INTERNATIONAL
Textile Raw Material Price 2016-02-03
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
933.10 |
USD/Ton |
0% |
2/3/2016 |
|
VSF |
1888.99 |
USD/Ton |
0% |
2/3/2016 |
|
ASF |
1895.83 |
USD/Ton |
0% |
2/3/2016 |
|
Polyester POY |
952.09 |
USD/Ton |
0% |
2/3/2016 |
|
Nylon FDY |
2188.37 |
USD/Ton |
0% |
2/3/2016 |
|
40D Spandex |
4787.06 |
USD/Ton |
0% |
2/3/2016 |
|
Nylon DTY |
5662.40 |
USD/Ton |
0% |
2/3/2016 |
|
Viscose Long Filament |
1124.58 |
USD/Ton |
0% |
2/3/2016 |
|
Polyester DTY |
2036.40 |
USD/Ton |
0% |
2/3/2016 |
|
Nylon POY |
2078.19 |
USD/Ton |
0% |
2/3/2016 |
|
Acrylic Top 3D |
1025.80 |
USD/Ton |
0% |
2/3/2016 |
|
Polyester FDY |
2461.91 |
USD/Ton |
0% |
2/3/2016 |
|
30S Spun Rayon Yarn |
2644.28 |
USD/Ton |
0% |
2/3/2016 |
|
32S Polyester Yarn |
1534.90 |
USD/Ton |
0% |
2/3/2016 |
|
45S T/C Yarn |
2431.52 |
USD/Ton |
0% |
2/3/2016 |
|
45S Polyester Yarn |
2097.19 |
USD/Ton |
0% |
2/3/2016 |
|
T/C Yarn 65/35 32S |
2796.25 |
USD/Ton |
0% |
2/3/2016 |
|
40S Rayon Yarn |
2416.32 |
USD/Ton |
0% |
2/3/2016 |
|
T/R Yarn 65/35 32S |
1702.06 |
USD/Ton |
0.90% |
2/3/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0% |
2/3/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0% |
2/3/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
2/3/2016 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
2/3/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0% |
2/3/2016 |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15197 USD dtd. 03/02/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same
The proposed Textile Park at Padalur on the Tiruchi – Chennai National Highway has evoked good response from the entrepreneurs, with as many as 31 entrepreneurs from different parts of the state expressing interest to set up units. The proposal, which hit several bottlenecks with regard to identification of site, was finally fixed at the junction of the Padalur and Irur panchayat on 40.35 hectares — 36.79 hectares of government poramboke land in the Padalur village and 3.56 hectares government poramboke land in Irur village. The park is being promoted by State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and the State government had accorded permission to the Directorate of Handlooms and Textiles for the formation of the textile park.
According to sources, a meeting of the entrepreneurs would be held soon in Perambalur when their views would be sought on providing amenities and infrastructure. The park will mainly cater to the needs of export-oriented ready-made garments units, production of yarn and so on. “We have received applications from units for making T-shirts also,” says the source.
Road
SOURCE: The Hindu Business Line
Surat Textile Mills has reported a standalone total income from operations of Rs 31.50 crore and a net profit of Rs 2.18 crore for the quarter ended Dec '15. For the quarter ended Dec 2014 the standalone total income from operations was Rs 26.50 crore and net loss was Rs 0.73 crore. Surat Textile shares closed at 2.32 on February 02, 2016 (BSE) and has given 41.46% returns over the last 6 months and -2.93% over the last 12 months.
SOURCE: The Money Control
Bharathiar University and South India Textile Research Association have entered into an agreement to promote activities like research and innovation in textiles. The MoU signed by the Department of Textiles and Apparel Design with SITRA will pave way to various activities like students' research, computer applications in textiles, besides imparting practical knowledge and development of self-employment, a University release said. Registrar of the University, Dr KG Senthilvasan and senior officer of SITRA Power Loom Centre signed the agreement, it added. The MoU, which was signed recently, also envisaged conduct of seminars, conferences and other activities for betterment of students and society as well, it said.
SOURCE: The Business Standard
As India's exports continue to fall, the Commerce Ministry has solicited specific suggestions from exporters which could be taken up with various ministries, including Finance, to improve ease of doing business and boost waning exports. Commerce and Industry Minister Nirmala Sitharaman sought specific inputs to reverse the negative trend in exports during her interaction with the representatives of 12 export promotion councils (EPCs) in New Delhi, according to an agency report. "The Commerce Ministry will follow up with environment, textiles, customs and finance for easing out of few more things related to export promotion so that there is an ease of doing business from the exporters point of view," Sitharaman said after the meeting. She asked the EPCs to inform the ministry on "what is not happening and what should ideally happen" on the respective area. The textile industry is one of the sectors hit by the export slowdown. The minister also asked the council members to talk with their respective members and "seek specific interventions from the Ministry based on their inputs." The minister assured them that the issues raised by them would be sorted out through discussions with the stakeholders concerned.
Sitharaman assured that her ministry would look into all the issues raised by the EPCs and will also approach External Affairs Ministry and Finance Ministry for customs related issues. Commerce Secretary Rita Teaotia who also addressed exporters, said that the review of the India-Asean FTA has already been initiated. During the meeting, several issues were flagged by the exporters including the impact of India-Asean FTA on the countrys exports, non-tariff barriers of other countries, currency volatility, special economic zones, problems in dealing with customs authorities and service tax. Indias exports contracted for the 13th month in a row, dipping about 15 per cent in December to $22.2 billion due to steep decline in engineering and petroleum shipments. India's total exports during April-December period declined by 18.06 per cent to $196.6 billion.
SOURCE: Fibre2fashion
Textile industries which is also a victim of global slowdown in exports need urgent attention from the Government to revive it. The Union Textiles Minister Santosh Kumar Gangwar assured that Government have plans to boost the exports and working on it. Talking exclusively to KNN, Minister said that Exports have gone down in every field and not only in textiles. “We have plans to boost exports and we are working also in it,” he said adding that the industry is going on a right track now. People are taking interest and associating with it also, he explained. When asked about the share for textiles industry in upcoming Union Budget, he replied that currently Government has come up with TUFS (Technology Upgradation fund scheme) before the budget. Sanctions are much higher than we expect, he added. People’s faith has increased in the Textile industry, he said. The world economy is going through a slowdown and the exports have fallen sharply impacting all the sectors. The Indian textile industry, particularly textile exporters have been asking the government to expedite FTAs with Canada, Australia and the EU. Even ahead of the TPP, Indian textile exports have been falling.
SOURCE: The KNN India
The first Chinese general Industrial park with focus on textiles will be functional by the end of 2017 near Ahmedabad. The infrastructure for the park will be ready by 2017-end and some of the companies will begin setting up their units by the same time, said the country head of China Association of Small and Medium Enterprises (CASME) in India, Kamlesh Bhadani. An MoU for setting up this project was signed between China Development Bank and Gujarat government during the Vibrant Gujarat Summit 2015. The state government has set up a high-power committee under the chairmanship of the additional chief secretary of industries for this project. A group of senior officials of CASME and China Development Bank, including Bhadani and vice-managing director of China Development Bank Xiao Ming Zhen, had met the state chief minister last month. Zhen had said that work on the $1 billion industrial park will begin soon. The ground breaking of the project is likely to be held in the next few months. Bhadani said that they are looking at two land pockets — one in Sanand and other on Ahmedabad-Rajkot highway. It is going to be a general park and its developer will be CASME. Once the Chinese New Year celebrations are over, they will be conducting road shows and other campaigns to create awareness about this industrial park among the Chinese firms. The work on project will be expedited from March.
Bhadani, speaking about the focus on textile sector in this park said that many of the Chinese textile firms will prefer to have a local partner as they will be coming from different environment. There is hardly any value addition in India to the raw material which is exported to China. The Chinese textile companies will do manufacturing here in Gujarat and export the finished product to China, as there is a huge market for this in China Some of companies interested in the project have already visited Ahmedabad and few more will be coming soon. These firms would like to do due diligence before investing here. Besides bringing in investment, this park will also provide employment on a large scale.
SOURCE: Fibre2fashion
Representatives of industrial associations met the Prime Minister Narendra Modi here on Tuesday and sought better infrastructure for the city and measures to boost the industrial activity here. The Confederation of Indian Industry members spoke about the need for improvement of road connectivity, especially the portion between Chengapalli and Walayar. They also stressed the need to expedite land acquisition and expand Coimbatore International Airport. The Indian Chamber of Commerce and Industry, Coimbatore, sought opportunity for industrial associations to participate in the Smart City project, especially because Coimbatore is one of the cities listed in the top 20. The association representatives also explained the efforts of Siruthuli in conservation of water bodies.
According to Indian Texpreneurs’ Federation, the Union Government should organise a textile fair as done in some of the European countries. They also submitted their requests on how Make in India can benefit the textile sector and measures needed to boost exports. The industry has manufacturing capacity and to make use of it, there should be a theme to get global attention. This will benefit small manufacturers too and even buyers from new countries can take part. Further, given the importance of cotton in the Indian textile sector, the association members highlighted the potential to increase cotton yield.
SOURCE: The Hindu
Attitudinal issues among textile entrepreneurs here look to be slowing down the shift from being a mere cotton-based knitwear production hub to a cluster that could cope with the current global demands for apparels made from man-made fibres. Even after the share of apparels made of man-made fibres in the global market is now over 60 per cent vis-a-vis the garments made of pure cotton, almost 90 per cent of the export turnover in Tirupur knitwear cluster still comes from catering to the orders of cotton-based apparels. “Of course, the knitwear producers here need to change their outlook drastically failing which they might end up losers in the long run. Majority of them are not ready to think beyond the comfort zone of producing cotton-made apparels as the going was smooth for them in past many decades. So, they are failing to view with seriousness the paradigm shift happening towards consumer demand for clothing made of man-made fibres”, pointed out R. Girish, a buying agent-cum-exporter and founder member of Tirupur Exporters and Manufacturers Association. Lack of adequate awareness among the entrepreneurs about the parameters of the man-made fibres like shrinkage pattern and knitting properties too is compounding the problems. “Unless a profound understanding about the properties of man-made fibres are there, exact costing of the products become difficult even when the apparel producers here wanted to take the orders and execute the same at short periods”, said Raja M. Shanmugam, an apparel exporter and state committee member of Confederation of Indian Industry.
Due to this general reluctance for a transition and failure to compute the exact costs, even Tirupur-based buying agents-cum exporters like Mr. Girish who source orders from foreign buyers for apparels made of man-made fibres like polyester, viscose and even its blends with cotton too, are now executing the same by approaching garment units in Jaipur, Ludhiana and Delhi clusters. Sripuram Trust has formed of textile stakeholders are trying to create awareness in the cluster to improve the production of apparels from man-made fibres.
SOURCE: The Hindu
A business team from Japan that is in the field of production and sale of banana paper (paper made of banana fibre) visited the weavers of Anakaputhur on Tuesday. Speaking to them, E. Satoko, CEO of One Planet Café, a paper manufacturing company from Tokyo, said they had set up their factory in Zambia with 25 women for extracting fibre from banana stem to make paper. These weavers could contribute to similar projects in India to improve paper manufacturing and textile weaving. Company director Peo Ekberg said Japan and India had great technology in harmony with nature, goods, services and people. “We are working on a technology-transfer programme with environmentalists in Bangladesh and willing to share our knowledge with anyone who provides sustainable business promotion for weaving,” Anakaputhur weavers told the delegation. Banana fibre is extracted through a manual process, where the stem sheaths are scraped and fibre is separated using a metal scrapper. In this manner, just about 500 gm can be extracted. Alternatively, a mechanical process yields 10 times the quantity but with heavy damage to the fibre, they said.
SOURCE: The Hindu
“My salary is Rs 8,000 per month but I get Rs 6,500 in hand. It’s not enough,” said Tahseena who has worked as a tailor for six years at a company called Shahi Exports near Ramnagaram town in Karnataka. “I am not married and my mother does not have a strong constitution. I have the whole responsibility of running my house.” “We need at least Rs 10,000 in hand if we need to cope with the inflated prices of everything now,” said Susheela, who works with Tahseena. “These days we buy pulses at some Rs 200 [per kilogram] and rice is Rs 60. How do we provide three square meals for our families?” Susheela and Tahseena had travelled to Bangalore on their day off to take part in a rally by garment workers almost all of whom were women, and most of whom have had little education or technical training. The primary objective of the Garment and Textile Workers’ Union that organized the rally is to get the Karnataka government to raise the minimum wage for these unskilled workers to Rs 15,000. The union estimates that there are five lakh garment workers in Karnataka, especially in and around Bangalore, which is a major textile hub in the country along with Gurgaon near Delhi and Tirupur in Tamil Nadu. The international brands that source from these factories include Gap, H&M, Old Navy, Banana Republic and JC Penny. At present, a worker in Karnataka’s apparel industry who starts as a helper gets no more than the present minimum wage of Rs 6,816, which includes dearness allowance. The payment of dearness allowance to garment workers is a recent phenomenon, being implemented only in 2014 after a directive from the High Court of Karnataka. A recent study by the Indian Committee of the Netherlands estimated that on average garment workers in Karnataka got paid between Rs 7,000 and Rs 8,500 per month depending on their skills.
Low salaries, lower increments
Jayamma has worked in the industry for 25 years now. She presently works at a factory at Nayandahalli on the western edge of Bangalore city. She gets only Rs 7,000 in hand after the company makes deduction for Provident Fund and Employee’s State Insurance payments. “Every year the salary increments are only Rs 200 to Rs 300,” said Harini S who works on the quality control team at Namaste Exports and also receives only Rs 7,000 as disposable income. But company representative say that the demands are impossible to meet. “At present we cannot accept it [demand from employees and unions to raise wages]. We are surviving because of the dollar rate. [because the rupee has fallen against the dollar] otherwise no garment industry will survive in India,” said Mari Gowda, general manager of human resources at Shahi Exports. “We are running profits of Rs 3-Rs 4 per piece. The brands have to enhance what they pay us. Then it might work.”
Jayamma and other participants at the rally talk about “production torture”, a term they use to describe being pressurised by their supervisors to meet hourly targets on the shop floor. The workers alleged that there are chided or shamed if they can’t meet these hourly targets and many said that their supervisors push them to exceed the set targets. “I tailor pants that belong to the Gap brand,” Jayamma said. “Each person has to tailor one part of the garment and must finish this for 60 pieces in an hour. I normally do the pocket stitches on both sides.” Others said that the targets depended on the style of the garment or complexity of the work and could be as much as 80 to 100 pieces per hour. Gowda said that the workers exaggerate claims of being pressurised because they don’t know how industrial processes actually work.
Much ado, little change
The state of the employees in these factories has been in the spotlight again recently. The findings Indian Committee for the Netherlands report on the plight of migrant workers at the Karnataka factories was splashed across international papers. The report details how this subset of workers face not only harsh conditions in the factories but also at hostels run by their employees where their movement is restricted and they have little contact with the outside world. These workers, the report says, come from states like Odisha, Jharkhand, Maharashtra, Madhya Pradesh and Uttar Pradesh and in fact make up a majority of the labour force in the apparel industry.
But there have been many fact-finding reports and news reports over the years. Bangalore and other India's other garment manufacturing destinations have witnessed many rallies and protests. The sector has seen only marginal improvements over the years for its labor force. “The issue of minimum wage has been there for a long time and there have been several rallies in Bangalore and other places over the years for the demand of better minimum wage,” said Ananya Bhattacharya, president of the Garment and Allied Workers Union in Haryana. “This is old stuff but nothing is changing.”
KR Jayaram, member of the executive council of the garment workers union in Karntaka, said that they are fighting not only for a significant improvement in wages but also warding off a threat that the existing norm will be reduced. “All the factory managements have made representations to the government saying that even this Rs 6,000 is very difficult and to reduce that,” he said. He hopes that this time the troops have have rallied the troops early enough to make a difference. “The wage revision decision will come up in April 2017. The wage revision process will start six months before that, with the draft notification and the minimum wage committee sittings. That’s why this campaign now,” he said.
SOURCE: The Scroll
The Province of Ontario in Canada signed business deals on Wednesday in the States of Punjab and Haryana in India, valued at approximately $3.7 million. Kathleen Wynne, Premier of Ontario, Canada — who is on a trade mission to India — also met with the Haryana Chief Minister Manohar Lal Khatter, and Deputy Chief Minister of Punjab, Sukhbir Singh Badal. With the State of Punjab, the Premier signed a Memorandum of Understanding aimed at enhancing the relationship between Ontario and India and strengthening commercial ties across key sectors including infrastructure, communications technology (ICT), advanced manufacturing, agriculture and education. With the State of Haryana, the Province signed a Memorandum of Understanding on economic coorperation. "It was a pleasure to be here today in the States of Punjab and Haryana," said Premier Wynne, following her meetings with the leaders of Punjab and Haryana. "Ontario and India have many similar priorities — including infrastructure, sustainable development, clean energy and agriculture — making us natural partners. The MOUs that we signed with Haryana and Punjab will help us work together on projects that will generate economic growth for both India and Ontario."
In all, seven agreements were signed. Representatives from Indian businesses and institutions and members of the Ontario delegation participated in a signing ceremony in Chandigarh and announced several new agreements, including- - INSOL and Toronto, Ontario-based Seneca colleges signed a $2.9-million MOU to provide health and medical training for youth as part of a 10-year plan to train over 83,000 students throughout India, Baba Banda Singh Bahadur College and Oakville, Ontario-based Sheridan College Signed an agreement for cooperation on academic exchanges and partnerships between the two institutions. The Stallion Institute of International Studies and Ottawa, Ontario-based Algonquin College Agreed to facilitate opportunities for students beginning their studies at the Stallion Institute to continue their studies at Algonquin College. "The agreements signed today are a testament to India's recognition of Ontario's diversity and highly skilled workforce," said Michael Chan, Ontario's Minister of Citizenship, Immigration and International Trade, who is accompanying the Premier on the mission. "We not only share a commitment to invest in sustainable infrastructure and urban renewal projects, but we also share an interest in developing our key business sectors. This continued collaboration will generate future investment and trade opportunities that will benefit Ontario and India for years to come."
Ontario, Canada's business environment is designed for global success, and Ontario is a North American hub for international investment and trade. It offers direct access to the $20-trillion NAFTA market; a multicultural workforce; streamlined regulations; a low-risk investment climate; competitive business costs; and a great quality of life. World-leading companies have invested billions to start or expand their operations in Ontario, including Honda, Magna, Sodexo, Alcatel-Lucent, AXA, DuPont, MDS, Huawei, IBM and Dell. Ontario has a population of over 13 million (the largest of any province in Canada), generates 37 per cent of Canada's GDP, and boasts an export-oriented GDP that is larger than that of Belgium, Switzerland or any of the Scandinavian countries.
SOURCE: The Economic Times
Tamil Nadu textile entrepreneurs' move to shun Gujarat cotton and go for unadulterated alternatives from Maharashtra and Andhra is having a ripple impact on coastal shipping between Gujarat and Tamil Nadu. Tamil Nadu's 2.25 crore cotton spindle capacity is a sizeable target for Indian shippers aggressively cutting prices to compete with truckers, who have benefitted from the sliding price of crude oil. The push for coastal shipping also comes from the Directorate General of Shipping, Mumbai, which is consulting with the Shipping and Finance Ministries to incentivise it. But a spanner in the works for the coastal shipping plans has been the persisting problem of adulteration. But a spanner in the works for the coastal shipping plans has been the persisting problem of adulteration. Veteran textile entrepreneur Manikam Ramaswami is weaning his 1,400-crore group off Gujarat cotton, moving to unadulterated alternatives from Maharashtra and Andhra Pradesh and inadvertently denting a coastal shipping scene between Gujarat and Tamil Nadu.In October last year, cotton mills representatives, vessel charterers and representatives from the Shipping Ministry and DG Shipping had met to look at ways to promote coastal shipping.
SOURCE: The Economic Times
The rupee continues to be volatile. The US Federal Reserve’s decision to hold the rates and the Bank of Japan’s surprise cut in interest rate were not enough to lift market sentiments. The sharp rally in global markets on Friday after the BoJ’s move that helped the rupee strengthen beyond 68 was short-lived. The currency hit a high of 67.63 on Monday, but reversed lower to fall below the 68 levels once again. Subsequently, it fell to a low of 68.26 before closing almost flat at 68.07 on Wednesday. Domestic macroeconomic developments are not having any impact on the rupee as global factors, especially the movement in crude oil price, is strongly influencing the currency movements. There was no surprise from the monetary policy as the Reserve Bank of India decided to leave interest rates unchanged. Even the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) posting a strong recovery to 51.1 in January from 49.1 in December did not have any positive impact on the rupee.
Rupee outlook
The rupee is currently range-bound between 67.5 and 68.25. A breakout on either side of this range will decide the next move for the currency. If the currency manages to sustain above 68.25, it can continue to stay range-bound for some more time. But given the uncertainty in the global markets, the possibility of the rupee falling below 68.25 in the near-term is high. Such a fall can take the rupee lower to 68.55 and 68.65. Significant short-term resistances are at 67.5 and 67.25. The currency will gain positive momentum only if it breaks above 67.25. The next target will be 67. Further break above 67 will increase the chances of the rupee strengtheing to 66.5 and 66.3. But such a sharp upmove looks less probable in the near-term. As mentioned in this column last week, the rupee has a key channel support near current levels, which will need a close watch. This support is currently in the 68.55-68.65 zone and is likely to be tested in the coming days.Inability to reverse higher from this support zone and a sharp fall below 68.65 will result in the rupee declining to fresh lows in the coming weeks. On the other hand, if the rupee manages to reverse higher from the above mentioned support zone, then it could provide some breather for the currency.In such a scenario, the possibility of the rupee strengthening to 68 levels thereafter will increase.
SOURCE: The Hindu Business Line
The new year has brought some cheer to the economy. Indian manufacturing sector growth rose to a four-month high in January driven by rising inflows of new business orders from domestic as well as export clients, says a Nikkei survey. Following the contraction in December in the wake of Chennai floods, January saw the Indian manufacturing sector rebound into expansion territory, as production and new orders recovered, the report said. At 51.1 in January, up from 49.1 in December, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) – a composite single - figure indicator of manufacturing performance – moved back above the 50.0 mark. Although the rate of expansion was only moderate, it was the sharpest in four months. “The opening month of 2016 saw a rebound in new business – from both domestic and external clients – leading manufacturers in India to scale up output following a short-lived downturn recorded in December. 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 Indian economy,” said Pollyanna De Lima, Economist at Markit and author of the report.
Levels of production and total new business also registered mild increases following contractions in the prior survey month. The consumer goods sub - sector remained the principal growth engine at the start of the year, seeing substantial expansions of both output and new orders. In contrast, producers of investment goods saw output and new orders fall, while production volumes stagnated in the intermediate goods category, the report said. The trend in new export order inflows strengthened during January, amid reports from companies of improved sales demand. The level of incoming new export business has now risen in each of the past 28 months. January saw further mild job creation in the Indian manufacturing sector, with headcounts added to across the consumer, intermediate and investment goods categories. Where an expansion of payroll numbers was reported, this was generally linked to rising production requirements. The latest data suggested, however, that January's increase in employment was insufficient to reduce the pressure on manufacturers' capacity. This was highlighted by a further accumulation of backlogs of work at factories, the third in as many months. Moreover, the rate of increase accelerated to its highest since March 2015.
Price pressures remained on the upside at the start of 2016, with input costs and output charges both rising during January. Companies indicated that higher demand for raw materials had led to a number of cost increases. However, the rate of input cost inflation eased slightly and stayed below the long-run survey average. Factory gate prices rose for the fourth successive month in January, with the rate of increase ticking up to a 14-month high. Survey respondents reported that charges had been raised in order to pass on part of the increase in purchasing costs. January saw a modest increase in stocks of purchases, mainly the result of a further rise in the level of input buying activity. In contrast, inventories of finished products fell again.
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$ 30.16 per barrel (bbl) on 03.02.2016. This was lower than the price of US$ 30.28 per bbl on previous publishing day of 02.02.2016.
In rupee terms, the price of Indian Basket increased to Rs 2056.24 per bbl on 03.02.2016 as compared to Rs 2054.09 per bbl on 02.02.2016. Rupee closed weaker at Rs 68.18 per US$ on 03.02.2016 as against Rs 67.83 per US$ on 02.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 03, 2016 (Previous trading day i.e. 02.02.2016) |
Pricing Fortnight for 01.02.2016 (14 Jan to 27 Jan, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
30.16 (30.28) |
26.05 |
|
(Rs/bbl |
2056.24 (2054.09) |
1763.06 |
|
|
Exchange Rate |
(Rs/$) |
68.18 (67.83) |
67.68 |
Source : PIB
At a stall in a Beirut exhibition hall, Syrian businesswoman Reem Abu Dahab displays her workshop’s lacy pink and white nightgowns, hoping to attract increasingly elusive buyers. Syria’s textile industry was once one of the country’s economic bright spots, with its products coveted throughout the region and beyond. But the sector, like the economy in general, has been devastated by the war that erupted in March 2011, with factories destroyed, workers displaced and sanctions hampering trade. The migrant crisis and outflow to Europe have further depleted its workforce. “Buyers used to come from all around the world, but the war has scared them and now very few come to Syria,” said Abu Dahab, surrounded by products made in a small workshop in Damascus. Abu Dahab’s family once owned a factory in Harasta, a Damascus suburb ravaged by fighting between rebels and the regime. But it was completely destroyed in the war, and now the business is run out of a small workshop in the capital. “We had 100 employees; today only 30 of them are still working for us,” said Abu Dahab, who was one of around 100 Syrian textile manufacturers at a trade fair in Beirut.
Before Syria’s conflict began, textiles represented some 63 percent of the industrial sector’s total production. The sector was worth 12 percent of GDP and employed a fifth of the workforce, while its exports netted around $3.3 billion a year, according to the Syrian Economic Forum think tank. But by 2014, private sector textile exports had fallen by half, with the industry particularly affected by fighting in Aleppo city, the country’s former commercial hub and home to many textile factories. “Seventy percent of [textile] factories were closed or destroyed by the war,” said Feras Taki Eddine, president of the Syrian Textile Exporters Association, next to a mannequin in black underwear and stockings. In addition, many businesses lost machines and employees. “Some of the machines were destroyed and some were stolen. Thieves took them to Turkey. I had 220 machines before; now I only have 10,” said Alaa Aldeen Maki, owner of Dream Girl Lingerie, an Aleppo-based business. “Most of my employees emigrated because of the situation and some because they were forced to join the army for military service,” he said.
When the war arrived in Aleppo in mid-2012, eventually dividing the city between government control in the west and rebel control in the east, some businesses relocated to small workshops in the city’s safer areas. Others, based in the relative safety of Damascus, have done whatever they can to survive. Muhanad Daadush owns the country’s biggest lingerie and pajama factory, located in the capital. He still employs 450 people, many of whom sleep in the factory during upticks in violence. “I had 72 workers sleeping at the factory” at one point, he told AFP at his stall, surrounded by bras of all hues and comfortable cotton sleepwear. “They started at 6 in the morning, worked until 11, then slept. They would only go home to their families from Thursday night to Saturday morning.”
For all its challenges, Syria’s textile industry continues to enjoy a reputation of quality in the region, and the Beirut fair attracted some 500 buyers, mostly from the Middle East. Fadi Baha was in town from Egypt, where he owns a chain of stores. “I buy Syrian textiles because of their quality. It’s better than Turkish or Chinese merchandise and almost competitive pricewise,” he told AFP. “I like how Syrian manufacturers create a unique mix between Eastern and European styles.” But while regional buyers continue to purchase Syrian textiles, clients from further afield were nowhere to be seen. Daadush Lingerie once exported 70 percent of its products to Europe, but its owner said only 10 percent now goes there. And the rising costs of production, difficult trading environment and shrinking workforce all mean competitors from Turkey and China are increasingly able to pinch clients from Syria’s textile industry. Manufacturers blame shrinking exports in part on sanctions slapped on Syria after the government began its crackdown on dissent following anti-government protests in 2011. The conflict that followed has killed more than 260,000 people and displaced more than half of Syria’s population, with many joining a wave of refugees seeking safety in Europe since last year. Taki Eddine said Europe should be bolstering trade with Syria to keep citizens at work in their home country. “It should be in Europe’s interest to facilitate trade, because Syrian workers without jobs now want to leave to Europe,” he said. Several vendors said they were committed to staying open, ensuring jobs for Syrians and the industry’s survival. “It’s important for us to show that Syrian industry is still alive,” Taki Eddine said.
SOURCE: The Daily Star
In Ethiopia, textile industry is undergoing major development that is aided by the availability of a skilled and highly motivated workforce. This surge has been helped by the country's impressive economic growth over the past years. The country determined to expand and develop cotton plantation and apparel industries in order to realize the national economic development ambition. This can also help the country to benefit from the growing international market since the major target of the government for the industry is the export market. Last week, Ethiopian Textile Industry Development Institute (ETIDI) presented the 2015/16 first half year cotton development and textile industry performance evaluation for stakeholders. The evaluation shows that during the 2015 production year, it was not managed to meet planned cotton production. During the same production year, the planned land for cotton production was 262,000 hectares but the actual land covered was only 65,000 hectares.
Due to the El Nion, more than 14,000 hectares of cotton cultivation were damaged and replanted with other short term crops to overcome the effects of the drought. A total of 65,000 hectares were reserved from sugar to cotton production. Besides, other areas with potential for cotton cultivation such as Shinile, Wabe-shebele, Genale Basin are also under consideration for cotton development while a total of 43,000 tone lint cotton is expected in the coming year. On the other hand, it was noted that on the evaluation there are several challenges associated with cotton production. The first is the dalliance of cotton purchase by the Ethiopian Industrial Inputs Development Enterprise from producers. The other challenge is unwise use of loan (loan taken for cotton production is utilized for other purposes). Out of 200 farms loan given for cotton production during 2015, only 40-50 per cent are used in cotton production and the rest are misused loan. Further, the other major challenge facing that country that produces cotton is the holding of land without commencing production for a long time. Around 100,000 hectares of land were held by investors for 10 years without commencing production.
Regarding the textile production, with the view of promoting and supporting investment, the Bole Lemi Industrial Park which holds textile manufacturing plants such as Arvind Life Style Vestus, Shints ETP, Jay Jay, Ashton apparel, Newwide, C&H Garment; and Konoria Africa Textile have become in operation; while, Velocity Textile New, Arba Minch and MNS Textile expansion projects are under machinery installation and testing. In addition, supports were provided for different companies to participate in different trade fairs. Other supports were also provided to different companies to establish market link with international buyers such as Duty Sourcing, GO sport, Norasia, TFG, Ahlens, KICK, Marubin and etc in addition to input linkage between producers and manufacturers. Despite the performance evaluation period, the Ethiopian Textile Industry Development Institute (ETIDI) also announced that while the nation planned to obtain some 60.07 million USD from the export of textile in the past six months, the performance shows that 41.1 million USD has been obtained, 70 per cent of the plan. It was also noted that the major challenge or constraint of the export performance focuses on local market, managerial and technical capacity of companies, power breakdown and fluctuation, shortage of manpower and high turnover, weak linkage companies, delay of investment project implementation and the insufficient support from government institutions.
Plan and Information Management Director Abebe Kasse at ETIDI, told the media that the government believes that the sector has to be export orientated by giving due emphases to quality. The last six month export performance is 70 per cent of the plan because of the above mentioned challenges, he said adding, however, it is the conviction of the institute that there is still potential to achieve the target for the year within the coming six month. Around Bole Lemi Industrial Park, the majority of industries established are garment producers and they are expected to commence production in the coming month. And they would become additional input to achieve the target, he said.
Despite the country's comparative advantage in cotton production, it has not managed to meet its local demand. It was also noted as per the government's aspiration to support producers to get loan for cotton production from banks, 4.2 billion Birr was approved and around 3 billion was disbursed yet the loan has not been fully invested in cotton production. Regarding this matter, Kassa told The Ethiopian Herald that it is the responsibility of the banks to lend the money after conducting feasibility study. However, [because of the practice of crop rotation], it is impossible for the producers to plant cotton every year. If the land is covered with cotton this year, it has to be covered with other crop; say for instance, sesame the next year. The point is, the loan was approved in the name of cotton production and there are some investors who received land but not yet commenced production.
Tadesse Haile, State Minister of Ministry of Industry, on his part said besides formulating appropriate policy framework, the government has been working to build the manpower needed to develop the textile industry and its exports. In addition, various institutions including ETIDI have also been established to provide support to the sector. The Bahir Dar Institute of Technology has also been made to focus entirely on textile and textile related courses, the minister said adding, in addition five universities have also established textile departments and have been producing engineers for the sector. Industry parks which are suitable to textile production have also been established, he added. "We can not say that there was a textile industry in Ethiopia ten years. Yet, the sector has been growing significantly from time to time in terms of capacity, scale, production, employment and export. However, as compared to the plan, there remains a lot to be done," he added. The State Minister also noted that the country has managed to obtain some 100 million USD from the export of textile in the the previous year. "But as compared to the plan and expectations, this is lesser. We have not also met out the plan during the first six months of this fiscal year. Hence, by giving special emphasis to the textile export, we have to overcome the challenges and fill the gaps to meet our target for the year in the coming six months," he emphasized.
SOURCE: The All Africa
Export performance of the textile sector is lagging behind plan during the 2015/16 fiscal year first half year. This is found at the cotton development and textile industry performance evaluation, the Ethiopian Textile Industry Development Institute (ETIDI) announced that the export of textile has reached 41.1 million USD against the nation’s plan to obtain some 60.07 million USD. Only 70 percent of the plan has been achieved. Institute Plan and Information Management Director Abebe Kasse said that the government believes that the sector has to be export oriented by giving due emphasis to quality. The last six month export performance is 70 percent of the plan because of the several challenges faced by the sector. Some of the major challenge in the export performance focus on local market, managerial and technical capacity of companies, power outage and fluctuation, shortage of manpower and high turnover, weak company linkage, investment project implementation delay and the like. However, it is the conviction of the Institute that there is still potential to achieve the target for the year within the coming six months. Most of the industries established at Bole Lemi industrial park are garment producers and they are expected to commence production next month and they would become additional input to achieve the target, Abebe Kasse added.
Despite the country's comparative advantage in cotton production, it has not managed to meet its local demand. According to the evaluation, during the production year, the planned land for cotton is 262,000 hectare but actual covered land was only 65,000 hectares. In addition, the performance evaluation shows that due to the El Nino, over 14,000 hectares of cotton plantation has been damaged and replanted with other crops. However, a total of 65,000 hectares (50,000 from Omo and 15,000 from Beles) was reversed from sugar to cotton production. It was also noted as per the government's aspiration to support producers to get bank loan for cotton production, 4.2 billion Birr was approved and around 3 billion was disbursed yet the loan has not been fully invested in cotton production. It is the responsibility of the banks to lend the money after conducting feasibility study. However, [because of the practice of crop rotation], it is impossible for the producers to plant cotton every year. If the land is covered with cotton this year, it has to be covered with other crop say for instance sesame the next year. The point is, the loan was approved in the name of cotton production and there are some investors who received land but not yet commenced production.
Industry State Minister Tadesse Haile on his part said that the textile sector has been growing significantly from time to time in terms of capacity, scale, production, employment and export. But according to the plan, much remains to be done. Besides formulating appropriate policy framework, the government has been working to produce the manpower needed to develop the textile industry and its exports. In addition, various institutions including ETIDI have also been established to provide support to the sector. The Bahir Dar Institute of Technology has also been made to focus entirely on textile and textile related courses, the State Minister said. In addition, five universities have also launched textile programs and produce engineers for the sector. Industrial parks suitable for textile production have also been established.
Source: Yarns&Fibers
After three decades of focus on demand-side, the Chinese government has in recent months turned its focus on supply-side reforms in its bid to sustain growth momentum seen over the last few years, according to Chinese media reports. The rapid growth witnessed by the Chinese economy during the last 30 years had capital investment, exports and consumption as its focus areas, which are all generally considered demand-side parameters. For example, in 2008, following the sub-prime crisis in the US, China announced a 4 trillion yuan stimulus package to increase investment in infrastructure projects, and thereby create jobs and stimulate demand for materials used in construction. The rationale behind such a package also included a thought that wages paid to workers in newly created jobs would be spent on essentials and business would flourish. In the process, however, issues such as income distribution, rising home prices, and overcapacity were not paid attention.
By focusing on supply-side, which means stimulating economic growth through reducing barriers to production especially through tax cuts, wealth owners will be enticed to invest in things that increase supply. These may be in the form of launching new businesses or innovative goods and services. This will generate sustainable, quality growth, according to some analysts. Currently, China's growth rate has fallen below seven per cent and the economy is no longer marching ahead on the demand-side parameters of investment, exports and consumption. Even changes in banking regulations and interest rates have not worked in favour of increasing investment or consumption. In tune with President Xi Jinping's view that China should work more on the supply side “while moderately expanding overall demand”, the Central Economic Work Conference held in December 2015 explained that supply-side structural reform aims at cutting capacity, increasing productivity, nurturing new industries and improving the mobility of people. The supply-side reforms implemented by China so far include abandoning the one-child policy and steps taken to cut housing inventories, reduce business costs, streamline bureaucracy, tackle debt overhang, and eliminate superfluous industrial capacity. These steps are expected to lead to lower prices and consequently boost consumption.
SOURCE: Fibre2fashion
The textile and apparel industry in the US might face challenges especially in the area of employment in the short term once the 12-nation Trans-Pacific Partnership (TPP) agreement comes into effect, says a new study authored by Peter Petri at Brandeis University and Michael Plummer of Johns Hopkins University. There will be some job losses and a bump due to “job churn”, or movements of jobs between sectors and industries. Apparel, footwear, and other labour-intensive manufacturing industries are most likely to see job cuts as a result of the deal, according to the authors of the study. On the import side, foreign producers have comparative advantage in labour-intensive manufactures and textiles and apparel will be able to increase sales as US barriers are gradually removed in such sectors. The new study suggests that the TPP will increase annual real incomes in the US by $131 billion, or 0.5 per cent of GDP, and annual exports by $357 billion, or 9.1 percent of exports, over baseline projections by 2030, when the agreement is nearly fully implemented. While the US will be the largest beneficiary of the TPP in absolute terms, the agreement will generate substantial gains for Japan, Malaysia, and Vietnam as well, and solid benefits for other members. The study estimates the effects of the Trans-Pacific Partnership (TPP) using a comprehensive, quantitative trade model, updating results reported in Petri, Plummer, and Zhai with recent data and information from the agreement.
SOURCE: Fibre2fashion
Pakistan, the 4th largest exhibitor at the Heimtextil Fair Germany, a mega event for all textile millers and exporters of the world, where this year Pakistan (TDAP) umbrella at the Pakistan pavilion received almost half the number of order this year compared to the previous year. Pakistani exporters have seen a massive drop in international orders lately, due to the energy crisis and the slowdown of global economy, said an exhibitor at the Heimtextile Fair and Ayesha Textile Mills CEO Abdulla Kamal, while talking to the media. One of the main reasons behind receiving fewer orders has been the exporters’ inability to dispatch consignments in time due to energy shortages. Pakistan despite the advantages of having cheap labour and producing better cotton, the exporters’ expectations could not be met due to the energy and worsening law and order situation.”
Delay in shipment by the Pakistani is making the international buyers to move away from Pakistani market. On the other hand, China is very good in timely delivery. This year China has got the edge over all other participants; the first to take full advantage of the exhibition. The global economic slowdown has also played a key role in keeping buyers away from the recent exhibition. Europe is passing through a low-growth phase, remarked Kamal. During the peak textile season, the government severs the gas supply. This time, though, the situation was better since the government cut supply to domestic consumers in order to facilitate the industries. Moreover, the law and order situation in the country was another major hurdle in grabbing orders. Also the recent terrorist attacks on schools and colleges have dented Pakistan’s reputation internationally. Buyers are frightened to even visit them, let alone give orders.
Even the old ones are not visiting Pakistan due to which they have to fix meetings abroad, in fact this time India and Bangladesh got a far better response compared to Pakistan. Another hurdle, identified by Kamal, was the shortage of gas, the textile mills need steam for processing the fabric, He was of the view that the Liquefied Natural Gas (LNG) was not an alternative. This winter is the first season when they are running their mills on LNG, which is very expensive. It is 25% more expensive than natural gas (CNG). That, of course, increases the cost of production. The Pakistan textile sector can again reach its potential capacity of $25 billion exports, compared to the current figure of $13.9 billion as it has very good production capacity and machineries, only internal issue need to be resolved by the government. The government has been urged to take up the issues of energy and gas seriously.
SOURCE: Yarns&Fibers
