INTERNATIONAL
Textile Raw Material Price 2016-04-06
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1034.61 |
USD/Ton |
-0.74% |
4/6/2016 |
|
VSF |
2115.55 |
USD/Ton |
0% |
4/6/2016 |
|
ASF |
1945.69 |
USD/Ton |
0.40% |
4/6/2016 |
|
Polyester POY |
1042.34 |
USD/Ton |
-0.74% |
4/6/2016 |
|
Nylon FDY |
2324.02 |
USD/Ton |
1.01% |
4/6/2016 |
|
40D Spandex |
4478.18 |
USD/Ton |
0% |
4/6/2016 |
|
Nylon DTY |
5755.23 |
USD/Ton |
0% |
4/6/2016 |
|
Viscose Long Filament |
1273.97 |
USD/Ton |
0% |
4/6/2016 |
|
Polyester DTY |
2146.44 |
USD/Ton |
0.72% |
4/6/2016 |
|
Nylon POY |
2123.28 |
USD/Ton |
0% |
4/6/2016 |
|
Acrylic Top 3D |
1142.71 |
USD/Ton |
-0.67% |
4/6/2016 |
|
Polyester FDY |
2547.93 |
USD/Ton |
0% |
4/6/2016 |
|
30S Spun Rayon Yarn |
2872.21 |
USD/Ton |
0% |
4/6/2016 |
|
32S Polyester Yarn |
1714.06 |
USD/Ton |
0% |
4/6/2016 |
|
45S T/C Yarn |
2470.72 |
USD/Ton |
0% |
4/6/2016 |
|
45S Polyester Yarn |
1868.48 |
USD/Ton |
0% |
4/6/2016 |
|
T/C Yarn 65/35 32S |
2131.00 |
USD/Ton |
0% |
4/6/2016 |
|
40S Rayon Yarn |
3011.19 |
USD/Ton |
0% |
4/6/2016 |
|
T/R Yarn 65/35 32S |
2316.30 |
USD/Ton |
0% |
4/6/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
4/6/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
4/6/2016 |
|
40S Combed Poplin |
1.09 |
USD/Meter |
-7.10% |
4/6/2016 |
|
30S Rayon Fabric |
0.69 |
USD/Meter |
0% |
4/6/2016 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
4/6/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15442 USD dtd.06/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
With the growing textile and apparel market of India and improving export competitiveness, there are significant opportunities across all fiber types and products. However, MMF based textile products are expected to lead the demand in future. While India is relatively self-sufficient in terms of fiber, yarn manufacturing and garmenting, the biggest opportunity lies within fabric manufacturing and processing of MMF based textiles. A large part of the MMF based fabric manufactured and processed in India is low value added and primarily supplied to the mass domestic market. However, there are many value added, performance based MMF fabrics, which are currently not being manufactured in India sufficiently and thus offer huge potential for future investments.
The major opportunities for investment in MMF textiles can further be looked at in terms of the following broad areas:
Replacing MMF based textile products imported into India
India imported around US$ 1.7 Bn worth fabric in 2013 and almost 60% of the fabrics imported were MMF based fabrics. Amongst the fabric categories imported, the fastest growing categories are MMF warp knit fabric and MMF circular knit fabric. Apart from these, coated and laminated fabrics and tyre cord fabrics are also attractive categories. Demand for these fabrics is expected to be high in future as well. Within the imported knitted fabrics, the major fabric types include 100% Polyester, Polyester-Spandex, Nylon and Nylon- Spandex based fabrics primarily used in sportswear & fashion wear. One of the major reasons for high imports of these fabric types is limited processing capability in India for fabrics containing higher percentage of spandex. Also, high quality finer denier polyester filament yarns required for these fabrics are not easily available in India, especially microfilament yarns of less than 1 denier per filament (dpf). However, the fabric made from these fine deniers have high demand in sportswear and fashion wear in India and globally.
Currently, a lot of these fabrics are imported from countries like Taiwan, Korea and China, primarily due to better technical knowhow available in these countries. However, with increasing costs of manufacturing in these countries there is opportunity for India to attract investments in manufacturing of these high value added product categories.
Growing export opportunity for specific MMF based textile products
MMF based textiles is also growing in the export market. World fabric trade is around US$ 123 Bn with MMF textiles constituting more than 40% of trade. The trade of MMF based fabric types like circular knit fabrics; warp knit fabrics and coated & laminated fabrics is growing rapidly. Hence, investment in manufacturing of these MMF based fabrics will be a good idea.
Domestic market demand for specific MMF based products
Textile & Apparel
Increasing price volatility and upward trend of cotton price has made Indian apparel brands to gradually shift the fiber mix in favor of synthetic fibers, especially polyester. Improvement in technical properties of polyester fiber has also supported this shift. A definite trend can be observed of higher share of polyester & viscose fiber in shirting and suiting fabrics, especially as blend with cotton. There is also trend of using lower GSM fabric for Saree, which is leading to increased consumption of polyester filament yarn (FDY). Growth in women’s wear category is highest in domestic market. There has been a continuous rise in the number of working women in Indian organized sector and it is expected to constitute more than one-fifth of the total workforce of organized sector by 2020. This has not only increased the consumption of western office wear but also dresses suitable for party wear. Global brands, which have entered Indian market, are offering such products and increasing sourcing from Indian manufacturers. Indian women’s wear brands are also increasing the presence of office wear and party wear in their product mix. Fabrics with 100% MMF content or in blend with other natural / man-made fibers are very much suitable for such products. Indian consumers are also experimenting a lot with their wardrobe including lingerie.
Increased consumer education efforts and communication from leading lingerie brands have made Indian consumers conscious to use right type of lingerie suitable for a particular dress, e.g. Low rise panties for the low waist jeans, tshirt bras for body hugging upper wear, sports bras for playing sports & exercising, strapless brassieres for the halter neck tops, etc. Use of polyester & nylon fiber is very high in such lingerie products and this growth will continue, especially for warp and circular knit products. Young population, better performance of Indian players in International sports events and better sports infrastructure in urban India are supporting the growth of sports activities in India. In fact, Indians across all age groups are trying hard to remain fit and active. This is increasing the usage of activewear / sportswear, especially among urban population.
Consumption of MMF based performance fabric will keep on increasing in India. Uniform is another category to see significant growth in coming future. Uniform can be majorly classified under two categories – school uniform & corporate uniform. Increasing number of school going children, usage of different uniform for different days by many private schools and usage of uniform by increasing number of schools are making this segment to grow. Corporates are also increasingly becoming image conscious and using uniforms, especially for consumer facing activities. Various Government departments like Municipal Corporations and PSUs have also started adopting uniform code for their employees to promote equality and team work in their organizations. Polyester based fabric of higher GSM is used in such garment construction and demand of such fabric will grow significantly in coming years.
Technical Textiles
Technical textile market is still at a nascent stage in India and almost all categories will observe significant growth in coming time, which will lead to increased usage of different types of fibers. There are three major trends, which will impact consumption of MMF in technical textiles in India. It is estimated that less than 15% menstruating women use sanitary napkins in India today. This low penetration is due to combination of three major reasons - low awareness level about menstrual hygiene among women of that age group, last mile gap in distribution and higher price of the product. Increased literacy rate among women, continued efforts from Government of India and enhanced focus of NGOs are improving this scenario. The market of sanitary napkins is projected to grow by 11 Bn pcs if additional 20% women start using it in the next five years.
Consumption of MMF will improve proportionately. India has become a global manufacturing hub for automobiles. Major international auto manufacturers have already set up their plants in India and will keep on increasing the capacity as those bases are not only for catering the increasing demand from domestic market but partly covering the export markets of this region as well. It is estimated that the passenger vehicle production in India will increase from 3.2 Mn in 2014-15 to 10 Mn by 2020-21. As per the prevailing industry model, ancillary units are present near the car manufacturing units to supply material just in time. The increased manufacturing of cars will have a proportional increase in the demand of seat belts, airbags, seat covers and headliners, which all are MMF based.
Compliance norms are becoming stricter worldwide. Coupled with it the Indian industries and industrial workers are also becoming more and more informed and conscious about the health and safety issues at workplace. This is increasing the usage of protective wears like flame retardant apparel, high visibility apparel etc. MMF are extensively used in protective wear category and its consumption will grow many folds with the growth of protective wear market.
Overall Impact on Fiber Consumption
The above factors will have a significant impact on the fiber consumption mix in India within the next five years. Indian textile industry will consume more Polyester than Cotton within the next five years. Share of manmade fiber in total mill consumption is expected to reach ~65% by 2030. However, the share of cotton is expected to decrease from current level of ~55% to 32% by 2030.
SOURCE: The Tecoya Trend
The Indian textile industry, which has been registering a slide on the export front, perceives that with focused trade policy support and by moving up the value chain, the industry can achieve the export target of $300 billion by 2025. Conceding that “Transpacific Trade Partnership (TPP) is a natural threat,” the secretary of Indian Texpreneurs’ Federation (ITF) D Prabhu said, “It may not take away the country’s textile and clothing business completely. However, to achieve the export target, India should press for reduction of Chinese import and the RCEP (Regional Comprehensive Economic Partnership).”
Access to US market
Explaining the implication of TPP, he said, “Exporters from TPP member countries (of which India is not a member) tend to get preferential access to the US market.” “The US apparel imports account for roughly $82 billion, but India’s supplies is just about $3.7 billion ( Rs. 25,000 crore approx). India’s apparel exports to the US have been sliding since 2010-11. If duty turns disadvantageous for the country’s apparel exports, then this share could further fall,” Prabhu said. Yarn forward rule (YFR) makes it mandatory to source yarn, fabrics and other inputs from TPP member countries, basically to avail duty preference. “The option before Indian businesses therefore would be to consider relocating to Vietnam (a TPP partner and among the 12 countries including the US, Australia, Peru, Malaysia, New Zealand, Chile, Singapore, Canada, Mexico, Brunei Darussalam and Japan) to avail TPP duty advantage, but this proposition may not be feasible considering that labour is highly expensive in Vietnam compared to India,” he added.
Alternative markets
To tide over the situation, India should seek improved export market access from China under RCEP, at alternative export markets in emerging regions of Africa, South Asia, CIS and Latin America, Prabhu said. The country will need to address the issue of inverted duties (that is a situation of higher duties on fibre and lower duties on apparel), push aggressively for inclusion of textile and apparel items under India-Mercosur PTA, expedite FTA with Russian Customs Unions (it can be a big market in the coming years), make it mandatory for all least developed countries to use fabrics made in India if they want to export their apparels to India duty free and request the US to include apparel items in its GSP programme, the ITF secretary added.
SOURCE: The Hindu Business Line
Commerce and Industries Department, Government of Manipur at the ongoing first Manipur Industrial Expo, 2016 with the active participation of about 600 enterpreneurs excluding 25 government department stalls, held at Lamboi Khongnangkhong, Imphal observed Textiles Day on the second day. The ongoing expo is a platform to provide employment and generate income under the ‘Make in Manipur’ initiative, which aims to achieve the objective without any extra financial burden to the State. Attending as the chief guest, Commerce and Industries Minister Govindas Konthoujam encouraged the participants of the first Manipur Industrial Expo and said the weavers of the State play a key role in defining the State. The Minister urged the participants to showcase their best products and also to promote their products to visitors from outside the State. The week-long industrial expo will also feature National handicraft, handloom and food processing fairs. He further urged the weavers to opt for quality products and uphold the traditional designs and motives in their works. The Textile Day observation was attended by State Commerce and Industries Minister Govindas Konthoujam, Sericulture and Veterinary Principal Secretary L Lakher and Secriculture Director B John Tlangtinkhuma and weavers from around the State. The government has a plan to promote Lamboi Khongnangkhong as the industrial hub of the State and planning to set up a permanent trade-cum-exhibition space and apparel and garment making centre in the area. The state will also try to develop industrial estates for Senapati, Tamenglong and Imphal East districts under the initiative of the State Chief Minister.
SOURCE: Yarns&Fibers
Five years into talks for a free trade agreement (FTA) with Australia, India wants zero duty on textiles, automobile parts and fresh fruit. On its part, Australia is seeking tariff reduction in dairy products, fresh fruit, pharmaceuticals and wines. Commerce Minister Nirmala Sitharaman said on Monday that negotiations on FTA are progressing substantially and the two countries are probably “close to a deal”. Her comments came at a CII event in New Delhi. Sitharaman said she had met the Australian trade envoy earlier in the day and hoped for quick progress on the matter. The FTA talks started in 2011 but differences, mainly on tariff reduction in certain product categories, have slowed the process. Several rounds of negotiations have been completed for liberalising trade and services regime besides removing non-tariff barriers and encouraging investments. India has also demanded greater access in the services sector. "We have made our offers. But renewed and refined or enhanced offers are awaited. In services also, we are negotiating for a better offer from Australia having given our own wish-list," Sitharaman told reporters. Sitharaman's remarks follow that of Finance Minister Arun Jaitley who had said he expected substantial headway in negotiations for the FTA. Bilateral trade was $13 billion in 2014-15, up from $12.1 billion in FY14.
SOURCE: Fibre2fashion
The Commerce Ministry today said it will focus on six areas, including reviving SEZs and according priority sector status to export credit, with a view to giving a boost to overseas shipments, which have been on a decline since December 2014. The other focus areas are MSMEs, promoting organic produce; involving missions and embassies to promote trade and removing issues of EXIM Bank and Export Credit Guarantee Corporation (ECGC). These issues, among several others, were discussed during the first meeting of reconstituted 70-member Board of Trade. Commerce and Industry Minister Nirmala Sitharaman, who chaired the meeting, said the government is committed to providing all the support to exporters to boost outbound shipments. "We are going to hand hold sectors that need help," she said, adding that "we will be working on these areas in the next few days".
On special economic zones (SEZs), she said the ministry would work on improving the potential of these zones as they are sitting on huge land bank. "We will meet with different line ministries. We will call up a SEZ specific focus meeting with departments, including economic affairs and CBEC, and industry experts," Sitharaman said. She said as suggested by ICICI Bank MD Chanda Kochhar, the ministry will take up the issue of according priority sector status to export credit with the Finance Ministry as it would help in promoting exports. She said the ministry would also discuss with the RBI and the Finance Ministry about the issues being faced by EXIM Bank regarding more financial flexibilities. "We will hold interactions with Indian High Commissions and Embassies along with their commercial and economic wings in order to make them more vibrant and understand requirements of exporters," she told reporters after the meeting. The minister said that the government always gives special attention to MSMEs as they contribute significantly in the exports besides the ministry will focus on promoting exports of organic produce.
During the meeting industry raised the issue of minimum alternate tax and dividend distribution tax on SEZs; problems in getting credit for MSMEs and extending line of credit to boost exports. Industry leaders who attended the meeting include Kochhar, Biocon MD Kiran Majumdar-Shaw, Dr Reddy's MD Satish Reddy and TVS Motor Company Chairman Venu Srinivasan. Falling for the 15th month in a row, exports dipped 5.66 per cent in February to USD 20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid global demand.
SOURCE: The Economic Times
Sounding a note of caution on free trade pacts, ICICI Bank MD and CEO Chanda Kochhar today said there should be "greater thinking" while signing FTAs as they have yielded more benefits to India's partner countries. At the Board of Trade meeting here, she said India has made good progress around FTAs but "greater thinking" is required around those pacts. "If we just look at the performance. We were analysing that between 2005-12, the FTAs that we have signed with various countries, while our exports have grown but our imports from those countries have grown more. So, actually our partner countries have benefited more from us. So when we sign the FTAs we should see what are our competitive sectors like services and we can give them more weightage," she said.
India has so far implemented FTAs with countries like Japan, South Korea, Singapore and Asean. It is negotiating several such pacts with nations like the EU, Australia and New Zealand. Kochhar, who is member of the Board of Trade, also said that India needs to make up its mind about the Trans Pacific Partnership (TPP), a mega trade deal among 12 countries, including the US. "We need to protect our interests," she said.
Industry has raised concerns about the possible impact of TPP on India's trade. Talking about overall exports, she said the entire world is slowing down both for exports and imports. India needs to make its exports more competitive amid slowing global demand and depreciating currencies, she said, adding, "I think we have to pick up some sectors where we can make India the global hub in the entire value chain and the most important sector to pick up should be electronics". "Being the second largest imported good in India, if we can just take one of this sector as champion sector...we will actually produce in the country for consumption in India to start with later of course exports and create huge amount of employment," she added.
Suggesting steps on financing for exports, Kochhar said the entire export credit line in India is still much smaller in terms of scale compared to many other exporting countries. "Today even the pre-shipment credit has entire obligations of SLR and CRR which add to cost of that credit. So if we can even have pre-shipment credit qualify for non-application of CRR and SLR, I think that cost of funding for the exporters could be much lower," she said. She also called for making the entire export credit part of priority sector lending as it can incentivise banks to provide more export credit. "Today all the export credit that foreign banks do, it qualifies for priority sector classification but the funding of export credit that Indian banks do does not qualify for it," she said. She also said that there is a need to make the entire exercise, right from invoice to duty drawback, done digitally.
SOURCE: The Economic Times
Better logistics is a prime requirement of a modern economy with a complex supply chain. Logistics covers all that takes place between producers of various components and producer of the final product and between the latter and the final consumer. It is more than just transportation, but road transportation is perhaps the most important component of the logistics sector in India. Thus, improving the efficiency of transportation would go a long way in improving the efficiency of the logistics sector. With an average speed of 20 to 25 km per hour, a vehicle on Indian roads covers 250 to 400 km in a day. In developed countries, the distance covered could be significantly higher - about 700 to 800 km in a day. Thus, vehicles in India cover only 80,000 to 100,000 km in a year; in the US, they cover up to 400,000 km. Of course, poor road conditions and old vehicle fleets are important reasons for this differential. But delays at toll booths and checkpoints also contribute a significant part. Better alignment of policies across states and between the states and the Centre and institutions, plus the innovative use of technology can cut down these delays significantly.
Cash to electronic toll collection
Toll roads are a practical way of mobilising resources for building better roads and maintaining them properly by applying the "user pays" principle. Compared to China, which has used such toll roads extensively for building and maintaining highways, such roads are still limited in India. But given their planned rapid expansion, it is imperative to remove the serious problem of congestion and delays at toll plazas by the introducing the readily available technology of electronic toll collection (ETC). ETC allows tolls to be collected while the vehicles move through the toll plaza, without even perceptibly slowing down.
The recommendations of the Nandan Nilekani committee to consider the most appropriate ETC technology for national highways were received as far back as mid-2010 and were accepted for implementation in September 2011. Their implementation should be expedited. In this context, it is also important to remember that the committee had pointed out the importance of having a proper legal framework for suitable handling of violators. No information is available in the public domain on progress on this legal aspect.
Checkpoints, physical verification
Travelling from Bangladesh to India by road, people complain about the long queues of trucks at border crossings at Akhaura-Agartala and Benapole-Petrapole. But even across India, the queues of vehicles at the border between two states look similar. They give a feeling of crossing international borders. There are checkpoints along the national highways within the territory of every state and at its border. Two-fifths of the time lost on roads is, according to one estimate, due to stoppages at state borders. Imagine the problem of a truck passing through multiple states while carrying goods from Assam to Maharashtra. Physical verification of road permits and waybills at checkpoints, administrative delays due to paperwork and entry barriers at multiple locations including across states and into various locations are major sources of inefficiency of the road transportation sector. These prevent companies from maintaining "just-in-time" inventories, and reduce competitiveness by increasing costs. States stop vehicles to verify the necessary documents such as road permits and waybills and to prevent leakages and evasion of taxes.
Some simple steps can make life easy for transporters. Take the case of road permits required for domestic transportation across states, both inward and outward. The forms differ from state to state not only in format but also in their number. The number can be as varied as Form 16 and Form e-VAT XXVI-A! The enormous, amazing and, frankly, incomprehensible diversity adds significantly to the compliance cost, delays and risks of poor governance. Much will be gained by states learning from each other, incorporating the best practice and standardising the form, without detracting from their powers granted by the Constitution. Furthermore, with a move from origin-based value-added tax (VAT) to destination-based goods and services tax (GST), states can consider relaxing the requirement of road permits for outward transportation.
The myriad problems with the current indirect taxation regime and the advantages from the introduction of the GST are too well known to merit repetition. The introduction of GST will significantly help in realising the long-cherished dream of a unified Indian market. And, no doubt, it should be expedited. But the GST may not necessarily end all the problems associated with stoppages along highways or at borders. With the GST as the most important own-tax of states, without mutually binding agreements among the states and the Centre, such stoppages may continue as anti-evasion measures. The anxiety of individual states is unlikely to disappear after the GST is implemented. Physical interface between tax officials and taxpayers will continue to lead to inefficiencies at best, and misuse of powers and corruption at worst.
Fortunately, there is a solution that has been adopted by 68 countries and the European Union for international transportation by roads, namely the TIR or Transports Internationaux Routiers (International Road Transport) Convention that concluded in Geneva more than 40 years ago on November 14, 1975. It can be adapted for transportation across states in India. Under the TIR, a vehicle remains sealed throughout the journey and is generally not inspected at border crossings, except randomly or if an irregularity is suspected. Consignments are sealed at the origin by the relevant Customs authority and technical specifications apply to the construction of load compartments or containers. Authorised vehicles carry large blue-and-white TIR plates. The International Road Transport Union (IRU) prints and distributes the so-called TIR Carnet, which serves both as international Customs document and proof of guarantee. The Customs duties and taxes at risk throughout the journey are covered by an international guaranteeing chain managed by the IRU. Pakistan acceded to the TIR Convention on July 20, 2015. China is in an advanced state to accede. There appears to be a lot of merit in India joining the Convention with some reservations, if necessary. In any case, lot can be gained by Indian states having their own TIR Convention.
SOURCE: The Business Standard
Allaying concerns of Indians over the new visa rules change, the UK government on Wednesday said a new 35,000 pounds salary threshold requirement for Tier-2 work visas which has come into effect will not impact a "vast majority" of Indian professionals. Thousands of Indians and other nationals from outside the European Union (EU) living and working in Britain on a Tier-2 visa may have to leave or be deported if they earn less than 35,000 pounds a year once the terms of the visa expire. "This rules change will not impact the vast majority of Indian professionals who work or are looking to work in the UK as last year 89 per cent of all work visas issued to Indian nationals were for routes which are not impacted by the 35k pounds (35,000 pounds) income threshold," UK immigration minister James Brokenshire said. "The UK government's reforms to Tier-2 work visas are intended to ensure that businesses are able to attract the skilled people they need, but also see that they get far better at recruiting and training UK workers first," he said.
Under the changes to the Tier-2 norms effective from today, non-EU workers will need to earn at least 35,000 pounds to remain in the UK for longer than six years unless they are working in a PhD-level occupation or a job which is on the UK's Shortage Occupation List, including nurses. The new rules mean professionals who wish to apply for "Indefinite Leave to Remain" (ILR) or settlement in the UK at the end of a five-year period of living and working in the UK must now prove they earn over 35,000 pounds per annum. The threshold was raised from the salary requirement of around 21,000 pounds per annum on advice from the Migration Advisory Committee (MAC). According to the UK's Office of National Statistics (ONS), of the 55,589 Tier -2 sponsored visa applications cleared in 2014-2015, nearly 78 per cent were for Indians (31,058). However, UK officials indicate that a majority of Indian nationals coming to the UK to work do so via the Tier 2 Intra Company Transfer (ICT) route, which does not lead to ILR any way and therefore remains unaffected by the changes enforced from today. The UK government has also highlighted that employers have been aware of these changes since 2011 when they were announced and affect those who entered on Tier 2 from April 2011. These non-EU professionals can extend their stay for a sixth year, until April 2017, which means it is unlikely there will be any deportations as a result of the changes this year.
Concerned over the move, Prime Minister Narendra Modi had raised the issue with British counterpart David Cameron during a meeting on the sidelines of the Nuclear Security Summit in the US last week, saying skilled IT professionals from India should not find it difficult to come to work in the UK. The exact figure of non-EU nationals affected by the changes remains uncertain as some who do not meet the minimum salary threshold may be able to apply under an alternate visa category. Professions such as teaching, IT and marketing professionals are likely to be the hardest hit. More than 110,000 people had signed a petition against the changes, which have been branded as "discriminatory" by the 'Stop35K' campaign group. The group marked the visa changes with a "De Party for Skilled Workers" event today opposite Downing Street as a protest-cum-celebration. "This is a campaign aiming for a reconsideration of this rule, encouraging research into industry-specific thresholds," said a Stop 35K statement.
SOURCE: The Business Standard
The rupee is turning weak, as expected, after testing the important resistance at 66. The currency touched a high of 66.07 on Tuesday and has reversed sharply lower from there. It fell to a low of 66.71 before closing at 66.66 on Wednesday. The major trigger for this turnaround came from the RBI’s monetary policy on Tuesday. The RBI cut the repo rate by 25 basis points to 6.5 per cent. The stock market witnessed a strong sell-off falling 2 per cent on Tuesday. As a result, the rupee which was hovering around 66 — a key medium-term resistance level — also turned weak.
More for forex market
The RBI’s monetary policy has a lot in store for the Indian currency market. From May 2, the rupee reference rate against the other major currencies (euro, pound, yen and dollar) will be calculated based on actual market transactions on volume-weighted basis. At present, the reference rate is calculated from the quotes polled from a select list of banks. Non-resident Indians (NRIs) will now be allowed to participate in Exchange Traded Currency Derivatives (ETCDs), the guidelines for which will be issued by end-June. The restrictions on using plain vanilla currency options have also been eased. Following the RBI meeting, the Consumer Price Index (CPI) inflation and the Index on Industrial Production (IIP) are due for release in the coming truncated week. A fall in the CPI numbers could fuel the expectation of further rate cut from the RBI. The currency market is closed on Friday on account of a public holiday. The dollar index is consolidating between 94.3 and 95. A breakout on either side will decide the next move. A break above 95 will ease the downside pressure and take the dollar index higher to 95.5. Such a rise will increase the pressure on the rupee and push it further lower. On the other hand, a fall below 94.3 can drag it to 94 and 93.8.
Rupee outlook
The key medium-term resistance at 66 has halted the upmove in the rupee that has been in place since February. The bearish reversal last week from 66.07 is signalling the beginning of a fresh leg of downmove in the rupee. Immediate resistance is at 66.5. As long as the currency trades below this level, a fall to 67 is possible in the coming week. The region between 67 and 67.15, which encloses both the 100-day and the 21-week moving averages, are strong short-term resistance levels for the rupee. The 38.2 per cent Fibonacci retracement support is also placed in this region. So, an immediate break below 67.15 looks less probable. There is a possibility of a near-term correction to 66.8 or 66.5 from this resistance zone. However, the strong fall from the resistance at 66 keeps the medium-term bearish outlook intact. So, an eventual break below 67.15 will see the rupee weakening to 68 or even lower thereafter.
SOURCE: The Hindu Business Line
The Cabinet today more than tripled the funding for exports to Iran to Rs 3,000 crore through the Export Development Fund (EDF) of the Exim Bank with a view to improving bilateral trade and strategic ties. The proposal will step up the country's exports to Iran and deepen India's relationship as a strategic partner, said an official statement after the Cabinet meeting chaired by Prime Minister Narendra Modi. The approval is for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks led by Central Bank of Iran for financing the purchase of goods and services from India to Rs 3,000 crore, from Rs 900 crore. This will be done by utilising EDF. "The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF," said Telecom Minister Ravi Shankar Prasad.
The Exim Bank and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs 900 crore under the EDF. The increase in quantum to Rs 3,000 crore will enable the Exim bank to provide buyer's credit facility to Iran secured via sovereign guarantee from Iran for the exports. "This will provide an opportunity to Indian companies to penetrate and enhance their footprint in Iran, along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activity in India," the statement said.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 34.65 per barrel (bbl) on 05.04.2016. This was lower than the price of US$ 35.44 per bbl on previous publishing day of 04.04.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2297.95 per bbl on 05.04.2016 as compared to Rs 2347.83 per bbl on 04.04.2016. Rupee closed weaker at Rs 66.32 per US$ on 05.04.2016 as against Rs 66.24 per US$ on 04.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 05, 2016 (Previous trading day i.e. 04.04.2016) |
Pricing Fortnight for 01.04.2016 (12 Mar to 29 Mar, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
34.65 (35.44) |
37.29 |
|
(Rs/bbl |
2297.95 (2347.83) |
2491.72 |
|
|
Exchange Rate |
(Rs/$) |
66.32 (66.24) |
66.82 |
SOURCE: PIB
At a conference hosted by the Vietnam Textile and Apparel Association (Vitas) recently, economic expert said that Vietnamese businesses in the field of garment and textile material have been showing lack of interest due to low profit margin and long payback period. They forecast that Vietnam now has 5,028 garment and textile businesses while the number of material suppliers is only 604. The material deficiency has created which is unlikely to improve in the next five years. At the same time much room has been created for businesses to join in this field. However, mostly investors have been foreign direct investment (FDI) firms than local investors. According to data by Vitas, FDI capital to the garment and textile industry has reached US$2 billion by the end of last year. Local businesses have lacked funds and needed assistance mechanisms to attend the supply chain. On the other side, many provinces and cities have limited licensing textile and weaving projects to prevent environmental pollution although they are two indispensible phase off cloth production. This has contributed in making a number of Vietnamese products fail to meet origin rules and enjoy incentives from free trade agreements. More than 60 percent of small and medium enterprises in Vietnam have investment direction in 5-10 years instead of 50 years as Japanese firms. This originates from the instability of Government policies to attract and assist investors. Besides, current regulations have showed many problems and badly affected businesses’ investment and development strategies. Therefore material projects with payback period of 20 years or longer have not been chosen by local investors. A representative of Hoan My Company said that the company had to spend $25 billion on a zipper plant and much more to weaving machines.
SOURCE: Yarns&Fibers
A 15-member Sri Lankan business delegation led by Minister for Commerce and Industry Rishad Bathiudeen left for Pakistan yesterday for a 4 day official visit on the invitation of his Pakistani counterpart Engr. Khurram Dastgir Khan. The Sri Lankan delegation, comprising of top textile and business groups, leading textile chain stores, wholesale dealers, importers of fabric as well as representatives of Chambers of Commerce and Industry, will be attending the first ever textile sector specific exhibition TeXpo Pakistan 2016.The TeXpo 2016 is arranged by the Trade Development Authority of Pakistan in collaboration with the Ministry of Commerce Pakistan at Expo Center, Karachi from April 7-10, 2016.TEXPO 2016 will especially focus on the value-added textile products like high-end garments, hosiery, ready-made garments, knitwear, etc. As part of the expo, a fashion show will also be organised to display the strengths of Pakistani fashion and garments industry. Cotton, Home Textile, Fashion Garments, Leather Items, Tents & Canvas Goods as well as machinery will be amongst the products to be displayed at TEXPO 2016. The exhibition has attracted a large number of visitors from all over the world. B2B meetings will be arranged to attract foreign delegates to carry out business dealings during the exhibition. The Minister for Commerce and Industry Sri Lanka will be the Guest of Honour at the textile specific exhibition. Rishad Bathiudeen will also be making a policy Speech today evening at a reception arranged by the Trade Development Authority at the Governors House Karachi. The Sri Lankan business delegates will also hold B2B meetings with their Pakistani counterparts apart from attending the exhibition.
An MOU will also be signed between the Sri Lanka – Pakistan Business Council and the Pakistan – Sri Lanka Business Council to enhance trade and investment between the two nations. Pakistan is the 2nd largest trading partner of Sri Lanka within the South Asian region. Textile is the major component of Pakistan Sri Lankan bilateral trade. The Sri Lankan apparel sector, sources raw materials from Pakistan. Sri Lanka was the first country to sign a Free Trade Agreement (FTA) with Pakistan which became operational from June 12, 2005. Under FTA, Sri Lanka and Pakistan have agreed to offer preferential market access to each other’s exports by way of granting tariff concessions.
SOURCE: The Asian Tribune
The Prime Minister of Rwanda, Anastase Murekezi presenting the government's industrial activities to parliament on Monday unveiled textile development strategy as the government has committed itself to develop local textile firms and phase out second hand garments in the next three years. To discourage consumption of imported products, the government has decided to increase taxes up to 100% on second hand products - especially garments and leather products - starting the next fiscal year until they get off the market. However, discouraging importation must be accompanied by improving local textile industry for which the government is helping Rwanda's textile firm (UTEXRWA) to produce more and better quality garments and grouping small tailors into firms. He further added that they provided a particular space for textile firms at the Special Economic Zone and they are encouraging private sector to invest in textile industry. The government will also encourage the production of raw materials such as silk to further reduce Rwanda's trade deficit which widened by 12.7% in January and February. A statement from the central bank shows that the country's trade deficit widened to $297.2 million (about Rwf232.4 billion) largely due to an increase in formal imports that rose by about 7.2%, as well as a 9.7% decrease in the value of Rwanda's exports.
PM Murekezi said that they want to increase threads production from 10 tonnes in 2015 to over 600 tonnes in the next three years. They are also mobilizing Rwandans to love locally made products through the 'Made in Rwanda' campaign," There are at least 900 firms in the country with the dominance of the small ones at 77 %. Big and medium firms represent 9% and 14% respectively. Challenges facing local industries in general include heavy costs of water and electricity which is also insufficient. The industrial sector grew by 7% annually from 2010 to 2015, while Rwanda's exports increased from $544 million to $1.1 billion in the same period. It increased by 18% annually on average.
SOURCE: Yarns&Fibers
