INTERNATIONAL
Textile Raw Material Price 2016-02-18
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
961.34 |
USD/Ton |
0.48% |
2/18/2016 |
|
VSF |
1944.12 |
USD/Ton |
0.16% |
2/18/2016 |
|
ASF |
1909.67 |
USD/Ton |
0% |
2/18/2016 |
|
Polyester POY |
974.35 |
USD/Ton |
1.60% |
2/18/2016 |
|
Nylon FDY |
2204.35 |
USD/Ton |
0% |
2/18/2016 |
|
40D Spandex |
4822.02 |
USD/Ton |
0% |
2/18/2016 |
|
Nylon DTY |
5703.76 |
USD/Ton |
0% |
2/18/2016 |
|
Viscose Long Filament |
1140.45 |
USD/Ton |
0.68% |
2/18/2016 |
|
Polyester DTY |
2051.27 |
USD/Ton |
0% |
2/18/2016 |
|
Nylon POY |
2093.37 |
USD/Ton |
0% |
2/18/2016 |
|
Acrylic Top 3D |
1040.94 |
USD/Ton |
0.74% |
2/18/2016 |
|
Polyester FDY |
2479.90 |
USD/Ton |
0% |
2/18/2016 |
|
30S Spun Rayon Yarn |
2694.21 |
USD/Ton |
1.15% |
2/18/2016 |
|
32S Polyester Yarn |
1546.11 |
USD/Ton |
0% |
2/18/2016 |
|
45S T/C Yarn |
2449.28 |
USD/Ton |
0% |
2/18/2016 |
|
45S Polyester Yarn |
1714.50 |
USD/Ton |
0% |
2/18/2016 |
|
T/C Yarn 65/35 32S |
2112.50 |
USD/Ton |
0% |
2/18/2016 |
|
40S Rayon Yarn |
2816.67 |
USD/Ton |
0% |
2/18/2016 |
|
T/R Yarn 65/35 32S |
2418.66 |
USD/Ton |
0% |
2/18/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0% |
2/18/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
2/18/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
2/18/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
2/18/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0% |
2/18/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15308 USD dtd. 18/02/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The government will announce the new textile policy, which is expected to be based broadly on the vision document prepared by the Ajay Shankar committee in July 2014, by the end of April. Textiles minister Santosh Kumar Gangwar said on Thursday that the long-awaited policy is “nearing finalisation” and that consultations with all stakeholders are in progress, according to an official statement. “We are mainly focusing on manufacturing of value-added products and export-oriented goods that will benefit the economy,” Gangwar said in Mumbai on the occasion of the Make in India Week. The vision document by the Ajay Shankar committee had envisaged textile and garment exports worth $300 billion by 2024-25, compared with just over $41 billion in the last fiscal, and favoured a structural transformation whereby the country would ship out only finished products and not raw materials. The panel’s vision document also forecasts textile and garment sales in the domestic market to rise to $350 billion by 2024-25, against roughly $100 billion now. The textile ministry had initiated the process of reviewing the National Textile Policy, 2000, and accordingly, an expert committee was constituted under the chairmanship of Shankar — who was also the member secretary of the National Manufacturing Competitiveness Council — to make fresh recommendations. The panel submitted the vision document with the textile ministry in July. Factoring in comments from various stakeholders, the ministry would firm up the final proposals for the new policy and then seek cabinet approval for making them effective.
Textile secretary Rashmi Verma said some changes to labour laws to make them more flexible are being planned. “We have taken up the matter with the labour ministry. A notification will be issued before March 31 on women being employed for night duty. The labour ministry is writing to all secretaries of states to allow women to work in night shifts.” The textile and the labour ministries are working together on the rationalisation of wages for contract workers, she added. The ministry will also notify the latest changes to its flagship Technology Upgradation Fund Scheme by the end of this month, she added.
SOURCE: The Financial Express
The government is likely to announce a new textile policy by April, aimed at helping the sector take advantage of the slowing competition from China through a series of reforms. Announcing this development, Santosh Kumar Gangwar, the minister of state for textiles (independent charge), said on Thursday, the new textile policy would be announced in the Budget session of Parliament. “The slowdown in the Chinese economy has rendered the cost of textile production in China high. So, Chinese textiles manufacturers have the lost competitive advantages of lower cost of production in the last few months. This has offered an opportunity for Indian players to grab the market share of China in the developed world, especially the European Union and the United States, which cumulatively comprise around 60 per cent of the global export market. This is the right time to increase our market share in exports,” said Gangwar.
With the low cost advantages, China has increased its market share in the global textiles trade to 35-40 per cent, while India inched up to five per cent from three per cent over the last decade or so. To begin with, there would be amendments to the labour law, under the new policy, allowing women to work at night. According to existing norms, women are allowed to work only in the day shifts. However, about 50 per cent of the workforce in the sector comprises rural women, and it is essential to allow them to work at night. “The textiles ministry has taken this issue to the highest level of the government to resolve the impediment and amend the existing labour law to accommodate the change,” said Rashmi Verma, secretary, Ministry of Textiles. The textile ministry also wrote to the finance ministry to lower interest rates to seven per cent on working capital. A sudden spurt in interest rates has resulted in many manufacturing units closing down, and others facing a huge squeeze in their profit margins. The textile sector employs 35 million people and aims to double the number by 2022. The government is focusing on training youths in different skills to meet this target.
Speaking on the occasion, B K Goenka, chairman, Welspun Group, said, “India’s textile industry is estimated at $110 billion, of which domestic markets contribute about $70 billion and the rest is from exports.” The government is also looking into special incentives for manufacturing units to be set up in the Northeast, Bihar, Jharkhand and West Bengal, where the cost of production would work out to be lower than in Maharashtra and Gujarat, where most of the factories are located. “Labour is very cheap in these states. So, the pressure of high cost of production would certainly ease to certain extent,” said Verma. The government is also working on free trade agreement with the European Union. “The government will also facilitate exports schemes to promote textiles exports,” said Verma.
Speaking on the occasion, Naishadh Parikh, Director, Arvind Ltd, urged the government to convert exports incentives into manufacturing incentives manufacturing and exports of textiles from India would be unviable after 2017 once World Trade Organisation (WTO) guidelines come into place. "India is a signatory of the WTO and therefore, has signed the agreement under which all exports incentives would be automatically withdrawn post 2017. Once exports incentives would be converted into manufacturing incentives, we would enjoy benefits without having violation of WTO guidelines," said Parikh. Textiles manufacturers in India currently enjoy various exports incentives schemes including MEIS and duty drawbacks.
SOURCE: The Business Standard
The textiles ministry plans to set up micro small and medium (MSME) units in the land available at the National Textiles Centre (NTC) mills in Mumbai. These units would be allied sector of textile industry, said Santosh Kumar Gangwar, Union Minister of Textiles, Independent Charge. Speaking on the sidelines of the Make in India summit here on Thursday, Gangwar categorically denied any thought on selling of NTC land in Mumbai, which was earlier thought of. “Because setting up a manufacturing unit in the heart of the city is not allowed, we would be setting up MSME units in allied sectors the textile industry. We will not sell NTC land," said Gangwar.
SOURCE: The Business Standard
The government is expecting Rs 30,000 crore investment in 74 textile parks and is planning to announce a new textile policy by April this year. "This is a good time for textile. We are planning to launch the new textile policy by April. We are mainly focusing on manufacturing of value-added products and export-oriented goods that will benefit the economy," Minister of State for Textile Santosh Gangwar told reporters at 'Make in India' Week here today. "Our government has given approval to 24 Textile Parks in the last one year, the rest were cleared by the previous government. So in total we are setting up 74 textile parks, which will attract an investment of Rs 30,000 crore," he said. He further said the government will not sell the National Textile Corporation (NTC) lands located in various cities. "We have decided not to sell the NTC lands spread across the country. We are looking at starting some other non-polluting industry on them," he added. Stating that India is the highest producer of cotton in the world, the minister said during the current cotton season, farmers have got prices, which are more than the Minimum Support Price (MSP). The cotton marketing year runs from October to September. Textile Secretary Rashmi Verma said the government has come up with revised TUF(Textile Upgradation Fund Scheme) to give capital subsidy to the new units that will be set up and also to the existing ones which want to bring in modern machinery and increase their output. "We will notify the guidelines for the new scheme by the end of the month. It will be used to bring in more investment in the sector," she added. The government will also give incentives to the eastern states, including Bihar, Jharkhand and the north eastern states for setting up textile units. In the upcoming Budget, she said, the Textile Ministry proposes to set up two mega textile parks in the coastal areas.
SOURCE: The Economic Times
The Southern India Mills' Association (SIMA) has urged the chief minister of Tamil Nadu to reduce the power tariff considering the steep reduction in fuels meant for power generation. In a release issued on Thursday SIMA said that Tamil Nadu was facing acute power shortage since 2008 and therefore the power cost was exorbitant in the absence of grid power. Hence, the textile industry, a power intensive sector, has been undergoing severe financial stress due to high cost power. The power subsidy, interest subsidy and various other incentives offered by all the major cotton growing states like Gujarat, Maharashtra, Andhra Pradesh, Punjab, Rajasthan added fuel to the situation and brought the new investments to a grinding halt. After long battle, Tamil Nadu has now become a power surplus State and the tariff of power available in the open market is quite competitive. In view of this, M. Senthilkumar, chairman SIMA said that the power tariff should be reduced now.
While applauding the government's move to Make state a power surplus one, the SIMA chairman stated that the government could mitigate the power shortage inspite of steep increase of over 33% power consumption in the state by expediting the projects in the pipeline, overcoming bottlenecks in the existing power plants and also establishing new power plants on a fast tract mode. He hoped that Tamil Nadu would comfortably meet the future exponential power demand and would still continue to produce surplus power. SIMA chairman has also appreciated TANGEDCO for totally stopping the high cost power being purchased @ Rs.12 per unit that was prevalent till 2014. He has also congratulated TANGEDCO for reducing short and medium power purchase cost from Rs.5.60 per unit to Rs.5.00 per unit. Mr.Senthilkumar has stated that the coal price per tonne has reduced to Rs.3591/- from Rs.5,399/- which was prevalent in 2013. He has added that the furnace oil price excluding VAT has also reduced to Rs.17.81 per litre from the level of Rs.39.55 per litre that was prevalent during 2013. Similarly, the HSD oil price excluding VAT has reduced to Rs.36.25 per litre from Rs.51.70 per litre that was prevalent in 2013. SIMA Chief has stated that the textile industry in Tamil Nadu which accounts for 1/3rd of the textile business of the Nation, providing employment to 50 lakh people is the single largest consumer of TANGEDCO power. He has stated that the textile industry, particularly the power intensive spinning sector, draws power at a constant load 24 x 7 throughout the year and therefore, the cost to serve is the lowest for the textile industry. He has added that the textile industry deserves to have a separate power tariff, which is essential for the spinning mills to remain competitive when all other States are offering huge incentives for textile.
SOURCE: The Economic Times
Over ten leading companies from India will showcase their products like handicrafts and paintings at the first Kuwait International Trade Fair held next week. The Federation of Indian Export Organisations ( FIEO) will organise an India pavilion at the fair, supported by the Ministry of Commerce and Industry, held in Kuwait from February 21-27. The India Pavilion at Trade Fair would provide an excellent platform for networking and one-to-one business meetings with potential customers. Sunil Jain, India's Ambassador to Kuwait, will inaugurate the pavilion on February 21 where 11 leading companies from India are participating, the embassy said in a statement. These companies will showcase a wide range of products including marble handicrafts, brass handicrafts, wood handicrafts, paintings, handicrafts products, imitation jewellery, plastic molded furniture etc.
SOURCE: The Economic Times
The government plans to revive the Assistance to States for Infrastructure Development of Exports (ASIDE) scheme in 2016-17. The scheme, aimed at boosting creation of dedicated infrastructure in states across the country in an attempt to boost exports which have been falling for the past several months, will support creation of minor ports, jetties and additional power infrastructure. As part of its recommendations for Budget 2016-17, the commerce and industry ministry has proposed that the scheme, which was given a go-by in this fiscal's budget, be brought back to develop essential infrastructure that does not get reflected in the plans of states or central ministries but is critical for growth of exports. This includes transportation infrastructure such as roads to connect production centres with ports or setting up inland container depots or common effluent treatment plants for export purposes.
Officials said the contours of the scheme have been changed in the proposal. "Earlier, the outlay of the scheme had two components in which the state component was 80% and the rest 20% was the Centre's component. Now, this has been proposed to be changed to 50:50," said an official, who did not wish to be identified. The budget for 2014-15 had allocated Rs 800 crore to the ASIDE scheme for developing export infrastructure and other allied activities. The scheme was stopped in 2015-16 when states' share in net proceeds of the Union tax revenues was increased to 42% from 32% in line with the 14th Finance Commission's recommendations.
Due to delinking of the scheme from central support, no funds were released to the states in 2015-16. "If we get around Rs 400 crore, half of the last allocation will serve the purpose of supporting export infrastructure because the states have not been able to do so by themselves. They have been left high and dry," the official said. The ASIDE scheme was introduced in 2002-03 with the objective of involving states in growth of exports by providing assistance to state governments for creating appropriate infrastructure for development and export promotion. Funds were allocated to all the states and union territories on the basis of their export performance during the preceding four years and population. The proposal to revive the scheme has come at a time when India's exports fell 13.6% in January to $21.07 billion, declining for the 14th consecutive month. In the current fiscal, exports are not expected to cross $260 billion, a dismal figure compared with $310 billion achieved in 2014-15. Last month, in the first meeting of the Council for Trade Development and Promotion, states had raised this issue with commerce and industry minister Nirmala Sitharaman since last-mile connectivity is a challenge for states due to which their cost of logistics for exports goes up.
SOURCE: The Economic Times
Indian economy will continue to see robust growth at 7.4 per cent in the next financial year even as only modest recovery is expected in advanced economies, Paris-based think tank OECD said today. The Organisation for Economic Cooperation and Development (OECD) has raised India's growth forecast compared to 7.3 per cent expansion projected in November 2015. "India will continue to grow robustly, by 7.4 per cent in 2016 and 7.3 per cent in 2017," the think tank said in its latest Interim Economic Outlook report. In the case of India, 2016 refers to the fiscal starting from April this year. Earlier this month, India's Central Statistics Office (CSO) said the country's economy would grow at a 5-year high of 7.6 per cent in the fiscal ending March, overtaking a slowing China. Meanwhile, OECD said that with China expected to continue rebalancing its economy from manufacturing to services, growth is forecast at 6.5 per cent in 2016 and 6.2 per cent in 2017. Brazil's economy is experiencing a deep recession and is expected to shrink by 4 per cent this year. In emerging market economies, monetary support should be provided where possible, taking into account inflation developments and capital market responses, the think tank said.
As per OECD, the world economy is likely to expand "no faster in 2016 than in 2015, its slowest pace in five years". Trade and investment are weak while sluggish demand is leading to low inflation, inadequate wage and employment growth, it added. Achieving strong growth in the global economy remains elusive, with only a modest recovery in advanced economies and slower activity in emerging markets, OECD said. This year, the global economy is anticipated to expand 3 per cent and accelerate to 3.3 per cent in 2017. This is a sharp cut from estimated growth of 3.3 per cent projected in November 2015. The euro area is projected to grow at a 1.4 per cent this year. OECD has also called for a stronger policy response, changing the policy mix to confront the current weak growth more effectively. "Sole reliance on monetary policy has proven insufficient to boost demand and produce satisfactory growth, while fiscal policy is contractionary in several major economies and structural reform momentum has slowed," it noted.
SOURCE: The Business Standard
The week-long Make in India event in Mumbai has secured investment commitments worth Rs 15.2 lakh crore, with host state Maharashtra alone accounting for Rs 8 lakh crore. Besides, it received investment enquiries worth Rs 1.5 lakh crore. "The multi-sectoral Make in India Week has been a great success. We've managed to get investment commitments to the tune of over Rs 15.2 lakh crore from the event," DIPP Secretary Amitabh Kant told reporters at the closing press meet at the MMRDA Grounds in Mumbai on Thursday. He is hopeful that the summit will create a favourable environment for investors from across the world.
Out of the total investment commitments, the host state made up for more than half, at Rs 8 lakh crore, Kant said, adding that Maharashtra could become the gateway for the rest of the country. Out of the total commitment pie, 30% have come from foreign players. "We have already opened the economy across sectors to the world. We're now showcasing, connecting and collaborating for manufacturing in the country," Kant said, adding that the summit is not about manufacturing alone, but innovation and nurturing inventors. Prime Minister Narendra Modi had on February 13 inaugurated the maiden Make in India Week at the MMRDA Grounds at BKC in Central Mumbai. The jamboree, for which the Modi-led government has reportedly spent close to Rs 100 crore in marketing alone, is part of the government's push to create jobs by increasing the share of manufacturing to GDP to 25% over the next decade, from the 16-17% now. The domestic economy has for long been supported by the services sector, which alone contributes more than 60% of GDP. The summit, despite a reasonably good participation from Corporate India and global companies, had its own share of shortcomings, with poor coordination among various agencies such as DIPP, PIB and industry lobby CII coming to the fore.
On the very thin participation from north-eastern states, Kant said, "Every state has different core competency. I am from the Kerala cadre and I believe that Kerala is a great state for travel and tourism, but is not a great state for industrialisation." He added: "My personal view is that north-eastern states need to be developed with sustainability and innovativeness. If you force too much of industrialization in those areas, you will spoil the natural surroundings of the region. Let's not force every state to be Maharashtra or Gujarat... that will not be correct." However, it can be noted that most of the non-NDA states barring Karnataka, which is ruled by the main Opposition Congress, and Odisha ruled by the BJD, kept away from the summit.
Over 2,500 international and 8,000 domestic companies are claimed to have participated in the week-long multi- sectoral industrial event, apart foreign government delegations from 68 countries and business teams from 72 nations. The opening ceremony was also attended by Prime Ministers of Sweden, Finland and Deputy Premier of Poland, besides other foreign ministers. As many as 17 states, mostly BJP-ruled ones, participated in the expo and there were over 50 seminars. Gujarat, Madhya Pradesh, Haryana, Odisha and Punjab had dedicated state-centric sessions too. The opening cultural night at Girgaum Beach turned out to be a flop after a massive fire broke out early into the event, which had the entire state government in attendance. Luckily, there was no human casualty. Similarly, many were critical of the high food prices at the food courts and the high security, which didn't allow home-made foods.
SOURCE: The DNA
The Insurance Regulatory and Development Authority of India (IRDAI) has entered into its first bilateral agreement with the Insurance Authority of United Arab Emirates (UAE). The Memorandum of Understanding (MoU) was signed by Chairman TS Vijayan, with his counterpart in the UAE regulator, last week. The pact assumes significance in the wake of the increase in the upper limit of foreign direct investment to 49 per cent from 26 per cent, and rising interest of global insurance players in India. “In fact, there has been interest from many other countries, including the US, in forging collaboration with IRDAI,” Executive Director Sriram Taranikanti told BusinessLine on Thursday. These are expected to materialise soon. The MoU provides for sharing of information and documents, exchange of experience, insurance supervisory aspects, trends and policies, international issues, and sharing of information on cross-border establishments, among others. The advantage of such global understandings for collaboration will help the regulator seek vital information on matters of insurance or insurers from collaborating countries, which could help in policy and regulatory decisions. Indications of global economic recovery lately also call for greater collaboration between regulators. According to the ‘World Insurance in 2014’ report by reinsurance major Swiss Re, the economic environment for insurers improved marginally in 2014 as global real gross domestic product rose 2.7 per cent. Global life insurance premiums written stood at $2,655 billion, up 4.3 per cent compared to the previous year. India’s share in the global life insurance business market was 2.8 per cent, while in non-life it was at 0.69 per cent.
SOURCE: The Hindu Business Line
The US today said the absence of a bilateral investment treaty with India is an "impediment" to expanding trade between the countries. "The absence of a bilateral investment treaty between our two countries is an impediment to growing our trade and investment," US Ambassador to India Richard Rahul Verma said at a conference organised by Society of Indian Law Firms here. The US Ambassador to India said there has been "significant progress" in the ease of doing business scenario in India. "It (ease of doing business) is a subject the Prime Minister (Narendra Modi) talks a lot about and I actually think there has been significant progress. The ease of doing business is a catch all term that incorporates a lot of different concepts. "It is about tax certainty, tax fairness, it is about reducing regulatory burden, it is about ensuring there is adequate infrastructure, power it is also about law, it is about legal service about access to courts it is about embracing international arbitration," he said.
Besides, Verma urged the government to permit US law firms and lawyers to set up base in India, calling for "reciprocity" saying there was no citizenship requirement for Indian lawyers who wish to establish offices in the US. "We think it's important because it would contribute to economic growth and foreign direct investment... I think you need to look at other countries in Asia as well in Europe in Latin America and see whether this wall that currently exists on professional legal services is still the right thing if you want to grow the two-way trade number, if you want to attract more businesses and more professionals into India," he said.
SOURCE: The Economic Times
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$ 31.86 per barrel (bbl) on 18.02.2016. This was higher than the price of US$ 29.89 per bbl on previous publishing day of 17.02.2016.
In rupee terms, the price of Indian Basket increased to Rs 2182.01 per bbl on 18.02.2016 as compared to Rs 2050.06 per bbl on 17.02.2016. Rupee closed stronger at Rs 68.49 per US$ on 18.02.2016 as against Rs 68.59 per US$ on 17.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 18, 2016 (Previous trading day i.e. 17.02.2016) |
Pricing Fortnight for 16.02.2016 (28 Jan to 11 Feb, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
31.86 (29.89) |
30.05 |
|
(Rs/bbl |
2182.01 (2050.06) |
2040.70 |
|
|
Exchange Rate |
(Rs/$) |
68.49 (68.59) |
67.91 |
SOURCE: PIB
Future Market Insights (FMI), delivers key insights on the technical textile market in its latest report titled, “Technical Textile Market: Global Industry Analysis and Opportunity Assessment 2015-2020”. According to the report, the global technical textile market is anticipated to grow at a CAGR of 4.5% during the forecast period. The promising growth of the technical textile market is attributed to its versatile nature as a raw material for use in various products, such as automotive carpets, geo grids, aprons, and gloves. This versatility is driving increasing adoption by various end-user industries such as construction, automobiles and chemicals. Technological advancements in technical textile production and increasing demand through exports are major underlying factors anticipated to fuel the demand for technical textiles in the near future. This is expected to offer growth opportunities to technical textile manufacturers, distributors, and product converters. The trend is even more pronounced in emerging economies of the world, such as Brazil, India, Russia and China. Healthy trade relations and government support in these regions has served to boost technical textile export-import activities.
Key driving factors identified in the global technical textile market include robust growth of the automotive sector in emerging markets and government support to SMEs to boost manufacturing. However, lower profit margin due to intense competition, toxic waste production, and can pose challenges. Some major trends identified in the global technical textile market are use of e-textiles in medical and apparel industry and rapid innovation to meet changing customer preferences. The global technical textile market is segmented on the basis of region, process type, and application type. Process type is further sub-segmented into non-woven, composite and others (includes weaving, knitting, braiding). On the basis of application, the market is further sub-segmented into agrotech, buildtech, hometech, indutech, sportech, packtech, mobiltech, meditech, clothtech, geotech, protech and oekotech. , Oekotech and geotech application segments are projected to exhibit highest CAGR of 7.1% and 6%, respectively during the forecast period due to increasing construction activities and projects concerning environmental protection.
Key regions covered in the report include North America (U.S., Canada), Latin America, Western Europe (EU5), Eastern Europe, Asia Pacific (China, India and Japan) and Middle East & Africa. Asia Pacific is the largest market for technical textiles, accounting for 39% market share in 2014. India is projected to play an important role due to ease of investment for global technical textile manufacturers, low labour and operational costs, and rapid technological advancements in the country. The report analyses the global technical textiles market in terms of value (US$ Bn) and volume (‘000 tonnes) by region, application and process type and provides insightful information regarding market dynamics, value chain, competitive landscape, current trends, market estimations and forecast.
SOURCE: The Empowered news
Textile industry players want effective implementation of economic stimulus packages to improve competitiveness as the country is moving toward free trade agreements with several countries. Indonesian Textile Association (API) chairman Ade Sudrajat said on Thursday his group praised the 10 stimulus packages issued by the government, but he added that they needed to be better implemented. “The stimulus packages are a response to our concerns and it has provided certainty for business. However, the implementation can still be improved,” he told a press conference. Ade said the group particularly highlights implementation of the stimulus packages that mainly have to do with electricity price cuts, gas price reductions and income tax incentives. The government’s third stimulus package stipulates that industrial activities get electricity price cuts from 11 p.m. to 8 a.m. However, the textile industry and the state electricity company PLN, which supplies the power, interpret the stipulation differently.
Based on PLN’s understanding, the price cut will only be given to companies consuming more than they usually do every day. The textile industry, meanwhile, says the price cut should be given to industrial activities during the specified timeframe regardless of the amount of their power consumption. “We’re asking for a further discussion with PLN, the Finance Ministry and the Office of the Economic Coordinating Minister on the matter,” he added. Ade said his association also requested lower gas prices for the textile industry. In the government’s seventh stimulus package, the government reduced gas prices for the textile industry from US$12 per million British thermal unit (mbbtu) to $9 per mbbtu, while in fact oil exported to Singapore is priced at $3.70 per mbbtu, he said. Benny Soetrisno, chairman of the API’s board of advisors, welcomed the economic packages as they provide more business certainty. He said, however, a relatively high production cost — because of electricity and gas prices — has made local products less competitive.
In addition, Benny said Indonesia’s trade deal with the European Union under the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) and participation in the US-led Trans-Pacific Partnership (TPP) would help boost exports of its textiles and textile products. “From the textile industry’s point of view, we’re basically ready to join the TPP. However, the government should also make sure that other sectors, such as services, are well prepared,” he said. The API’s data show that Indonesia’s textile industry had benefited from a free trade agreement with Japan. Exports of Indonesia’s textiles and textile products surged from only $572.4 million in 2008, when the Indonesia-Japan economic partnership was first implemented, to $1.4 billion in 2014, according to the API’s data. Indonesia’s worldwide exports, meanwhile, only increased a little from $8.6 billion in 2005 to $12.7 billion in 2014, with exports to major markets in the US and Europe having slightly increased throughout the years. Vietnam enjoyed surging exports worldwide from $5.3 billion in 2005 to $26.2 billion in 2014. Vietnam has a trade deal with the EU and it is now in the process of ratifying the TPP along with another 11 signatories.
SOURCE: The Jakarta Post
IFS, a global enterprise application company, have announced that Bangladesh firm, Hamid Fabrics, has chosen to deploy IFS Applications 9 solution. The company will see a fully-fledged manufacturing, maintenance, finance, and distribution solution implemented at the company's head office and at two factories in Bangladesh. Following a comprehensive evaluation of the ERP market, the company selected IFS Applications as its central business solution to increase efficiency and improve planning to ofer better service to its customers. The IFS solution will streamline the company's weaving, dyeing, and finishing processes, which currently operate at a weaving capacity of 10 million yards per annum and a dyeing and finishing capacity of 30 million yards per annum. The solution will also power the company's future expansion into yarn dyeing and thread spinning, according to a press release. When fully deployed, the IFS solution will support business-critical processes such as finance, distribution, and maintenance. It will also feature the user-friendly, role-based interface IFS Lobby and the IFS Manufacturing Visualiser.
Abdullah Al Mahmud, managing director, Hamid Fabrics said, “Hamid Fabrics has grown to be the largest textile supplier to Bangladesh's apparel industry. We have made strategic investments in cutting-edge machinery and textile manufacturing technologies that have helped us achieve this status within a relatively short time. Investing in a world-class ERP solution such as IFS Applications is the next step in this journey. IFS has the level of sophistication that we require for our vast, diverse, and complex manufacturing operations and we look forward to a speedy and efficient implementation.” IFS Bangladesh managing director Asanga Marasinghe said, “We are very excited to add Hamid Fabrics to our growing customer list that includes some of Bangladesh's best-known brands. We look forward to building a lasting and mutually beneficial relationship with the group.” Hamid Fabrics Ltd manufactures solid-dyed fabrics for the 100 per cent export-oriented Ready Made Garment (RMG) industry of Bangladesh. IFS is a globally recognised leader in developing and delivering business software for Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), and Enterprise Service Management (ESM).
SOURCE: Fibre2fashion
The Ministry of Petroleum and Natural Resources will start supplying Re-gasified Liquid Natural Gas (RNLG) to the Punjab-based textile industry on 24/7 basis at a cost of $6.6 per Million British Thermal Unit (MMBTU) from the month of March onwards. The Sui Northern Gas Pipelines Limited has posted the price of RLNG supply on 24/7 basis and the industry has started securing allocation of gas for the month of March. The industry sources said the Federal Minister Petroleum and Natural Resources Shahid Khaqan Abbasi extended this commitment in his meeting with the All Pakistan Textile Mills Association Punjab leadership a day earlier. The industry sources said future of the supplies depend upon the terminal capacity at the port Qasim, frequent regular supplies and the carrying capacity to meet the demand of Punjab-based industry. The total demand of the Punjab-based textile industry captive power plants is around 200 MMCFD and the federal minister has assured of prioritising the textile industry in supply of RLNG. It may be noted that the industry has been asking for availability of energy at affordable price to compete regionally. At present, the government is supplying the RLNG at $9.8 per MMBTU, which would be reduced to $6.6 per MMBTU from the month of March.
The industry sources said a regular supply of RLNG on 24/7 would clear the production scenario ahead. The SNGPL was presently supplying Sui gas for four hours a day at present at a cost of Rs 7 per MMBTU. The situation would change altogether with the addition of RLNG to the system at a regionally affordable price, they added. The industry circles further pointed out that they have taken a sigh of relief with the commitment extended by the federal minister. It would resolve the energy supply issue as well as the affordability issue, they added. They said there would be no need of legislation on supply of RLNG to the industry and only an administrative order would be enough. Meanwhile, sources said the independent power producers have also started applying for RLNG allocation with the SNGPL. Talking to Business Recorder, the Association Chairman Aamir Fayyaz said the minister has expressed the hope that price would come down even from $6 per MMBTU with the arrival of RLNG cargos on the terminal at the port Qasim from March onwards. He expressed the hope that the energy crisis in Punjab would be reduced with this supply at a reasonably affordable rate. "Situation would improve with this addition though the crisis would yet persist until the government starts generating sufficient energy through cheap resources," he added.
SOURCE: The Business Recorder
Special trade access to developed countries is always a boon to emerging market. suppliers, and the European Union's (EU) GSP+ system is especially sought after and – according to a recent European Commission report – widely utilised. GSP+ suspends import duties on 66% of EU tariff lines, while for the standard Generalised Scheme of Preferences (GSP), these same duties are merely reduced. Textiles and clothing are among those products affected. To secure GSP+ countries must demonstrate compliance with 27 international conventions covering human and labour rights, environmental protection, and good governance. It is not easy. Indeed, Sri Lanka, in the aftermath of its successful but bloody, war against the Tamil Tigers, lost this status in 2010 – and its current government wants it back.
Pakistan, by contrast, has managed to convince the EU that it had complied, and its exporters have been benefiting from EU GSP+ since January 2014. Its sales accounted for 70.1% of the EU's imports under the scheme in 2014, according to the Commission report. The other key clothing exporter using the scheme is the Philippines, which accounted for 17.7% of EU imports under the scheme in 2014. Other counties utilising it are of less importance to Europe as clothing outsourcing centres, such as Peru, Costa Rica, and Paraguay. Its value is signalled by the fact that Pakistan utilised 95.3% of its available GSP+ trading rights in 2014, accounting for EUR4.54bn worth of exports (of all products); and in the first six months of 2015, its utilisation rate was 94.5%, accounting for exports worth EUR2.57bn.
Indeed, with Pakistan's human rights record far from spotless, there have been concerns that its GSP+ status could be under threat. EU ambassador Jean-François Cautain warned in November that it could potentially be withdrawn. Asghar Ali, chairman of Pakistan Textile Exporters Association, said associations representing exporters of yarn, garments and home textiles were working with government officials in Islamabad to devise a strategy to maintain GSP+: "We will discuss the arguments and proposal that we will put forth before the EU," he told juststyle. If it was withdrawn, Pakistani textile and clothing exports could decline, Ali said. "We can't mention a figure but there will be a big problem." Shaikh Mohammad Shafiq, chairman of Pakistan Readymade Garments Manufacturers & Exporters Association in Karachi, said without GSP+ exports of men's shirts and trousers would be most affected, while towels and bedsheet exports would hold up, given Pakistan faces little competition for these products. Shafiq added that GSP+ status has not significantly increased profits: "The importers forced us to reduce our prices accordingly," he said. However, if the market privilege was withdrawn, those prices are unlikely to rise, he said.
As it stands, there appears to be no immediate threat that Pakistan will lose its GSP+ status. A European Parliament committee on international trade meeting on Tuesday (16 February) was told by EU trade Commissioner Cecilia Malmström: "There is no recommendation to end GSP plus" for Pakistan or any other GSP+ nation. That said, she added the European Commission would continue to monitor the situation. "We insist on progress but recognise things will not change overnight," she told MEPs.
Rules of origin
The Philippines has been a less keen utiliser of GSP+, using 66.7% of its rights in 2014 (earning EUR1.14bn from related exports), and 62.8% in 2015, (earning EUR681m from GSP+ related exports). Industry observers in the country attribute this mainly to GSP+ rules of origin complicating raw material sourcing. As the Philippines has few upstream textile plants, local garment manufacturers heavily rely for variety on foreign yarns, the usage of which restricted under GSP+. "It is the GSP+ rules of origin for textile usage that hampered some of the export orders," explained Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP). "The dilemma is being aggravated by the closure of some textile mills in 2015 after the government suspended a tax rebate incentive programme for the sector," he added. It is not the first time that FOBAP has warned that compliance issues over origin have caused low utilisation of preferential tariff schemes by the country's garment sector, including other trade deals outside GSP+ – the country has a trade agreement with Japan, for example.
Country competition
Of course, having special trade access, even when only partially utilised, does not only impact the country benefiting from the status; it can cause competition problems for other countries, even those that have special (but different) trade access status. Bangladesh, for instance, trades with the EU under its 'everything but arms' system, which grants duty-free access to its exporters for anything except weapons of war. But it competes with Pakistan and, prior to 2014, had more of an advantage over Pakistani exporters than it does now, in terms of EU market access. Speaking to just-style, Md Fazlul Hoque, a vice president of the Bangladesh Textile Mills Association, said there was a risk that Bangladesh could lose sales to Pakistan in segments such as home textiles where Pakistan is a strong player. But he argued that the data was not able to show conclusively where Bangladesh was losing out because of GSP+. "We need research," he said. "If our competing country gets advantages, it can bring about some disadvantages for us," he added. A 2014 study by the Bangladesh Foreign Trade Institute had predicted that trade diversion could take place in some knitted, woven and home textiles segments, but it argued that there would not be a major impact on Bangladesh exports.
India, another regional competitor to Pakistan, trades with the EU under the standard GSP system, and here industry figures are pushing the Indian government hard to level the playing field by securing a free trade agreement with the EU. "If that goes through we are anticipating growth [in apparel exports] in excess of 25% in next three years," Ashok Rajani, chairman of India's Apparel Export Promotion Council (AEPC), told just-style. According to Rajani, while Indian garments are very well accepted in the EU, exports are not growing and in the financial year ending March 2016, total Indian apparel exports are expected to generate US$17bn in sales, the same as the previous year. Ultimately, of course, if all these trade access programmes do their job, they will help such outsourcing centres to develop enough sustainable wealth to disqualify them for membership on income grounds. It is a prospect that may disconcert some EU clothing importers – but for now, the prospect is far from imminent.
SOURCE: Just Style
With Vietnam and the US normalizing their diplomatic ties, the bilateral trade between the two countries has expanded from zero to US$36.3 billion in 2014. This figure is further expected to reach $40 billion by the end of this financial year. Nguyen Duy Khien, head of the American Market Department under the Ministry of Industry and Trade (MoIT), said that Vietnam shipped $30.6 billion worth of goods to the US in 2014, up 24 per cent against the previous year. According to Deputy Minister of Industry and Trade Tran Tuan Anh, among the free trade agreements Vietnam has engaged in, the Trans-Pacific Partnership (TPP) agreement is expected to afford favourable conditions for Vietnamese exports. Vietnam began to access the US market in 1995. Vietnam's export turnover to the country reached $800 million in 2000 – the year the Vietnam-US Bilateral Trade Agreement was signed, according to the MoIT, The US has become Vietnam's largest importer, purchasing garments, electronic products, footwear, rice and fish from the Southeast Asian nation.
In the sphere of investment, the US ranked seventh among the countries and territories investing in Vietnam with a total direct investment of $10.7 billion by June this year. Vu Duc Giang, President of the Vietnam Textile and Apparel Association, said that Vietnam was the world's fifth largest garment-textile exporter, and the US remained the country's top market in this field. However, the garment-textile and footwear sectors are forecast to face difficulties as a result of Vietnam's TPP membership as the US has initiated the "yarn forward" rule of origin. In order to benefit from tax breaks, Vietnamese companies must use materials imported from other TPP members, this would be a real challenge for Vietnamese businesses when up to 70 percent of materials they are currently using are purchased from foreign countries, mainly China – a non-TPP member. Deputy Minister Tran Tuan Anh said that the TPP would be an impulse for Vietnam's economy to gear towards comprehensive renovation, a higher competitive edge and a better business environment. Anticipating opportunities afforded by the TPP, many of US businesses have invested in weaving and dyeing projects in the country. The trend sparks the hope that the TPP will continue creating a momentum for the two countries' relationship. The US now has more than 720 valid projects in Vietnam. In the first quarter of 2015, US investors poured nearly $68 million into eight new projects in the country. According to Economists, there is a need to provide more information about the two countries' markets and conduct trade promotion activities such as exhibitions, workshops and market surveys.
SOURCE: Yarns&Fibers
