The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 26 APRIL, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-04-25

Item

Price

Unit

Fluctuation

Date

PSF

1046.18

USD/Ton

-1.16%

4/25/2016

VSF

2064.67

USD/Ton

-0.45%

4/25/2016

ASF

1938.51

USD/Ton

0%

4/25/2016

Polyester POY

1046.18

USD/Ton

1.12%

4/25/2016

Nylon FDY

2338.52

USD/Ton

0%

4/25/2016

40D Spandex

4461.65

USD/Ton

0%

4/25/2016

Nylon DTY

1276.96

USD/Ton

0.61%

4/25/2016

Viscose Long Filament

2153.90

USD/Ton

0%

4/25/2016

Polyester DTY

2115.44

USD/Ton

0%

4/25/2016

Nylon POY

1157.72

USD/Ton

1.69%

4/25/2016

Acrylic Top 3D

2538.53

USD/Ton

0%

4/25/2016

Polyester FDY

5737.07

USD/Ton

0%

4/25/2016

30S Spun Rayon Yarn

2846.23

USD/Ton

0%

4/25/2016

32S Polyester Yarn

1707.74

USD/Ton

0.45%

4/25/2016

45S T/C Yarn

2461.60

USD/Ton

0%

4/25/2016

45S Polyester Yarn

2984.69

USD/Ton

-0.51%

4/25/2016

T/C Yarn 65/35 32S

2261.60

USD/Ton

0%

4/25/2016

40S Rayon Yarn

1830.82

USD/Ton

0%

4/25/2016

T/R Yarn 65/35 32S

2123.13

USD/Ton

0%

4/25/2016

10S Denim Fabric

1.37

USD/Meter

-0.11%

4/25/2016

32S Twill Fabric

0.82

USD/Meter

0%

4/25/2016

40S Combed Poplin

1.17

USD/Meter

0%

4/25/2016

30S Rayon Fabric

0.69

USD/Meter

0%

4/25/2016

45S T/C Fabric

0.68

USD/Meter

0%

4/25/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15385 USD dtd. 25/04/2016)

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

 

Price slump, slowdown in European Union, China drag down exports

India has experienced negative growth in exports due to various factors like stagnation in EU countries; slowdown in China and fall in commodity and crude oil prices, Parliament was informed. Some of the key reasons for negative export growth in the recent period include fall in global demand and commodity prices, impacting terms of trade for commodity exporters, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. Fall in crude oil prices has resulted in consequent decline in petroleum products’ prices as well as export realisations, which are major items of export for India, she said. “EU countries that account for nearly 16 per cent of India’s export, are facing stagnation. China is also experiencing a slowdown. The recovery in the US has been moderate and uncertain in terms of sustainability,” she said. She added there is also a general slowdown in the world GDP growth and hence in growth of world trade. “Some increase in trade barriers has also been reported,” the minister said adding steps have been taken to address the trade deficit through promotion of exports.

Declining for 16th straight month in March, exports contracted by 5.47 per cent to USD 22.71 billion. Replying to another question, she said the government continues to engage pro-actively with SAARC countries to strengthen trade and economic relations. “Issues impacting bilateral trade, raised by these countries, are taken up for an early resolution. Bilateral and multilateral trade discussions are held with these countries from time to time, to explore mechanisms for enhancement of cross border trade,” she added. The minister also informed that SEZs in Gujarat have witnessed highest exports during April-December 2015. It stood at Rs 1,06,569 crore followed by Tamil Nadu (Rs 55,479 crore) and Maharashtra (Rs 51,777 crore). Total exports from SEZs during the period aggregated at Rs 3, 41,684.75 crore. During the last three years and as on April 8, 27 Special Economic Zones (SEZs) have been notified over an area of 3591.56 hectares, she said replying to another question.

SOURCE: The Financial Express

Back to top

Government seeks industry's views to improve ease of doing business

The government is seeking feedback from industry on the hurdles they face when dealing with regulatory bodies, a move aimed at making it easier to do business in the country. "We are working towards improving our rankings on the World Bank's ease of doing business index, and also taking it a step further to address industry concerns which they cannot convey directly to these bodies," a senior government official, who did not wish to be named, said. India was ranked 130 out 189 economies in the 'Doing Business' report for 2016, up from 142 in 2015. It has set a target of breaking into the top 100 next year and the top 50 within the next three years. The Department of Industrial Policy and Promotion (DIPP) wants to identify all points of public interface at regulatory bodies — such as the Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority ( Irda) and Food Safety and Standards Authority of India ( Fssai) — and ministries and thereafter reduce them to a bare minimum. This would require digitisation and simplification of processes.

Industry bodies such as Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci), which have often raised issues regarding regulatory bodies, have been involved in this process. "There is plenty of scope of improvement, but one will have to deep-dive to understand issues specific to each body," said Jaijit Bhattacharya, partner-government services and infrastructure, KPMG India. "Changes have to be made without compromising with the regulation itself." After collating the responses, the DIPP will discuss the issues with regulators and suggest ways of making improvements. "Regulators are autonomous bodies, but we are confident that when suggestions would come from the top-most government authority, they would lead to some on-ground action," the official quoted earlier said.

India's market regulator Sebi was ranked higher than countries including the US, Germany and Japan for protection of minority investors in last year's Doing Business Report of the World Bank. In order to make it easier to do business in India, the government plans to have single-window clearance for food imports, paperless income tax assessment, and reduce compliances, among other initiatives. If pending legislations such as the goods and service tax and bankruptcy bills are passed in the budget session, they will add to improving the business environment of the country. Last year, the government introduced ease of doing business ranking for all states to set in motion long-pending reforms such as single-window clearance, construction permits, and simplifying applications at the state level.

SOURCE: The Economic Times

Back to top

India to clock 8% GDP growth in FY17

The PHD Chamber of Commerce has said that India's economy could surpass the Reserve Bank of India's growth projection of 7.6 per cent for 2016-17. It said India's GDP could touch nearly 8 per cent on the back of robust private consumption, which has benefited from lower energy prices and higher real incomes, PTI has reported. “Going ahead, growth in India is projected to notch up to 8 per cent in 2016-17. Growth will continue to be driven by private consumption, which has benefited from lower energy prices and higher real incomes. “Further, with the revival of sentiment and pick-up in industrial activity, a recovery of private investment is expected to strengthen growth in the coming times,” it said. According to its estimate, India's share in world GDP has doubled from 1.43 per cent in 2000 to 2.86 per cent in 2015. “India's GDP stood at $477 billion in 2000 and increased to $2,091 billion in the year 2015, showing more than four-fold increase over a period of 15 years,” PHD Chamber President Mahesh Gupta said. The BRICS nations account for about 42 per cent of the world's population, a quarter of the world's land area and a combined GDP of above $16 trillion. “The BRICS economies (Brazil, Russia, India, China and South Africa) also contributed a significant share in the world GDP which increased from 8.27 per cent in 2000 to 22.53 per cent in 2015,” Gupta said.

SOURCE: Fibre2fashion

Back to top

FDI inflows hit record $51 bn in April-February last fiscal

India received $51 billion in foreign direct investment (FDI), the highest-ever FDI inflow in a fiscal, during April-February FY16, according to Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek. Mr. Abhishek said the increased FDI inflow was the result of the government’s efforts to improve the ease of doing business and initiatives such as ‘Make In India.’ “The complex procedures and delays, which were the bane of our system for the last so many decades, are now being gradually dismantled,” he said. According to data from the DIPP,the previous highest FDI inflow was in FY12 when the country received $46.55 billion, which was a 34 per cent increase over $34.8 billion it got in FY11 However, India recorded its largest-ever percentage increase in FDI when it received $22.8 billion in FY07, representing a 155 per cent increase over the $8.9 billion in FY06. This includes equity, re-invested earnings and other capital.

While the DIPP Secretary gave the numbers till February 2016, the DIPP has officially released data only till December 2015. India received FDI equity (excluding the re-invested earnings and other capital) worth $29.4 billion during April-December period in FY16. Of this, $10.98 billion was from Singapore and $6.1 billion from Mauritius. Computer software and hardware sectors received $5.3 billion while services sector accounted for $4.2 billion. Automobile and telecom sectors received $1.7 billion and $1.07 billion respectively. Region-wise, the National Capital Territory (comprising Delhi, part of Uttar Pradesh and Haryana) received $10.6 billion while Mumbai got $5.2 billion. Meanwhile, Commerce and Industry Minister Nirmala Sitharaman, in a written reply in Lok Sabha on Monday, said, “Due to the continuous reforms and initiatives being undertaken by the government, the FDI equity inflow has recorded a growth of 44 per cent in its 21 months tenure (June 2014 to Feb. 2016) from $43.87 billion to $63.16 billion over the preceding period of 21 months (Sept. 2012 to May, 2014).”

Though the government plays an active role in investment promotion, “the investment decisions of investors are based on the macro-economic policy framework, investment climate in the host country, investment policies of the trans-national corporations and other commercial considerations,” she said. The minister said to boost the investment environment and bring in foreign investments, the government had brought in FDI-related reforms and liberalisation touching upon 15 major sectors of the economy by putting more FDI proposals in the automatic route.

SOURCE: The Hindu

Back to top

Blanket ban on Chinese imports not possible: Sitharaman

Questioned by some Lok Sabha members on the lack of curbs on imports from China, which have been rising, Commerce Minister Nirmala Sitharaman on Monday said that while imports of several “sub-standard” products had been stopped, “a blanket ban” was not possible. “Just because I don’t like a country, I cannot ban all the goods from that country,” she said during Question Hour, adding that, “a complete ban on import from any country is not possible under WTO (World Trade Organization) rules just because we have problems, diplomatically, territorially or militarily.” The Minister was replying to queries from BJP member Bhola Singh and Biju Janata Dal’s Tathagata Satpathy, who wanted to know what the Centre was doing to prevent China from “smashing our MSME sector”.

Asking the government why it was “going soft” on China, Singh pointed out that India’s trade deficit with the neighbouring country had widened considerably, adding that the “economic face” of the country had to be different from the cultural one of friendliness. Satpathy said that a “blanket ban” on Chinese products was the only answer to save medium, small, and micro enterprises (MSMEs) from being “trampled upon.”

Bridging trade deficit

Sitharaman, while expressing concern over the trade deficit, said several sector-specific actions had been taken to ensure import of only quality goods from China, citing the ban on milk and milk products, toys and certain mobile phones and steel products that did not adhere to safety standards. She said India’s trade deficit with China stood at $48.68 billion in 2015-16 (April-February) and total bilateral trade for the period stood at $65.16 billion. “The widening trade deficit with China can be attributed primarily to the fact that Chinese exports to India (are mainly) manufactured items to meet the demand from fast-expanding sectors like telecom and power, while India’s exports to China are primarily intermediate products,” she added.

SOURCE: The Hindu Business Line

Back to top

India proposes BRICS portal to address trade issues

The next time any of the BRICS countries tweaks its import or export licences, imposes anti-dumping duty or changes the criteria for product registration, the other members of the grouping of emerging economies are likely to learn about the development instantly. This could be possible if a proposal floated by India to create a database of various barriers to trade other than those related to tariffs among Brazil, Russia, India, China and South Africa gets accepted. India, under its presidency of BRICS, wants to strengthen trade across the fivenation grouping, besides globalising its ease of doing business drive as part of which it is planning a dedicated portal to address trade-related issues among the partners through a single window. The commerce ministry has proposed to create a database of various non-tariff measures comprising information on standards, packaging and labelling requirements, sanitary and phytosanitary measures, technical barriers to trade, preferential tariffs, rules of origin, government incentives and promotional schemes, and trade policy. "We want traders, especially the small and medium ones, to get the regulatory framework in one place. The BRICS specific database is good for standardisation and exchange of good practices," said a commerce department official, who did not wish to be identified.

BRICS brings together economies comprising 43 per cent of the world population, accounting for 37 per cent of the world GDP and 17 per cent share in the global trade. Intra-BRICS trade increased more than tenfold between 2002 and 2012, and is projected at $6.14 trillion in 2015. At present, the government has a database of 30,000 Indian exporters and importers of various products, but Ajay Sahai, director general of the Federation of Indian Export Organisations, which maintains the database, said that the data of BRICS nations can also be stored. The portal could also be useful in listing trade opportunities across borders, officials said.

Besides improving the development of products for market access, the portal is expected to provide greater understanding and appreciation of BRICS nations and give them greater visibility. It will also make available comprehensive regulatory and business information through a single window in a user-friendly manner to stakeholders. As per a suggestion, the BRICS portal could be expanded to a single-window system wherein information created in an exporting country could be reused for facilitation in the importing country.

SOURCE: The Economic Times

Back to top

China eyes more investment in India

Chinese Foreign Minister Wang Yi has commended Indian's economic growth said that his country was keen to boost investments in India by which the two countries 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 in Moscow. Wang, who was in Moscow to attend Foreign Ministers' meeting of RIC (Russia, India, China) grouping, also said reform of the global financial system is key to protect the interest of developing countries and boost the recovery of the global 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 been hit by a slowdown, making way for India to replace it as the fastest-growing major economy of the world. But despite the slowdown, the Chinese economy remains much bigger than that of India in terms of the overall size. China clocked 6.9 per cent growth in 2015 while 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.

SOURCE: Fibre2fashion

Back to top

US Special 301 inconsistent with WTO rules, says India

India has said that the US Special 301 report, which tries to put pressure on countries to enhance their intellectual property rights (IPRs) legislation, violated World Trade Organization (WTO) rules. “Under the WTO regime, any dispute between two countries needs to be referred to the Dispute Settlement Body and unilateral actions are not tenable. Special 301, which is an extra territorial application of the domestic law of a country, is inconsistent with the established norms of the WTO,” Commerce & Industry Minister Nirmala Sitharaman said in a written reply in the Lok Sabha on Monday. The Minister said that India continued to be placed on the ‘priority watch list’ of the Special 301 report. Listed as a ‘priority watch’ country means that the US government believes that a country’s IP laws are not adequate to protect the interests of its investors. A country can next be classified as a ‘priority foreign country’, following which the US could impose economic sanctions against it. “The government is committed to fully utilising all the flexibilities provided under the TRIPS agreement to protect the domestic pharmaceutical sector from pressure exerted by foreign countries,” Sitharaman said.

SOURCE: The Hindu Business Line

Back to top

Nigeria says committed to reviving textile industry

Aisha Abubakar, the Minister of State for Industry, Trade and Investment, expressed this commitment during a facility tour of three textile companies in Ikorodu area of Lagos. She said government would employ a systemic approach that would cut across all sectors of the economy to make the solution sustainable. According to her, the ministry would formulate favorable policies and engage the Nigerian Customs Service over indiscriminate dumping of foreign textiles and garments in the country. She advised the manufacturers to improve on their designs by making them more appealing to the younger generation, adding that this would help them to be competitive. Abubakar said the government was concerned about the challenges of foreign exchange and was deliberating on finding a lasting solution to it for the development of the economy. The minister told her audience that plans to diversify the economy is not an easy thing, manufacturers need to exercise more patience in the area of foreign exchange. Ping-Man Chun, Chief Executive Officer, Nichemtex Ltd, urged the government to assist in combating smuggling and counterfeiting of products. Enditem

SOURCE: The News Ghana

Back to top

National Trade Union Federation (NTUF) demands sweeping reforms in Pak textile industry

Deputy General Secretary National Trade Union Federation (NTUF) Pakistan, Nasir Mansoor has accused the government of not taking any step to end modern day slavery-like conditions for millions of textile and garment workers in Pakistan. His comment came at a press conference in Karachi on Sunday on the third anniversary of the Rana Plaza tragedy in Bangladesh where over 1100 garment factory workers lost their lives. He expressed these views at a press conference at Karachi Press Club to mark third anniversary of Rana Plaza Bangladesh tragedy. Mansoor said that a similar tragedy also happened in Ali Enterprises Karachi on September 11, 2011 when 260 textile workers were burnt alive. He said that such tragic incidents showed that the local and international labor laws were being deliberately and criminally violated in factories and mills, especially textile and garments factories. He alleged that the government departments were also involved in that conspiracy. "In Bangladesh, Pakistan and other countries, millions of workers are engaged in textile and garment industry, but in these countries, especially Pakistan and Bangladesh, the workers are deprived of their basic rights guaranteed to them under the law and constitution," Mansoor said.

NTUF President Rafiq Baloch said that many big factories had been working illegally for a long time and they have not bothered to get register themselves. He claimed that said the process of labour inspection was suspended by the government due to the pressure from factory owners. "Due to this, industrial incidents are rising sharply. Mostly these incidents occurred in the garment factories that make goods for big international brands," he said. The international brands were ignoring all local and international safety standards and violating local and international laws to maximise their profit, he added. Baloch welcomed the development in Bangladesh under which factory owners and the international companies had agreed to give due rights to workers. The NTUF officials demanded that the international brands should also ink an agreement with Pakistan to ensure rights of workers on the pattern of Bangladesh. They urged the international brands should compulsorily accept the international labour standards and the system of labour inspection should be revived. They demanded human and labour rights under the GSP+ should be fulfilled. The NTUF also demanded that heirs of those who died in the Ali Enterprises tragedy should be given lifetime pension cards, group insurance and gratuity.

SOURCE: Fibre2fashion

Back to top

Botswana companies fail to benefit from AGOA

If America's Africa Growth and Opportunity Act (AGOA) was meant to be a silver bullet for African economies, it hasn't worked for Botswana. AGOA which came into force in 2000, was extended for another 10 years last year. Only two out of the 13 Botswana companies that signed to take up preferential trade opportunities with the US through the AGOA at its inception have prospered through the trade deal. Botswana's Investment, Trade and Industry Minister Vincent Seretse said the majority of local businesses had failed to reap AGOA benefits in the last 15 years due to lack of diversity in export products, the Africa News Agency has reported. He was addressing delegates at a US Embassy-sponsored seminar aimed at appraising local businesses on new amendments to the AGOA legislation, Seretse said the two companies that had consistently benefited from AGOA were in the textile and clothing sectors, while 11 others which were part of the inaugural programme had fallen out due to lack of diversification and the sale of products that were not competitive enough to sustain their presence in international markets. The Minister said the inability of local companies to benefit from the preferential trade agreement had led to a trade imbalance which had ballooned to 38 million pula ($3,5 million) between 2004 and 2014. “I support the development of a new strategy (to improve bilateral trade) because Botswana has not been able to fully benefit from AGOA in the past 15 years,” Seretse said. The new government initiatives to improve national export capabilities include the National Exports Strategy, Industrial Development, the Economic Diversification Drive and the Private Sector Development Programme.

However, the Botswana Exporters and Manufactures Association (BEMA) has called on the government to introduce incentives like duty drawbacks, rebates on sourcing of raw materials for the 6,400 AGOA product lines. Although Botswana companies are eligible to supply goods from eight sub-sectors that include agriculture, machinery, minerals, metals, forestry, transport and electronic products, only two companies in the textile and garment manufacturing industry remained active participants in the AGOA programme. Most of the local companies fell out of AGOA citing high transport and logistics costs incurred in delivering products to the market, inadequate capacity and stringent US regulations, especially on sanitary and agricultural products, the report said.

SOURCE: Fibre2fashion

Back to top

Intertek opens UK’s largest textile testing lab

Testing and inspection specialist Intertek has opened what is thought to be the UK's largest one-stop textile testing laboratory. The 30-year old site in Leigh near Manchester has been renovated and expanded to incorporate under one roof the UK's largest textile flammability laboratory, a new chemical laboratory, as well as upgraded textile testing capabilities. The facility offers manufacturers and retailers quality and performance assurance, testing, inspection, and certification services including flammability, fire analysis and chemical testing – on a broad range of textile products including sportswear; protective clothing, fashion apparel, children's clothes, shoes and footwear. "This new Centre of Excellence will support our UK customers' design and quality processes, enabling them to meet their customers' quality and safety expectations and to protect their global brands," says Rob van Dorp, chief executive, UK & Eire, Intertek. The British Retail Consortium (BRC) has emphasised the importance to UK retailers of having access to facilities which provide robust testing to ensure product quality and safety, stressing that both are of paramount importance to ensuring and maintaining a high level of consumer confidence. Earlier this month Intertek launched new activewear testing services to tap into the growing demand for sports apparel and footwear.

SOURCE: The CCF Group

Back to top

Philippines, Swiss intent to boost trade and economic ties at JEC

2nd Joint Economic Commission (JEC) dialog to be held on April 27 to 28 in Bern, Switzerland which will focus on implementing previous commitments and agreements. This year at JEC, the Philippines and Switzerland intend to pursue more solid trade and economic ties. In 2014, Switzerland was the Philippines’ 23rd largest trading partner – out of 222 – and 22nd export market (out of 217), and 26th import supplier (out of 182). Philippine exports to Switzerland include textile and apparel, medical instruments, mineral compounds, electrical machines, and other machinery. While Swiss exports to the Philippines include watches, pharmaceuticals, agriculture products, and non-electric machines. The Philippine also proposes to raise the levels of cooperation in tourism, investments, renewable energy, and labor.  Trade Secretary Adrian S. Cristobal Jr. said that pursuing an enhanced trade relationship with Switzerland is an important component of the government’s strategy to expand their country’s market access and increase investments. The Philippines-Switzerland JEC agreement was ratified on December 19, 2013. The first meeting was held in Manila in 2014. Cristobal is leading the Philippine delegation to Bern. Cristobal noted that they also look forward to reaffirming their interest to become a part of the Swiss Import Program which will complement their domestic initiatives to build the capacity of local exporters and enable them to adhere to stringent standards of the Swiss market.

Trade Undersecretary Nora Terrado said that it is important for the country to strengthen its trade relations with Switzerland as it encourages Swiss companies to expand their Philippine presence. Bringing more Swiss businesses to the country will increase the significant economic benefits and employment that various Swiss companies such as Roche, Nestle, and SGS, among others, brought to the Philippines. Terrado said that the agreement with Switzerland is part of DTI’s strategy to increase trade engagements Europe. The Europe Strategy includes participating in the European Union-General Scheme of Preferences Plus (EU-GSP+), pursuing a possible PH-EU free trade agreement (FTA), and the recent fifth round of negotiations with the European Free Trade Association (EFTA) for an FTA. EFTA consists of Liechtenstein, Norway, Switzerland, and Iceland.

SOURCE: Yarns&Fibers

Back to top