the creation of Free Zone enclaves to give selected industries advantages to make them internationally competitive. But it seems even in the Free Zones, the textile sector is struggling. Dr. Spio-Garbrah during his tour, warned against illegal sub-leasing of government building saying that “instead of handing over buildings and plots to the Ministry, some companies have on their own decided to illegally rent out such government facilities to other companies. He asked the industries to do self diagnosis and come out with appropriate growth oriented strategies, adding that government was bent on creating an enabling atmosphere for them to flourish. The Trade Minister said government wants to support the manufacturing sector to make it a viable vehicle for job creation. Despite the assertions of support, the local textile industry is finding the hard to compete against imports often smuggled in to avoid payment of taxes. The phenomena is also having a negative impact of the industries in Free Zones as their product originally meant for a depressed export market, is also finding it hard to find space in the domestic market.
SOURCE: The Peace FM Online
The Ethiopian Textile Industry Development Institute (EDITI) has said that the textile exports of the country for the first six months of Ethiopian fiscal year 2015-16 are lagging behind the plan target, according to Ethiopian media reports. During the evaluation of the cotton development and textile industry performance for the first half of the fiscal year 2015-16, EDITI said that the target was to obtain $60.07 million from textile exports, while only $41.1 million was achieved, meeting 70 per cent of the plan. The evaluation also revealed that cotton production was planned on 262,000 hectares of land, while only 65,000 hectares of land was used for cotton production. The El Nino destroyed cotton crops over 14,000 hectares of land.
Lack of continuous power supply, weak company linkage, shortage of manpower, and delay in implementing investment projects accounted for the weak export performance of the Ethiopian textile industry during the six-month period. Abebe Kasse, institute plan and information management director, said that the government wants the textile sector to be export oriented and give emphasis to quality. He also said that the institute believes that the textile industry can achieve the export target for the year in the coming six months.
SOURCE: Fibre2fashion
Oil fell 4 per cent on Monday as weak economic data from China, the world's largest energy consumer, weighed on prices and an Opec source played down talk of an emergency meeting to stem the decline. China's manufacturing sector contracted at the fastest pace since 2012 in January. Brent April crude futures were down $1.44, or 4 per cent, at $34.55 a barrel at 1451 GMT. The March Brent contract, which expired on Friday, settled at $34.74 a barrel. US West Texas Intermediate was down $1.56, or 4.6 per cent, at $32.06 a barrel.
SOURCE: The Business Standard
