|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
963.57 |
USD/Ton |
0.16% |
2/23/2016 |
|
VSF |
1980.75 |
USD/Ton |
0.62% |
2/23/2016 |
|
ASF |
1911.05 |
USD/Ton |
0% |
2/23/2016 |
|
Polyester POY |
975.05 |
USD/Ton |
0% |
2/23/2016 |
|
Nylon FDY |
2205.94 |
USD/Ton |
0% |
2/23/2016 |
|
40D Spandex |
4825.49 |
USD/Ton |
0% |
2/23/2016 |
|
Nylon DTY |
2481.68 |
USD/Ton |
0% |
2/23/2016 |
|
Viscose Long Filament |
5707.86 |
USD/Ton |
0% |
2/23/2016 |
|
Polyester DTY |
1145.10 |
USD/Ton |
0% |
2/23/2016 |
|
Nylon POY |
2022.11 |
USD/Ton |
0% |
2/23/2016 |
|
Acrylic Top 3D |
2094.87 |
USD/Ton |
0% |
2/23/2016 |
|
Polyester FDY |
1041.69 |
USD/Ton |
0% |
2/23/2016 |
|
30S Spun Rayon Yarn |
2711.46 |
USD/Ton |
0.57% |
2/23/2016 |
|
32S Polyester Yarn |
1562.54 |
USD/Ton |
0.99% |
2/23/2016 |
|
45S T/C Yarn |
2451.04 |
USD/Ton |
0% |
2/23/2016 |
|
45S Polyester Yarn |
1731.05 |
USD/Ton |
0.89% |
2/23/2016 |
|
T/C Yarn 65/35 32S |
2114.02 |
USD/Ton |
0% |
2/23/2016 |
|
40S Rayon Yarn |
2834.02 |
USD/Ton |
0.54% |
2/23/2016 |
|
T/R Yarn 65/35 32S |
2420.40 |
USD/Ton |
0% |
2/23/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0% |
2/23/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
2/23/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
2/23/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
2/23/2016 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
2/23/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15319 USD dtd. 23/02/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Following the appeal by Coimbatore and Tirupur District Collectors here on Monday urging textile manufacturers (master weavers) to pay the wages that they agreed to pay in 2014 to the job working powerloom units, the job working unit owners have decided to resume operation from Tuesday. About two lakh powerlooms in Coimbatore and Tirupur districts are on strike from January 28 demanding wages the textile manufacturers agreed to pay in 2014. The job working unit owners said the wages were reduced drastically in the last three to four months. According to a press release from the Joint Labour Commissioner here, the District Collectors held talks with the job working unit owners and the textile manufacturers on February 4,9,14 and 22. The textile manufacturers said they were unable to pay the wages according to the agreement because of the slowdown in the market. The job working unit owners said they were unable to pay wages to the workers in their units because of this and their livelihood was affected.
After discussions, the Coimbatore and Tirupur District Collectors announced that the textile manufacturers should immediately pay the wages they had agreed to in 2014 (30 per cent more than the wages agreed to in 2011 for the Somanur variety and 27 per cent more for other varieties). If there is a complaint that these are not paid, action would be taken against those who do not pay the higher wages and the job working units should withdraw the strike. P. Kumaraswamy, secretary of the Coimbatore District Job Working Powerloom Unit Owners’ Association, said that following the talks on Monday, it was decided to withdraw the strike and start operations from Tuesday. Ministers S.P. Velumani and MSM Anandan, Coimbatore Collector Archana Patnaik and Tirupur Collector S. Jayandhi were present at the talks on Monday.
SOURCE: The Hindu
“At Archroma, we continuously challenge the status quo in the deep belief that we can make our industry sustainable. With this partnership, we want to take a new approach to knowledge sharing and help to prepare a new generation of textile experts to the opportunities and challenges of our industry,” commented Anjani Prasad, Archroma’s Head of Sales, Textile Specialties, India.
Support and guidance
Under the terms of the partnership Archroma will provide training sessions, as well as technical support and guidance to the students of the Institute. In particular, DKTE’s students will have access to some of Archroma’s technical laboratories in India and Switzerland for projects, experiments and trials. The students will also benefit from access to a range of functional products with application and performance characteristics critical to the industry, allowing them to gain hands-on training and learning, and help develop innovative solutions for new industry entrants.
Special interest
The DKTE’s faculty has already expressed special interest in Archroma’s Nuva N water and oil repellent solutions, Pekoflam non-halogenated flame retardant, Sanitized antimicrobials, Appretan solutions for textile strength and flexibility, and Hydroperm hydrophilisizing agent. DKTE College, Ichalkaranji, Kolhapur, India. © DKTE “Thanks to our collaboration with Archroma, our Institute and centre of excellence for nonwovens will be an interface between the industry and consumers in order to improve article effectiveness,” said Prof (Dr) P.V. Kadole, Principal, DKTE’s Textile & Engineering Institute, Ichalkaranji.
Archroma
Archroma is a colour and specialty chemicals company committed to innovation, cost-efficiency and sustainability. Archroma is headquartered in Reinach, near Basel, Switzerland, and operates with approximately 3,000 employees over 35 countries. Through its three businesses, Textile Specialties, Paper Solutions and Emulsion Products, Archroma delivers specialized performance and colour solutions.
SOURCE: Innovation in textiles
In India, cotton prices edged up in the third week of February on fresh demand from domestic yarn mills after prices declined in the previous week. Gujarat Sankar-6 cotton gained INR500 to INR33,600 per candy. Other varieties saw prices gain INR200-800 per candy. As a result, cotton yarn prices climbed in India during the week, with offers regaining INR1 a kg in Ludhiana whereas remaining flat in Indore. The rise explains the rebound in cotton prices, after progressively declining in the past weeks. 30s combed for knitting prices regained INR1 a kg in the third week of February in Ludhiana while carded also gained similarly on the week. China Cotton Index fell 89 Yuan to 12,219 Yuan a ton on the week while cotton yarn markets witnessed scattered transactions, as many players were yet to resume operations, back from holiday. Major producers were in slow recovery and most held bearish outlook over the future trend. Thus, cotton yarn markets saw thin trades and transactions are likely to recover by end of the month. In Shengze, 21s and 32s cotton yarn prices were both up US cent 1 a kg on the week due to strong currency.
In Pakistan, cotton market eased a bit as leading spinners were away from the proceedings. A slump in cotton yarn and fabric markets depressed cotton trade, and leading spinners have already imported a substantial quantity of cotton. The KCA cut its spot rates by PakRs50 to PakRs5,435 per maund ex-karachi. Cotton yarn price in Pakistan mostly rolled over after cotton prices were revised down on the week due to poor demand. 8s and 30s carded yarn for weaving prices remained unchanged during the week.
SOURCE: Yarns&Fibers
Economic Affairs Secretary Shaktikanta Das on Monday said the global economy was witnessing a kind of unpredictability and volatility never seen before but India continued to be a rare bright spot. “There was a time when we used to say that we do not know what will happen in Europe or the rest of the world next week. But today we are in a position where we do not know what will happen the next day,” Das said in a video uploaded on the finance ministry’s YouTube channel. “Unexpectedly, the world markets are crashing. Suddenly you find that some currency or the other is depreciating. Whatever happens in any part of the world affects us. But amid all these problems and this turbulence, India remains afloat. Not only afloat — as the central statistics office says — we are expecting a growth of 7.6 per cent this year, which can be considered very good, given the circumstances.” The economic affairs secretary’s video was the latest pre-Budget statement after those by Minister of State for Finance Jayant Sinha, Finance Secretary Ratan Watal and Revenue Secretary Hasmukh Adhia. The series of videos is something North Block is trying for the first time, with senior officials explaining the Budget process and what it may mean for various stakeholders, without going into the details.
In Monday’s video, Das spoke on the ongoing debate regarding the fiscal deficit target for 2016-17. “Expenditure is important because the government has to implement schemes. It has to see that the development and growth rises because of government initiatives. At the same time, what is also important is my borrowing capacity. The balance has to be found between what are your spending requirements, what are the critical components on which you need to spend and, on the other hand, how much can you borrow so that I am able to repay," he said. “There are two schools of thoughts. Some people say you should not worry about borrowing, spending is something on which you should focus on. Another school of thought says that the fiscal deficit should be tight otherwise the repayment capacity gets affected. The truth lies somewhere in the middle and usually the government does a fine balancing act.” While the current fiscal responsibility and budget management (FRBM) norms state that the fiscal deficit for 2016-17 should be 3.5 per cent of gross domestic product, Finance Minister Arun Jaitley was also looking at a huge spending burden due to the recommendations of the Seventh Pay Commission; One Rank, One Pension outgo; rural sector schemes and infrastructure spending. "Growth is important because growth leads to job creation, growth leads to more opportunities, more economic activities which lead to more development," he said.
SOURCE: The Business Standard
Exports of over half of the sectors, out of the 30 closely monitored by the Commerce Ministry, were in the negative zone in January due to a fall in global prices and demand. Outbound shipments of as many as 17 sectors, including petroleum products, engineering and leather, dipped last month, according to the ministry data. Exporters' body FIEO said the government should announce incentives in the Budget to boost the shipments. "Inverted duty structure in respect of various items may be given due consideration in the Budget as it not only effects exports but also the manufacturing sector," Federation of Indian Export Organisations (FIEO) President S C Ralhan said. India's exports declined 13.6 percent in January to USD 21 billion. The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit. During the month, top two sectors -- engineering and petroleum products -- contracted 27.6 percent and 35.18 percent, respectively in January. These sectors make up about 42 percent of the country's total exports in 2014-15, when it stood at USD 310.5 billion. Agri-products, which constitute over 10 percent of the country's total shipments, too recorded a negative growth during the month under review. Overall, eight out of 13 main agriculture products slipped into negative territory. Exports of rice, cashew and oil meals fell 33.46 percent, 24.6 percent and 77.5 percent, respectively. Decline in these exports has been instrumental in dragging down India's overall merchandise exports. Due to continuous dip, the total merchandise shipments are expected to reach a figure of USD 270 billion in 2015-16. India has aimed at taking exports of goods and services to USD 900 billion by 2020 and raising the country's share in world exports to 3.5 percent from 2 percent. The exports in the past four financial years have been hovering at around USD 300 billion. On the other hand, exports of pharmaceuticals, plastic, carpet, tea and coffee have recorded positive growth in the last month.
SOURCE: Moneycontrol
Terming the projected 7.6 per cent growth for the current fiscal as “very, very significant”, Economic Affairs Secretary Shaktikanta Das today expressed the government’s commitment to work towards boosting economic growth. The statement assumes significance as it comes just a week before the presentation of Budget 2016-17 by Finance Minister Arun Jaitley in the Lok Sabha. It is expected that government will focus on growth by increasing public spending as private investment stays muted due to an uncertain global environment. “The world economy today is experiencing the kind of the volatility which we never saw earlier. There was time when we used to say what is going to happen next week in Europe or in some part of the world we do not know. But today, we have come to a position we do not know what is going to happen the very next day in which part of the world. “We live in a global village. Therefore, whatever happens in any part of the world affects us because India over the last several years is getting increasingly globalised,” he said in the finance ministry’s YouTube channel. However, he said, India remains a bright spot amid the global slowdown.
The Central Statistical Office (CSO) in its advance estimate of its national income for 2015-16 projected a growth rate of 7.6 per cent, the highest in the last 5 years. “So, there is uncertainty, there is volatility all around. I think amid all these problems, amidst when we are in a sea that is in turbulence, India is remaining afloat. “Not only remaining afloat, this year as CSO has already given out we are expecting a growth of 7.6 per cent which can be considered as very good, given the circumstances. We were used to 8 per cent or 9 per cent growth, but given the problem which the world is encountering, I think 7.6 per cent growth is very, very significant,” he said. He further said the government is committed to not just maintaining growth, but improving it. “Growth is important because growth leads to job creation, growth leads to more opportunities, more economic activities which lead to more development,” he said. India grew at 7.2 per cent last fiscal.
SOURCE: The Financial Express
The Indian rupee has inched towards its record low of 68.91 a dollar in the one month rate segment in the non-deliverable offshore market. The rupee closed at 68.61 a dollar in the onshore Indian spot market and in the offshore market also, the spot rate remained in and around the same level. However, the offshore traders are expecting the rupee to breach its record low of 68.87 a dollar, hit on August 27, 2013, in the Indian market. However, currency analysts pointed out, the expectation could be nothing more than how the forward rates are calculated. The forward premium is currently at 6.5 to seven per cent.
MELTING DOWN
The Indian rupee has inched towards its record low of 68.91 a dollar in the one month rate segment in the non-deliverable offshore market. The rupee closed at 68.61 a dollar in the onshore Indian spot market and in the offshore market also, the spot rate remained in and around the same level. However, the offshore traders are expecting the rupee to breach its record low of 68.87 a dollar, hit on August 27, 2013, in the Indian market. However, currency analysts pointed out, the expectation could be nothing more than how the forward rates are calculated. APMC Acts should be modified to support a well-functioning system of contract farming. Special attention should be given to Eastern and NE states as farmersbe given to Eastern and NE states as farmers.
Adding one month’s forward premium, the dollar-rupee exchange rate crosses the record low of rupee. Going by the same calculation, rupee is seen crossing Rs 70 in four months. The rupee dropped on renewed demand for the American currency from banks and importers on the back of higher greenback abroad amid sustained foreign capital outflows.Even the persistent rise in equity market failed to restrict the rupee's fall, a foreign-exchange dealer said. It hovered in a range of 68.70 and 68.50 during the day. The dollar index was up by 0.53 per cent against a basket of six currencies in the late afternoon trade. The yen was weaker against its rivals during Asian trade on Monday, as investors opted to sell the safety of the Japanese currency amid Tokyo stocks' steady gains. Oil prices recovered in Asia today after a steep fall in the previous session, with the US crude oil back above $30 a barrel as traders mulled the impact of a potential freeze by key producers. Pramit Brahmbhatt of Veracity Financial Services said, "The rupee started on a negative note and we saw the rupee depreciating as day progressed thus by strengthening the dollar.
Despite positive cues from the domestic equity market, where Nifty gained 24 points, a surprising rally in the dollar kept the rupee under pressure. Thus, to end the day, rupee closed with a loss of 15 paise at 68.61 levels. Trading range for the spot dollar/rupee pair is expected to be within 68.20 to 68.80 levels. Meanwhile, the benchmark Sensex ended higher by 79.64 points or 0.34 per cent. In the forward market, the premium for dollar firmed up further on sustained paying pressure from companies. The benchmark six-month premium July contract moved up to 196-201 paise from the last weekend's level of 196-198 paise and far forward January 2017 contract also moved up further to 422-424 paise from 416.5-418.5 paise previously. The RBI (Reserve Bank of India) fixed the reference rate for the dollar at 68.5517 and for the euro at 76.1952. In cross-currency trades, the rupee recovered sharply against the pound sterling to end at 96.97 from 98.34 on last Thursday and also firmed up against the euro at 75.85 as against 76.08 previously. However, the home unit dropped against the yen to finish at 60.54 per 100 yen from 60.13.
SOURCE: The Business Standard
We refer to RBI instructions regarding opening/hiring warehouses abroad. One of the conditions is that our export outstanding should not exceed five per cent of exports made during the previous financial year. We are unable to meet this condition but we want to open a warehouse abroad. What to do?
The RBI instructions allow AD-category 1 banks to grant approval for opening or hiring warehouses abroad subject to fulfilment of certain conditions. Since you don’t fulfil one of those conditions, your banks cannot grant approval, but RBI can certainly consider your application. So, you may approach RBI with a request to grant necessary approval. We refer to the DGFT Trade Notice no. 16/2015 dated February 10, 2016 regarding supply of goods to SEZ units.
We have an advance authorisation issued before April 1, 2015 but we have made supplies to SEZ units after April 1, 2015 against payment in Indian rupees. Will they be counted towards discharge of export obligation?
The Trade Notice makes it clear that in the new FTP 2015-20 it has been stipulated in para 4.21 (iii) that “Export to SEZ Units shall be taken into account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ unit”. So, conditions of para 4.21(iii) of FTP will have to be complied with in respect of the Advance Authorisations issued during FTP 2015-20 only. Your advance authorisation was issued during the earlier 2009-14 FTP. So, the conditions of Para 4.16 (a) of that policy will apply regardless of when you have made the supply. In short, your supplies will be counted towards discharge of export obligation despite payment realisation in Indian rupees.
Our excise authorities allege that for claiming exemption from service tax on commission earned by agents abroad for booking export orders, we have not filed form EXP-3 and EXP-4. Has this requirement not been removed?
Yes. That requirement went away on October 1, 2014, when the definition of ‘intermediary services’ was amended in the Place of Provision of Services Rules, 2012. Prior to that date EXP-3 and EXP-4 were required under the notification 42/2012-ST dated June 29, 2012. That notification was rescinded on March 1, 2015.
As merchant exporters, we issue CT-1 to manufacturers based on the price at which we buy from them, and not based on the price at which we export. Are we correct?
Yes. You may refer to CBEC Circular No. 203/37/96-CX, dated April 26, 1996, and Para 6.2.1 of Part-II, chapter 7 of CBEC Manual of Supplementary Instructions.
Can we claim drawback at notified rates when we are exporting under advance authorisation?
No. As per condition 10(b) of notification no.110/2015-Cus (NT) dated November 16, 2015, the rates of drawback specified in the Drawback All Industry Rate Schedule will not be applicable to the export of a commodity or product if such commodity or product is manufactured or exported in discharge of the export obligation against an Advance Licence or Advance Authorisation or Duty Free Import Authorisation issued under the Duty Exemption Scheme.
SOURCE: The Business Standard
India may take a re-look at its free trade agreements once the World Trade Organization's trade facilitation agreement (TFA) comes into force. The move follows a meeting chaired by Prime Minister Narendra Modi on February 18 where the role of India's free trade agreements was discussed in wake of the country ratifying the trade facilitation pact. The meeting, which was attended by commerce and industry minister Nirmala Sitharaman, finance minister Arun Jaitley, NITI Aayog vice-chairman Arvind Panagariya and other senior officers of the ministries concerned, took place a day after the Union Cabinet approved India's proposal for notification of its commitments under agreement. "Essentially, the meeting was to have a broad discussion on the TFA, its impact and role of free trade pacts in wake of India ratifying the TFA...on how the free trade agreements might have to be changed once the agreement is in force," said an official, who did not wish to be identified. Another official said it was a "policy meeting" in which the commerce department made its presentation. India has sought five years to make legislative changes required to implement the agreement which seeks to expedite the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. The agreement is part of the WTO's Bali ministerial package of 2013.
"Ratification of the TFA is being taken positively since it will make it easier for trading partners to export to us. We need to tell this to our FTA (free trade agreement) partners. Trade facilitation means faster timelines for import and also that non-tariff issues at the border would be taken care of," said an expert on trade matters, requesting not to be named. The agreement will come into force after it is formally accepted by two-thirds of WTO members. Till now, 69 of the WTO's 162 member countries have ratified it. The agreement has articles covering provisions such as information availability and publication, advance rulings, review procedures, customs cooperation and export-import of goods, among others, with various provisions that countries have to comply with. These provisions are classified into three classes. Category A provisions are those that a country already has in place. Category B provisions have to be implemented after a transition period while Category C commitments require the assistance of other countries to become applicable. Most of India's commitments fall in category B, while a few are in A and there is none in C. The TFA has a few provisions that India had suggested in the first place. These include customs cooperation to tackle money laundering, return of rejected goods and informing traders when their goods are detained.
SOURCE: The Economic Times
India’s strong negotiating stance on services, especially for liberalising movement of workers, at the regional comprehensive economic partnership (RCEP) being worked out between 16 nations, is being resisted by the 10-member Asean but backed by Australia, which is trying to act as a mediator between the two. “In last week’s negotiating round in Brunei, the Asean tried to brush away India’s position that progress in Mode 4 (movement of workers) was a must for further progress in talks on goods. Australia, on the other hand, realised how important it is for India to get a good deal in services and has been trying to act as a mediator between India and the Asean on the matter,” an official closely following the RCEP negotiations told BusinessLine . The RCEP, which includes the Asean, India, China, South Korea, Japan, Australia and New Zealand, seeks to create one of the largest free trade blocs in the world, as it accounts for 45 per cent of the world’s population and over $21 trillion of gross domestic product.
No progress on goods
In Brunei, there wasn’t any progress in the area of goods as initial detailed offers made by the Asean and Japan were for lower number of goods than they had committed to when talks started, and they were asked to rectify it. “We have enough breathing space now and can wait for the progress in services without offering anything more in goods,” the official said. New Delhi floated a second paper on the services sector at the negotiations where it emphasised that it was important to liberalise Mode 4 as freer movement of people was essential for successfully opening up the other modes of services as well, including Mode 3 (commercial presence ) and Mode 2 (consumption abroad). “If we don’t have easy movement of people, how will companies establish their commercial presence in partner countries,” the official said.
Asean hurdle
The Asean, which did not give India any concessions in easing movement of labour in the bilateral comprehensive economic cooperation agreement signed by the two earlier, is showing the same reluctance in the RCEP negotiations. “The Asean, through its lack of interest in India’s paper, indicated that it did not want to offer much in Mode 4 of the services negotiations,” the official said.
Australia FTA
Australia, which is also bilaterally negotiating a free trade agreement with India, however, seems to understand New Delhi’s seriousness about getting a good deal in services. “It is a conscious decision taken by the government that all future free trade deals that India gets into with other countries would have to result in substantial gains in services. Australia knows that as it is also trying to conclude a bilateral FTA with India,” the official said. The next negotiating round for RCEP is in Perth, Australia, in April, followed by one in New Zealand in June. “There will be three more rounds this year after the one in New Zealand as there is great urgency among members to wrap up the talks as soon as possible,” the official said.
FOR FREE TRADE
SOURCE: The Hindu Business Line
Aiming to strengthen India-UAE economic ties, Confederation of Indian Industry (CII) has signed an MoU with Dubai Exports to boost trade and explore business opportunities. CII, a non-government organisation, has signed an memorandum of understanding (MoU) with Dubai Exports, which works with other Dubai Government Departments to simplify the export process. It develops long-term growth strategies to expand businesses and maximise the opportunities given by Dubai's unique position as a natural trade gateway between the East and West. The MoU pledged to maintain frequent and regular contact with each other for mutual exchange of non-confidential, economic and trade information and to suggest and recommend partners for economic and trade cooperation and explore opportunities for business between members of both parties. It will also organise exchange of visits for business cooperation and provide each other with necessary support in terms of organizing conferences, mounting business delegations and other activities.
CII and Dubai Exports within the limits of their competence will aspire to make coordinated efforts in solving and reducing the impediments caused due to regulatory mechanisms like taxation, customs procedures, visas etc. "Both the Parties will reciprocally support and facilitate investment fact-finding and business development missions," the MoU said. It also paves way for both parties to help each other in organising road Shows for promotion of investment opportunities in both countries.
SOURCE: The Economic Times
Now, after 12 advanced economies accounting for 40 percent of the global economy signed a TPP deal, India's trade negotiators feel they need to get a move on. India is stepping up efforts to reach agreement with an alternative trade bloc centered on China and hopes to reach a deal this year. New Delhi has long been seen by many countries as an intransigent player at the World Trade Organization (WTO), a multilateral forum that has struggled to find the consensus it needs to move forward. Prime Minister Narendra Modi has backed an export-focused 'Make in India' drive as the path to prosperity for Asia's third-largest economy, where per capita output is $1,688 a year, one fifth that in China.
With TPP out of reach - India was not invited to join - India's negotiators are focussing instead on a Chinese-led grouping called the Regional Comprehensive Economic Partnership (RCEP) that would improve its access to Asian markets. Trade representatives meet in Brunei from Feb. 15-19 to iron out differences on tariffs. A senior New Delhi official said that India was hopeful of striking a tariff-cutting deal this year, in the clearest indication yet that India wants to accelerate progress on a bloc first launched in 2012. Ganeshan Wignaraja of the Asian Development Bank said that a breakthrough on RCEP would help mitigate the competitive disadvantage of India being absent from the TPP.
Concluding an RCEP agreement would mark a key milestone for the Modi government. Experts caution that India has shown little appetite to open its market to imports, even as it seeks to ramp up exports, not least because of a gaping trade deficit with China. Professor Bernard Hoekman, a trade expert at the Robert Schuman Centre for Advanced Studies in Italy said that India is worried about opening up to China and very much doubts an RCEP deal would happen this year. With the TPP lacking votes in Congress and likely to be put on hold if a Republican is elected U.S. president, any sign China is seizing the initiative in the trade arena could raise concerns over Washington's declining clout in Asia. Beijing has already redrawn the financial map by launching the Asian Infrastructure Investment Bank, with backing from close U.S. allies like Britain. New Delhi fears the TPP, although years away from reality, could mean losing some textile and drugs exports to countries like Vietnam, which has embraced both the TPP and the RCEP. Commerce Minister Nirmala Sitharaman said that it could also raise barriers to entry on labour, environment and intellectual property when it comes to seeking access to other markets. The TPP will certainly have an impact on India's exports. It is most likely to affect sectors like textile, clothing, leather goods, plastics and chemicals.
Talks on creating the 16-member RCEP could be the last hope for some Indian companies to break into the global supply chain. The group comprises the 10 members of the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, India, Australia and New Zealand. If signed, the regional free trade agreement would create an economic bloc with a population of 3.4 billion and trade volume of over $17 trillion. According to Chandrajit Banerjee, director general of the CII, TPP will basically change the landscape of global trade. Successful export industries, particularly garment and drug makers, have been urging Modi to speed up RCEP talks and wrap up trade deals with the European Union and Australia.
SOURCE: Yarns&Fibers
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 31.26 per barrel (bbl) on 22.02.2016. This was higher than the price of US$ 31.07 per bbl on previous publishing day of 19.02.2016.
In rupee terms, the price of Indian Basket increased to Rs 2142.93 per bbl on 22.02.2016 as compared to Rs 2127.88 per bbl on 19.02.2016. Rupee closed weaker at Rs 68.55 per US$ on 22.02.2016 as against Rs 68.49 per US$ on 19.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 22, 2016 (Previous trading day i.e. 19.02.2016) |
Pricing Fortnight for 16.02.2016 (28 Jan to 11 Feb, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
31.26 (31.07) |
30.05 |
|
(Rs/bbl |
2142.93 (2127.88) |
2040.70 |
|
|
Exchange Rate |
(Rs/$) |
68.55 (68.49) |
67.91 |
SOURCE: PIB
The number of facilities certified to the Global Organic Textile Standard (GOTS) kept on growing last year, increasing from 3,663 facilities in 2014 to 3,814 facilities in 2015. GOTS certified facilities are now located in 68 countries around the world, up from 63 in 2014. Growth is evenly spread across all market segments including the mass market and the big brands. GOTS is recognized worldwide as the leading processing standard for textiles made with organic fibers, and GOTS certification enables consumers to purchase items that are certified organic from field to finished product, it said in a press release. India tops the list of countries or regions with the largest increase in GOTS certification in 2015 with +74, followed by Europe (+58), Turkey (+27) and Bangladesh (+21). The Top 15 countries in terms of the total number of GOTS certified facilities are: India (1,441), Turkey (489), Germany (306), Bangladesh (210), China (201) Pakistan (142), Italy (141), Portugal (89), South Korea (80), Japan (65), USA (60), France (56), UK (49), Austria (49), and Denmark (41). "The figures show that GOTS' credible and independent certification of the entire supply chain is an important driver for the business case for sustainability - in contrast to mere self-claims," said Claudia Kersten, GOTS Marketing Director. The organization also announced that to-date, the GOTS accredited independent certification bodies report 847,749 people working in 2,799 (out of the actual 3,814) GOTS certified facilities. The number is likely to reach one million when the final figures are received. "This number is a further indication of the relevance of the Global Organic Textile Standard, in addition to the number of GOTS certified operations. We will, with the cooperation of the independent GOTS certifiers and academic research, collect and report additional data in order to demonstrate GOTS' ecological and social impact," said Herbert Ladwig, GOTS Managing Director.
SOURCE: Fibre2fashion
Japanese development agencies are working to increase the level of textile imports sourced from Pakistan. The Japan International Cooperation Agency (JICA), in Yokohama, is presently in discussions with the government of Pakistan about ways in which Japanese overseas development aid might be best put to use to assist this sector – of critical importance to the overall Pakistani economy. JICA works closely with the Trade Development Authority of Pakistan (TDAP), which has sent a request for assistance, according to Daisuke Fukumori, deputy director of JICA’s South Asia division. “We are presently in the negotiations stage, and information regarding the projects that Japan can undertake has not yet been confirmed,” he says. “Details of the final package will be designed to meet the needs of the Pakistani government, and the agreement should be completed within this year.” Fukumori was unable to disclose details of the agreement, but it is likely to include the provision of equipment and hardware, the dispatch of experts and financial assistance.
In 2015, JICA supported a delegation of Japanese business people to Expo Pakistan, the country’s largest trade fair, and arranged a delegation of executives from Pakistan’s leading textile companies to Thailand, where they visited three Japanese textile factories to experience quality control in the production process. A Pakistan-Japan Textile Day, held in October 2015, brought Japanese companies to Lahore and Faisalabad, and served to introduce manufacturers and buyers, while a workshop for Pakistani companies was held in Karachi the same month. Hideaki Shimizu served as an adviser in the textile sector to JICA for two years until 2015 and believes the potential for Pakistani exports to Japan is good. “Pakistan is traditionally a cotton-producing country, and has done well in recent years to integrate production and improve both upstream and downstream operations,” he says. “The quality of yarn produced in Pakistan is very good, and ideal for products such as bed linen, towels and other home textiles,” continues Shimizu, who is working for Asia Engineering Consultant Co. “Pakistani companies are weak, however, in finished and high value-added products, and my team encouraged firms there to strengthen their operations in these areas and improve the quality and designs of their products.”
JICA took experts to Pakistan to deliver seminars on the latest technical developments in the textiles sector, as well as to advise on improving production control, quality control and reducing costs. Some issues remain beyond the control of Pakistani manufacturers, however, such as the frequent power black-outs that hamper production, a common complaint that they relayed to their Japanese visitors. JICA is also committed to investing in broader infrastructure projects - such as ensuring a stable supply of power - that will assist the textile sector.“The potential of Pakistan's textile sector is huge, but they do need to ensure quality, improve their marketing skills and make improvements in other areas," Shimizu said.
For Japanese companies contemplating doing business overseas, Pakistan's security situation is a serious concern, while Pakistani companies seeking to strike a deal with a Japanese partner are significantly hampered by imports levied on imports of textiles by the Japanese government. “Most other Asian countries are not subject to those duties and have signed bilateral exemption deals with Tokyo, so we would very much like to see a similar arrangement agreed between Japan and Pakistan," Shimizu added. Annual imports of Pakistani textiles to Japan are valued at Japanese Yen JPY9.3bn (US$80.5m), with yarns accounting for JPY3.7bn (US$32m) of the total and fabrics a further JPY2.2bn (US$19m).
SOURCE: The CCF Group
During bilateral meeting of Indonesia and Vietnam held between President Joko “Jokowi” Widodo and Vietnamese Prime Minister Nguyen Tan Dung in the US on Monday agreed to boost bilateral trade to US$10 billion by 2018. The target set is almost twice the current trade value between the two countries, which stands at $5.3 billion. Prime Minister Nguyen Tang Dung welcomed the invitation to boost cooperation in trade and investment. Vietnamese investors have expressed their interest in investing in Indonesia’s oil and gas sector, as well as agriculture, as per a press statement issued by the State Secretariat. In addition, the two leaders discussed the maritime boundaries between the two countries. Jokowi said that he expected immediate consultations to resolve boundary issues between the two countries, following a technical meeting on exclusive economic zones (ZEE) held between the two countries in December. The meeting was preliminary to the ASEAN-US Summit.
SOURCE: Yarns&Fibers
Oil markets jumped as much as seven per cent on Monday as speculation about falling US shale output and a rally in equities fed the notion that crude prices might be bottoming after their 20-month collapse. Markets began the week with a rebound in Asian trade, reacting to Friday's US rig count data, which showed the number of oil drilling rigs in operation falling to a December 2009 low after nine straight weeks of cuts. Prices got a further boost after the International Energy Agency, the world's oil consumer body, said US shale oil production could fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017. Higher equity prices on Wall Street also supported oil, as shares of oil companies such as Chevron rose. "For various reasons, traders are growing convinced that the market won't go much lower," said Pete Donovan, crude broker at Liquidity Energy in New York. "This includes the falling US rig count, the output freeze Organization of the Petroleum Exporting Countries (OPEC) is trying to achieve with non-OPEC members, the apparent lack of Iranian barrels flooding the market after the sanction lifted against them and the potential for geopolitical stress," he added, referring to a proposed freeze at January levels by Russia and the OPEC. Iraq said it plans to raise oil output levels to more than seven million bpd over the next five years, and to export six million bpd. US crude futures were up $2.07, or seven per cent, at $31.71 a barrel by 11.32 am (1632 GMT). US gasoline also rose six per cent. Bids to narrow the discount between the expiring front-month contract in US crude to the nearby position was also feeding buying, traders said. The March contract was nearly $2 lower than April, which would be the front-month from Tuesday. Futures of Brent rose $1.85, or 5.6 percent, to $34.86.
Despite the gains, analysts said market conditions remained weak, with demand for crude slowing. "The sharp deceleration in demand growth in recent months (especially gasoline) is a key feature of our more bearish view and expectations for a longer rebalancing period," analysts at Morgan Stanley said. "China demand looks particularly challenged with several negative trends of late," they added. While the IEA's outlook for shale output was supportive, it expects the global oil market to only rebalance from 2017 after the selloff that shaved 70 percent off prices.
SOURCE: The Business Standard
The world economy is likely to expand no faster in 2016 than in 2015, its slowest pace in five years with the exception of India. Trade and investment are weak. Sluggish demand is leading to low inflation and inadequate wage and employment growth, the Organisation for Economic Co-operation and Development (OECD) has said in its Interim Economic Outlook. It has called for urgent polices to reverse the trend. The downgrade in the global outlook since the previous Economic Outlook in November 2015 is broadly based, spread across both advanced and major emerging economies, with the largest impacts expected in the US, the euro zone and economies reliant on commodity exports, like Brazil and Canada.
Financial instability risks are substantial, as demonstrated by recent falls in equity and bond prices worldwide, and increasing vulnerability of some emerging economies to volatile capital flows and the effects of high domestic debt. “Global growth prospects have practically flat-lined, recent data have disappointed and indicators point to slower growth in major economies, despite the boost from low oil prices and low interest rates,” said OECD Chief Economist Catherine L. Mann. “Given the significant downside risks posed by financial sector volatility and emerging market debt, a stronger collective policy approach is urgently needed, focusing on a greater use of fiscal and pro-growth structural policies, to strengthen growth and reduce financial risks.” The OECD projects that the global economy will grow by 3 per cent this year and 3.3 per cent in 2017, which is well below long-run averages of around 3.75 per cent. This is also lower than would be expected during a recovery phase for advanced economies, and given the pace of growth that could be achieved by emerging economies in convergence mode.
According to OECD, the US will grow by 2 per cent this year and by 2.2 per cent in 2017, while the UK is projected to grow at 2.1 per cent in 2016 and 2 per cent in 2017. Canadian growth is projected at 1.4 per cent this year and 2.2 per cent in 2017, while Japan is projected to grow by 0.8 per cent in 2016 and 0.6 per cent in 2017. The euro area is projected to grow at a 1.4 per cent rate in 2016 and a 1.7 per cent pace in 2017. Germany is forecast to grow by 1.3 per cent in 2016 and 1.7 per cent in 2017, France by 1.2 per cent in 2016 and 1.5 per cent in 2017, while Italy will see a 1 per cent rate in 2016 and 1.4 per cent rate in 2017.
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. India will continue to grow robustly, by 7.4 percent in 2016 and 7.3 percent in 2017. By contrast, Brazil’s economy is experiencing a deep recession and is expected to shrink by 4 per cent this year and only to begin to emerge from the downturn next year.
SOURCE: Fibre2fashion
Crude prices will probably stay low for longer than expected, International Monetary Fund Managing Director Christine Lagarde said, urging Gulf Arab oil-producing countries to cut spending and boost revenue through new taxes. A value-added tax that’s the same across the six-nation Gulf Cooperation Council should be adopted, Lagarde said in a speech in Abu Dhabi. The measure along with corporate income and property taxes would help raise government income, she said. “Not only have oil prices fallen by around two-thirds from their most recent peak, but supply- and demand-side factors suggest that they are likely to stay low for an extended period,” Lagarde said. That makes it necessary for oil producers to lower reliance on crude for government income, she said. Global oil prices have dropped 44 percent in the past year, forcing Saudi Arabia to cut spending on energy subsidies and consider selling sovereign bonds and shares in national oil company Saudi Arabian Oil Co., known as Saudi Aramco. The United Arab Emirates has also eliminated fuel subsidies. U.S. benchmark West Texas Intermediate crude should trade in a range between $25 and $45 a barrel for the rest of the year, “although a very brief spike down towards $20 is possible,” the National Bank of Abu Dhabi PJSC said in its Global Investment Outlook 2016 report on Sunday. Prices at the lower end of the range will stimulate demand growth, it said. WTI rose 1.9 percent on Monday to $30.20 a barrel by 11:20 a.m. in Dubai and Brent, benchmark for more than half of the world’s crude, climbed 1.5 percent to $33.49 a barrel.
SOURCE: The Bloomberg
