|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1074.774 |
USD/Ton |
1.16% |
4/28/2016 |
|
VSF |
2058.57 |
USD/Ton |
-0.37% |
4/28/2016 |
|
ASF |
1942.92 |
USD/Ton |
0% |
4/28/2016 |
|
Polyester POY |
1060.896 |
USD/Ton |
0.22% |
4/28/2016 |
|
Nylon FDY |
2343.84 |
USD/Ton |
0% |
4/28/2016 |
|
40D Spandex |
4471.8 |
USD/Ton |
0% |
4/28/2016 |
|
Nylon DTY |
5750.118 |
USD/Ton |
0% |
4/28/2016 |
|
Viscose Long Filament |
1295.28 |
USD/Ton |
0.60% |
4/28/2016 |
|
Polyester DTY |
2166.51 |
USD/Ton |
0% |
4/28/2016 |
|
Nylon POY |
2120.25 |
USD/Ton |
0% |
4/28/2016 |
|
Acrylic Top 3D |
1171.92 |
USD/Ton |
0.33% |
4/28/2016 |
|
Polyester FDY |
2544.3 |
USD/Ton |
0% |
4/28/2016 |
|
10S OE Cotton Yarn |
1757.88 |
USD/Ton |
0% |
4/28/2016 |
|
32S Cotton Carded Yarn |
2948.304 |
USD/Ton |
0.10% |
4/28/2016 |
|
40S Cotton Combed Yarn |
3588.234 |
USD/Ton |
0% |
4/28/2016 |
|
30S Spun Rayon Yarn |
2837.28 |
USD/Ton |
-0.54% |
4/28/2016 |
|
32S Polyester Yarn |
1727.04 |
USD/Ton |
0.27% |
4/28/2016 |
|
45S T/C Yarn |
2467.2 |
USD/Ton |
0% |
4/28/2016 |
|
45S Polyester Yarn |
2991.48 |
USD/Ton |
0% |
4/28/2016 |
|
T/C Yarn 65/35 32S |
2266.74 |
USD/Ton |
0% |
4/28/2016 |
|
40S Rayon Yarn |
1865.82 |
USD/Ton |
0.83% |
4/28/2016 |
|
T/R Yarn 65/35 32S |
2127.96 |
USD/Ton |
0% |
4/28/2016 |
|
10S Denim Fabric |
1.369296 |
USD/Meter |
-0.11% |
4/28/2016 |
|
32S Twill Fabric |
0.821886 |
USD/Meter |
0% |
4/28/2016 |
|
40S Combed Poplin |
1.17192 |
USD/Meter |
0% |
4/28/2016 |
|
30S Rayon Fabric |
0.692358 |
USD/Meter |
0% |
4/28/2016 |
|
45S T/C Fabric |
0.68619 |
USD/Meter |
0% |
4/28/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15420 USD dtd.
28/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Goldman Sachs said that the aggregate top line GDP growth is strong and basically driven by very favourable demographics and low per capita income which allows more rapid growth. There have been quite a lot of micro level reforms, the ease of doing business has improved dramatically, Goldman said. India will remain one of the strongest growth stories in the Asia Pacific region as the country has a potential GDP growth rate of around 6-7 per cent or perhaps even more, global finances services major Goldman Sachs has said. Timothy Moe, the chief Asia Pacific regional equity strategist at Goldman Sachs Research views the current cyclical recovery coupled with improvements in the ease of doing business, that have largely flown “beneath the radar”, as positive signs for India’s long-term growth and corporate earnings environment. “The long-term growth perspective or potential for India is one of the highest in the Asia Pacific region. India has a potential GDP growth rate of between 6-7 per cent or perhaps even more,” Moe said today. Lots of practical reforms have taken place and they are broadly facilitating the macro growth and should ultimately also translate into a better corporate earnings environment, he said. “The long-term positive drivers are the five year very strong growth potential and the fact that we have got a cyclical recovery in the economy and what appears to us to be is the beginning of a cyclical upturn in profits,” Moe said. The aggregate top line GDP growth is strong and basically driven by very favorable demographics and low per capita income which allows more rapid growth as you catch up staring from a low base, he added. “From a cyclical stand point, we think the economy is also on the upward trajectory and that is helped by a more accommodative central bank,” he said adding interest rates have been coming down, inflation rate is coming down and this is filtering down to corporate earnings cycle – the key thing driving markets. On reforms, he said its impact has so far been a mixed bag – “a glass half-empty, half-full”. The empty part, is that some of the larger headline reforms like the Goods and Services Tax that have not yet been passed because of domestic political hurdles, Moe said. There have been quite a lot of micro level reforms, the ease of doing business has improved dramatically, he added.
Source: The Financial Express
The Government has assured Indian textile industry that it is planning to move swiftly to plug the influx of cheap fabric imports into India and to reduce excise duty on man-made fibre industry.The above assurance was given by the government subsequent to the high level meeting held at PMO attended by Principal Secretary to PM, Textile and Revenue Secretary among others and the delegation of MMF producers, users and exporters, informed industry sources.It may be noted here that ASFI, AMFI, SRTEPC and leading weavers from Surat have stepped up their efforts to bring a ban on import of undervalued fabrics from China by bring in Minimum Import Value and Quantitative Restrictions on imports. Meanwhile, CBEC has also referred the matter to Director General of Revenue Intelligence to stop clearance of undervalued fabrics. Sources further informed that Ministry of Textiles is supporting the industry for reduction of excise duty on manmade fibres and special efforts are made by the Textile Minister Mr. Santosh Gangwar and Textiles Secretary Ms. Rashmi Verma who have personally met the officials in PMO and MOF in this regard. The need to promote manmade fibre textiles, sources said, has now been clearly understood by all stake holders and the Government is keen to promote the production and consumption of manmade fibres. This will boost the exports as world consumes 70% textiles and apparels made of MMF while in India it is less than 35%. It is an irony that poor man buying polyester shirt pays the maximum taxes while the rich buying cotton shirt pay no taxes, sources pointed out. With regard to imports, industry sources informed that the import of fabrics specially from China has crossed a mark of US $ 850 million last year which amounts of Rs. 5500 crores. Majority of the fabrics are made of manmade and synthetic fibres as cotton is expensive in China as compared to India. This fabric has assumed significance as it has caused irreparable demand to India’s SMEs in Surat, particularly. The imported fabrics are heavily under-invoiced and, as such, it would be worth Rs. 8000 to Rs. 10000 crores, sources pointed out. India despite having production capacity has lost production opportunity of 500,000 tonnes in volume and Rs. 5000 crores in value. This domestic production of fabric could have contributed Rs. 624 crores in terms of excise duty alone. The under-valuation is resulting in addition loss of customs revenue. Revenue, apart, the imports have resulted in 50% closure of powerlooms in Surat, Bhiwandi, Malegaon and Ichalkaranji leading to massive unemployment, sources stressed. Sources pointed out that the imports of fabric is taking place at meagre unit price of Rs. 5 to Rs. 15 per square metre at various ICDs in and around New Delhi and Mumbai. This price is unbelievable for any kind of fabric as a simple handkerchief (10 handkerchief are made out of one square metre) cost more than Rs. 5 per piece in the market Therefore, the cost of fabrics should be atleast Rs. 50 per metres, sources said. Immediate steps are therefore needed to increased to customs duty in imports of fabrics from 10 to 20% and imposition of specific duty on all kind of fabrics. There are some tariff lines in a fabric which does not have specific duty and import of fabric should be allowed only under AAS scheme for actual users. The assurance of the government in respect of the recommendation for imposition of safeguard duty and specific duty on the imports of cheap fabric from India has provided a sigh of relief to the domestic MMF industry and one hopes that the government quickly to rein in the rampant imports of cheap fabrics into India, sources stressed.
Source: Tecoya Trend
As exports continue to shrink, the commerce department has asked the finance ministry’s revenue department to allow special economic zones (SEZs). Currently, many of the SEZs are operating at 70% of their capacities due to subdued global demand and the imposition of an 18.5% minimum alternate tax (MAT) on SEZ developers and units and a dividend distribution tax (DDT) on such developers. Reuters Currently, many of the SEZs are operating at 70% of their capacities due to subdued global demand and the imposition of an 18.5% minimum alternate tax (MAT) on SEZ developers and units and a dividend distribution tax (DDT) on such developers. Reuters As exports continue to shrink, the commerce department has asked the finance ministry’s revenue department to allow special economic zones (SEZs) to do job work for domestic firms located outside such zones — at least for export purposes — so that they can utilise their massive idle capacities. The commerce department feels such a move will help SEZs not just in bad times like these but also in lean order seasons in good years as well, sources told FE. “Even in a good year, the flow of supply orders from abroad typically slows for a while after Christmas, resulting in unutilised capacities at the SEZs. However, domestic demand for finished goods remains robust even after Christmas,” said one of the sources. Currently, many of the SEZs are operating at 70% of their capacities due to subdued global demand and the imposition of an 18.5% minimum alternate tax (MAT) on SEZ developers and units and a dividend distribution tax (DDT) on such developers. Some SEZs have been forced to operate at even less than 60% of their capacities, one of the sources said. As part of its efforts to provide a leg-up to SEZs, one of the six priority areas identified by the commerce ministry earlier this month to reverse a persistent slide in the country’s exports, the commerce department has also sent afresh proposals to the revenue department asking it to scrap MAT and DDT for SEZs. It has also asked the revenue department to allow SEZs to sell products in the domestic market at concessional tariff rates (the lowest rates at which India imports such items from its free trade agreement partners). The commerce department argues that these are exceptional times for exports, given the gloomy external environment, and its proposals need to favourably consider. Earlier, the revenue department had turned down such proposals for various reasons, the main being the huge “revenue losses” to the exchequer to any such incentives to SEZs — something that has been fiercely contested by the commerce department. India’s merchandise exports contracted for 16 months in a row through March and recorded a 16% decline in 2015-16 to $261 billion. The government imposed MAT on SEZ developers and units and DDT on developers in 2011-12. Before MAT and DDT were imposed, the growth in exports from SEZs was as high as 121% (2009-10) and 43% (2010-11), far exceeding the increase in the country’s overall goods exports for these years. However, such high growth dropped consistently since the taxes were imposed and even contracted by over 6% in 2014-15, worse than the 0.2% drop in the overall merchandise and services exports for that fiscal.
Source: The Financial Express
India should clinch a free trade agreement (FTA) with the European Union even if that means the country has to “compromise” in certain areas, else gains from soaring wage costs in China may end up flowing to countries like Bangladesh and Vietnam, Niti Aayog CEO Amitabh Kant said on Friday. Stressing the role of apparel exports in employment generation, Kant said, “It is better to compromise on wine and cheese and on large vehicles to push for our apparel exports with Europe so that we can penetrate these global markets.” “(It’s) Because this is one sector which will enable us to create large-scale jobs,” Kant said at the launch of a World Bank report titled ‘Stitches to Riches? Apparel Employment, Trade and Economic Development in South Asia’. According to the report, a 10% rise in apparel prices in China could help India create at least 1.2 million new jobs in its labour-intensive garment industry. In India, the apparel sector that provides employment to over 45 million people directly and 60 million people indirectly, according to an estimate by the Apparel Export Promotion Council. The negotiations for the Bilateral Trade and Investment Agreement (BTIA) between India and the EU have been held up since May 2013 on several sticking points, although India has shown readiness in reviving the negotiations. The EU is interested in further liberalisation of FDI in multi-brand retail and insurance, and closed sectors like accountancy and legal services. It has been seeking a cut in the high import duties on assembled vehicles and wines and spirits. Also, India’s intellectual property regime (IPR), which is unlikely to allow ever-greening of patents, remains a concern for European pharma majors. India, on the other hand, wants the 28-member bloc to address its concerns, especially on data privacy and market access in the services sector, apart from seeking a meaningful market access in goods.
Source: The Financial Express
The government has said that it does not set a production target for the textile and garment industry which is predominantly in the private sector. “Production of textiles and garments is predominantly in the private sector. Therefore, the government does not prescribe specific production targets to the textile and garmenting industry,” Textiles Minister Santosh Kumar Gangwar said during the Question Hour in Lok Sabha on Thursday. He said the data available on production and exports show an increasing trend during the last three years and the current year. Gangwar said the government has not received any report of textile workers facing problems due to recession in the sector. The Minister said that increasing the production of textiles and garments through policy initiatives was among the foremost objectives of the government. The government has launched various policy initiatives and schemes for technology up gradation, funds and development of powerloom sector to strengthen the textile industry in the country and protect the interests of textile workers, Gangwar said.
Source: Fibre2fashion
Just five months after the Government liberalised foreign direct investment (FDI) in defence, by permitting global vendors 49 per cent stake in Indian joint ventures (JVs) without the need for further permissions (i.e. "under the automatic route"), the doors for foreign vendors are being opened wider. So far, incremental liberalisation has failed to attract significant foreign investment. On Friday, Defence Minister Manohar Parrikar told Parliament: "From August 2014 to February 2016, a total amount of Rs 112.35 lakh has come into the country as FDI in the defence sector." In a fresh bid to create a more liberal FDI environment, the ministry of defence (MoD) last week invited defence industry representatives to discuss a briefing note it had prepared on liberalisation. Business Standard has reviewed the note. The current FDI policy, promulgated in November 2015, permits 49 per cent foreign investment through the automatic route. For FDI above 49 per cent, up to 100 per cent, the Foreign Investment Promotion Board (FIPB) must grant permission on a "case-to-case basis". However, lack of clarity on what conditions apply has created uncertainty. Now, to bring in clarity on what "case-to-case" actually means, and thereby facilitate decision-making on the grant of higher FDI, the MoD note stipulates four conditions. First, it mandates that proposals for FDI above 49 per cent must be examined "on case-to-case basis by a Standing Committee headed by Secretary (Defence Production), with all stakeholders as members." Second, the foreign original equipment manufacturer (OEM) is required to "ensure a minimum level of indigenous content as its value addition in India." This is intended to ensure that the joint venture (JV) does not serve as a front for simply importing foreign-built equipment. Third, the MoD regulations for licensed defence industries, i.e. appointing resident Indian citizens as chief security officer (CSO) and cyber information security officer (CISO) "may also be put in for the proposals beyond 49 per cent FDI from national security imperatives (sic)." Finally, the new guidelines stipulate that the foreign OEM's home country regulations, which may continue to operate even for its units in India, do not prevent the sale of its output in India. It says "to avoid such possibility, a clause of usage of products manufactured by them in India by Indian Industry/Organisation (sic) may also be retained." Foreign OEMs, most recently Airbus Industries, have been demanding higher FDI limits that would give them greater control over joint ventures that they establish in India. They remain uncomfortable with the minority position that is imposed by a 49 per cent cap. Parrikar has viewed foreign OEMs' demands sympathetically. At the India Today Conclave in New Delhi on March 13, he said: "If there is a company that has the technology and wants to make, for example, fighter planes in India without any obligation on the part of the government, I am willing to give them approval for 100 per cent investment in the venture." Business Standard learns from three persons who attended the discussion in the MoD that Indian private industry had reservations, but eventually came around to agree on the benefits of more liberal FDI clearances. However, there were exceptions. Innovative Indian defence companies that develop new systems have always opposed increasing FDI limits. In an op-ed article last month, Ashok Atluri, who heads simulator design company, Zen Technologies, argues that FDI limits need not be raised since the Indian defence market is anyway too large for foreign vendors to ignore. He fears foreign OEMs will use higher FDI limits to enter the market and then "kill" Indian competitors by underpricing products until they establish a monopoly. "The MoD officials did not specifically say FDI limits would be raised to 74 per cent, or to 100 per cent. But it seemed quite clear that more liberal conditions will soon be announced", said a defence industry chief executive. The government of India has traditionally been cautious on FDI in defence. In May 2001, FDI up to 26 per cent was first allowed, subject to licensing. In August 2014, that was raised to 49 per cent, subject to government clearance, with cabinet clearance needed for FDI above 49 per cent, on a case-to-case basis. This also permitted foreign portfolio investment up to 24 per cent. The policy imposed conditions on the JV. First, its management had to remain in Indian hands, with an Indian chief executive and CSO. The company had to be self-sufficient in product design and development, and be able to support the defence equipment it manufactured all through its service life. Business Standard learns that several large investments are currently waiting for FDI liberalisation. French warship and submarine builder, DCNS, is reportedly keen to set up a fully owned venture to which high-end submarine technologies could be transferred. Israeli company, Rafael, is reportedly keen on a venture with Kalyani Group. But Rafael wants 74 per cent holding in the venture.
Source: Fibre2fahion
India is set to overtake Japan in terms of the number of companies establishing base in Ireland, a top official said. Talking to The Hindu , John Conlon, Executive Vice President and Director of Asia Pacific, Investment Development Agency (IDA) Ireland, said: “Among Asia Pacific countries, Japan leads with 34 firms, India 30 and China 20. Very soon, India will overtake Japan. “We are focusing on firms dealing in life science, pharmaceuticals, IT and ITES space,” Mr. Conlon said. In the last two weeks, officials of IDA Ireland, which is responsible for attracting and developing foreign direct investment in the European country, visited major cities and convinced almost 15 Indian firms either to set up base or expand the existing operations in the country. Currently, 30 Indian companies are operating in Ireland, employing about 3,000 people.
Source: The Hindu
To meet the three-fourth requirements of the local weaving and knitting industry, Pakistani Government being urged by traders to allow yarn imports from all markets across the world. This will also solve the conflict over the regulatory duty on polyester filament yarn. Pakistan Yarn Merchants Association Central Chairman Muhammad Usman, advised the government that fabric imports from any part of the world should be allowed under legal channel of import, which includes letter of credit (LC) or documents against payments (DP) because the goods payments via banking channels can save the local downstream industry. Usman also urged the government to put the fabric import from Dubai on the negative list as there is no weaving/knitting factories exist in Dubai while the Indian origin fabric was simply being routed through Dubai, resulting in causing severe losses to local industries. PYMA chairman pointed out that the local manufacturers of polyester filament yarn can only meet 25 percent of the downstream industry’s demand, while remaining 75 percent requirement is met through imported yarn. Currently, the National Tariff Commission is investigating into the losses caused by yarn dumping. Usman said that local yarn manufacturers are persuading the government to impose regulatory duty on the import, which would result in bringing the weaving and knitting industry on the verge of complete collapse. This will also increase the cost of yarn and fabric, thus making the entire downstream industry uncompetitive. The results would be disastrous for the exports, which are already suffering on account of high energy costs. The yarn dealer alleged that local manufacturers are attempting to create monopoly to gain short-term benefits, at the expense of huge large downstream sector, which employs millions of people and is the back bone of the economy. He said that an anti-dumping duty of up to 18 percent was imposed on imported filament yarn from Thailand, Malaysia, Korea and Indonesia in 2005. At that time, a total of 17 local yarn manufacturers were operating in the country. During the last more than eight years since the imposition of anti-dumping duty, the number of local manufacturers has come down to just four units. According to Usman, the long-term solution for dealing with this serious issue is to modernize and upgrade plants of local manufacturers, besides enhancing their capacity to achieve economies of scale. The regulatory duty is not the right solution.
Source: Yarn and fibre
The thriving viscose staple fibre (VSF)-based textile industry, which is facing the heat of increased dumping from China and Indonesia, has warned that any tampering with the existing anti-dumping duty structure will affect its growth. As the viscose-based textile industry has shown a remarkable growth in the last five years, reflecting the spirit of Make in India initiative. The existing anti-dumping duties, imposed in 2010, are up for review shortly and a section of the textile industry is calling for ending duty protection, citing rising input cost. Ramesh Natarajan, Director of Indian Man-Made Yarn Manufacturers Association said that Chinese and Indonesians had nearly killed the Indian market before anti-dumping duty was imposed. Now again both the countries are trying to flood the market with heavy discounts. Before the dumping duty was slapped, Chinese and Indonesians were selling their products at Rs 185-190 a kg while the domestic prices were much higher, Natarajan said, but added that the quality of domestic products is unmatched. He warned that if the anti-dumping duties are rolled back, it will kill the domestic industry. Already, the industry has lost over two lakh direct jobs, with one lakh in the Coimbatore-Erode belt of Tamil Nadu alone. If the government falls prey to international and domestic pressure, it will kill more jobs. Natarajan said that the biggest VSF-based textile hub is the Coimbatore-Erode belt which consumes over 20,000 tonnes of the textile a month, while the intake in the rest of the country is only 5,000 tonnes. Players like the Indian Spinners Association (ISA) has said that continuation of the duty on the fibre will have a "deleterious effect" on the textile sector, which is already reeling under high cost of production and sagging export demand. The government must ensure that there are adequate safeguards in place for all products of the VSF value chain so that this industry attracts more investments and drives local manufacturing, which is the key focus of the present regime, said P S Sundaram, managing director of Erode-based Victory Spinning. According to industry statistics, the domestic VSF industry grew at a CAGR of 11 percent in the past five years, while exports clipped at 14 percent CAGR. This growth has been driven by the largest domestic VSF producer Grasim Industries, initiatives like creating robust consumer demand and collaboration with SMEs, among others. Development of the VSF supply chain has also attracted major global brands. Top international brands like American Eagle, Kohls, Bershka and GAP, among others, have increased their intake from India by around 20 percent. In 2011-12, exports jumped from 249 tonnes per day (tpd) to 424 tpd in 2015-6, and domestic sales grew from 590 tpd to 853 tpd.
Source: Yarn and fibre
The finance ministry has yielded to the pressure from trade unions by agreeing to notify soon 8.8% rate of interest on the employees’ provident fund (EPF) deposits for 2015-16. The move would bring cheers to EPF Organisation’s around 5 lakh active subscribers and central trade unions who had denounced the finance ministry’s decision to ratify the rate at 8.7%, despite the Central Board of Trustee’s (CBT) recommending 8.8%. A seemingly elated labour and employment minister Bandaru Dattatreya said, “I am happy that the finance ministry has agreed to 8.8% rate of interest for 2015-16. The rates will be notified soon.” This would be third roll-back by the finance ministry in matters related to EPFO in two months under the protest of the trade unions. Recently, it had withdrawn a proposal to tax on EPF and another on barring withdrawal of employers’ contribution to the EPF. At 8.8%, the returns would be the highest in three years. In the previous two fiscals, EPFO had doled out 8.75% rate of interest to its subscribers. Rates were, however, lower at 8.5% in 2012-13 and 8.25% in 2011-12. Generally, CBT recommends the rate of interest to be accrued to EPF subscribers and the finance ministry ratifies the rate for a particular year. Justifying the 8.7% rate of interest, the finance ministry had earlier said that the retirement fund body would leave with a surplus of around Rs 1,000 crore for the year 2015-16, lower than Rs 1,604 crore surplus it had in 2014-15, had it doles out 8.7% rate of interest. If offered 8.8% returns, the surplus would get further squeezed to just Rs 674 crore. The labour ministry, on the other hand, were under tremendous pressure to stick to the CBT-recommended 8.8% rate from the trade unions including the RSS-affiliated Bharatiya Mazdoor Sangh (BMS). The labour minister is also the chairman of the CBT. Trade unions on Friday went on a nation-wide protest against the finance ministry’s decision. BMS’ general secretary Virjesh Upadhyay thanked prime minister, finance minister and labour minister for “upholding the CBT decision on EPF interest rate.”
Source: The Financial Express
Finance minister Arun Jaitley had said on Wednesday that the joint committee has cleared the Code, a major ease of doing business initiative, which is likely to be discussed in the current Budget session of Parliament. Fine tuning the Bankruptcy Code ahead of its consideration and passage, a parliamentary panel has recommended keeping dues to social security funds out of liquidation process, payment of 24 months outstanding dues of workers and bringing overseas assets of bankrupt firms under the proposed law. The Joint Committee on the Insolvency and Bankruptcy Code, in its report tabled in Parliament on Thursday, also suggested to shorten the time lines proposed in the bankruptcy code for completion of various processes for liquidation and bankruptcy of insolvent firms. The panel said in case of insolvency, interest of the workers should be fully protected and they should be given dues for 24 months as against 12 months proposed in the Bill. “All sums due to any workman or employee from the provident fund, the pension fund and the gratuity fund should not be included in the liquidation estate assets and estate of the bankrupt,” it said. The panel suggested the change after the Employees Provident Fund Organization and the Pension Fund Regulatory and Development Authority strongly argued that old age security funds should get priority over all other debts including secured creditors. Further, panel said that the personal ornaments beyond a certain value should not fall under the category of as excluded assets to ensure that the debtors get their money back. Finance minister Arun Jaitley had said on Wednesday that the joint committee has cleared the Code, a major ease of doing business initiative, which is likely to be discussed in the current Budget session of Parliament. With no provisions to deal with the issues relating to cross-border insolvency due to complications involved, the panel said, “the cross- border insolvency cannot be ignored for too long if India is to have a comprehensive and long lasting insolvency law as the Code aims to achieve.” After consultations with the finance ministry, the panel suggested insertion of two new sections in the bill which would require India to enter into pacts with foreign countries to recover the overseas assets of defaulting companies. The new code is among the steps being taken by the government to deal with the massive bad loan problem in the public sector banks. The proposed law proposes a timeline of 180 days, extendable by another 90 days, to resolve cases of bankruptcy. The draft Bill was prepared on the basis of the recommendations from the Bankruptcy Law Reform Committee, headed by former law secretary TK Viswanathan. The committee had submitted its report along with a draft Bill in November 2015, following which it was tabled in the Lok Sabha on December 21.
Parliament panel says
* Bring overseas assets of insolvent firms under Bankruptcy Code
* Pay bankrupt firms’ workers dues for 24 months instead of 12 months
* Do not include debtor’s dues to retirement funds in the liquidation assets
* Cut the timeline for various processes in liquidation process
Source: The Financial Express
India has invited Egyptian businesses to invest in the country saying the two sides enjoying very strong political and cultural ties should now work out ways to enhance two-way investments and trade. "India and Egypt have been very strong and old partners in politics and culture. Today it is the world of economics and so I believe that it is very necessary for us to work more closely in the economic field to increase investments in both ways," said India's Ambassador to Egypt Sanjay Bhattacharyya on the sidelines of an economic seminar entitled "Make in India" organised here yesterday as part of the two-week cultural festival "India by the Nile". The seminar construes the flagship programme 'Make in India' which aims to transform India into a global design and manufacturing hub of innovative, low cost, eco friendly and zero defect products and to develop synergies with Egyptian industry. ‘Today we receive the largest amount of investments anywhere in the world and that's because of the systems that had been created," he added. India launched the Make in India programme in 2014, which quickly became a rallying cry for India's innumerable stakeholders and partners. It was a powerful, galvanising call to action the entrepreneurs and business leaders, and an invitation to potential partners and investors around the world. Most importantly, it represents a complete change of the Indian Government's mindset - a shift from issuing authority to business partner, in keeping with the tenet of 'Red Tapism to Red Carpet'. "For business the most important thing is that people must make profit. But I define profit in broader sets. So, profit is making money and making relationships. I believe that India and Egypt as two very ancient civilizations are ideally placed to make this broader concept of profit realizable because when you invest money you must get your return of course but you have much more to do when it is between two great countries like India and Egypt," Bhattacharyya said. "Our investments in Egypt have been from that perspective, which is why our investments are all long term investments," Bhattacharyya added. "We are trying to bring about structure reforms in the manner in which licensing is done and in many cases there is no need for license. We have a very large pool of skilled people, engineers and doctors, people skilled in management who can operates the investments that are coming," he added. India-Egypt trade and investment made a significant headway in the last few years, despite the weakening of the global economy and declining trade. The bilateral trade grew 60 per cent over the last five years touching almost USD 5 billion. India is Egypt's third largest destination of exports. Over 50 Indian companies are investing in Egypt with USD 3 billion and providing employment to 35,000 Egyptians.
Source: The Economics Time
The decision taken at the World Trade Organisation's 2015 Nairobi Ministerial to eliminate export subsidies on cotton will benefit Indian shipments of the crop, the government said on Wednesday. "...it will create a level playing field for our farmers, who were not entitled for it but other developed countries were providing the same as scheduled, as per the rules," the commerce department said. The Nairobi Ministerial decision on cotton and export competition resulted in a commitment by developed countries to immediately eliminate their export subsidies, while developing countries were required to do so by January 1, 2017. However, India is not a major user of export subsidies and as per notifications to the WTO, the country has not provided any financial support for cotton between FY07 and FY10
Source: The Economics Time
India is losing out in the race for a greater share in the global apparel market to countries such as Cambodia, Indonesia and Vietnam being relinquished by China. It needs to reduce duties on import of manmade fibre and increase productivity by helping firms grow in size with less complex labour policies, according to World Bank report entitled entitled ‘Stitches to riches? — apparel employment, trade and economic development in South Asia’ on Thursday. Onno Ruhl, World Bank Country Director, at a press conference at the launch of the report said that free trade pacts like the Trans Pacific Partnership (TPP) between the US and 11 other Pacific rim countries would benefit competing countries such as Vietnam. Ruhl further added that the Indian garments industry, too, could gain if the country became part of the TPP, but it is for India to decide, keeping other things in mind. As per the report, a reduction in tariff and non-tariff barriers (among TPP members) could lead to trade diversion for South Asia, including in the textiles and apparel sector. As wages increase in China, the largest apparel manufacturer for the last 10 years is expected to slowly relinquish its lead position and give an opportunity to India and other South Asian countries to grab some of its share. Even a 10 percent increase in Chinese apparel prices could create at least 1.2 million new jobs in the Indian apparel industry. A one percent increase in Chinese apparel prices could increase EU demand for Indian apparel exports by 1.9 per cent and US demand for Indian apparel by 1.46 per cent. Although the report finds that India has maintained its share in the world market, it needs to do better and grow fast to create more employment. For that to happen, India needs to remove barriers in the import of manmade fibre to encourage production of garments made of fabric other than cotton. In India the focus is on cotton, but the world demands garments made of manmade fibre as well. India has to tap into that demand by lowering import duties, pegged at 10 per cent, said Gladys Lopez-Acevedo, co-author of the report. The report said that India needs to attract more FDI into the sector by helping firms grow in size (by tackling complex policies) and also by increasing integration in the fibre-textile-apparel supply chain. To increase productivity, the government could help firms enter the formal sector and take advantage of economies of scale with less complex labour policies. As South-East Asian countries are also outperforming India on non-cost factors that buyers care about, such as quality, lead time and reliability and social compliance sustainability.
Source: Yarn and fibre
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$ 43.86 per barrel (bbl) on 28.04.2016. This was higher than the price of US$ 43.03 per bbl on previous publishing day of 27.04.2016. In rupee terms, the price of Indian Basket increased to Rs. 2912.56 per bbl on 28.04.2016 as compared to Rs. 2863.73 per bbl on 27.04.2016. Rupee closed stronger at Rs 66.40 per US$ on 28.04.2016 as against Rs 66.55 per US$ on 27.04.2016. The table below gives details in this regard:
|
Unit |
Price on April 28, 2016 (Previous trading day i.e. 27.04.2016) |
Pricing Fortnight for 16.04.2016 |
|
|
Crude Oil (Indian Basket) |
($/bbl) |
43.86 |
36.98 |
|
(Rs /bbl |
2912.56 |
2455.84 |
|
|
Exchange Rate |
(Rs/$) |
66.40 |
66.41 |
Source: Ministry of Textiles
UK looking ahead to establish new ventures in the field of textiles and garments, leather, banking and other sectors with India, said British High Commissioner Dominic Asquith today. British High Commissioner Dominic Asquith, who called on Governor K Rosaiah was quoted as saying that UK and India are strategic partners and UK is a major trading for India. The relationship between the two countries is highly constructive and substantially economic. Deputy High Commissioner Bharat S Joshi, Governor's Principal Secretary, Ramesh Chand Meena were among those who were present on the occasion. Asquith further said that the Indian diaspora in UK was the largest ethnic community and that India and Britain were known for the rich cultural heritage.
Source: Yarn and fibre
After Tunisia’s economy suffered a massive body blow at a time of fragility following the 2011 revolution Tunisia’s textile industry is coming out fighting looking to conquer new territories and become more visible in the market. Confidence in Tunisia by knitwear giant Benetton was recently shown by a visit to CETTEX (Centre du Technique et Textile) in Tunis. According to CETTEX’s website Benetton want to explore opportunities for collaboration and partnership including technical support and training for enterprises located in regions Kasserine and Gafsa. Tunisia is strong in lingerie, swimwear and knitting including hosiery knitting. This makes it not just a sourcing destination but also a buyer for high end technical knits. Traditionally the country has mainly supplied the French (34% of total production) and Italian markets (taking 28% according to API’s report). Unlike its neighbours Egypt and Morocco, Tunisia is focused on the quality end of the market and is now looking to expand into the UK and German markets. Zied Zamoussi owner of a Sfax based lingerie manufacturer stated that they supply Aubade, Lise Charmel, Calida from Switzerland, and from Spain Selmark & Jianera, these are the main clients. They have one big factory and four small units with flexible production model making swimwear, lingerie, corsetry and pyjamas at the main factory, they have one small for swimwear and another for lingerie and another for pyjamas. For the big brands they have minimum one line of production for example Lise Charmel 1000 per day. They have nine lines for the large factory, but the maximum per customer is one line, no customer takes more than 30% capacity, this is the maximum to reduce our risk. The Tunisian textile and garment industry comprises of 1,852 companies. The industry is across six sectors including yarn spinning, finishing, knitting/hosiery and ready made garments. Production of knitted fabrics as well as readymade garments using knitted fabrics such as jersey and interlock for T-shirts and sweatshirts make up a large segment of the industry with 1597 companies in this segment of which 1381 companies export. According to the website there are 236 hosiery knitting companies in Tunisia with 175 exporting. The main bases for activity are the city of Tunis the capital, Sfax in the South East of the country, and the coastal towns of Sousse and Monastir. Moncef Khemakhem Gerant owner of Cisconfection, a lingerie company in Sfax with four production units, said that they work for brands such as Decathlon in France, Etam, Eminance, Well, Dim and Tchibo. Tunisian companies like Cisconfection are looking beyond private labelling: They are in the process of integration, doing product development and creating a mark called Chanaz for lingerie femme and maillot de bain, they are selling in Tunisia and proposing internationally, they are showing the salon de lingerie, selling in two shops in Tunisia. In terms of materials he said that they do European sourcing for the fabric and some from Tunisia. Sweater knitting is also a small part of the Tunisian textile industry focused mostly on the mid-market. Karim Zouari of industrial knitting company CSM said that they are producing for the French market, like Christine Laure, Pro-mode, Camaieu, mid-market brands. They work with 50/50 acrylic cotton, 50/50 acrylic wool, 100% cotton, cotton viscose and with some brands they work with viscose, polyamide, angora. Majority of their work is cut and sew. They produce an average of 10,000 pieces per month. Flat knitting, from 7 gauge to 12 gauge for cut and sew. Working with patterns, fancy knitting, cables because they have Japanese machines, 12 Shima Seiki machines. They can do fully fashioned but they have some who ask for fully fashioned but 70 – 80% of production is not fully fashioned. In hosiery sector, there are nine companies based in both Tunis and Monastir. Many companies do not have a website or listed. However, Monastir based Sotichauss which provides a full package of design, production and printing for socks, stockings and pantyhose in a variety of yarns from technical fibres from Coolmax to cashmere and bamboo, has its own website. In knitted fabric and garments production there are some 341 companies listed on the Tunisian Industry portal. The majority have expertise in underwear and swimwear and other ready made garments. In total CEPEX listed 19 companies that are purely focused on lingerie and swimwear. Currently CEPEX, the government’s trade and export office are focused on lingerie and swimwear as key products and services with a strong programme of trade missions and trade shows including the recent Paris Interfiliére.
Source: Yarn and fibre
Taiwanese textile industry need to develop into a complete supply chain and compete through quality instead of quantity as it is hard to compete with China through quantity, said Taiwan Man-Made Fiber Industries Association (TMMFA) chairman Hou Po-ming on Wednesday. According to the latest industry data China controls 73 percent of the global chemical fiber market share while Taiwan only holds 2.9 percent. With opportunities lie in high-end functional fabrics and other smart applications, the industry could make use of global trends in sports and leisure activities. Taiwan’s functional fabrics have a global market share of 70 percent, with more than 50 percent of the world’s fireproof fabrics produced in Taiwan and eight out of 10 yoga apparel lines sold in the US manufactured by Taiwanese companies. The association said that the nation’s textile industry has the upper hand in research and design, as well as the capability to supply high-end products to downstream industries, global brands and channel distributors. As the industry as a whole is responsible for the livelihood of 150,000 Taiwanese families, Hou urged the incoming government, which is to take office on May 20, to work on joining regional economic agreements such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership soon to eliminate tariffs. Otherwise, Taiwanese firms’ profits will be eroded by high tariffs in the region. Hou, who is also vice chairman of Tainan Spinning Co, the nation’s largest polyester staple fiber and yarn manufacturer and also the largest yarn supplier in Vietnam said that the 61-year-old company in a bid to increase its output value has upgraded its plants to utilize automated production processes. The company mainly processes orders for fabrics and garment suppliers, operates yarn factories in Taiwan and Vietnam. Hou further said that another plant in Vietnam is to become operational by the end of this year, which would enable the company to produce up to 600,000 spindles of yarn per year in Vietnam. In the first quarter, Tainan Spinning’s revenue dropped 20.42 percent to NT$4.2 billion from a year earlier. The company’s outlook would improve with each quarter after hitting trough in the first quarter and on the back recovery signs in orders this month. Last year, the Taiwanese textile sector generated NT$434.7 billion (US$13.5 billion) in production value, with NT$118.6 billion coming from synthetic fiber production, as per the data show by the association.
Source: Yarn and fibre
China has come full circle, where the worker has taken a backseat as an itinerant cog in the wheel of modernisation, which causes a fundamental ideological and moral problematic with “socialism with Chinese characteristics” China has come full circle, where the worker has taken a backseat as an itinerant cog in the wheel of modernisation, which causes a fundamental ideological and moral problematic with “socialism with Chinese characteristics”. India’s inexplicable volte-face—issuing and then revoking the visa of Uyghur activist Dolkun Isa, disabling his travel to Dharamshala for a conference—merits an official explanation. Indeed, many observers believe that Beijing may have arm-twisted India. However, Beijing may find less success in such tactics on the home turf. China is set to lay-off as many as 1.8 million coal and steel workers (1.3 million in the coal sector; 500,000 in steel) in its rust belt. According to Hong Kong-based China Labour Bulletin, there were 500 incidents in January, 202 incidents in February and 171 incidents in March 2016. More than an economic problem, it is the Party’s pressing political challenge. It is largely the rust belt of China—the industrial, mining and coal base southwest of Beijing to the northeast (historic Manchuria) to where the river Amur flows into China—that is feeling the funk of China’s economic slowdown; a region having a population of 200 million (roughly the same as Uttar Pradesh). Lay-offs are estimated to rise to 6 million in the coming years. It is known that China failed to meet its growth target of 7% in 2015 and grew at 6.9%, the first time in 25 years. Subsequently, it has lowered its economic growth target for 2016 to between 6.5% and 7%, what is called the “new normal”. China’s slowdown is partly attributable to its reduced emphasis on investment-driven growth, recent slump in exports, insufficient domestic consumption to overcapacity in loss-making state-owned enterprises (SOEs). It is now the disquiet of the steel and coal factories, which employ as many as 12 million workers. China is the world’s largest producer and consumer of steel, the demand and price of which has hit a 10-year low. It is also the world’s largest producer and consumer of coal (and the largest carbon emitter; India ranks behind China, the US and EU as the fourth largest emitter). Coal consumption has fallen 3.7% in 2015 (compared to 2014). Though China is harnessing non-fossil fuels (solar and wind), continued air pollution and overcapacity in industries have turned into critical problems. In September 2015, President Xi Jinping and Premier Li Keqiang indicated the intent of the administration to tackle flailing, unprofitable SOEs, many of them in the energy sector, with an overall “guideline to deepen reforms of SOEs”. Resulting was a “supply-side structural reform”, which is “more Reagan than Marx”, directly impacting state-owned steel and coal industries by calling for a reduction of 10% steel capacity and 15% coal capacity, to be followed by addressing overcapacity in cement, glass-making and ship-building industries. At the administrative level, the “guideline” indicates that many of the piled-up problems of SOEs will also be addressed. Part of China’s larger woes is the unsatisfactory performance of SOEs, which, like India’s public sector enterprises, were designed to occupy “commanding heights”. As agents of the state, SOEs were not just business entities, but with political and social responsibilities, such as control of the core sector, employment generation and price control. The state share of employment, at 2010 figures, stood high, at 57%, though recent figures suggest that it is considerably lower. China’s State Statistical Bureau does not publish the names of all SOEs, nor precise numbers. Many non-state firms are manifestly state-controlled. Economists have indicated their malaise—large monopolies, unprofitable and inefficiently managed, sustained by government finances, making less profit than private or foreign invested firms. SOE managements are often likened to as “rich monks in poor temples” and private entrepreneurs complain that their entrepreneurial necks are squeezed so that money can be poured into flailing SOEs. In other words, “the state advances, the private sector retreats”. Largely as a response, the new “guideline” says that SOEs are to be classified as either commercial or public service, kept free of undue interference by corporate governance with a dual track management system of party cadre and professional managers, and also a marked shift from asset management to capital management. While the latter has been successful in Singapore, where companies such as Temasek have led the way, this model, called the “Singapore model”, has been successful because of various factors. Singaporean bureaucrats are highly paid, have clean hands and are efficient. The efficacy of aping the “Singapore model” in China is yet to be tested. In March 2016, even as the 13th Five Year Plan (2016-2020) was being considered by the National People’s Congress (akin to India’s Lok Sabha, but only in name) and the Chinese People’s Political Consultative Conference (akin to the Rajya Sabha, again in name)—which aims at creating 10 million new urban jobs, aspires to keep urban unemployment rate below 4.5% and replaces business tax with a value-added tax—the proceedings were usurped by the focus on protesting coal miners in Shuangyashan city, Heilongjiang province. Workers were up in arms against non-payment of wages by Longmay Group, the largest coal-mining group in province. While Lu Hao, the governor of the province, claimed that the workers had been paid, workers marched with banners that said “we must live, we must eat”. Protests have spread to places such as Qian’an in Hebei province (adjoining Beijing), which is the country’s largest steel base, colloquially called China’s Ukraine. Why should China care? After all, during 1995-2000, almost 48 million workers lost their jobs, without a significant dent to the Party when reorganisation of SOEs (keeping the big, letting go of the small) was fashioned by the then economic czar, Premier Zhu Rongji. But then, those were times of rapid economic growth, which could absorb such surpluses. But now, the spate of protests are a regular feature—most escape media focus, in India at least. At a time when economic growth is slowing down, 15 million enter China’s labour market each year, and this has the potential for social upheaval. Despite the country’s lack of strong trade unionism (there is, however, the All-China Federation of Trade Unions) and the marked fragmentation of the working class that scholars have noted, there is room for “collective action” in the form of lawsuits, appeals, protests, demonstrations, traffic blockades including the Chinese version of “gherao” of public officials and offices. Though many laid-off workers prefer to remain quiet and try to find other jobs, others articulate economic demands (unpaid wages, subsidies, pensions, retirement insurance) as opposed to political demands. While they raise and praise the Party banner, they also demand “food to eat”. Managing this tricky lot in the past turned the local governments into “fire brigades”. Today, sequential lay-offs are considered a solution. Yet lay-offs call into question the legitimacy of the Party, which faces no election and rests solely on economic plaudits. SOEs constituted China’s “iron rice-bowl” with the work-unit (danwei) guaranteeing employment and cradle-to-grave welfare. But welfare has become “socialised” with pay-go (pay-as-you-go) and insurance funded with contributions from the employer, the state and the employee. Welfare obligations have increasingly “hollowed out” with social undertakings—as opposed to the Party—taking the lead. China has thus come full circle, where the worker—the bastion and vanguard of revolution, valourised as the “elder brother”—has taken a backseat as an itinerant cog in the wheel of modernisation, which causes a fundamental ideological and moral problematic with “socialism with Chinese characteristics”. Thus, so-called incidents—180,000 at last count in 2010 (statistics have since gone missing)—are presumably growing. Protesters have occasionally turned nasty, fighting police and smashing cars. There have been episodic (and isolated) instances of unemployed migrants blowing themselves up in buses such as in Hangzhou and Guangzhou, and a dangerous and tragic spate of school attacks in central and southern China in the last two years. To China’s credit, a $15.3-billion fund has been instituted to resettle and retrain the laid-off workers, but will this be enough? In the past, the marked failure of Reemployment Service Centres (established in 1996) to provide laid-off workers subsidies and job opportunities has been well-chronicled, giving largely just moral and spiritual support. Thus, China’s own tribulations from the massive shift from equality and egalitarianism to income inequality and unemployment considerably gnaw the heart of “Zhongguo Meng”—the “China dream”.
The author is a Singapore based sinologist and adjunct fellow at the Institute of Chinese Studies, New Delhi. She is the author of Finding India in China
Source: The Financial Express
