INTERNATIONAL
Textile Raw Material Price 2016-04-21
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1059.22 |
USD/Ton |
0.88% |
4/21/2016 |
|
VSF |
2084.41 |
USD/Ton |
-0.15% |
4/21/2016 |
|
ASF |
1948.34 |
USD/Ton |
0% |
4/21/2016 |
|
Polyester POY |
1033.70 |
USD/Ton |
0.53% |
4/21/2016 |
|
Nylon FDY |
2350.38 |
USD/Ton |
0% |
4/21/2016 |
|
40D Spandex |
4484.27 |
USD/Ton |
0% |
4/21/2016 |
|
Nylon DTY |
2551.40 |
USD/Ton |
0% |
4/21/2016 |
|
Viscose Long Filament |
5766.15 |
USD/Ton |
0% |
4/21/2016 |
|
Polyester DTY |
1272.60 |
USD/Ton |
0.37% |
4/21/2016 |
|
Nylon POY |
2164.82 |
USD/Ton |
0% |
4/21/2016 |
|
Acrylic Top 3D |
2126.16 |
USD/Ton |
0% |
4/21/2016 |
|
Polyester FDY |
1136.53 |
USD/Ton |
-5.77% |
4/21/2016 |
|
30S Spun Rayon Yarn |
2860.66 |
USD/Ton |
0.54% |
4/21/2016 |
|
32S Polyester Yarn |
1700.93 |
USD/Ton |
-0.18% |
4/21/2016 |
|
45S T/C Yarn |
2474.08 |
USD/Ton |
0% |
4/21/2016 |
|
45S Polyester Yarn |
1840.10 |
USD/Ton |
0% |
4/21/2016 |
|
T/C Yarn 65/35 32S |
2133.89 |
USD/Ton |
0% |
4/21/2016 |
|
40S Rayon Yarn |
3015.29 |
USD/Ton |
0% |
4/21/2016 |
|
T/R Yarn 65/35 32S |
2273.06 |
USD/Ton |
-0.68% |
4/21/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
-0.11% |
4/21/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
4/21/2016 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
4/21/2016 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
4/21/2016 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
4/21/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15463USD dtd.21/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Polyester integrated chain margins were comparable to previous year and were supported by strength in PX (+3%) and MEG (+14%) deltas. In India, polyester demand remained stable with 5% growth in FY16, led by PET (+7%), according to Reliance Industries Limited. During 4Q FY16, RIL communiqué informed that PX witnessed strong demand supported by buoyant downstream PTA market. Two consecutive Asian Contract Price settlements for the first time since mid-2013 bolstered price sentiment. Tight supplies owing to plant outages and recovery in downstream demand helped to achieve higher delta of $ 391/MT in 4Q FY16, up 13% Q-o-Q. PTA markets strengthened on improved downstream demand and curtailed supply. PTA deltas improved marginally owing to firm downstream replenishment demand post Chinese lunar holidays. PTA delta increased by 13% Q-oQ to $ 104/MT. MEG market firmed up supported by improved ethylene prices, tight supply owing to unplanned outages. MEG imports into China declined resulting in low port tank inventory. This helped in strengthening of prices & delta.
Prices in 4Q FY16 improved by 4% Q-o-Q and margins over naphtha increased sharply by 29% to $ 409/MT. Polyester markets witnessed strong demand pull and gradual recovery in prices post Chinese lunar holidays. The bullish demand sentiment and low inventory encouraged polyester producers to increase operating rates. Operating rates of fibre and yarn plants were around 80% towards the end of the quarter. Steady demand helped realize healthy polyester yarn delta. PET markets remained healthy in 4Q FY16 strengthened by seasonal demand in major end user segments.
Despite stronger demand PET deltas declined marginally on a Q-o-Q basis due to well supplied market. Domestic polyester demand during 4Q FY16 increased by 7% Y-o-Y, led by growth in PET (+21%) demand. PET domestic demand was reinforced by seasonal demand and growing usage through newer end applications. Polyester filament demand was driven by high growth in FDY supported by downstream replenishment. RIL’s fibre intermediate production in 4Q FY16 increased by 42% Y-o-Y to 1.8 MMT on commissioning of new PTA unit at Dahej. Polyester production also witnessed growth of 30% Y-o-Y in 4Q FY16 to 0.59 MMT. This was due to startup of new PET unit at Dahej.
SOURCE: The Tecoya Trend
In China, prices of 40s compact sirospun yarn in Jiangsu fell US cents 2 a kg in the second week of April while 30s spun viscose in Xiaoshan rolled over. Offers for ring-spun 30s yarn also fell US cents 3 a kg. Viscose spun yarn prices were stable to weak in China, as prices at some mills were negotiable due to rising inventory. The fall largely followed the moderation in VSF prices hit week after 13 consecutive weeks of rise. Discussions for Xiaoshan origin ring spun yarn were down while Fujian origin sirospun 40s yarn was offered at previous week’s level. In India, 30s viscose spun yarn prices were raised by another INR1 a kg (up US cent 1) in Indore market. Prices in India were seen rising in line with the hike in VSF prices a couple of weeks ago. However, demand was hard to pick-up and it will be difficult for spinners to maintain offers in coming weeks. In Pakistan, spinners were unable to pass on the recent hike in VSF prices and had to roll over viscose yarn prices that week. 35s viscose yarn price rolled over on the week while 40s were stable in Karachi market.
SOURCE: Yarns&Fibers
In India, 30s (65/35) PV warp yarn prices in the second week of April gained INR2 a kg (up US cents 3) in Indore market. In Ludhiana, PC 30s (52/48) prices rolled over during the week. The recent hikes in PSF and VSF price in India, pushed PV prices up that week in Indore market while demand was still weak. Meanwhile cotton prices also gained substantially, but PC market was yet to react as prices rolled over, implying that they might rise in coming weeks. Spinners will tend to pass-on cost if demand remains firm. Blended yarn markets were subdued in China and Pakistan while they were active in India as raw material cost rose. In Qianqing, PC (65/35) 32s yarn prices were stable on the week while 45s PC combed yarn prices rolled after declining in the first week.
In Pakistan, the increased supplies coming from rise in operating rates at spinning mill has put some pressure over blended yarn market. 24 PC (52/48) carded yarn price remained unchanged on the Faisalabad market while 30s rolled over on the week. Despite the weakness in demand, suppliers were able to resist any decline in price offers, thanks to firm raw material cost.
SOURCE: Yarns&Fibers
India has lost 37 textile markets in the European Union (EU) to Pakistan over the last two years due to the latter’s inclusion in the Generalised System of Preferences (GSP). Under GSP, preferences are given to certain countries through tax exemption in developed markets to boost trade from that country. In 2014, the European Union included Pakistan to the list of GSP which allowed duty-free access to EU markets for textile exports. Consequently, exporters from Pakistan are now able to ship fabrics, made-ups and garments with no tariffs. Indian exporters, however, must pay 9.6% export duty for made–ups and garments, and 6.5–8% duty on fabric items, making exports from India more expensive. This duty anomaly, along with other issues, has resulted into a slow pick-up of garments and fabrics from India as compared to Pakistan. Data compiled by the Ministry of Textiles showed India’s textiles exports at around $40 billion in 2015-16, flat from the previous year, and a sharp decline from the target set for $47.5 billion at the beginning of the year. “It is a matter of deep concern that India has already lost market share to Pakistan in 19 textile and 18 clothing products (37 products in all) during calendar year 2014 due to the preferential access extended by the European Union to that country under the Generalised System of Preferences (GSP) plus scheme. If urgent action is not initiated to address the issue then India would lose its market share in many more items,” said R K Dalmia, chairman of industry body Cotton Textiles Export Promotion Council (Texprocil).
Meanwhile, even though the textile sector was at the forefront of creating employment in the country, the cotton textiles business is fast losing its market share worldwide. Drawing attention to a report of the Labour Bureau published recently, Dalmia stated that the textile industry was at the forefront of creating maximum employment in 2015 as compared to other sectors like auto and information technology. “More employment can be generated provided the government gives greater priority to the needs of the textile sector and recognizes its huge potential by giving timely impetus in terms of policy support. Some of the issues relating to exports such as cost of funds and adverse impact of preferential access given to competing countries need to be addressed on a war footing,” Dalmia told Business Standard. The solution to this problem, according to him, is if India and the European Union were to sign an free trade agreement which will help the textiles sector gain in terms of market access. However, Dalmia expressed concern over the pace of progress of negotiations on the FTA and said the government needs to revive talks under the Indo-EU FTA and conclude it at the earliest, if need be as a separate sectoral agreement.
SOURCE: The Business Standard
Taking the example of Apple Inc., which tackled poor wages and working conditions at the factories of its partner Foxconn in China after criticism from consumers among others, the labour conditions in Indian textile is also now on a wide check. The conditions of garment workers in South Asia have come under sharp scrutiny following the 2013 Rana Plaza disaster in Bangladesh, in which 1,135 workers were killed, many of them employed by suppliers to Western retailers. In India, legislation exists against bonded labour and child labour, but enforcement is weak. According to Mona Gupta, a senior official at India’s Apparel Export Promotion Council said that the industry has the most invisible supply chain. It is also mostly unorganised, which makes it harder to map and regulate. Domestic consumers should raise their voice. If they insist on buying only ethical products, that will bring pressure on manufacturers.
Estimates of the number of people trapped in forced labour vary. The International Labour Organisation says 21 million people are victims of forced labour globally, while the Global Slavery Index says there are 36 million slaves in the world, half of them in India. It is estimated by a certain human rights group that the domestic market accounts for more than 40 per cent of the industry’s revenue. Hundreds of small and medium-sized enterprises use forced labour and treat workers poorly, with abuses ranging from withheld salaries to debt bondage. India is among the largest manufacturers of textiles and apparel in the world, supplying to leading international brands. In and around the southern city of Bengaluru alone, there are some 1,200 garment factories making apparel for global brands.
According to industry experts,global retailers’ efforts to clean supply chains of slave labour and improve labour conditions will have little impact unless consumers in India, Asia’s third-largest economy, demand more ethically produced goods. Global apparel brands H&M, Inditex, C&A and PVH in January committed to improving the lives of workers in Bengaluru, after a report said labourers lived in appalling conditions and were denied decent wages and freedom of movement. However, campaigners say the seasonal nature of work in India’s textile industry, the advent of fast fashion and the competitiveness of the business have helped create conditions leading to the exploitation of workers.
In the view of Mona Gupta,there is child labour not just because of a supply-pull factor, but also a demand-push factor. The only way to resolve the issue is to sensitize everyone: businesses, workers and consumers. Dhananjay Tingal, executive director of Bachpan Bachao Andolan (Save the Childhood Movement) said that unethical practices in the supply chain must be the responsibility of corporations, but corporations first need to accept the problem exists .Corporations must be proactive and engage with the public, as well. The organization has freed more than 85,000 children from various industries.
SOURCE: Yarns&Fibers
The textile spinning sector, which is showing signs of pick up, perceives that any announcement regarding extension of export benefit for cotton and yarn would definitely lift the sector out of its present paradox. In a chat with BusinessLine , M Senthil Kumar, Chairman, Southern India Mills Association said the “bad days are over” for the spinning sector. The domestic market for yarn is better than export; but then unless the Government extends export benefit for cotton yarn under MIES and 3 per cent interest subvention, exports will not pick up. The Yarn Forward Rule under TPP (Trans Pacific Partnership) should also be pushed, he added.
To substantiate his observation on the cotton yarn market, the SIMA Chief made a comparison of the mid-month yarn price movement over the last 2 years. “40s K Hank and 40s K Cone were quoting Rs. 231/kg and Rs. 189/kg respectively around mid-October 2014; the rates slipped during the following months to Rs. 229/kg and Rs. 173/kg before showing signs of pick up around mid-May 2015, but the rate rally did not sustain for even one month. The rates dropped below October 2014 levels in the months that followed and mills carried huge inventory.” “But, from the start of this calendar year, the rate for the 40s K Cone and 40s C Hosiery has started to look up. There has been further improvement in yarn rates the past week and mills have been able to minimise losses. “Immediate release of TUF subsidy should give the mill sector some breather, as it will help them source cotton from the domestic market,” the SIMA chief said. Cotton prices too have started to rise in the last one month. Shankar 6, which was quoting Rs. 32,800 a candy around mid-March 2016, has at present risen to Rs. 34,100/ candy and DCH 32 to Rs. 49,600/candy from a month ago rate of Rs. 48,400/candy.
SOURCE: The Hindu Business Line
India’s merchandise exports dropped 15.9%to a five-year low of $261 billion in FY16 while imports contracted 15.3% to $380 billion, which helped narrow the trade deficit to $118.5 billion. Falling commodity prices and weak global demand have hit India’s shipments. The decline in foreign trade is not an India-specific phenomenon as emerging and global markets have seen exports decline because of a sustained fall in commodity prices—the IMF’s commodity price index collapsed 35% in the last one year —leading to a decline in the value of merchandise trade. Slowdown in the US, Europe and China led to a slump in consumer demand which affected exports. While the global slowdown is expected to continue for some time, India will have to increase its productivity and move up on the global value chain. Most fast growing economies over the last decade have seen a significant rise in the share of manufacturing exports. In India, resource-based and primary products form the bulk of exports. Moreover, countries that produce sophisticated goods report faster growth. It is not the amount of exports, but the sophistication of exports that matter as an IMF shows India lags in exports sophistication unlike other emerging nations, which have a competitive edge.
SOURCE: The Financial Express
World trade has been low. India’s exports and imports have dipped. Yet, the goods moved by the country’s major ports have surged in 2015-16. Consider this: The monthly cargo traffic at major ports has risen steadily from a low of 46.85 million tonnes in September 2015 to 52.22 million tonnes in January 2016, nudging up to the record 53.72 million tonnes moved in March 2015. The cargo handled between April 2015 and February 2016 was 27 million tonnes more than in the same period of FY 15. Seven of the 12 major ports reported traffic growth in January 2016.
Surprisingly, the growth has been in an environment of slowing external trade. Global merchandise trade fell from $1,521 billion in November 2014 to $1,124 billion in February 2016. India’s exports and imports too shrank in this period. Manish Sharma, Partner - Infrastructure, PwC, thinks the jump in cargo traffic in FY16 over the previous fiscal was due to a growth in bulk traffic at Kolkata, Haldia, Paradip, Mormugao and Kandla. “The key reasons for growth are an increase in coal shipments (coastal and imports), restart of iron ore exports (from mid-year) and increase in edible oil imports.” But, he says, “Five months is not a significant period to suggest a trend as seasonal changes and global externalities can have a big impact on such short time periods.” While there has been a definite improvement in the cargo handled, major ports continue to operate well below their capacity. The traffic handled between April 2015 and January 2016 was 522 million tonnes, while the ports have a capacity to handle 893 million tonnes.
Non-majors ports
Besides, over time, major ports have lost significant market share to the non-major ports. The total traffic handled by both the major and non-major ports for 2014-15 was 1,052 million tonnes. Lack of operational efficiencies and competitive pressures have eroded major ports’ market share from 75 per cent in 2001-02 to 55 per cent in 2014-15. “Unlike non-major ports, which have the freedom to charge tariff based on market forces, major ports’ tariff are regulated by the Tariff Authority of Major Ports (TAMP). The role of TAMP and issues related to tariff regulations have been questioned by industry, with many believing that present system penalises performance and efficiency,” says Sharma, explaining the challenges.
Will Sagarmala help?
In this backdrop, the Sagarmala port project recently unveiled by Prime Minister Narendra Modi recently appears well-timed. The Rs. 8-lakh crore investment envisaged under the Sagarmala project over the next couple of years is expected to increase port capacity and operational efficiencies of the major ports. An emphasis on the port sector and national waterways can bring down transportation costs significantly. The cost of transporting goods through waterways is a third of that by road and half by rail. A Balasubramanian, port management expert and lawyer, J Sagar Associates, says: “Sagarmala has an underlying strategy to provide missing connectivity to the major ports among others and aims to minimise cost and time for cargo evacuation.” But simultaneous improvement in both major and non-major ports is required to address the needs of the country, say experts. “The lack of timely berth availability for coastal vessels at major ports is a key issue impacting coastal shipping economics. With coastal traffic envisaged to increase manifold, there will be critical need to have presence of low-cost non-major ports along the coastline outside Customs notified areas to cater to coastal traffic,” says Sharma.
SOURCE: The Hindu Business Line
While the Central Government can play the role of a facilitator through formulation of policies, the real action lies in the states, said Ms Rita A Teaotia, Commerce Secretary, Ministry of Commerce & Industry. She further added that Central Government and State Governments need to work together in a manner which promotes growth & development with equity. She was speaking at the session on ‘Indian States – Working towards a Streamlined Services Ecosystem’ at the Global Exhibition on Services, organised by the Department of Commerce, Ministry of Commerce and Industry, Government of India, SEPC and CII at the India Expo Centre and Mart in Greater Noida. She urged the states to build on their policy & export strategies for services sector with a focus on standards i.e. quality assurance, timely delivery etc.
Lauding the efforts of Government of Kerala she said that focusing on education & skill development is key to development of services sector particularly in the health care sector. She summed up her expectations from the states on development of services sector by quoting honourable Prime Minister of India, Mr. Narendra Modi that Co-operative Competitive Federalism is a necessary step towards developing Indian economy as a whole. Speaking at the seminar, Mr Sudhanshu Pandey, Joint Secretary, Department of Commerce emphasized that in a federal structure like that of India it is important for Central Government and State Governments to move in tandem. He urged each and every state Government to focus on issues which are hindering the growth of services sector in their respective areas and called for better co-ordination amongst states to deal with cross-cutting issues.
Explaining the prevailing scenario he said that the states need to focus on evolving investor friendly regulations which are currently either absent or not facilitative thus creating an obstacle in the growth of services sector. “Adoption or emulation of Global Best Practices is the key to success & growth of services sector in India”, he said. Highlighting the various initiatives undertaken by the Government of Kerala to develop the services sector in the state, Mr J Harikrishnan, Chief Operating Officer, Kerala Academy for Skills Excellence, Government of Kerala, stated that skill development and education is the engine of economic growth. In his presentation, he also emphasized the importance of entering into partnerships with global companies which allows them to access the best practices for effective development of services sector. Mr Vivek Kr Dewangan, Commissioner and Secretary, Department of Commerce & Industries, Government of Manipur, highlighted the capabilities and strengths of the State of Manipur and described it as the Gateway to South-East Asia. He also invited members to visit the state and explore investment opportunities in the services sector. Dr Karan Avtar Singh, Additional Chief Secretary - Revenue & Rehabilitation Information & Public Relation and Investment Promotion, Government of Punjab focused on the importance of having a friendly regulatory structure for development of services sector. Earlier in the session, Mr Sudhanshu Vats, Chairman, CII National Committee on Media & Entertainment and Group CEO, Viacom18 Media Private Limited, said that the services sector in India has remained the most vibrant sector in terms of contribution to national and state incomes, trade flows, FDI inflows, and employment.
SOURCE: The Tecoya Trend
India on Friday said it has formally ratified the World Trade Organization’s (WTO) trade facilitation agreement, which aims at easing customs procedures to boost commerce. Commerce and industry minister Nirmala Sitharaman said the move would supplement India’s ongoing reforms to bring in simplification and enhanced transparency in cross-border trade in goods. India’s WTO ambassador Anjali Prasad has handed over the instrument of acceptance to WTO director-general Roberto Azevêdo. “I am very pleased to receive India’s instrument of ratification,” Azevêdo said. He said that India is one of the most dynamic economies in the world today and has become a top recipient of foreign investment. “Ratifying the WTO’s Trade Facilitation Agreement (TFA) will help India further boost economic growth by reducing trade costs and supporting its integration into the global economy,” he added.
Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area. The TFA will come into force once two-thirds of WTO members formally accept the agreement. India is the 76th WTO member to accept the TFA. The WTO in a statement said that on 18 March, India submitted its “Category A notification” to the WTO indicating which provisions of the TFA it intends to implement upon entry into force of the agreement. According to a WTO report, implementation of the TFA has the potential to increase global merchandise exports by up to $1 trillion per annum.
SOURCE: The Live Mint
April 26 is World Intellectual Property Day. For most Indians, intellectual property is a combination of Pierre-Joseph Proudhon and Robin Hood. The French anarchist famously declared property to be theft. Indians, few of whom put in the hard slog required to create intellectual property, readily agree, and are eager to do to the owners of intellectual property what Robin Hood did to the rich. Karl Marx, no fan of property himself, pronounced Proudhon to be confused: you can steal something only if it already belongs to someone, meaning property must precede theft and so cannot be theft. Indians are equally wrong to disrespect intellectual property. It is not enough to be formally compliant with global regimes on intellectual property rights. India is WTO compliant on the subject. And its patent law’s Section 3(d), requiring a novel form of a patent-protected molecule to show improved therapeutic efficacy for it to secure a separate patent, is a model for the rest of the world, even if multinational pharma hates it. The problem in pharma is confined to a trigger-happy attitude towards compulsory licensing that eschews room for negotiated price reductions backed up with bulk purchase commitments orchestrated by the government.
The emerging problem area is electronics, particularly telecom. Indian companies glibly disregard the need to license technologies, leading to legal disputes with patent holders. The larger problem is consistent failure by Indian firms to carry our research and development (R&D) that would create intellectual property. Trade, tariff and tax policies that discourage genuine domestic value addition and incentivise masquerading trade as manufacture, are to blame as well. For Make in India to be something more substantive than simple assembly of complex parts produced elsewhere, India has to focus on domestic R&D and creation of intellectual property. Overhaul of university funding and focus, legal clarity on and protection of intellectual property and rational trade and tariff policy — action is called for on multiple fronts.
SOURCE: The Economic Times
In the second quarter of 2016, the global financial scenario looks very different compared to the sombre start to the year. The first rate hike by the US Federal Reserve, in December 2015, created financial market volatility and capital outflows from emerging market (EM) economies, and steep losses in commodities and currencies. However, much has changed since and three triggers were mainly responsible for the current reversal. First, the likely tacit G-20 agreement forged in Shanghai has had implications for markets. The resultant coordinated action in March seems to have calmed waters effectively. This was further reinforced by the Fed's dovish commentary about slower rate hike prospects. Second, the situation in China has also improved and stabilised. Chinese headline forex reserves rose $10 billion to $3.2 trillion in March, the first such development since October 2015. Some of this could be due to changes in reserve valuation. However, it has helped in arresting yuan depreciation and the expectation of a one-off devaluation has reduced. Third, the steep decline in commodity prices has reversed. The broad commodity basket and crude oil prices rebounded by 20 per cent and 40 per cent, respectively, from their recent lows. This alleviated concerns of significant capital outflows from EM economies, as West Asia is a traditional bastion of capital supply to the world through petro-dollars. The policy-engineered buoyancy in sentiment has facilitated a rebound in capital inflows to EM economies and helped improve near-term outlook for the rupee. Since early March, India has received portfolio flows of around $4 billion and the outlook remains favourable in the near term. In past episodes of significant capital inflows, the Reserve Bank of India (RBI) has intervened to build reserves and curb forex market volatility. This trend should continue. Foreign currency non-resident (bank) accounts-related swaps are adequately covered by RBI's forward purchases and the central bank is tactically using the opportunity to mop dollars, improve forex reserves and provide rupee liquidity.
India's forex reserves have increased to $360 billion and there is scope to increase it to $400 billion. However, the challenges for the global economy are likely to persist. The International Monetary Fund reduced its global growth forecast to 3.2 per cent in 2016 from 3.4 per cent earlier. Subdued demand conditions are further reflected in deflation/disinflation worldwide. There is also a growing realisation that the unconventional policy measures of the past few years have had limited impact on global growth at best and a differentiated policy framework is warranted. However, changing the existing accommodative policy framework for most major central banks (except the US) might destabilise the fragile financial markets. Over the course of the year, global policy differentials will continue to play out, with the Fed resuming its rate tightening. This is likely to result in a stronger dollar. A cautious approach by the Fed is likely to be less disruptive for EM currencies. The rupee is likely to trade in the range of 66-67 versus the dollar in the near term. Over the medium term, it is likely to drift lower as policy makers seek to address overvaluation concern and support exports. At this juncture, importers and external commercial borrowers might consider it worthwhile to hedge currency risk.
SOURCE: The Business Standard
South Asian countries need to work together with a "strong business agenda" in services trade as the SAARC region has a huge potential, Commerce Secretary Rita Teaotia said. "SAARC countries of this region need to work together with a very strong business agenda to take advantage of our geographical proximity, cultural similarities and economic complementaries that we all have in this region," she said here. She was speaking at the valedictory session of the Global Exhibition on Services (GES) here. So far, the South Asian Association for Regional Cooperation (SAARC) member countries have focused on promoting tourism in the region. India is looking at widening the ambit "so that we make these opportunities in our region a reality and improve the level of prosperity and economic development in this region". There are other areas too that the government is working on, such as formulating standards and working with different departments and states to improve ecosystem to boost services trade.
While India is a major services exporter, its share in the global trade is less, she said, adding that the ministry is focusing on quality and standards and considering a series of steps to boost the sector's exports. "We have been keen on pushing this sector in our trade agreements. We have been looking at issues of competitiveness across sectors in the form of reforms and liberalisation and focusing on the trade policy," she said. "We are doing this through working closely with our fellow ministries, agencies in the sectors and regulators so that we have certain clear-cut sectors where the reform agenda is outlined," Teaotia said, adding that the government is according equal importance to legal, education, architecture, tourism and logistics. The aim of working with states is to create an enabling environment through policy space and regulatory framework to facilitate growth of services. "We are also looking at issues across states, the industry and ministries so that we are able to tap the full potential. In terms of our trade, we are looking at new geographies... we hope we will be able to focus on other languages (besides English) so that we are able to explore more geographies and some markets," the secretary said.
Speaking at the same event, Commerce and Industry Minister Nirmala Sitharaman said the challenge is to provide high-quality services at an affordable price. According to her, value for money is a key parameter for the services sector.
SOURCE: The Economic Times
Sri Lanka aims to strengthen its economy and move the country forward by entering into bilateral agreements with several countries including India and China, Prime Minister Ranil Wickremesinghe said here on Saturday. Wickremesinghe said the hour arrived for Sri Lanka to be once again the economic hub it was in the ancient world on the Silk Route, Xinhua reported. He further said that his government was in the final stages of formulating the Economic and Technology Cooperation Agreement (ETCA) with India and were also reviewing a Free Trade Agreement (FTA) with China. Additionally, his government was also looking at entering into such partnerships with Singapore, Turkey, USA and Pakistan. “Our end goal is the creation and sustenance of a dynamic and thriving economic hub that will generate thousands of jobs,” he said.
Sri Lanka is also planning to regain the Generalised System of Preference (GSP) Plus trade concessions from the EU after it was withdrawn from Sri Lanka as the island nation failed to meet certain conditions on human rights issues in 2010 when Mahinda Rajapakse was president. The Sri Lankan government was currently in discussions with the EU and are confident to regain the trade concessions this year. Meanwhile Wickremesinghe also welcomed the decision by the EU this week to lift a ban on Sri Lanka’s fish exports which he said is a significant step towards reaping economic benefits for Sri Lanka and will fuel the growth potential of the fishing industry in the country. The European Commission decided to lift of the ban on fisheries exports from Sri Lanka to the European Union, stating that Sri Lanka now had a robust legal and policy framework to fight illegal fishing activities. The Sri Lankan government said that it was facing a loss of over $100 million per year because of the ban.
SOURCE: The Financial Express
China has complimented India for “doing a good job” in maintaining an impressive growth rate despite a global slowdown and is keen on working together to push for reforms in the international financial system to offset the inherent weaknesses. Stating that his country was keen to ramp up investments in India, Chinese Foreign Minister Wang Yi said the two major emerging economies can contribute significantly in helping the world economy by keeping up their growth momentum. “First of all, we both need to grow our own national economies. On this front, we want to commend India for doing a good job in promoting economic growth,” Wang told PTI here. Wang, who was here to attend Foreign Ministers’ meeting of RIC (Russia, India, China) grouping, further said reform of global financial system is key to protect the interest of developing countries and for recovery of the world economy. “We need to join hands in playing a positive role in improving the global economic and financial governance because that will help protect the interests of the developing countries. It will also help the world economy to embark on a path of strong recovery,” Wang said. He said China was “optimistic” about the prospect of deeper relationship between the two countries. “Of course, we will be happy to invest more in India. There is no doubt about it,” he added.
After witnessing nearly three decades of close to double-digit growth, China has seen a decline in its growth rate, making room for India to replace it as the fastest-growing major economy of the world. However, Chinese economy remains much bigger than that of India in terms of the overall size. China clocked 6.9 per cent growth in 2015 when India is estimated to have grown by 7.3 per cent. The IMF has projected Indian economy to grow at 7.5 per cent in 2016 and 2017. The Chinese Foreign Minister also said his government was “looking forward” to President Pranab Mukherjee’s upcoming visit to China.
SOURCE: The Financial Express
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$ 41.94 per barrel (bbl) on 22.04.2016. This was lower than the price of US$ 42.35 per bbl on previous publishing day of 21.04.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2788.89 per bbl on 22.04.2016 as compared to Rs 2807.37 per bbl on 21.04.2016. Rupee closed weaker at Rs 66.49 per US$ on 22.04.2016 as against Rs 66.29 per US$ on 21.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 22, 2016 (Previous trading day i.e. 21.04.2016) |
Pricing Fortnight for 16.04.2016 (30 Mar to 12 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
41.94 (42.35) |
36.98 |
|
(Rs/bbl |
2788.89 (2807.37) |
2455.84 |
|
|
Exchange Rate |
(Rs/$) |
66.49 (66.29) |
66.41 |
SOURCE: PIB
The 12th round of negotiation for a Regional Comprehensive Economic Partnership (RCEP), started from this Friday at Perth, Australia, is expected to pit India further against developed countries like Australia, Japan and South Korea. RCEP is a proposed free trade agreement (FTA) between the 10-member Association of South East Asian Nations (Asean) bloc and the six states with which they have existing FTAs - Australia, China, India, Japan, South Korea and New Zealand. Negotiations formally began in November 2012 at the Asean summit in Cambodia. The said differences are over reduction in tariff rates on goods and market access in agriculture and services. India has gradually professed to more liberalisation in these segments but the developed countries feel our tariff rates are too high, a source in the commerce ministry said. The Indian delegation to the negotiations is led by minister of commerce and industry Nirmala Sitharaman. India has offered to allow Asean countries, with which it already has an FTA, the most market access, eliminating tariffs on 80 per cent of all items. For Japan and South Korea, it has offered to open 65 per cent of its product space. Australia, New Zealand and China get less preference. The government is proposing to eliminate duties on only 42.5 per cent of products, said the source. This was after Australia agreed to reduce tariffs by 80 per cent and New Zealand by 65 per cent.
Under an FTA, tariffs on most products traded between countries are either eliminated or reduced sharply, to a zero-duty regime, in phases. The commerce ministry says in our defence: "India was one of the first countries to have submitted its offers on goods, services and investments, in line with the RCEP ministerial mandate, even before the earlier round." The government also noted India's initial offer had been acceptable to most members, whereas other countries are still to offer better terms. The negotiations were earlier slated to conclude by end-2015. It could not meet the deadline but negotiations have intensified after signing of the Trans Pacific Partnership between major economies like America, Japan and Australia this February. RCEP also aims to cover several areas such as goods, services, investment, economic and technical cooperation, competition and intellectual property rights. However, support for it remains mixed among all the stakeholders. Those who're for it say the Asean economies are growing, unlike the TPP ones. Also, that India shouldn't be left behind while the plurilateral system of the World Trade Organization slowly gives way to regional trade agreements. However, others feel RCEP leaves a lot of underlying issues hanging, as is evident from the agreement draft which has eight chapters compared to the much more comprehensive TPP's 30.
The business community is wondering how difficult it will be to tap into the Asean markets, where China already has a big presence. India's total exports to Asean was $31 billion in 2014-15, the last complete year for which data is available. This was 10.2 per cent of the country's total exports. Many are also worried on how India will manage to secure business amidst intense competition with foreign companies. The government has repeatedly called for better competitiveness, warning that the pharmaceutical and textile sectors, for instance, will be affected. An official from the Confederation of Indian Industry said the business community needs to be convinced on why the government was going forward with RCEP when repeated calls were being made to review India's existing FTAs. "Domestic industry feels our existing FTAs have benefited partner countries more than us," he said, requesting anonymity. Trade unions, farmer and other bodies are also worried over how small & medium enterprises, as well as the agriculture and dairy sectors, would cope; Australia, New Zealand and Japan have a big presence in these. In fact, these nations have continued to ask for deeper access to India's agricultural markets, while, goes the complaint, continuing to subsidise their own farmers.
SOURCE: The Business Standard
National Trade Union Federation (NTUF) has asked the government to ensure the rights of textile workers. Addressing a press conference on Sunday in connection with third anniversary of Bangladesh Rana Plaza tragedy, the NTUF leaders said the government is not taking any steps to improve the plight of textile workers. Three years ago on April 24, 1,129 workers had died and 2,515 others injured when the building of Rana Plaza collapsed in Dhaka. "A same tragedy had also happened in Karachi on September 11, 2011, in Ali Enterprises where 260 workers were burnt alive, which shows that the local and international labour laws are being deliberately and criminally violated in factories and mills, especially textile and garment factories," the observed. "Regretfully, the government departments are also involved in this conspiracy. In Bangladesh, Pakistan and other countries millions of workers are engaged in textile and garment industry, but in these countries, especially in Pakistan and Bangladesh, these workers are deprived of their basic rights guaranteed to them under the law and constitution," they remarked.
They said generally many big factories have been working illegally since long and they are not bothered to get them registered. "The process of labour inspection has been suspended by the government due to the pressure of factory owners. Mostly these incidents have occurred in the garment factories that make goods for big international brands. These international brands are ignoring all local and international safety standards and violating local and international laws to maximise their profit exploiting the cheap local labour. This is why the millions of workers in textile and garment sector have been facing a brutal exploitation," they lamented. "Due to their cheap wages local and international capitalists and companies are earning billions of dollars annually; however, they are not taking any steps for workplace health and safety, decent wages and social security for workers." They alleged the governments, factory owners and the international brands are directly responsible for such tragedies, as due to their negligence thousands of workers have to lose their lives. "To cope with this situation it is necessary that international and local labours laws must be implemented and the international safety standards also implemented to save the lives of workers," they urged. They said it is necessary to Referring to the upcoming international conference on textile and garments in Islamabad to be held on May 24, the union leaders said, "For making the conference successful, it is necessary that the victims of Rana Plaza and Ali Enterprises tragedies are doled out justice." They said the heirs of the Ali Enterprises martyrs are still running from pillar to post to get justice. "Three years have passed but the government, factory owners and international brands have failed to meet the demands of victims of Ali Enterprises tragedy. It is a pity that the related international organisations and movements have failed to compensate the victims of Ali Enterprises tragedy as per law." "For realisation of the rights of workers, the system of labour inspection should be revived and made even more effective. The promises about following human and labour rights under the GSP+ should be fulfilled," they demanded. They said that the labour organisations should be included in the process of issuing audit certificates of local and international social audit companies and the malpractice to use these certificates as alternate to the labour inspection should be stopped. "Illegal system of contract labour should be ended and appointment letters should be issued to workers at the time of recruitment," they added. Those spoke included NTUF President Rafiq Baloch, Deputy General Secretary Nasir Mansoor, Gul Rahman and others. Later, a protest demo was also held before the KPC to express solidarity with the "martyrs" of Rana Plaza tragedy.
SOURCE: The Daily Times
The Pakistan textile industry has been facing troubles due to huge liquidity outstanding in sales tax refund, customs rebate and drawback on local taxes and levies claims. In the wake of this downslide the value-added garment sector expect the Government to grant zero-rating status to five export-oriented sectors to boost the country’s exports. Chairman Jawed Bilwani of Pakistan Apparel Forum (PAF) stated that the government is not fulfilling its promise of granting the sales tax zero rating to five export sectors. The decision not to grant zero rating to the five export sectors shall be tantamount to crippling and ruining the export sectors amid stiff competition from regional competing countries. Bilwani appealed the Prime Minister that the zero rating – ‘No Payment No Refund’ system for exports should be implemented forthwith as per his commitment made with the exporters because collecting sales tax and then refunding was not only an exercise in futility but involves precious time of staff of Federal Board of Revenue (FBR) and also burdens the foreign exchange earning exporters in unnecessary hurdles. PAF chief said despite several exhibitions and tall claims of massive visits by foreign buyers, unfortunately no increase in exports has been witnessed. He requested the prime minister to review such futile exercises and ensure result-oriented measures.
According to him, the exports have declined 12.92 percent to $15.606 billion in the first nine months of the current fiscal year while the exports of regional competitors have increased. He added that despite tall claims of releasing held-up sales tax refund claims of exporters, only few payments below Rs 5 million against those refund payment orders (RPOs) issued till August, 2015, had been paid to favored businessmen. For exporters with claims of over Rs 5 million, initially they had been promised payments in the form of bonds and later payments in cheque but no payments had been made to them as yet, despite the fact that RPOs against the same were issued 19- month back.
SOURCE: Yarns&Fibers
A trade deal between Britain and the United States could take five to 10 years to negotiate if Britain votes to leave the European Union at a June 23 referendum, U.S. President Barack Obama told the BBC in an interview broadcast. "It could be five years from now, 10 years from now before we're actually able to get something done," Obama told the British broadcaster in an excerpt posted online. Obama, who is in the last nine months of his presidential term, has spent the last three days in London urging Britons to remain part of the EU as a divided British public prepares to vote on whether to remain a member of the 28-country bloc. He told the BBC that Britain would not get preferential treatment over the EU when it came to negotiating a new trade deal. "The UK would not be able negotiate something with the United States faster than the EU," Obama said. "We wouldn't abandon our efforts to negotiate a trade deal with our largest trading partner, the European market." Obama's visit and decision to intervene in the EU debate has angered the Eurosceptic "Out" campaign, which has repeatedly argued that Britain could easily negotiate deals and get better terms outside the EU.
SOURCE: The Business Standard
A new era of cordial relations between the two countries Iran and Pakistan has begun following Iranian President Hassan Rouhani's visit to Pakistan. Iranian Ambassador to Pakistan Mehdi Honardoost said that lack of trade information was the major reason behind low Pakistan-Iran trade volumes. Iranian businessmen were keen to enhance relations with their Pakistani counterparts. They should come forward and start joint ventures. The Iranian ambassador speaking at Lahore Chamber of Commerce and Industry (LCCI) said that Pakistan-Iran Gas Pipeline project could be completed in short span of time. This project must be completed as energy is necessary for all trade and economic activities. LCCI Senior Vice President Almas Hyder said that Iranian power companies could provide $1.5 billion worth 5,000 mw electricity to Pakistan for which the two governments need to negotiate a deal. He further added that after lifting of sanction, a trade delegation of the chamber visited Iran to explore cooperation in textile, fruit, vegetables and meat sectors. Two trade delegations would also visit Iran in May to further seek trade and investment opportunities.
SOURCE: Yarns&Fibers
