INTERNATIONAL
Textile Raw Material Price 2016-04-05
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1034.48 |
USD/Ton |
-0.74% |
4/5/2016 |
|
VSF |
2115.28 |
USD/Ton |
0% |
4/5/2016 |
|
ASF |
1945.44 |
USD/Ton |
0.40% |
4/5/2016 |
|
Polyester POY |
1042.20 |
USD/Ton |
-0.74% |
4/5/2016 |
|
Nylon FDY |
2323.72 |
USD/Ton |
1.01% |
4/5/2016 |
|
40D Spandex |
4477.60 |
USD/Ton |
0% |
4/5/2016 |
|
Nylon DTY |
5754.49 |
USD/Ton |
0% |
4/5/2016 |
|
Viscose Long Filament |
1273.80 |
USD/Ton |
0% |
4/5/2016 |
|
Polyester DTY |
2146.16 |
USD/Ton |
0.72% |
4/5/2016 |
|
Nylon POY |
2123.00 |
USD/Ton |
0% |
4/5/2016 |
|
Acrylic Top 3D |
1142.56 |
USD/Ton |
-0.67% |
4/5/2016 |
|
Polyester FDY |
2547.60 |
USD/Ton |
0% |
4/5/2016 |
|
30S Spun Rayon Yarn |
2871.84 |
USD/Ton |
0% |
4/5/2016 |
|
32S Polyester Yarn |
1713.84 |
USD/Ton |
0% |
4/5/2016 |
|
45S T/C Yarn |
2470.40 |
USD/Ton |
0% |
4/5/2016 |
|
45S Polyester Yarn |
1868.24 |
USD/Ton |
0% |
4/5/2016 |
|
T/C Yarn 65/35 32S |
2130.72 |
USD/Ton |
0% |
4/5/2016 |
|
40S Rayon Yarn |
3010.80 |
USD/Ton |
0% |
4/5/2016 |
|
T/R Yarn 65/35 32S |
2316.00 |
USD/Ton |
0% |
4/5/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
4/5/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
4/5/2016 |
|
40S Combed Poplin |
1.09 |
USD/Meter |
-7.10% |
4/5/2016 |
|
30S Rayon Fabric |
0.69 |
USD/Meter |
0% |
4/5/2016 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
4/5/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15440 USD dtd.05/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The much anticipated Apparel and Garment Making Centre supported by the Ministry of Textiles, Government of India was inaugurated by Union Minister of State for Textiles (Independent Charge) Santosh Kumar Gangwar in the presence of State Chief Minister TR Zeliang and Additional Secretary Ministry of Textile, GoI Pushpa Subrahmanyam on Tuesday at District Industries Centre Complex, 6th Mile Dimapur. The project for construction of Apparel and Garment Making Centres in north eastern states is one of the most ambitious projects launched in the textile sector by the Government of India, said Gangwar. It has the potential to change the landscape of the textile industry in North Eastern India and Nagaland has become a pioneer in this revolution in the region, the Union minister added. The government of India, he remarked, is committed to the development of Northeast India.
While pointing out handlooms to a deep-rooted tradition in Nagaland, the Minister said that the unique handloom designs and ornamentations are expressions of the rich cultural heritage of Nagaland. He added that the Ministry intends to take the cultural heritage beyond the borders giving international recognition through market linkage, technology upgradation and design inputs. Gangwar observed that Nagaland can be a forerunner in silk quality and its promotion. The Minister said that in the last two years, the Ministry of Textiles has sanctioned three major sericulture projects to Nagaland, with Government of India support of Rs 101.25 crore. He said that these projects will support silk production in all three varieties—Eri, Muga and Mulberry silk—from plantation to finished product to marketing. He said that these projects are expected to help about 5000 farmers engaged in plantation of Eri, Muga and mulberry silk and would increase the overall production of quality silk by three times through various interventions. “Development of apparel is closely attached to the development of handlooms in the region and because of the distinct culture and heritage, this is a cultural heritage for the country and we want to take them viewing sericulture as a high potential area,” said Gangwar. He also expressed that there is a need of a hostel attached to the centre and conveyed that the Government of India would be happy to sanction the amount needed if the state government gives a proposal.
Stating that the Apparel and Garment Making Centre has been put into action in a record time of 16 months the Minister dedicated the Centre to the people of Nagaland. He appreciated the support rendered by the Government of Nagaland and also thanked the entrepreneurs for coming forward. Chief Minister TR Zeliang said that the inauguration of the three units (Apparel and Garment making centre, Muga P3 Basic Seed Station Kobulong, Mokokchung and Integrated Eri Silk Development Project, under North Eastern Region Textile Promotion Scheme (NERTPS), for women empowerment and sustainable livelihood in Kohima) would help in skilling Naga youths in becoming professional entrepreneurs.
Noting that the Apparel and Garment Making Centre in Dimapur is the first centre in the entire NE, Zeliang expressed confidence that the inauguration of the 3 units will enhance the youth professionally and convert these young talents into real economic assets. Taking advantage of the presence of Gangwar, Zeliang proposed before the Minister the need for a hostel to be attached with the centre considering the many youth from rural areas. “Since the state has no resource for this I urge upon the Union Minister to consider sanctioning for the said need,” said Zeliang. The Chief Minister also highlighted that 3 crore 17 lakh has been sanctioned for Muga P3 Basic Seed Station Kobulong, Mokokchung and 13.66 crore for the newly approved Integrated Eri Silk Development Project, under North Eastern Region Textile Promotion Scheme (NERTPS), for women empowerment and sustainable livelihood in Kohima. With this he affirmed that the state government will make the center a model for other centres to follow. On the occasion, the Union Minister also laid the foundation stone for Muga P3 Basic Seed Station Kobulong, Mokokchung and launched the newly approved Integrated Eri Silk Development Project, under North Eastern Region Textile Promotion Scheme (NERTPS), for women empowerment and sustainable livelihood in Kohima.
SOURCE: The Eastern Mirror Nagaland
The Indian government must appreciate Indian fashion like the French do, veteran designer Manish Arora said and the same thought is echoed by many young designers who feel that Indian textile and craft have huge potential to make an impact globally. They also say that with Prime Minister Narendra Modi's support there is definitely a change. On the day two of Summer-Resort edition of Lakme Fashion Week (LFW) dedicated to the Sustainable Indian Textile, many designers talked about the current stage of Indian textile and crafts is trending globally. On the day two of Summer-Resort edition of Lakme Fashion Week (LFW) dedicated to the Sustainable Indian Textile, many designers talked about the current stage of Indian textile and crafts is trending globally. "Globally people are loving it Indian textiles. They love the techniques used. We do use lot of Indian silhouettes but we just tweak it a little bit according to their trends and they love wearing it and value it," designer Debashri Samanta said. Added another designer Swati Vijaivargie: "I have done lot of trade shows abroad and people absolutely love the textiles. Yes you have to tweak the silhouettes a bit because people there wouldn't wear certain silhouettes but they love wearing such designs just for the fabric. They understand crafts."
Designer Amit from the brand Amrich is of the view tha Modi government is doing commendable job in promoting Indian textile and crafts and similar efforts are needed for backing it up. "We designers have talents, its just that we need support and backing from the government. Being a designer, we understand business but backing and support definitely helps a lot. Internationally many governments support design and give them importance and I want this to start in India as well. Modiji is trying to bring a change so let see if we get the chance to see the difference in next five years," Amit said. He also says that Indian textiles have been famous around the world for atleast 5,000 years and hence it is a good thing that lot of young designers are really working towards Indian craft. "I don't know if many are aware of this or not but lot of international labels have buying and developing houses in India because they have been appreciating Indian textiles. Also any foreigner you meet, they say you have such a repertoire of textiles. Sometimes we kind of blank it out because we have grown up looking at them day in and day out. "Hence needless to say Indian textile and crafts is going places," he said. All three brands showcased at the Sustainable and Indian Textile Day of the ongoing fashion gala that is taking place at St. Regis here and its not just runways that if witnessing the best of textile trends but there are visitors and fashionistas to who were spotted ditching their little black dresses to give their support to Traditional Indian textile.
SOURCE: The IBN Live
After months of protracted negotiations, the Tirupur Employers’ Association (garment/knitwear units at Tirupur) has entered a four-year new wage agreement with trade unions on Tuesday. Under the new wage agreement, employees working under categories such as cutting, tailoring, ironing, packing, fabrication, checking, label putting, hand folding, damage spotting and fabrication will get a 33% hike, spread over four years in the ratio of 18%, 5%, 5% and 5%, respectively, said a press statement. The wages of employees, numbering over 4 lakh in hundreds of garment units, is a minimum of Rs 45 a day to a maximum of Rs 158 a day, depending on the nature of jobs. In addition to the 33% hike in wages, the dearness allowance (DA) is fixed at Rs 1,500 per month for CPI numbers (15,000) and in addition, for every increase in points above 15,000 points, 13 paisa per point is payable from April1, 2016. A travelling allowance of Rs 20 per day will be given to all employees during all working days. It has been agreed that Rs 25 will be paid to workers in half-night shifts. Under the family benefit fund, an amount of Rs 17,000 will be given to the dependents of workers who die in harness. In addition to this, for unmarried girls, when they reach the legal age, marriage allowances varying from a minimum of R1,000 to R3,000 will be provided based on their years of service. This allowance will be applicable to widows remarrying and not applicable to workers having less than one year service. If the workers have put in service of more than three years, the maximum allowance given will be R3,000 only, the statement pointed out.
As part of the agreement, it has been agreed to provide identity cards to all workers. Considering the workers’ welfare, a R1-lakh group insurance scheme for all workers has been agreed upon. In case workers are already receiving excess wages over the existing settlement, the newly-increased incremental wages have to be added to the higher wages. This agreement is for the period from April 1, 2016 to March 31, 2020. A Sakthivel, president, Tirupur Exporters’ Association (TEA), said that the wage agreement for the next four years with trade unions was settled on Tuesday (April 5) in its board room and the new wage agreement is effective April 1, 2016. Senior officials and presidents of the employees’ association held discussions with the members of eight trade unions, apart from respective labour sub-committee members from all associations. According to Sakthivel, at the end of negotiations, after consulting with joint committee chairman S Duraisamy and other associations’ presidents and members, it was proposed that the wage increment would be for the next four years, which was later accepted by the unions.
SOURCE: The Financial Express
The Tirupur Exporters Association (TEA) has welcomed the Reserve Bank of India's decision to reduce policy repo rate by 25 basis points from 6.75 per cent to 6.5 per cent with immediate effect. The RBI kept the Cash Reserve Ratio (CRR) unchanged at 4 per cent. In a press release, TEA president Dr.A.Sakthivel pointed out that as mentioned in the Monetary Policy the introduction of the Marginal Cost of Funds based Lending Rate (MCLR) should improve transmission and magnify the effects of the current policy rate cut which is paramount importance for the exporting units to enhance their competitiveness in the subdued world trade. Dr. Sakthivel also welcomed the RBI stance in monitoring the developments closely to contain any unanticipated forex market volatility. Sudden currency fluctuations will put the exporting units, particularly SME exporting units, into quagmire position if the RBI does not intervene immediately, he added. The TEA chief also welcomed the measures initiated by RBI Governor Raghuram Rajan to maintain transparency in the functioning of banks. (SH)
SOURCE: Fibre2fashion
The Visakhapatnam port is taking several steps to make it easy for port users as a part of promoting ease of doing business, according to its Chairman MT Krishna Babu. He was speaking at the National Maritime Day celebrations. Krishna Babu said the theme of the ‘Merchant Navy Flag Day’ and the National Maritime Day (both falls on April 5 every year) is “ease of doing business in the maritime sector.’ The port handled 57-58 million tonnes of cargo during the financial year ended March 31 and it was preparing for a more challenging year as the competition from private ports was increasing. Several projects were under way in the port to enhance its efficiency and bring down costs. PL Haranadh, Deputy Chairman of the port, said ERP was introduced in the port and several new modules would be launched to make the documentation process easier for port users. All steps are being taken to bring down handling costs. Amit Bhatnagar, Principal Surveyor, Indian Registry of Ships, said at present, nearly 70 per cent of the components in shipbuildingwere being imported and in recent years, steps have been initiated by local companies for import substitution and the IRS was also facilitating the initiative by encouraging them.
SOURCE: The Hindu Business Line
Commerce Minister Nirmala Sitharaman discussed with exporters the measures to curb the decline of outbound shipments, and sought their inputs on issues plaguing the sector to improve ease of doing business. India's merchandise exports contracted for the 15th month in a row in February amid tepid global demand and a volatile global currency market. During the meeting, exporters demanded incentives to reverse the trend and requested the government to provide better market access. Some of the other issues flagged by exporters include non-tariff barriers of other countries, currency volatility, special economic zones, problems in dealing with customs authorities and service tax. "The issue was mainly to check the downward trend of exports. We have requested the Commerce Ministry to at least add some markets where there is better scope where the decline is not so much... Commerce Secretary has assured that they (Government) will certainly look into all the issues," Federation of Indian Export Organisation President S C Ralhan said. "We have requested that the interest subvention be extended to merchant exporters because they buy from MSME manufacturers," he told reporters on the sidelines of an interaction between representatives of export promotion councils (EPCs) and Commerce Ministry. The previous meeting was held on February 2. For April-February period of last fiscal, cumulative exports declined by 16.73 per cent to $238.41 billion, as against $286.3 billion in the same period of 2014-15.
SOURCE: The Economic Times
Union Minister of State for Commerce and Industry Nirmala Sitharaman on Tuesday said though export volumes had held steady, returns had suffered because of currency volatility. Between April and February in the last financial year (2015-16), cumulative exports declined by 16.73 per cent to $238.41 billion. In the same period of 2014-15, the exports were $286.3 billion. The first meeting of the Board of Trade is scheduled on Wednesday. After a discussion with various export promotion councils on Tuesday, Sitharaman, echoing the sentiments of the sector, said the priority was exploring markets where demand has not plunged, and incentivising labour-intensive exporting sectors. She added that there was a lot of interest in Indian services and exports in African markets. The government has been meeting exporters as the merchandise exports have contracted for 15 months in a row, till February, amid tepid global demand and a volatile global currency.
During the meeting on Tuesday, the second such interaction, exporters demanded the continuation of trade incentives such as the interest subvention scheme, apart from better market access to offshore markets. Some of the other issues flagged by exporters include non-tariff barriers to trade with other countries, currency volatility, special economic zones, problems in dealing with customs authorities and service tax. "We have requested the interest subvention be extended to merchant exporters because they buy from MSME (micro, small and medium enterprises)," said S C Ralhan, president, Federation of Indian Export Organisations.
BOOST EXPORT PLAN
The newly constituted Board of Trade is a top advisory body on external commerce headed by Sitharaman, and includes top officials across ministries and industry leaders. It will meet on Wednesday to discuss ways to boost exports. After the meeting on Tuesday, Sitharaman to reporters the Interest Subvention scheme had been popular with merchandise exporters. A second tranche of funds amounting to Rs 700 crore was disbursed by the Reserve Bank of India to them on Tuesday. Sitharaman also spoke on the new guidelines of the Department of Industrial Policy & Promotion, which allowed 100 per cent foreign direct investment (FDI) scheme in the marketplace model of e-commerce, claiming the government would not open up those sectors which would put at peril Indian jobs. "We are careful about sectors where people are already self-employed, and have invested their family's inheritances," she said. Traders fearing a loss of market have opposed the government's reform. The Confederation of All India Traders has claimed that giving back-door entry to global players would adversely impact MSMEs. Clarifying the government's stand, Sitharaman said FDI has not been allowed in multi-brand retail or for e-commerce, which is business-to-consumer. "Anger is therefore, not justified," she said.
SOURCE: The Business Standard
Commerce Minister Nirmala Sitharaman has said that the free trade pacts India is negotiating with partner countries and trading blocs such as Australia and the EU will give Indian exporters better access to the global markets and improve exports. “Exports have been affected because of global head-winds. The drop in exports is more in terms of value than volume. I had a meeting with several export promotion councils today who gave suggestions on how exports can improve which we will look into,” Commerce Minister Nirmala Sitharaman said at a press conference on Tuesday. The Minister said that India was close to concluding an FTA with Australia and the EFTA countries (Norway, Switzerland, Iceland and Liechtenstein) and was also keen on fast-tracking negotiations with the EU – which would all serve to increase markets for Indian exporters. “On the European Union, I want to make it clear that the trade negotiations will progress post the EU summit in which Prime Minister Narendra Modi and also European Union’s Presidents were present. The Summit was very productive and we hope to move fast on the FTA with EU,” she said. The Minister said she will be writing to EU Trade Commissioner Cecilia Malmstrom “to ask her to quickly arrange for meetings with our chief negotiators and theirs so that the progress on EU trade negotiation can happen rapidly as much as we are now trying to move on Australia too.”
Issues raised by exporters in the meeting include non-tariff barriers faced in other countries, currency volatility, problems in dealing with customs authorities and imposition of service tax. “We requested the Commerce Ministry to at least add some markets (in the export promotion schemes) where there is better scope where the decline is not so much, Federation of Indian Export Organisations President SC Ralhan said. India’s exports have been falling for the last fifteen months, with a 16.73 per cent fall posted in the period April-February 2015-16 with exports at $238 billion.
SOURCE: The Hindu Business Line
The Stand-Up India campaign, which aims to provide institutional credit to businesses set up by women and backward classes, can cater to the needs of a large chunk of population and boost growth by giving an impetus to economic activities. Of the 5.85 crore establishments in the country in 2014, those owned by women, scheduled tribes, scheduled tribes and other backward classes are miniscule. Data from the Sixth Economic Census reveal that women entrepreneurs owned just 13.7 per cent or 85 lakh establishments in the country but employed 1.34 crore people. Of these businesses, just 28 lakh are in the urban areas. The numbers are slightly better in the handloom and handicraft sector where there is a partially higher share of women businesses. Of the nearly 19 lakh establishments in the sector, 22 per cent are owned by women. The statistics are even stitch more dismal for backward classes. Scheduled castes owned just 9.5 per cent of all non-farm establishments and STs owned just 4.3 per cent of these businesses.
The Census, which was carried out between January 2013 and April 2014, also revealed that financing was a critical problem for these entrepreneurs. Just 2.3 per cent of all establishments in the country were able to get finance from an institutional source. For women entrepreneurs, formal credit facilities seem to be even more difficult. As much as 79 per cent of the women establishments were self-financed while 14.65 per cent were funded by donation or transfer from other agencies. Government assistance was available for 3.4 per cent of the establishments while just 1.1 per cent was able to borrow from financial institutions.
Employment for women
Data show that female employment continued to be muted and accounted for just a quarter of the workforce. Out of the total employment of 13.1 crore, just 3.3 crore were women. Concerned about the subdued level of female participation in the workforce, the Economic Survey 2015 had noted that the country’s GDP could grow an additional 1.4 per cent annually if women were to participate as much as men in the economy.
SOURCE: The Hindu Business Line
India’s growth could be around 7.8 per cent in 2015-16, higher than the Finance Ministry’s projection of 7.5 per cent, NITI Aayog member Bibek Debroy said. “I think country’s growth will be slightly higher than Finance Ministry’s projection of 7.5 per cent to 7.8 per cent,” he said at an interactive session with the Bharat Chamber of Commerce. Referring to growth and interest rate, Debroy indicated that sharper rate may help in high growth but globally central banks are very conservative. RBI cut rate by 25 basis points today.
Speaking about reports on divestment, Debroy said the first report on divestment was expected in April.He, however, did not elaborate on the proposed reports. Replying to a question on West Bengal, he said it has advantage for agro-based industry and services. “Every state has a competitive advantage. It is best (suited) for agro-based products. West Bengal could be a bridge with the North East. Lot of services could happen. If Bengal does not, other states like Bihar will grab the opportunity,” Debroy said. He further said that template for development is more or less same for all states like law and order, physical infrastructure and better administration. Debroy said Bengal has not sought any assistance from NITI Aayog for any advisory so far. The national think tank offers guidance and knowledge support to the states. The states, having sought assistance, included Rajasthan, Meghalaya, Madhya Pradesh and Kerela.
SOURCE: The Financial Express
Government will not open up those sectors to FDI where it can put at ‘peril’ jobs of self-employed Indians, Commerce Minister Nirmala Sitharaman said today, insisting its policies are not ‘ambivalent’. “We are being careful in sectors where people are already there self-employed, already there with investments made over their family’s inheritances and in sectors where it won’t be the business of the investor to create back-end infrastructure,” she told reporters here. Although the government has eased norms for FDI in many sectors, she said: “For us to open up and then to put at peril jobs of self-employed individuals will also not be good. So we are taking a calibrated position as regards FDI right to that extent.” “Unless we are sure that their interests and their self-created jobs are not at peril, to rush into it will not be a good thing. So we are certainly going in a calibrated fashion to ensure that investments are brought in where they are required,” said the minister. She, however, did not specify which sectors will be restricted to FDI. The BJP-led NDA government has already made clear its stand against FDI in multi-brand retail although the previous UPA government permitted up to 51 per cent FDI in the sector. When pointed out that while the government had recently allowed 100 per cent FDI in processed food retailing but put a condition that they must be manufactured in India, which run contrary, she said: “India is not ambivalent. We are clear that FDI in sectors which will be required because of technology or because of the investments which will be required are welcome.”
Asserting that the calibrated position adopted by the Government was “necessary to protect national interest,” Sitharaman said the government “certainly cannot open up sectors (to FDI) in which people all over the country have invested and carried it on without the government’s help”. The government has also allowed 100 per cent FDI through automatic route in market place model of e-commerce, but it has been strongly opposed by traders body CAIT which said that it would give back door entry to global players in multi-brand retail trading and impact MSMEs. Clarifying the government’s stand, Sitharaman said: “There is a misunderstanding … We have not opened it (e-commerce) for multi-brand retail or for e-commerce which deals from business to individual buyers. FDI is permitted only for marketplace model. So if there is anger I think it should not be because we have not opened it up for business to single buyer”.
SOURCE: The Financial Express
In a widely expected move, Reserve Bank of India Governor Raghuram Rajan kicked off the new financial year cutting the repo rate by 25 basis points.In the first bi-monthly monetary policy for 2016-17, Rajan also announced a slew of liquidity enhancement measures, including a reduction of the minimum daily maintenance of cash reserve ratio (CRR) in the banking system. State Bank of India Managing Director Rajnish Kumar said the measures will help bring down the wholesale borrowing cost for the bank. Hence, there could be some scope for lending and deposit rate cuts. The repo rate, which is the interest rate at which banks borrow short-term money from RBI, has been pared to 6.50 per cent from 6.75 per cent. The cut was possible as retail inflation remained along the RBI’s projected trajectory and came well within the target of 6 per cent set for January 2016. The equity market, which was clamouring for a 50 basis point rate cut, was clearly disappointed with the monetary policy. The benchmark BSE Sensex tanked 516.06 points (2.03 per cent) to close at 24,883.59 over the previous close.
At a post-policy press meet, Rajan said: “The monetary policy stance remains accommodative. Going forward, we will be looking for further monetary room in signs of a good monsoon, further readings of low headline inflation, indications of a softening in core inflation and further evidence of a transmission of rate cuts.” Excluding today’s cut, the RBI has cut rates by 120 bps since January 2015, of which only about a half has been passed on by banks through lending rate cuts. “The effects of the liquidity measures will help the transmission. Banks have been continuously saying it’s because of liquidity tightness that we can’t transmit. Now we have given them enough liquidity. So, my hope is you will see significantly more transmission over the next few months,” Rajan explained.
Liquidity measures
The RBI reduced the minimum daily maintenance of the CRR from 95 per cent of the average daily required reserves for a reporting fortnight on all days of the fortnight to 90 per cent with effect from April 16, even as it kept this ratio unchanged at 4 per cent of deposits. The central bank said it would continue to provide liquidity as required, but would progressively lower the average ex ante (forecast) liquidity deficit in the system from 1 per cent of deposits to a position closer to neutrality. The policy rate corridor (reverse repo rate-repo rate-marginal standing facility corridor) has been halved to 50 basis points. The new reverse repo rate (interest paid by the RBI to banks when they park their excess funds with it) is 6 per cent (5.75 per cent earlier). The new MSF rate (a facility where eligible entities can borrow up to 2 per cent of their respective deposits outstanding at the end of the second preceding fortnight) is 7 per cent (earlier 7.75 per cent).
SOURCE: The Hindu Business Line
India has signed an agreement with the Islamic Development Bank (IDB) for a possible USD 100 million line of credit to facilitate exports to IDB's member countries. The MoU was inked between the IDB's private sector arm, the Islamic Corporation for the Development of the Private Sector (ICD) and the Export-Import Bank of India (EXIM Bank), a specialised financial institution, wholly owned by the government of India to finance and facilitate foreign trade. ICD's mandate is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia'a. The MoU envisages cooperation to explore the feasibility of extending a commercial line of credit of USD 100 million to ICD with the aim of facilitating the export of goods and services from India to ICD's member countries. Typically, the recipients of EXIM Bank's commercial lines of credit act as intermediaries and on lend to overseas buyers for the import of Indian goods and services. Under the agreement, co-operation will also be achieved through the exchange of information on trade-related matters and the identification of business opportunities for Indian companies to pursue in ICD's member countries.
Saudi Arabia, UAE, Egypt, Kuwait and Qatar are among the 56-members of the IDB. The agreement was signed by Tarun Sharma, regional head of EXIM Bank, and Khaled Al Aboodi, the CEO and General Manager of ICD. "Moving forward, we are very excited to find common ground and work with EXIM Bank. We acknowledge that India, being the seventh largest economy in the world, has a lot to offer and its high-quality exports of goods and services can drive the next wave of growth. I believe ICD's member countries can offer vibrant business prospects for India's exporters," Al-Aboodi said. Sharma said that, since its inception, EXIM Bank has been both a catalyst and a key player in the promotion of cross border trade and investment. "We remain committed to support Indian exporters to enter new markets in their bid to expand and we are convinced that our co-operation with ICD will serve that very purpose and will be mutually beneficial for both parties," Sharma added.
SOURCE: The Economic Times
With strong growth and rising real income, India remains a bright spot in the global economy, IMF chief Christine Lagarde said on Tuesday. In her major policy address, Lagarde said overall, the global outlook has weakened further over the last six months — exacerbated by China’s relative slowdown, lower commodity prices and the prospect of financial tightening for many countries. Emerging markets had largely driven the recovery and the expectation was that the advanced economies would pick up the “growth baton”. “That has not happened,” the International Monetary Fund (IMF) Managing Director said in her address ‘Decisive action to secure durable growth’ at Goethe University, Frankfurt in Germany. She said regarding fiscal policy, for most countries the issue is how to make policies more growth friendly. This can be done by shifting the composition of revenue and expenditure. “India, for example, has reduced spending on costly energy subsidies so it can invest more in growth-enhancing social infrastructure,” she said. “The same is true for the Middle East — hit hard by the oil price decline. Many African and low-income nations also face diminished prospects. “India, by contrast, remains a bright spot — with strong growth and rising real incomes,” she said. The ASEAN-5 economies — Indonesia, Malaysia, the Philippines, Thailand and Vietnam — are also performing well, while countries such as Mexico continue to grow,” Lagarde said.
SOURCE: The Business Standard
Government sees a "possibility" of conclusion of free trade pacts with EU as well as EFTA, the four-member grouping that includes Switzerland, this year, Commerce Minister Nirmala Sitharaman said. "Yes, there is a possibility (of conclusion of FTAs with EU and EFTA this year) because in several issues they are guided by each other," Sitharaman told reporters here. "If there is political will ... and there is a lot of give and take from both the sides the agreement can be reached. And therefore I am optimistic," said the minister. Negotiations for the free trade agreement between India and EFTA, four-member grouping that includes Switzerland, is stuck on the issue of intellectual property regime (IPR). The European Free Trade Association is a grouping of Switzerland, Iceland, Norway and Liechtenstein. Data exclusivity provides protection to the technical data generated by innovator companies to prove the usefulness of their products. In pharmaceutical sector, drug companies generate the data through expensive global clinical trials to prove the efficacy and safety of their new medicine. Switzerland has huge interest in this sector. By gaining exclusive rights over this data, innovator companies can prevent their competitors from obtaining marketing licence for low-cost versions during the tenure of this exclusivity. "On data security it was mentioned that whatever position Europe takes EFTA will also follow that .. They (EFTA) cannot take a different position from the EU. So if we are reaching an agreement stage with the European Union, largely the terms and conditions of those will be similar and compatible with the EFTA," Sitharaman said.
India and the four-nation bloc started negotiations for the free trade agreement (FTA) in 2007. Last month, India and EU failed to made the much-awaited announcement on resumption of long stalled negotiations for a free trade agreement as many bottlenecks still remain. During the 13th India-EU Summit, held after a gap of four years and attended by Prime Minister Narendra Modi and EU leaders, both the sides, however, welcomed the re-engagement of discussions for furthering the proposed pact. It was widely expected that India and the 28-nation European Union (EU) would announce resumption of the talks, which have been held up since May 2013 as both the sides are yet to bridge substantial gaps on crucial issues, including data security status for the IT sector. "These negotiations are an ongoing process. We have never given up on them," Sitharaman said. Launched in June 2007, the negotiations for the proposed BTIA have witnessed many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime. On the FTA with Australia, Sitharaman said the negotiations are moving "very close to a conclusion".
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$ 35.44 per barrel (bbl) on 04.04.2016. This was lower than the price of US$ 36.58 per bbl on previous publishing day of 01.04.2016.
In rupee terms, the price of Indian Basket decreased to Rs 2347.83 per bbl on 04.04.2016 as compared to Rs 2426.33 per bbl on 01.04.2016. Rupee closed stronger at Rs 66.24 per US$ on 04.04.2016 as against Rs 66.33 per US$ on 01.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 04, 2016 (Previous trading day i.e. 01.04.2016) |
Pricing Fortnight for 01.04.2016 (12 Mar to 29 Mar, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
35.44 (36.58) |
37.29 |
|
(Rs/bbl |
2347.83 (2426.33) |
2491.72 |
|
|
Exchange Rate |
(Rs/$) |
66.24 (66.33) |
66.82 |
SOURCE: PIB
Pakistan Textile Exporters Association chairman Asghar Ali has said that the government’s immediate intervention is need of the hour to check drastic downfall in exports by immediately releasing the outstanding refunds of textile exporters. In a statement issued here on Sunday, PTEA chairman Asghar Ali said that extreme cash flow crunch had squeezed the financial streams and breading the liquidity jerks, adding that exports were falling consistently both in value and quantities. He termed severe liquidity crunch as major cause of export decline. He appealed to the government to rescue the ailing textile industry as extreme cash flow crunch was hampering export growth and adversely impacting the industry. There was a capital blockage for textile exporters as their major capital remains stuck-up in sales tax, custom duty drawback and income tax refund cycle, causing a major dent to textile exports, he added.
Criticising the current refund regime, he informed that refunds of exports made 12 months earlier were still unpaid. He lauded the announcement of payment of refund claims upto Rs 5 million and termed it as a positive development. He said that under the current refund regime, affected claimants were not in a position to utilise liquidity, which they utilise four times in a year for manufacturing and exporting of consignments.
Another PTEA leader Ahmad Kamal said that textile exports were crumbling and the industry and business were squeezing due to unavailability of funds. The government should bailout textile industry and exports from the crisis by removing hurdles, he added. He demanded immediate release of blocked refunds. He said that exporters were already working under dire circumstances as the cost of production had increased rendering them unable to compete in international market. To keep the industrial wheel running and providing jobs to maximum working hands, it was imperative to facilitate the optimum industrial activity, he added.
SOURCE: The News
The closure of 145 cotton, textile and garment (CTG) units over the past two decades has shaken up the Nigerian government which now wants to stem the rot to save the remaining 30 companies now in operation, the country’s newspapers have reported. Minister of State for Industry, Trade and Investment, Hajia Aisha Abubakar, has said that her ministry has received a directive from President Muhammadu Buhari to revive the CTG sector. “The CTG sector, which used to be highest employer of labour next to government, with over 175 mills at its peak in the 1980s, is now a shadow with barely 30 companies operating presently,” Mrs. Abubakar said at a meeting with members of the National Committee for the Implementation of the Cotton, Textile and Garment Policy in her office in Abuja. She said there is a need to identify short, medium and long term programmes to arrest the slide and spur the growth of the CTG sector. She said President Muhammadu Buhari was passionate about the revival of the cotton, textile and garment sector following its huge potential for job creation across its value chain. The main thrust of the policy is to reposition the CTG sector as the second largest employer of labour and a revenue earner for the government. According to the policy document, the economy will witness savings of $2 billion in foreign exchange now being spent on textiles and garments imports. It also aims to double direct employment in the sector 50,000 people in 2015 to 100,000 by 2017.
SOURCE: Fibre2fashion
A delegation of leading Mauritian manufacturers including the textile and clothing sector will visit Herning and Copenhagen in Denmark to attend a series of buyers’ and sellers’ meetings to be held on 12 and 13 May. As Mauritius was a competitive supplier into the knitwear, denim and fashion markets internationally. This is a sector that the Mauritian delegation is particularly interested to explore in Denmark. The buyer-seller meet is facilitated by trade agency, Enterprise Mauritius and Copernicus International Consulting Ltd. In support of the event there is a dedicated website which provides more details and the ability to request meetings with the companies from Mauritius. There are in fact 9 companies participating in the events, offering a rare chance to meet one-to-one and establish contact with multiple businesses in a relatively short space of time. Following which a number of buyers may be invited to see the production facilities in Mauritius, all courtesy of Enterprise Mauritius.It is highly recommended that stakeholders or interested parties within the clothing, apparel and fashion industry take this one-off opportunity to meet with the delegation and see for themselves exactly what Mauritius has to offer. Enterprise Mauritius CEO, Arvind Radhakrishna said that the trade mission will build on their existing strong relations with Scandinavian companies, and those in Denmark in particular.
Bilateral trade between Mauritius and Scandinavia has increased 254% in respect of exports from Mauritius and more than doubled in value of imports to Mauritius from Scandinavia in the same period. The delegation includes companies across the textiles and clothing sectors. From jeans to T-shirts, menswear, ladies wear and children’s wear, quality mass produced knitwear to fine knits including Cashmere and Merino, the participants manufacture ethically for global brands (Laura Ashley, Hugo Boss, Top Shop, Saks 5th Avenue, Primark, Matalan, Harrods and more), offering production runs of as few as 120 pieces to as many as 20,000, from modern, ethical factories certified to Global Standards. This is also a great opportunity for Danish companies and industry stakeholders to sit down with business owners and key staff and gain insights into new ideas, improvements and innovations. It is well known that Mauritius offers quality, flexibility and reliability, competitive prices and short lead times, compliance to International Norms and Standards, capability to adapt to new designs and state-of-the-Art Technology. The main exports from Mauritius to Denmark include t-shirts, knitwear, shirts and accessories, jewellery leather products and canned tuna. Enterprise Mauritius (EM) is the Apex Trade Promotion Organisation of the Republic of Mauritius which collaborative partnership between industry and government. Every year, Enterprise Mauritius coordinates the participation of businesses in various local and international events such as Trade Fairs, Buyers Sellers Meetings, B2Bs (Business to Business), Contact Promotion Programmes, and conferences.
SOURCE: Yarns&Fibers
The country’s export earnings in the July-March period of the financial year 2015-16 grew by 8.95 per cent to $24.95 billion from $22.90 billion in the same period of FY15, riding on an excellent performance of the readymade garment sector. Experts and exporters found the export earnings growth in the first nine months satisfactory and estimated that the government’s export target set for the current fiscal year would be achieved. They said the export earnings growth is mostly RMG-driven and the sector would exceed its fiscal target as Bangladesh has gained the confidence of buyers through developing workplace conditions. The Export Promotion Bureau data released on Tuesday shows that the export earnings in March of FY16 grew by 9.20 per cent to $2.83 billion from $2.59 billion in the same month of FY15.
According to the EPB data, export earnings from readymade garments in the July-March period of 2015-16 grew by 9.73 per cent to $20.44 billion from $18.62 billion in the same period of 2014-15. ‘The export earnings growth in the first nine months are satisfactory and prove that the Bangladesh readymade garments are still competitive in the global market,’ said Ahsan H Mansur, executive director, Policy Research Institute of Bangladesh, to New Age. He said by the end of the fiscal the growth would reach to near 10 per cent due to the performance of RMG products, as global buyers are now confident about compliances in the sector. Mansur said, ‘Due to the improvements in compliances in the readymade garment sector, exports are increasing to the US and other markets,’ adding, ‘The stakeholders in the sector as well as the government will have to take initiatives to sustain the growth.’ He, however, found it alarming that, except the RMG export, earnings from most of the other sectors have witnessed negative growths. The EPB data shows that in the July-March period the woven sector earned $10.76 billion, posting a 12.64 per cent growth, while the knitwear sector fetched $9.67 billion, showing a 6.68 per cent growth.
Shahidullah Azim, former vice president of Bangladesh Garment Manufacturers and Exporters Association, said the RMG export earnings in the last nine months totalled $20.44 billion, which means $2.30 billion earnings per month on average. ‘We will have to achieve the $27 billion export target set by the government for FY16 and we have three more months. We are hopeful to exceed the target,’ he said. Echoing Mansur, Azim said, due to the initiatives of western buyers’ groups and the government, the workplace conditions have improved a lot, which has attracted buyers to place orders in large volumes from Bangladesh. According to the EPB data, leather and leather products exports in the first nine months of FY16 grew by 2.77 per cent to $851.33 million from $828.36 million in the same period of FY15, while leather footwear posted a 0.06 per cent negative growth to $354.02 million in the period. Frozen food and fish exports in the period fell by 12.99 per cent to $402.47 million from $462.53 million. Earnings from jute and jute goods in the July-March period of FY16 fell by 1.72 per cent to $641.58 million from $652.84 in the same period of FY15. Export earnings from pharmaceuticals in the first nine months of FY16 grew by 13.78 per cent to $61.66 million from $54.19 million in the same period of FY15, the EPB data shows.
SOURCE: The Global Textiles
International Monetary Fund Managing Director Christine Lagarde on Tuesday turned up the volume on her calls for stronger action by the world’s economies to boost growth, warning that downside risks were increasing without decisive action. In a speech at Frankfurt’s Goethe University, Lagarde prescribed specific moves, including for the United States to raise its minimum wage, for Europe to improve job training and for emerging economies to cut fuel subsidies and boost social spending. She said recovery from the 2007-2009 global financial crisis “remains too slow, too fragile and risks to its durability are increasing.” “Let me be clear: we are on alert, not alarm. There has been a loss of growth momentum,” Lagarde said in her prepared remarks. “However, if policymakers can confront the challenges and act together, the positive effects on global confidence – and the global economy – will be substantial.” Her remarks come less than two weeks before senior ministers, central bankers and other policymakers from the Fund’s 188 member countries gather in Washington for the IMF and World Bank Spring Meetings to assess the health of the world economy.
While the U.S. recovery has been gaining momentum and some emerging markets such as Mexico have performed well, the IMF has warned that growth in Europe and Japan has been a major disappointment, while China’s slowing growth has hurt oil and commodity exporting countries, including Brazil and Russia. In the latest update to its Global Financial Stability Report Monday, it warned that volatility in China is an increasing threat to the world financial system, given how large and interconnected with the rest of the world economy it is. To counteract those headwinds, Lagarde called for accelerating structural economic reforms, increased fiscal support and continued accommodative monetary policy. For the first time, she prescribed some specific policy actions in these areas. A higher minimum wage, expanded tax credits for the working poor and improved family leave benefits – changes championed by President Barack Obama and Democratic Party presidential candidates – could help increase the U.S. labor force, she said. Republican lawmakers who control the U.S. Congress, however, have blocked these proposals from advancing. Lagarde said Euro area countries should implement better training and employment-matching policies to help reduce unemployment for young people. She also called for better tax incentives to encourage research and development investments and more public spending in this area, citing IMF research showing that a 40 percent increase in R&D spending in advanced economies could yield a 5 percent increase in GDP over 20 years. With current spending low, this would entail a small fiscal cost of about 0.4 percent of GDP per year, she added. Countries with high and growing debts and elevated borrowing costs should pursue further fiscal consolidation, Lagarde said. But her remarks did not mention negotiations between the IMF, European lenders and Greece for a new bailout program for the heavily indebted country. Over the weekend, after Internet whistle-blowing site Wikileaks published an apparent transcript of a controversial IMF conference call, Lagarde denied that IMF staff might threaten to pull out of the Greek bailout as a negotiating tactic to force more European debt relief for Greece.
SOURCE: The Fortune
