The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 18 APRIL, 2016

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2016-04-17

Item

Price

Unit

Fluctuation

Date

PSF

1047.90

USD/Ton

0%

4/17/2016

VSF

2101.97

USD/Ton

0%

4/17/2016

ASF

1944.56

USD/Ton

0%

4/17/2016

Polyester POY

1040.18

USD/Ton

0.82%

4/17/2016

Nylon FDY

2345.82

USD/Ton

0%

4/17/2016

40D Spandex

4475.57

USD/Ton

0%

4/17/2016

Nylon DTY

2122.04

USD/Ton

0%

4/17/2016

Viscose Long Filament

1134.33

USD/Ton

0.68%

4/17/2016

Polyester DTY

2546.45

USD/Ton

0%

4/17/2016

Nylon POY

5754.97

USD/Ton

0%

4/17/2016

Acrylic Top 3D

1265.51

USD/Ton

0%

4/17/2016

Polyester FDY

2152.90

USD/Ton

0%

4/17/2016

30S Spun Rayon Yarn

2855.11

USD/Ton

0.27%

4/17/2016

32S Polyester Yarn

1697.63

USD/Ton

0%

4/17/2016

45S T/C Yarn

2469.28

USD/Ton

0%

4/17/2016

45S Polyester Yarn

3009.44

USD/Ton

0%

4/17/2016

T/C Yarn 65/35 32S

2284.08

USD/Ton

0%

4/17/2016

40S Rayon Yarn

1836.53

USD/Ton

0%

4/17/2016

T/R Yarn 65/35 32S

2129.75

USD/Ton

0%

4/17/2016

10S Denim Fabric

1.33

USD/Meter

0%

4/17/2016

32S Twill Fabric

0.82

USD/Meter

-7.94%

4/17/2016

40S Combed Poplin

1.21

USD/Meter

0%

4/17/2016

30S Rayon Fabric

0.75

USD/Meter

0%

4/17/2016

45S T/C Fabric

0.72

USD/Meter

-2.09%

4/17/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15433 USD dtd.17/04/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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NERTPS to boost textile industry in Northeast

The Union Textile Ministry's North-East Region Textile Promotion Scheme (NERTPS) seeks to boost textile exports, increase jobs and curb the migration of workers. The scheme also aims to develop and modernise the textile sector by providing region-specific flexibility in execution with a massive funds infusion.“Under the NERTPS, the textile ministry has been providing Rs.18 crore each for setting up of a ready-made garment manufacturing unit or 'Apparel and Garment Making Centre' (AGMC) in each of the eight Northeastern States. It would also provide financial assistance to run the units after their commissioning,” Textiles Secretary Rashmi Verma said at a function in Agartala on Friday according to an agency report. Textiles Minister Santosh Gangwar inaugurated the first AGMC in Nagaland on April 6 and the second one in Tripura on April 8. “The AGMCs in other six States are expected to start manufacturing in a month. After starting production of all the eight AGMCs, there would be a landmark development in the textile sector in the northeastern region,” she added. “The AGMCs aim to boost the scopes of employment and exports and curb migration of workers from this region to other parts of the country,” Verma said. Three hundred Japanese computerised sewing machines will be installed in each of the eight AGMCs. Out these, 200 machines would be used for manufacturing and 100 for providing training. Each AGMC will provide direct employment to 1,200 to 1,500 people, mostly women. Each unit is expected to meet the demand for uniforms and garments of the police, security and paramilitary forces as well as schoolchildren and civilians in the region. Verma said a host of other schemes are planned in the northeastern states under the NERTPS, which covers projects across the textiles sector ranging from sericulture, handlooms, handicrafts, power looms to apparel and garmenting. The Textile Ministry's top officer said that under the cluster development projects for handlooms, the rich handloom sector of the northeast would be developed and modernised to increase production, productivity, employability and value addition by upgrading technology. “As bamboo is one of the rich resources of the region, handicrafts with a variety of designs and its diverse use in northeastern states have an immense global market. This sector must be developed. Sericulture is another viable sector which also has tremendous scope to -rovide more and more employment and to earn foreign exchange,” Verma said. India's international border with China, Myanmar, Bhutan, Bangladesh and Nepal runs for over 5000 km in the Northeast. Some of the states have trade ties with a few of these countries, especially Bangladesh and Myanmar. Thus, the AGMCs can potentially exports readymade apparel to these adjoining and other countries.

Source: Fibre2fashion

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Indian garment companies help Bangla tiger roar

It has been 12 years since Gurgaon-based and BSE-listed Pearl Global Industries set up a garment manufacturing unit in Bangladesh. The company, which has 4,000 machines across four factories in the neighbouring country, is planning to double its capacity in the next three years. Chennai-based Ambattur Clothing Co has two units in Bangladesh which employ 8,000 people. It supplies clothes to brands such as Zara, Gap and Taylor. While the units in Bangladesh account for 60 per cent of the company's business, Chennai accounts for only 15 per cent. Orient Craft, a Delhi-based garment exporter which employs 32,000 people, has so far stayed away from Bangladesh. Now, even Orient Craft is thinking of setting up a unit in Bangladesh. As India's garment exports stagnate at $17 billion a year, Bangladesh's apparel exports are growing at double digits and are likely to touch $27 billion this year, say Indian exporters. India's garment exports were $15.49 billion between April and February 2015-16, up only 1.5 per cent over the corresponding period last year. Between July 2015 and February 2016, Bangladesh clocked $18.12 billion in apparel exports, growing by 9.52 per cent over the corresponding period last year. For the past four months, its exports have been between $2.2 billion and $2.6 billion per month. Bangladesh overtook India in 2008 and its share of world trade began to climb from 2010 (4.19 per cent vs India's 3.16 per cent). Interestingly, India's share of the world trade in garments increased from 3 per cent in 2000 to 3.78 per cent in 2010. In 2014, India's share was 3.67 per cent while Bangladesh's share was 5.09 per cent, according to WTO data on clothing exports as of October 2015. "We were among cheapest source of manufacturing. For about eight years, we were sitting pretty, thinking who will dislodge us," says a senior executive with a large Indian garments exporter. "The government is not willing to do much (like bilateral trade deals with EU and others to drive competitiveness). If we can't beat them, join them," says Sudhir Dhingra, founder & chairman, Orient Craft. Isn't Orient Craft already late for Bangladesh? "In India, we can grow from Rs 1,800 crore to Rs 2,000 crore. But if my aspirations are to grow faster, I have to look at low-cost production bases, which enjoy duty advantage," he says. The search for cheaper production bases is driven by retailers who are constantly looking for ways to cut costs. "Exporters are shifting to Bangladesh as buyers want it. Bangladesh offers ease of doing business, importing-exporting is faster. R&D on new styles is faster as you can import fabrics in three days. In India, it would take 10 days. The more samples and styles you produce, the better the chances you stand to get an order," says Vijay Mathur, additional secretary general, Apparel Export Promotion Council. Ambattur has units in countries like Bahrain and Jordan, apart from Bangladesh. Pearl Global has units in Indonesia, Bangladesh and one coming up in Myanmar. "Every country offers a unique advantage. Indonesia is good at garments made with silk and fine fabrics while Taiwan, being closer to China, takes lesser time to execute orders," says Deepak Seth, group chairman, Pearl Global. But not many Indian exporters have been able to set up bases in Bangladesh or elsewhere because a majority of them are small-time players. Only three-four Indian garment exporters do business in excess of $150 million. Indian exporters have been losing their competitive edge; they no longer cater to the mass-market, and have capacity which is utilised for only four-five months in a year. Net margins of four-five per cent leave them with very little to invest in fresh capacity abroad. No wonder, more than Indian exporters, it is Indian business families based in Sri Lanka and Hong Kong which have exploited the Bangladesh advantage. These include Hong Kong-based groups like Must Garments, Epic Garments and Sri Lanka-based groups like Brandix, MAS Holdings and Hydramani Groups.

Why Bangladesh exports do well

Of course, its biggest advantage is duty-free exports to markets like the European Union, Japan, Australia and Canada under a preferential tariff system called Generalised System of Preferences (GSP), which provides an exemption from the more general rules of the WTO. Garment exports from India to Europe attract an import duty of 11-12 per cent. Apparel-manufacturing is a labour intensive industry. And labour cost in Bangladesh is 25 per cent lower than India. A skilled worker in India, with two-hours of overtime, costs $200-$225 a month, while a similar worker in Bangladesh is available for $140-150 a month. Labour is not just cheap, but also highly skilled - garment exports account for 82 per cent of Bangladesh's total exports. "It's single-largest industry in Bangladesh, and enjoys high priority. If there are any issues like strikes, they are quickly resolved," says Deepak Seth, chairman, Pearl Global. The fact that many of Bangladesh's top politicians and bureaucrats own these businesses has also helped the industry immensely. Earlier, power cost was 50 per cent lower than India due to abundance of gas, but that difference has come down. "There's still some difference as boilers, generators and vehicles run on gas. Oil has come down to $40/barrel, but in India government is still increasing fuel prices," says an Indian exporter. "It's all about focus. In India, when you have consecutive holidays, like this week, the Customs is closed. In Bangladesh, it is open 24x7 throughout the year. Even if you have strikes, vehicles ferrying garments enjoy exemptions," says Dhingra. Also, provident fund or medical cover for workers is not statutory in Bangladesh. Working conditions are also poorer than India. A recent study by US brands found that only 24 of the 700 factories inspected met international safety standards.

India's loss of opportunity is huge

Thanks to the duty disadvantage and higher costs, India became uncompetitive. It has vacated the mass-market for garments (shirts, trousers) and now largely plays in the fashion segment for value-added garments, like embroidery or in garments which need a lot of handwork, or premium garments that cost upwards of $15. Growth in garment industry can add a lot of jobs but exporters feel the government is oblivious to the opportunity. One way to drive competitiveness is to go for bilateral agreements with key countries, seeking duty-free exports. "Trade agreements are very important. One has been hearing about a free trade agreement (FTA) with the EU for ten years, but some industries want protection," says Seth of Pearl Global. "The Indo-EU FTA got side-tracked, thanks to lobbying by the automobile and wine industry, who forced the government to not sign the agreement," rues another exporter. "A bilateral agreement with European Union, which links foreign investment from EU to duty-free exports of garments from India, can grow exports to Europe 3-4 times to $24 billion-$26 billion in three years, from $9 billion today," says Dhingra. Consider the potential: Maruti Udyog, with sales of Rs 48,605 crore, employs only 12,900 people while Orient Craft with Rs 1,800 crore sales employs 32,000 people. With exports of $16 billion, the garment industry employs about 37 million people. A majority of these are uneducated people, mostly women, who are trained for 90-days and can earn Rs 12,000-Rs 15,000 a month. "The Chinese saw it 60 years back: Either you create jobs or give them doles. They chose to subsidise labour-intensive jobs," says Dhingra. At $117 billion, Chinese garment exports are nearly seven times that of India.

Source: Business Standard

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ISA urge govt to do away with anti-dumping duty on VSF imposed in 2010

The Indian Spinners Association (ISA) has alleged that Grasim Industries, the prime manufacturer of VSF in India, is selling the raw material at prices much higher than global rates, hurting the domestic textile industry and hence urged the government to do away with the anti-dumping duty on viscose staple fibre (VSF), imposed in 2010 on shipments from China and Indonesia. In India, VSF is a major input in the manufacture of fabrics made of poly-viscose and 100 per cent viscose yarn. There are about 150 spinning mills in the country, with about five million spindles. ISA in separate representations to Textiles Secretary Rashmi Verma and Central Board of Excise and Customs (CBEC) Chairman Najeeb Shah said that they are paying an ex-mill price of $2.15 plus 12.5 percent excise duty against an import price of $1.85 per kg (c.i.f.).It is unfortunate that Grasim itself is supplying the fibre to their competitors in other countries at an ex-mill price of $1.80 per kg. However, Grasim did not respond to queries sent by this newspaper on the matter. According to SK Khandelia, President, ISA, there is no justification behind the extension of the anti-dumping duties as the domestic producer of VSF is doing brisk business, and it is the users that are suffering. With textile exporters from India already struggling to maintain their share in the global market, high input costs are pulling them down further. The Directorate-General of Anti Dumping (DGAD) is at present carrying out a sunset review of duties imposed on VSF in 2010 to examine if there is a case for their extension. The duties cannot be extended beyond July this year in the absence of a recommendation by the DGAD.

Source: Yarn and fibre

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Shipping Ministry plans to develop 5 greenfield ports: Gadkari

After spending years trying to corporatise ports, the Shipping Ministry now seems to have given up on the idea. The Modi government is now more interested in modernising ports, which will enhance their throughput and cargo handling capacity. BusinessLine caught up with Shipping Minister Nitin Gadkari at the recently concluded Maritime India Summit for an understanding of changes which the government has envisaged. Excerpts:

How much investment is the Ministry trying to get for the shipping and port modernisation in the next two years?

The Ministry is attempting to attract ₹8 lakh crore investments for port-led development and industrial clusters. For mechanising and modernising the infrastructure in the ports and providing connectivity through road and rail network another ₹4 lakh crore would be required. Providing road connectivity would be expedited with the National Highway Authority of India preparing detailed project reports. Chairmen of all the port trusts would be soon be asked to float tenders for these projects. There are no financial constraints for such projects.

What are your plans for greenfield port development in the country?

The Ministry is also developing three new ports, which will require investments of about Rs. 50,000 crore. Ports will come up at Wadhavan, Dhanu in Maharashtra, Sagar in West Bengal and Colachel in Tamil Nadu. The ground work for these projects has also started. We are also thinking of developing five more ports in the country. Andhra Pradesh could get two of these ports, and Karnataka and Tamil Nadu one each. A satellite port for Paradip in Odisha would also be developed. Along the Ganga, the Ministry is also developing river ports, which would be used for transporting goods. Project works of ₹3,000 crore have already been commissioned, which will create 20 floating ports and 20 jetty-based ports. The ports will also be connected by three multi-modal hubs.

What is the status of the Talcher-Paradip port railway line, which is expected to substantially reduce the coal and power prices in the country?

Today Mahanadi coalfields at Talcher produce 60 million tonnes but Coal India is planning to increase it to 300 million tonnes. If coal is evacuated faster through coastal shipping then the yearly savings in logistics cost would be about Rs. 10,000 crore. Therefore, a Rs. 9,000-crore railway line between Talcher and Paradip is being planned, whose work will soon commence. Power plants located on the West coast will get cheaper coal and per unit electricity cost will reduce by Rs. 1.

How is your Ministry trying to engage with friendly countries such as Bangladesh and Iran for trade development?

Today bilateral trade between India and Bangladesh is about $6 billion but most of the goods are being transported by road. Therefore, both the governments have decided to hold stakeholder meetings in Kolkata and Dhaka, where sea and river based alternatives would be explored. In Iran, we want to develop the Chabahar port and a port-based fertiliser plant. Iran has offered gas as a basic feedstock for the plant at $2 per MMBtu. Last week Petroleum Minister Dharmendra Pradhan returned from Tehran after negotiating with the Iranian authorities. Soon the Prime Minister along Shipping and Oil Ministries will take a call on the projects. If the project goes through then India will have massive savings on fertiliser subsidy and also access to cheaper urea.

What kind of savings is expected from the Sagarmala project?

World over water-based freight is the cheapest. It is five times more expensive to transport the same goods by road. Therefore, we want to develop over 111 rivers in the country for water-based transport. If we integrate coastal cities with inland towns by rivers then there would be a huge saving in freight cost. Possibilities exist for transporting onions and mangoes from Maharashtra to Sahibganj, Jharkhand by train and then to Myanmar by ships. There would be substantial savings and Indian goods in the international market would become competitive. Today Chinese goods are cheaper because their production units are closer to the river and sea ports.

Source: The Hindu Business Lines

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SC rules in favour of exporters in refund dispute

The Supreme Court has clarified that an exporter is eligible for refund on duty paid on inputs as well as duty paid on final product cleared from factory on payment of duty for exported final products under Rule 18 of the Excise Rules, according to media reports. The ruling came while the Supreme Court of India recently dismissed the Review Petition filed by the Department of Revenue against the judgement of the apex court in the case of a textile company Spentex Industries Limited. The company argued that exporters are entitled to both the rebates i.e. amount of duty paid on inputs used in the manufacturing of exported goods as well as the amount of duty paid on exported final goods, under Rule 18 of the Central Excise Rules, 2002 (“the Excise Rules”). “We have carefully gone through the review petitions and the connected papers. We find no error, much less apparent, in the judgment impugned. The review petitions are, accordingly, dismissed,” the Supreme Court said. Rule 18 of the Excise Rules states that “Where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfilment of such procedure, as may be specified in the notification.”

Source: Fibre2fashion

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Indian economy like ‘one-eyed’ king in land of blind: Rajan

With India being often described as ‘the bright spot in the global economy’, Reserve Bank Governor Raghuram Rajan sees this as a case of “the one-eyed man” being king in the land of the blind. Amid gloomy global economic conditions, the Indian economy has been described by many as one of the few bright spots, including by IMF, while RBI under Rajan has also been credited with necessary steps to minimise the impact of external shocks on the country’s financial system. “I think we have still to get to a place where we feel satisfied. We have this saying — ‘In the land of the blind, the one-eyed man is king’. We are a little bit that way,” Rajan said when asked for his take on the ‘bright spot’ theory and what was his “secret sauce” to ensure this positioning. Rajan, a former chief economist of the International Monetary Fund and an on-leave professor of finance at the University Of Chicago Booth School Of Business, was here for spring meetings of the World Bank and the IMF, as also for the G20 Meeting of Finance Ministers and Central Bank Governors. “We feel things are turning to the point where we could achieve what we believe is our medium-run growth potential. Because things are falling into place. Investment is starting to pick up strongly. We have a fair degree of macro-stability. Of course, not immune to every shock, but immune to a fair number of shocks,” Rajan said in an interview to Market Watch. Market Watch is published by Dow Jones & Co and is part of The Wall Street Digital Network. Rajan, known to have frank views on the state of affairs in the Indian and global economy, said “a bunch of good things have happened” in India, but there were “still some things to do”. He listed achievements on fronts such as the current account and fiscal deficit and said inflation has come down from 11 per cent to below 5 per cent, making room for interest rates to come down.  “Of course, structural reforms are ongoing. The government is engaged in bringing out a new bankruptcy code. There is a Goods and Services Tax on the anvil. But there is a lot of exciting stuff which is already happening,” he said. Rajan recalled a new platform he launched last week that allows mobile-to-mobile transfers between any two bank accounts in India. “It is a public platform, so anybody can participate. It is not owned by any one company unlike Apple Pay or Android Pay or whatever. I think it is the first of its kind. “So, technological developments are happening and making for a more, hopefully, reasonable life for a lot of people. Let’s see how it goes,” he said.

Source: The Hindu Business Lines

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Indian economy like ‘one-eyed’ king in land of blind: Rajan

With India being often described as ‘the bright spot in the global economy’, Reserve Bank Governor Raghuram Rajan sees this as a case of “the one-eyed man” being king in the land of the blind. Amid gloomy global economic conditions, the Indian economy has been described by many as one of the few bright spots, including by IMF, while RBI under Rajan has also been credited with necessary steps to minimise the impact of external shocks on the country’s financial system. “I think we have still to get to a place where we feel satisfied. We have this saying — ‘In the land of the blind, the one-eyed man is king’. We are a little bit that way,” Rajan said when asked for his take on the ‘bright spot’ theory and what was his “secret sauce” to ensure this positioning. Rajan, a former chief economist of the International Monetary Fund and an on-leave professor of finance at the University of Chicago Booth School Of Business, was here for spring meetings of the World Bank and the IMF, as also for the G20 Meeting of Finance Ministers and Central Bank Governors. “We feel things are turning to the point where we could achieve what we believe is our medium-run growth potential. Because things are falling into place. Investment is starting to pick up strongly. We have a fair degree of macro-stability. Of course, not immune to every shock, but immune to a fair number of shocks,” Rajan said in an interview to MarketWatch. Rajan, known to have frank views on the state of affairs in the Indian and global economy, said “a bunch of good things have happened” in India, but there were “still some things to do”. He listed achievements on fronts such as the current account and fiscal deficit and said inflation has come down from 11 per cent to below 5 per cent, making room for interest rates to come down.  “Of course, structural reforms are ongoing. The government is engaged in bringing out a new bankruptcy code. There is a Goods and Services Tax on the anvil. But there is a lot of exciting stuff which is already happening,” he said. Rajan recalled a new platform he launched last week that allows mobile-to-mobile transfers between any two bank accounts in India. “It is a public platform, so anybody can participate. It is not owned by any one company unlike Apple Pay or Android Pay or whatever. I think it is the first of its kind. “So, technological developments are happening and making for a more, hopefully, reasonable life for a lot of people. Let’s see how it goes,” he said.

Source: The Hindu Business Lines

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India, Afghanistan and Iran finalise Chabahar Agreement

Energy returned to the top of the engagement between India and Iran after two quick visits, by oil minister Dharmendra Pradhan and foreign minister Sushma Swaraj, taking forward the progress on the Chabahar port and India's equity stake in Farzad-B gas field. In talks between Swaraj and her Iranian counterpart Mohammad Javad Zarif, the two sides agreed that pending deals such as Preferential Trade Agreement, Double Taxation Avoidance Agreement and Bilateral Investment Treaty should be concluded on a priority basis to spur trade and investment. "The talks will give new energy to our centuries old ties with Iran. In particular, the economic partnership will get considerable fillip as a result of today's forward looking talks," foreign ministry spokesperson Vikas Swarup said. According to Swarup, there was no conversation between the two sides on purported Indian national Kulbhushan Jadhav, who was arrested by Pakistan in March. On Chabahar project, it was agreed that contract as well as modalities for extending $150 million credit for the port should be signed soon. Decisions on this line of credit, as well as $400 million credit line for supply of steel rails from India have already been taken by the Centre.

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Besides, Iran also called for greater Indian participation in its oil and gas sector. "Iran said it would be happy to participate in the refinery sector in India," he said. On Farzad-B oil field project, both sides took note of the constructive discussions held during the recent visit to Iran of oil minister Dharmendra Pradhan. "The Indian side welcomed the Iranian decision to keep the Farzad-B field outside the auction basket. The concerned companies have been directed to complete their contractual negotiations in a time-bound manner. Iranian side had earlier communicated their gas pricing formula and expressed their desire for Indian investment in the Chabahar SEZ," Swarup said.

Top Comment

The agreement when finalised and would bring lot of benefits to the country. Good decision.Sudarshan Nindrajog "In terms of connectivity, Iran said it supported India's desire to join the Ashgabat Agreement. The two ministers reviewed the progress made in the International North South Transport Corridor. IRCON from India will be visiting Iran for discussions on the Chabahar-Zahedan railway link." India is keen to increase oil imports from Iran from the current 3,50,000 barrels a day. Both sides decided to enhance cooperation in counter-terrorism and maritime security as they agreed that concerted global effort was required to combat the menace. They reviewed bilateral relations, in particular the progress in implementing the decisions taken at the last joint commission meeting in December 2015. "Both sides took note of the good cooperation between the National Security Council structures and agreed to intensify this engagement," Swarup said.

Source: Times of India

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India asks IMF to beef up resources to ensure 'future-proof global economy'

FM Arun Jaitley said India's balanced macroeconomic environment and strong growth prospects make it a 'bright' spot in the global scenario.  Indian economy moving ahead despite global headwinds: FM Arun Jaitley Low oil prices favoured Indian economy: Arun Jaitley Higher growth best antidote to poverty, says FM Jaitley High interest rates will make Indian economy sluggish: Arun Jaitley. As global headwinds continue to hit Indian and other markets, Finance Minister Arun Jaitley has asked advanced economies to be “mindful” of the spillover effect of their policies on the rest of the world. He also asked the International Monetary Fund (IMF) to beef up its resources to ensure ‘future-proofing’ of the global economy against recurrence of financial crisis. Speaking here at the meeting of the International Monetary and Financial Committee (IMFC) on Saturday night, Jaitley said India’s balanced macroeconomic environment and strong growth prospects make it a ‘bright’ spot in the global scenario. Jaitley said the Indian economy has managed to put across a “credible” performance with an estimated growth rate of 7.6 per cent in the just concluded fiscal 2015-16, as against 7.2 per cent in the previous year. “The growth performance is more credible given that it has been achieved despite contraction in our exports due to slowdown in global economy and two consecutive years of monsoon shortfall,” he said. “However, there are concerns about export growth which is declining consecutively for more than a year due to slowdown in global demand,” Jaitley said. The minister said subdued growth and low productivity in advanced economies (AEs) and elevated risks faced by emerging market economies (EMEs), as also risks of instability of financial system, are hurting global recovery. “Flagging trade volumes, softening commodity prices, idle capacities and anemic economic fundamentals, particularly in a number of large EMEs are increasingly impairing their ability to sustain economic and financial resilience against rising risk premiums and credit risks.” “Moreover, there are the risks of exogenous shocks from asynchronous normalisation of unconventional monetary polices (UMPs) that can produce disorderly adjustments in exchange and volatile capital flows — increasing the cost of managing external exposures and balance of payments.

 

Source: Business Standard

 

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Global Crude oil price of Indian Basket was US$ 40.21 per bbl on 15.04.2016

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$ 40.21 per barrel (bbl) on 15.04.2016. This was lower than the price of US$ 40.66 per bbl on previous publishing day of 14.04.2016. In rupee terms, the price of Indian Basket decreased to Rs. 2671.41 per bbl on 15.04.2016 as compared to Rs 2700.85 per bbl on 14.04.2016. Rupee closed at Rs 66.43 per US$ on 15.04.2016. The table below gives details in this regard:

 

Particulars    

Unit

Price on April 15, 2016

(Previous trading day i.e.

14.04.2016)                                                                  

Pricing Fortnight for 16.04.2016

(30 Mar to 12 Apr, 2016)

Crude Oil (Indian Basket)

($/bbl)

                40.21                (40.66)         

36.98

(Rs/bbl

             2671.41            (2700.85)       

2455.84

Exchange Rate

  (Rs/$)

                66.43*                

66.41

Exchange Rate

  (Rs/$)

                66.43*                

66.41

 

 * RBI reference rate for 14.04.2016 & 15.04.2016 is not available. Therefore reference rate of 13.04.2016 has been considered.

Source: Ministry of Textiles

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Taiwanese textile companies keen to penetrate their products in India

With technical textile industry of India likely to grow at a rate of 20 percent annually to touch $30 billion over the next five years and composite industry also pegged at $2.2 billion with an expected growth of 15 percent per annum over the next four years. Taiwanese composite and technical textile companies are exploring partnership opportunities with Indian firms across various industries to meet their growing demand.

Taiwanese composite and technical textile companies are keen to penetrate their products in India with the growing demand and consumption of technical textiles across multiple industries and sectors, said Taiwan Textile Federation Overseas Market Development Specialist Sean Tsai. The Bureau of Foreign Trade (BOFT) and Taiwan Textile Federation (TTF) are forming the Taiwan Pavilion for the fourth time jointly with Taiwan Composites Association (TCA) participating in 'Technotex 2016', organized by the Ministry of Textiles and an industry body in Mumbai this week asIndia is a very dynamic market with a lot of potential and scope for Taiwanese companies to expand their exports. Nineteen leading Taiwanese companies producing high-end composites, innovative technical textiles, raw materials, accessories and non-woven machinery will exhibit their products at the event. Tsai said that they expect quite a few of the exhibitors have buyers in India and some are showcasing their products for the first time and looking forward to collaborating with Indian buyers for their products.

 

He pointed out that Taiwan's functional textiles market has invested a lot of resources in textile technology innovation. The multiple industries and sectors Taiwan is focusing on include automotive, defence, police, fire departments, sports gear and apparel, rainwear, outdoor tents and canopies and protective and safety products among others.

Source: The Economics Times

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The future of Japanese apparel

A staffer operates a machine that weaves pleat cloth at the Miyake Issey Exhibition at the National Art Center in Tokyo. — AFPFROM ready-to-wear knits manufactured instantly to customized dresses produced on inkjet printers, Japan’s apparel industry is turning to state-of-the-art technology in a bold bid to cut labor costs and secure its future.  At manufacturing giant Shima Seiki’s factory in western Japan, garments materialize in minutes, thanks to digitally-programed automated machines that can turn out a sample seam-free pullover in half an hour with a push of a button. The Whole Garment system patented by the Japanese manufacturer and sold to knitwear companies like Italian luxury brand Max Mara includes a digital design system that allows users to choose patterns, colors and cuts. Originally known for glove-making machinery, Shima Seiki took a technological leap in the 1990s in an effort to revive the flagging fortunes of Japanese apparel manufacturers. The Whole Garment system allows one worker to operate ten machines — thereby lowering labor costs — and uses limited raw material to create seam-free garments that generate no waste, since they require no cutting. The initiative is part of a push by Japan’s knitwear industry to capitalize on its technical know-how to create garments that cannot be replicated elsewhere at a lower cost. The focus on technique and technology has already paid off, with Japan’s knitwear sector registering a 40 percent increase in exports over a 10-year period beginning in 2006, a rare bright spot in an otherwise dismal picture for textile and apparel exports from the country.

Customized design

Recognizing the need for reinvention in the apparel sector, Japanese textile company Seiren, known more for manufacturing curtains and car interiors, is now fusing fashion and digital know-how to launch a customized clothing line for the masses.The Viscotecs brand invites customers to try on a sample outfit in a dressing room specially fitted with a camera that downloads their image onto a phone. They can then choose from an array of options — including patterns, fabrics, colors and lengths — displayed on the tablet to create a one-of-a-kind dress. The design data is digitally transmitted to Seiren’s factory in central Japan where the garment is brought to life via pattern-cutting machines and inkjet printers before being delivered to the store in three weeks. The process has the potential to transform the fashion industry by cutting down on unsold inventory, which either ends up in the bargain bin or as landfill. In addition, the use of inkjet printers slashes the amount of water and energy utilized in conventional dyeing methods by at least 80 percent, Seiren said. However, buying into the brand comes at a cost, with dresses priced between 65,000 to 80,000 yen (US$600 to US$700). “It may take time but we are confident that once customers know the brand, sales will follow,” said Mayumi Yamakawa, a spokeswoman for Takashimaya.

 

Source: Shanghai Daily.

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Meridian Specialty Yarn begins work on new textile plant in US

Meridian Specialty Yarn Group, Inc., (MSYG) specializing in novelty yarn manufacturing and yarn dyeing from its two North Carolina plants, addresses the needs of distinct textile industry audiences, including upholstery, home furnishings, craft yarn, hosiery, industrial textiles, apparel and automotive has officially broke ground on a new, multi-million dollar textile plant in Valdese, NC, USA.When done, the new production facility will expand Meridian’s current operations in Valdese by 113,000 square feet. The new facility will also produce Tow dyed acrylic for vertical integration with the company’s Ranlo, NC, plant. MSYG’s yarn manufacturing operation in Ranlo fulfills the needs of knitters, weavers and craft yarn distributors looking for the novelty spinning of vibrant, fashion-forward yarns in a wide range of lot sizes and designs. All five of the Meridian companies are proud to be American-based manufacturers that provide high quality products, short lead times and consistent, reliable service. In many of their markets they are one of the few domestic manufacturers still thriving, aligning well with the current resurgence of companies bringing business back to the United States and the demand for American-made products.

Source: Yarn and fibre

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Buy Zimbabwe should extend to textiles’

Zimbabwe’s textiles and clothing industry is seriously weighed down by an influx of cheap imports from Asian countries and is operating below 20% capacity, according to government statistics. Compounding the problem is the fact that despite the existence of legislation banning the importation of second-hand clothing, the practice has continued unabated because authorities have failed to enforce the ban. At its peak, the clothing and textile industry in Zimbabwe used to employ as many as 35 000 people. The number has since whittled down to 3 000. However, according to a research conducted by public policy analyst Butler Tambo, the local textile industry could be revived if government directed all its agencies to procure material locally. “Within its new export-led growth strategy for the textiles industry, government needs to ensure that it also promotes a domestic market for the local manufacturers subject to price and quality considerations,” Tambo observed in a research titled, Can these dry bones live? A case of the cotton to textiles value chain for Bulawayo industries and its revival.

 

He said government should make it compulsory for the public sector to source their raw materials (eg. fabric for police, army, prisons, and hospital uniforms) and finished goods from local textile and clothing manufacturers. Tambo said government should market and lead the cause to “Buy Zimbabwean Textiles”, with senior government officials being the “brand champions”. The current Buy Zimbabwe campaign, he said, was a noble initiative which needed to be broadened for the good of the textiles industry. He advocated an increase in the level of investment in domestic spinning and fabric manufacture, including diversification of processes and improved quality through acquisition of new equipment and technology. “There should be an improvement in levels of design and diversity availability of fabric produced, upgraded levels of plant modernisation and increased productivity levels of labour and efficiencies of machinery,” Tambo said. He said Zimbabwean textile firms should seek to operate like a horizontally integrated cluster, and tackle quality and market issues in the framework of that structure. “Then they can go a step further to integrate vertically, towards the retail sector”. Tambo said government should use World Trade Organisation (WTO) provisions to strategically protect the domestic textiles market and local industry from unfair competition and de-industrialisation. The WTO agreement has safeguard clauses that allow members to protect infant industries and ensure rural development in the event of market disturbances by imports.

Source: The Standard

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Crude oil futures tumble on weak Asian cues

Crude oil futures fell sharply by Rs. 129 to Rs. 2,569 per barrel today as speculators cut down their bets amid weak cues from the Asian markets after Dodha output talks failed. At the Multi Commodity Exchange, crude oil for delivery in current month was trading lower by Rs. 129, or 4.78 per cent, to Rs. 2,569 per barrel in 3,368 lots. On similar lines, crude for delivery in May was trading lower by Rs. 129, or 4.60 per cent, to Rs. 2,676 per barrel, in a business volume of 888 lots. Analysts said trading sentiment dampened after the world’s top producers failed to reach an agreement on capping output aimed at easing a global supply glut during a meeting in Doha. Hopes the world’s main producer cartel, OPEC and other major exporters like Russia would agree to freeze output has helped scrape oil prices off the 13-year lows they touched in February. But, crude tanked after top producer Saudi Arabia walked away from the talks, which many hoped would ease a huge surplus in world supplies, because of a boycott by its rival Iran. Oil tumbled in early Asian trade after the collapse of Sunday’s talk, with prices dropping as much as seven per cent in opening deals. At around 0100 GMT, US benchmark West Texas Intermediate for May delivery was down USD 2.11, or 5.23 per cent, from Friday’s close at USD 38.25 a barrel. Global benchmark Brent crude for May lost USD 2.11, or 5.23 per cent, from Friday’s close at USD 38.25. Globally, West Texas Intermediate (WTI) crude oil for May delivery was down USD 2.11 cents, or 5.23 per cent, from Friday’s close at USD 38.25 a barrel, global benchmark Brent crude for June lost USD 2.03, or 4.71 per cent, to USD 41.07 per barrel on the New York Mercantile Exchange.

Source: The Hindu Business Lines