|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1041.61 |
USD/Ton |
-0.15% |
5/10/2016 |
|
VSF |
2034.06 |
USD/Ton |
0% |
5/10/2016 |
|
ASF |
1935.74 |
USD/Ton |
0% |
5/10/2016 |
|
Polyester POY |
1011.65 |
USD/Ton |
-0.75% |
5/10/2016 |
|
Nylon FDY |
2296.77 |
USD/Ton |
-0.33% |
5/10/2016 |
|
40D Spandex |
4455.27 |
USD/Ton |
0% |
5/10/2016 |
|
Nylon DTY |
5728.86 |
USD/Ton |
0% |
5/10/2016 |
|
Viscose Long Filament |
1275.13 |
USD/Ton |
-0.60% |
5/10/2016 |
|
Polyester DTY |
2150.82 |
USD/Ton |
0% |
5/10/2016 |
|
Nylon POY |
2112.41 |
USD/Ton |
0% |
5/10/2016 |
|
Acrylic Top 3D |
1125.34 |
USD/Ton |
-1.01% |
5/10/2016 |
|
Polyester FDY |
2519.53 |
USD/Ton |
-0.61% |
5/10/2016 |
|
10S OE Cotton Yarn |
1751.38 |
USD/Ton |
0% |
5/10/2016 |
|
32S Cotton Carded Yarn |
2951.23 |
USD/Ton |
0.03% |
5/10/2016 |
|
40S Cotton Combed Yarn |
3567.29 |
USD/Ton |
0% |
5/10/2016 |
|
30S Spun Rayon Yarn |
2796.07 |
USD/Ton |
0% |
5/10/2016 |
|
32S Polyester Yarn |
1717.58 |
USD/Ton |
-0.18% |
5/10/2016 |
|
45S T/C Yarn |
2458.08 |
USD/Ton |
0% |
5/10/2016 |
|
45S Polyester Yarn |
1858.92 |
USD/Ton |
0% |
5/10/2016 |
|
T/C Yarn 65/35 32S |
2150.82 |
USD/Ton |
0% |
5/10/2016 |
|
40S Rayon Yarn |
2949.70 |
USD/Ton |
0% |
5/10/2016 |
|
T/R Yarn 65/35 32S |
2258.36 |
USD/Ton |
0% |
5/10/2016 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
5/10/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
5/10/2016 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
5/10/2016 |
|
30S Rayon Fabric |
0.69 |
USD/Meter |
0% |
5/10/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
5/10/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15383 USD dtd 10/05/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India’s domestic textile machinery and engineering sector made a remarkable comeback two years ago, in FY 2013-14, riding high on new project investments under the TUF scheme and special textile policies of textile-leading states such as Gujarat, Maharashtra and Rajasthan. It clocked a growth rate of 20% over the last fiscal, touching a turnover of INR67.8bn. However, for FY 2014-15, the production value of mainstream textile machinery, accessories, spares and consumables improved only by 3% to a turnover level of INR69.6bn. The industry has since struggled to sustain momentum, and is on a flat growth path despite the continuation of capex-inducing concessional subsidy based schemes such as TUFS. According to the TMMA – Textile Machinery Manufacturers Association – the lacklustre performance after FY 2014 was mainly down to the hit taken by the overall synthetic filament yarn industry, which accounts for 10% of all textile machinery output, and has thus severely impacted the growth of the sector. In addition, the synthetic and man-made fibre (MMF) sector is plagued with overcapacity situations – despite the favourable trend in raw material prices, which have continuously fallen due to global declining crude oil prices. In line with the trend, this excess capacity situation in the MMF sector, owing mainly to the slowdown in demand of synthetic textiles, has impacted investments and thus take-off for the textile machinery, despite availability of concessional schemes to boost capex via new projects. The scenario is not likely to change in the near future due to continued weak demand for textiles.
In this flat scenario, the only ray of hope is the successful run enjoyed by cotton and spun yarn spinning mill machinery. This has been solely due to the capability of the spinning machinery segment to meet demand, both in terms of quality and quantity required by the mills. No doubt, the favourable and special textile policies of states such as Gujarat and Maharashtra, for cotton spinning mills, have played a pivotal role in mobilising new investment in cotton/yarn mill projects, and thus the yarn spinning machinery segment. As a result, the domestic production of cotton/yarn spinning machinery became the strongest link in the machinery value chain, accounting for almost 50% of textile machinery production.
Other machinery segments, eg weaving, knitting, nonwovens and fabric processing, continue to languish in the shadow of the most successful yarn spinning segment. For the technology and machinery deployed in these segments, the majority of domestic demand is met through imports of such machinery from the EU, South Korea, Taiwan, Japan, China and Turkey as well as, to a smaller extent, the USA. Over the last two decades, imports of low-cost textile machinery from China have grown at a fast pace. Overall, and in the present day, almost 63%, or two thirds, of all textile machinery demand is met via imports [mainly form the above bunch of countries] even though the overall production capacity of the domestic textile machinery sector is around INR110bn. The capacity utilisation has stagnated at a poor 60% over the past few years.
In line with the vision, under the new national textile policy, the industry segments of weaving and garmenting truly have the potential to be a “saviour” of the domestic textile machinery industry. With growth in India’s GDP [the second highest in the world] and with the highest young population, the domestic apparel and retail segment will be the key driver of consumption of all textiles, and fabrics, in years to come. It would require upgrading weaving and processing units by replacing older, obsolete powerlooms by the new shuttleless looms of the type airjet, rapier, waterjet and high-speed knitting machines etc. However, it is imperative for the domestic textile machinery industry to upgrade its technology and capabilities to production modern high-speed shuttleless looms and restrict their imports.
The paradox remains that overall demand for textile machinery by the Indian textile industry is increasing at a CAGR of 12-15% over the past years due to concession schemes for new project investments. But, more than 60% of potential demand is met through imported machinery, thus by passing the indigenous textile machinery manufacturers and inflicting upon them high cost in terms of a lower capacity utilisation factor. The root cause for non-growth of the domestic textile machinery sector has been the lack of investment and expertise put into the R&D activities over the past decades, except for a handful of such manufacturers who ventured to forge technology collaboration and upgraded their machinery products in time.
One shining example is Lakshmi Machine Works (LMW), in South India, which not only outdid others, but also became a global player to compete with textile machinery leaders such as Rieter, Saurer and Trutzchler, as well as Chinese companies. In the final analysis, it is the dependence on borrowed technology – and a lack of continuous and sustained R&D initiatives – that have kept India’s domestic textile machinery far behind except, perhaps, for yarn spinning, despite good, available demand. It is not too late to save the sector from the same happening to machinery for technical textiles and nonwovens where, again, suppliers from the EU and China are dominating. To impart a push and thrust to the future growth of the textile machinery sector, the TMMA is organising ITME India 2016 in December 2016 to showcase the strengths of the Indian industry.
SOURCE: The CCF Group
Minister Khurram Dastgir Khan said on Tuesday that Pakistan’s exports to India will reach $1 billion mark within a year. “There is a lot of potential for Pakistani textile products in India,” the minister said while meeting a delegation of Pak-India Business Council (PIBC) led by Yawar Ali Shah, a press release said. Mr Dastgir opined that the Pakistan is the cost-effective market for India to import raw material for its agriculture and textile. “Trade concessions to India cannot be offered unilaterally. India also needs to extend access to Pakistani products,” the minister added. The delegates informed the minister that Indian food manufactures were looking for Pakistani agriculture products including mangoes, kinno and green peas. The delegation was informed that the commerce ministry had restructured National Tariff Commission (NTC) in line with the legal framework guided by the Supreme Court of Pakistan. A delegation of Pakistan Commercial Exporters Association called on Mr Dastgir to discuss gems and jewellery exports. Assuring full support to the group, the minister said the government will solicit resources until the export fraternity comes forward and mobilises its resources.
SOURCE: The Pak Tribune
Reporting strong volume growth in its key businesses of chemicals, cement and Viscose Staple Fibre (VSF) for the fourth quarter, Grasim Industries of the Aditya Birla Group clocked a consolidated revenue hike of 13 per cent at ₹10,001 crore. The net profit grew 40 per cent to ₹724 crore. Managing Director of Grasim Industries Dilip Gaur said that double-digit volume growth had resulted in increased topline and bottomline. In an interview to BusinessLine, Gaur shared the rationale for the growth numbers. Excerpts:
What has been the strategy for VSF, which has contributed tremendously to the earnings?
Along with new capacity for VSF, Grasim management devised a pull strategy around Liva fabric, which is made out of VSF. From 2010, the VSF market within India was stagnant. We worked around to increase the demand for Liva fabric. Since we are present at the backend of the textile value chain, we provided quality fibre, which could be used for making best fabrics. Fabrics made out of VSF are both fashionable and comfortable. This is a unique property of VSF, which we worked upon. In FY2014-15 VSF grew at double digit when normal fibres growth was at less than five per cent. In the past two years, we worked on the demand and in anticipation we also ramped up our capacity at Vilayat plant in Gujarat. As the demand for VSF was picking up, our capacity was also ready, which tremendously helped the company. Today, VSF is a preferred fabric of designers, therefore, we anticipate good growth in this segment. To downstream textile producers, we are providing accreditation services along with Liva brand.
The Indian Spinners Association (ISA) has alleged that on VSF it is paying an ex-mill price of $2.15 a kg plus 12.5 per cent excise duty against an import price of $1.85 a kg. ISA has further said that Grasim itself is supplying the fibre to Indian companies’ global competitors at an ex-mill price of $1.80 a kg. Why this discrimination between Indian mills and foreign mills?
We have met the office bearers of ISA and they agreed they have made a mistake while making the claim. We have shown to the ISA that over the list price of $2.15 a kg they get a lot of discounts. After discounts, it matches with the imported price of $1.80 a kg. There is no discrimination between Indian and other mills. Grasim’s prices are competitive in the market plus ISA members get the benefit of sourcing VSF from a local supplier.
What has been the response to Liva brand within the country?
Liva is today available in 2,000 outlets across the country. Store sales have increased by 10 per cent after introducing Liva. In one year, more than seven million garments have been branded under Liva. Leading fashion designers are using Liva brand.
There is an oversupply of VSF from China. When do you expect this situation to ease?
Last year the capacity utilisation in China was 84 per cent. But many plants in China are not environmentally friendly, which are now being phased out. Therefore, soon the surplus capacity will come down and the volatility in prices will reduce.
Has the merger of Aditya Birla Chemicals with Grasim helped?
The positive effects of the merger are reflected in the quarterly earnings. If you look at the numbers of last quarter they show that chemical business EBITDA has also increased. Caustic soda and epoxy business also came in the fold of Grasim. The capacity of both these products was ramped up, which has led higher volumes and sales.
SOURCE: The Hindu Business Line
“A meeting of the Board of Directors of the company will be held on May 12, 2016, inter alia to consider the matter regarding fund raising options available to the company by way of issue of NCDs up to Rs 500 crore on a private placement basis subject to approval of shareholders,” Arivnd Ltd said in a regulatory filing to the BSE. The Ahmedabad head quartered company manufactures cotton shirting, denim and knit fabrics. It is one of the largest producers and exporters of denim, both within India and globally. The company has also ventured in to technical textiles through its Advanced Materials Division. Arvind also produces garments under brands such as Flying Machine, Colt and Excalibur. It also has retail brands such as Megamart, Next and Club America. Further, it sells products of several well-known global brands including Arrow, Elle and US Polo Assn.
SOURCE: Fibre2fashion
Be it Amazon, Flipkart or Shopclues, several online shopping places are organising campaigns to attract small and medium-scale manufacturers, brands, and traders to sell on their platforms. Apart from large-scale manufacturers, e-commerce portals are looking at small and medium-scale manufacturers and dealers in smaller cities and towns. They offer training and required support so that SMEs start selling on the portals. Recently, Shopclues distributed buttermilk to over 4,000 merchants here to create awareness about its services. Last year, Amazon organised programmes to create awareness among SME businesses. Ask the association heads about it and they say manufacturers, who produce end products, benefit from e-commerce portals. Indian Texpreneurs Federation has lined up three of its member companies and plans to motivate 10 manufacturers in the textile space to market the products online. The units do need guidance in preparing the detailed project report and developing business plans. If a few successful models are created, the others will evince interest, says Prabhu Damodaran, secretary of the federation. According to D. Nandakumar, president of Indian Chamber of Commerce and Industry, Coimbatore, price competitiveness is crucial for e-commerce players. The general expectation among the public is that prices of products bought online are lower than across the counter purchases. Manufacturers should support the traders, merchants for this. Dealers handling products such as home appliances are able to do so rather those in normal consumer products.
SOURCE: The Hindu
The government’s decision, last week, to roll back the import duties levied on components of mobile phones in the budget is curious. On February 29, as part of the annual Budget, finance minister Arun Jaitley levied import duties of 29% on mobile phone batteries, chargers, wired headsets and speakers, presumably to encourage firms manufacturing mobile phones in India to start producing these components. Yet, while passing the Finance Bill, these were rolled back, following local manufacturers’ protest that this would reduce their margins and make them less competitive versus imports—if these items comprise, say, 12% of the value of a phone, a 29% import duty on them would effectively mean a 3.5% extra duty on locally made phones.
The argument is specious and it is unfortunate the government got taken in by it. In his 2015 budget, as part of Make-in-India, the finance minister increased the countervailing duty (CVD) on imported phones to 12.5% while retaining an excise duty of 1% on locally manufactured phones, thus giving an 11.5% duty advantage to local firms. Sadly, while this spurred a host of high-profile announcements of firms wanting to make phones in India—and several photo-ops of these plants being inaugurated—the value addition was done in China. With the components imported from China in semi-knocked-down form, there is very little value addition in India, though this enables local manufacturers to pay the lower 1% excise duty instead of the 12.5% CVD. For a country that consumes 250-275 million new mobile phones a year, that’s a very high import burden running into $12-14 billion a year. While it takes many years for full-blown manufacturing of mobile phones—as opposed to mere assembling—to move to a country like India, the government needed to push on its 2015 initiative. One such move could have been introducing a differential CVD on imports of printed circuit boards (PCBs) as was done for mobile phones in 2016—this would have ensured firms did more value addition here as the components of the PCBs would be imported in their native form and some testing as well as design of the PCB would take place locally. This would have raised the local value addition from current 1-2% to 8-10%, with a possibility of improving it further by triggering the local component ecosystem (the majority of components get consumed in a PCB), and local design. Instead, what the budget did was to impose a simple 2% import duty on PCBs—and this too was withdrawn last week. Why will anyone manufacture components or design PCBs in India if the duty structure doesn’t force them to do so? In which case, Indian manufacturers will never add to technology development or IPR generation. If the government doesn’t re-examine its stance, India will continue to get more ‘manufacturing’ of mobile phones locally—expect more photographs of ministers inaugurating these plants—while the real value addition will take place in China. The government had started using differential duties as a tool to incentivise genuine manufacturing but has got swayed by the arguments of local industry and given up on this path. That is an unfortunate development considering that electronic imports are on their way to become India’s largest net imports, surpassing even oil.
SOURCE: The Financial Express
India’s merchandise exports have fallen over the last 16 months. Future prospects look bleak as ever due to sluggish global demand accentuated by a slowing China, and India being blocked out of regional trade deals such as TPP.
On the other hand, despite all policy attempts, corporate investment has not picked up. That calls for urgent internal actions to sustain growth momentum. One such action could be tapping indigenous sources of growth. Are we really doing that?
It’s worth repeating that India is a full-fledged member of WTO. It is negotiating a series of bilateral, regional and trans-regional free trade pacts with Asian, African, European and Latin American countries. However, trade within India is fraught with a series of impediments that inhibit seamless movement of merchandise across states and UTs. That limits India’s potential growth at a time when the global environment is not conducive to rising exports and protectionism is on the rise. It’s easier to bring in or move out merchandise from outside than from within the country. It won’t be wrong to say that India itself is not a free market area. India Inc. often complains of underdeveloped transport infrastructure and a complex tax regime that aids cascading of taxes. Over regulation of inter-State trade with frequent checks, stoppages and inspection at State borders often leads to delays in moving merchandise from one State to the others. These factors add to the cost of doing business in India (against the spirit of Make-in-India initiative) and escalate the final price of finished goods. That encourages imports from countries like China.
What shackles India internally?
A series of market distorting rules and regulations impede India’s evolution as a nationally integrated market. For instance, under the Essential Commodities Act (ECA) the government can declare any commodity as essential and impose stocking limits, creating uncertainty in the market. The Agriculture Produce Market Committee (APMC) Act mandates purchase and sale of agri commodities in government regulated local mandis only. That inhibits farmers from selling their produce in markets located outside their districts/States. Many of these challenges might be addressed if the NDA government’s flagship initiative of setting up of national agricultural market is efficiently implemented.
Manufactured goods
Multiplicity of taxes levied on manufactured goods in India has fragmented India into numerous State-level sub-markets. Despite VAT, the cascading effect of taxes persists. For instance, VAT charged by a State on sale of a product includes excise duty levied by Centre. Similarly, excise duty charged by the Centre on the raw material used in manufactured goods has already been charged with State VAT. Simply put excise duty is charged on the VAT element and vice versa. Further, Central Sales Tax (CST), a tax levied on the inter-state movement of goods, is not integrated with the VAT, making it ineligible for input tax credit. Moreover, variations in VAT and other tax rates across States lead to trade diversion, rate wars and a shift in manufacturing activities on non-economic principles.
Entry and exit taxes
Entry and exit taxes, and formalities required for inter-State movement of goods, add to manufacturers’ woes. For instance a Gujarati manufacturer who sources inputs from Maharashtra and then exports the finished good to Mumbai pays State and CENVAT, and a Central Sales Tax of 2 per cent on purchase of inputs from Maharashtra. Also, CST does not qualify for input tax credit for him. On entering Gujarat, inputs are subject to an entry tax. CST is again levied on the finished good “exported” to Maharashtra at the time of exit. On entering Mumbai an octroi is levied on the finished good. This makes the good “imported” into Maharashtra more expensive than locally (in Maharashtra) manufactured goods. Therefore, the manufacturer in Gujarat is discouraged from sourcing inputs from other States. To avoid this, the seller makes a stock transfer by setting up a warehouse in importing state (Maharashtra) and then makes a sale locally. In addition, manufacturer also has to pay service tax on transportation charges. This results in inefficiencies in supply chain impacting inter-State trade. The Arvind Subramanian committee report suggests that in six States namely Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Tamil Nadu and Kerala, stock transfers, on average, account for as much of inter-state trade as the trade subject to the CST. Inter-state stock transfers in Andhra and Gujarat are more than double (2.65 and 2.14 times respectively) of their inter-state trade subject to CST, to avoid taxes. That is why even a 1 per cent CST for a limited period of time in order to compensate the States will dilute the essence of GST.
Transport infrastructure
India’s poor transport infrastructure also hampers seamless movement of merchandise within the country. World Economic Forum reports that “a truck carrying goods from Gurgaon to Mumbai has to pass through 36 checkpoints and takes up to 10 days. While 57 per cent of goods in India are transported by road, the most inefficient, expensive and emissions-intensive mode of transport, the figure in China is just 22 per cent”. Further, TCIL has noted that road-freight volumes are growing at a CAGR of 9.1 per cent while growth of road networks lags at 4 per cent. District and rural road network which accounts for 95 per cent of India’s total road network is fairly underdeveloped. State border check-posts further add to delays. The result is: Indian trucks cannot move beyond 20 km/h on average. Around 40 per cent of the time lost on road is due to stoppages at state border check posts, as per Ernst &Young. Inter-state regulatory requirements requiring detailed documentation like permits, waybills, forms, tax invoice, delivery notes leads to delays and increase in transaction cost. World Bank estimates that simply halving the delays due to road blocks, tolls and other stoppages could cut logistics costs by 30-40 per cent. India spends roughly 13 per cent of its GDP on logistics compared to 7-8 per cent in developed countries.
The way forward
Given the size and complementarities of its provincial economies, an early implementation of GST will create a pan-India common market of $2 trillion GDP and 1.2 billion people — a big attraction for any investor — and add as much as 1-2 per cent to GDP by creating a nationally integrated market. Yet, ruling and opposition parties are not able to reconcile their differences on GST.
SOURCE: The Hindu Business Line
Seven Indian companies, including two from the services sector, will be participating in this year's edition of Southeast Asia's biggest industrial subcontracting and business matchmaking event being held here from May 11. Wings Travel Management and Zilingo will be the first Indian companies from the services sector to participate in Subcon Thailand 2016. Both start-ups, Wings Travel Management will be looking for investment opportunities in the tourism sector while Zilingo will be looking for opportunities in e-commerce. The other Indian companies that will be participating in this annual event, organised by UBM Asia (Thailand) along with the Board of Investment of Thailand and Thai Subcointracting Promotoion Association, are V-Guard Industries (electrical appliances), Lloyds Steel Industries (steel and heavy engineering fabrication), Grauer and Veil India (chemicals), and Zenith Enterprises (machinery). Bilateral trade between India and Thailand has grown significantly and has multiplied more than four times between 2004 and 2014 - from $2.05 billion to $8.65 billion. The trade figure in 2015 includes Thai exports of $5.29 billion and imports of $3.03 billion. India ranks 10th as an export destination for Thailand and overall the coutnry's 16th trading partner.
Major Thai exports to India include chemicals, plastics and articles fabricated from it, gems and jewelry, airconditioners and their parts, internal combustion engines with piston, auto and auto parts, iron, steel and its products, rubber, electrical machinery and parts and computers and computer parts. Major Thai imports from India include chemicals, boats, auto parts, electrical machinery and parts, precious and semi-precious stones, silver and gold, plants and products of plants, ore, remnants of iron and its products, iron, steel and its products, medicinal and pharmaceutical products and thread and fibre. Thai companies operating in India are in the fields of agro-processing, construction, automotive, engineering and banking. These include Charoen Pokphand (CP) Group, Italian-Thai Development (ITD), Delta Electronics, Rockworth Office Furniture, Krung Thai Bank, Thai Summit Auto, Pruksa Real Estate, Thai Airways International, and SCG Trading. Indian companies operating in Thailand are in the areas of chemicals, textiles, pharmaceuticals, steel, automotive, and information technology. These include the Indo Rama group, the Aditya Birla Group, Tata Motors, Ranbaxy, Dabur, Lupin, and NIIT among others. Along with Subcon Thailand, this year two other events are simultaneously being held in this Thai capital - a machinery exhibition called Intermach 2016 and Sheet Metal Asia 2016.
SOURCE: The Economic Times
The first round of consultations between the US and India on New Delhi’s case filed at the World Trade Organisation (WTO) against the significant increase in visa fee for non-immigrant workers is scheduled in Geneva this week. “India hopes that the US will constructively engage with India to address its concerns regarding recent US measures which impair the ability of both US-based Indian companies and Indian professionals to supply services in the US,” an official release from the Commerce Ministry stated on Tuesday. The consultation is scheduled on May 11-12. Last December, the US introduced an additional fee of $4,000 and $4,500 for certain categories of H-1B visa and L-1 visas (both non-immigrant visas) respectively. As per estimates made by IT body Nasscom, the move would cause losses of $400 million annually to Indian companies operating in the US. The H-1B and L-1 categories of non-immigrants, for which there has been a significant fee hike, correspond with the categories of specialists and intra-corporate transferees, both of which are part of US’ commitments under the WTO’s General Agreement on Trade in Services (GATS), the release pointed out. These are also the same categories that are most extensively used by Indian service suppliers, especially in the IT sector, supplying services in the US, it added.
Creating uncertainty
The US fee hike measures are not only adversely affecting the competitiveness of India’s services industry engaged in the US, but also creating uncertainties for Indian service suppliers. They also run counter to the basic principles of a transparent and predictable trading environment, which lies at the very heart of the WTO agreements, the release stated. While the US accounts for close to 60 per cent of software exports from India, Indian IT professionals have had a positive role in contributing to the competitiveness of the US economy. “India is hopeful that deliberations during the WTO consultations shall be constructive and it would result in removal of these trade restrictive measures,” it added.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 41.92 per barrel (bbl) on 10.05.2016. This was lower than the price of US$ 42.68 per bbl on previous publishing day of 09.05.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2797.02 per bbl on 10.05.2016 as compared to Rs. 2835.34 per bbl on 09.05.2016. Rupee closed weaker at Rs 66.72 per US$ on 10.05.2016 as against Rs 66.44 per US$ on 09.05.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 10, 2016 (Previous trading day i.e. 09.05.2016) |
Pricing Fortnight for 01.05.2016 (13 Apr to 27 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
41.92 (42.68) |
41.08 |
|
(Rs/bbl |
2797.02 (2835.34) |
2732.23 |
|
|
Exchange Rate |
(Rs/$) |
66.72 (66.44) |
66.51 |
SOURCE: PIB
Textile workers in Swaziland are endangered by hazardous gases, with two gas bursts occurring in the Matsapha Industrial Sites last year, a government committee report warned on Tuesday. The report by the Government Assurance Committee released on Tuesday said such bursts are detrimental to the health of the workers and should be addressed before they cause more damage. Most factories in Matsapha are notorious for their failure to provide healthy work environment the report said, adding that not long ago, hundreds of workers in a textile factory in the town were rushed to hospital after inhaling hazardous gases at their workplace. Matsapha is a town in central Swaziland renowned for its industrial factories. The findings of the report which was commissioned by the government have prompted the committee to call upon the Swazi Minister of Labour and Social Security Winnie Magagula to take action. Magagula said her ministry is still trying to put together the Workman’s Compensation Bill which seeks to address such a dangerous situation for workers. The bill is still pending in the Swazi parliament. Two years ago many workers at a textile factory in the country were hospitalized for exposure to the butyl acetate after the plant began using the chemical to clean clothing stains. Prior to their hospitalization, the victims had complained of severe chest pains, headaches and the vomiting of blood. Some had lapsed into a state of unconsciousness. Their employers had denied them paid sick leave. As a flammable liquid, Butyl acetate affects the human body’s central nervous system and could cause skin and eye irritations and unconsciousness if it comes into contact with the body.
SOURCE: The Star Africa
Malaysia’s textile division will grow by at least 30%, thanks to a surge of investment when the Trans-Pacific Partnership (TPP) agreement comes into force, according to Rebecca Chiang, executive director, Malaysian Knitting Manufacturers Association (MKMA). The trade deal’s “yarn forward” rule makes it mandatory to use TPP member-country produced yarn for TPP-made textiles in order to be covered by the agreement’s market access benefits, and it means “downstream garment exporters need to consume local or TPP country’s fabrics, which will definitely benefit Malaysian knitters,” says Chiang. Malaysia has proven to be the most enthusiastic TPP signatory country – on 27 January, the Malaysian parliament endorsed the deal, while many other national assemblies have yet to debate the agreement. The USA, the lynchpin of the TPP deal, is an important market for Malaysia’s garment and textile exports: Malaysia currently ranks number nine in the list of top exporters to the US for woven men’s shirts and number 22 in the list of exporters of knitted men’s shirts, according to an analysis on the impact of TPP on the Malaysian textile and apparel industry undertaken by the MKMA. However, in terms of total exports of textiles and apparel products to the US, Malaysia ranks number 26.
But with the TPP, Malaysia’s exports will increase. The association predicts “72.9% textiles tariff lines, constituting 36.44% of total exports [by TPP member countries] to the USA, will see duty elimination upon entry into force of the agreement.” Without the TPP, only 11% of tariffs or 0.9% of total exports in these countries would be duty free. Among Malaysia’s major apparel exports to the US are men’s and boys’ cotton shirts; knitted or crocheted cotton jerseys; pullovers; cardigans; cotton T-shirts; singlets; and knitted or crocheted other vests. And with the TPP agreement two major products [dresses and shirts] are given duty free status upon entry into force – an exclusive offer by the US to only Malaysia and Vietnam. Competing with Vietnam, however, could be tough for Malaysia. Dato’ Sri Tan Thian Poh, president of Malaysian Textile Manufacturers Association (MTMA), says: “An aspect of concern would be to compete with Vietnam, which has exceeded Malaysia’s exports to the US by multiple folds.” Both Malaysia and Vietnam have an abundance of cheap labour, but Vietnam has more, and its cost of living is lower. In 2014, Malaysia's GDP per head was at US$11,307, while Vietnam’s GDP per head was US$2,052.3 in the same year, according to World Bank data. However, some players are ready to take on the challenge, even shifting production to Vietnam. Indeed, Prolexus Bhd Malaysia – a leading apparel manufacturer – is reported to be planning to establish a US$7.4m-US$9m fabric mill in Vietnam’s Tien Giang province ahead of the TPP deal, although the company did not respond to requests for confirmation from WTiN.
Meanwhile, total investments [in all sectors] in Malaysia due to the TPP are projected to surge, according to the MTMA statement. Between 2018 and 2027, additional investment, mainly in the textiles, construction and distributive trades, is predicted to rise by US$136bn to US$239bn. To benefit from the resulting production growth, however, the country needs a skilled labour force. “The MTMA, along with the industry, is formulating a comprehensive human capital solution to ensure an ample supply of workers to the industry,” reveals the statement. And recruiting foreign labour would be crucial in this process – the industry believes that structured human capital management including foreign skilled labour with the support of the government will “enable the industry to reap the full benefit of the TPP.”
SOURCE: The CCF Group
Uganda's Southern Range Textiles Limited, which bought Nyanza Textile Industries Limited (NYTIL), has said it has started importing cotton from Tanzania because local production is not enough to meet its requirement. William Okello, logistics manager of Southern Range Textiles, told journalists during the installation of new machines at the factory recently, that Uganda's cotton production which originally stood at 100,000 bales per annum, has plunged to 80,000 bales while the demand for cotton has shot up to 150,000 bales per year. Uganda used to be a cotton exporter but the situation has now changed. “Most of the areas which grew cotton in the east, north and south western Uganda, are now growing SimSim, sun flower, cassava and rice and this has reduced cotton production,” he said now they only have Kasese and Tanzania as sources of cotton. Okello urged the Cotton Development Authority to encourage farmers to resume growing the crop. He said a host of factors have combined to deter farmers from cultivating cotton. “It is labour intensive, costs of inputs such as pesticides and fertilisers are too expensive and yet the equipment we are commissioning today is meant to meet the national demand for fabrics,” he said.
SOURCE: Fibre2fashion
China’s Cabinet has approved measures to boost exports in a move that might inflame tensions with Western trading partners that accuse Beijing of flooding their markets with steel and other goods at improperly low prices. The announcement late yesterday comes as Beijing struggles to reduce a glut of goods in an array of industries and reverse an export decline that threatens to cause politically dangerous job losses. Its efforts so far have prompted complaints by European and US steelmakers and others that it is violating free-trading pledges. In its latest measures, the Cabinet promised more bank lending, an increase in tax rebates and support for export credit. Chinese exports contracted by 1.8 per cent last month compared with the same period last year and are down 7.6 per cent so far this year. “The foreign trade situation is complicated and grim,” said the Cabinet statement. “Promoting foreign trade to return to stability is important for economic stability and upgrading.”
Beijing is trying to shrink bloated companies, many of them state-owned, in industries including steel, coal, glass, cement and aluminium in which supply exceeds demand. That has led to price-cutting wars and heavy losses. Yesterday’s announcement follows a Cabinet announcement last month promising to boost steel exports with bank loans and other support. In March, Washington responded to a flood of low-cost steel from China by announced anti-dumping tariffs of up to 266 per cent on some Chinese steelmakers. Britain’s government faces pressure to act after Tata Steel cited low-cost Chinese competition when it announced plans in April to sell money-losing operations there that employ 20,000 people. Elsewhere in Europe, steelworkers have protested in Brussels outside the European Union headquarters. Also in April, China pushed back against its trading partners, announcing anti-dumping duties on steel from the European Union, Japan and South Korea. Yesterday’s announcement also said Beijing will support companies in setting up foreign distribution centers and other sales infrastructure and shifting some operations abroad. As part of the campaign to reduce overcapacity, China’s minister of human resources announced plans in February to eliminate 1.8 million jobs in coal and steel. Beijing announced a 100 billion yuan (USD 15 billion) fund to help laid-off workers find jobs. Plans for other industries have yet to be announced.
SOURCE: The Financial Express
The Federal Board of Revenue (FBR) during the ongoing budget exercise for 2016-17 is reworking sales tax structure on the five major export oriented sector which includes textile, carpets, leather, surgical and sports goods under SRO.1125. According to Tax experts, sales tax on five export-oriented sectors was declared zero-rated first time through Finance Bill 2005. The FBR at that point of time endorsed that the amount they collected from textile sector is almost refunded to exporters. Since no textiles contribution in collection of sales tax was not very significant it was appropriate to declare this sector zero rated from sales tax to boost up exports. The position continued till 2011. Thereafter firstly reduced rate of sales tax on supplies to unregistered person was imposed through SRO 283(i)/2011 and SRO 1125(i)/2011 and then entire supply chain was brought into the sales tax through reduced rate regime from February 2013. Shehzad stated at present reduced rate of sales tax @ 3 percent is prevailed on industrial raw material and processing charges. The locally made finished textile articles are chargeable to Sales Tax @ 5 percent. Imported finished textile articles attract sales tax @ 17 percent. Retailers of textile sectors are chargeable to sales tax @ 5 percent. Commercial importers in addition to sales tax @ 3 percent are liable to pay sales tax @ 1 percent on value addition and further sales tax @ 2 percent is also payable on supplies to unregistered person. The issue pertaining to discriminatory treatment of commercial importers and industrial importers is also under debate this year. The FBR in the short span of two years were forced to bring number of amendment through different notification such SRO 154/2013, 682/2013, 221/2013, 504/2013, 898/2013 and 486(2015).
FBR intends to tap sales tax on local/domestic consumption of textile goods and therefore in a view that entire textile regime should be kept in sales tax regime, so that government can retain portion of sales tax after payment of sales tax consumed in exports. The problem they encounter is timely release of refund payment. Mostly FBR never satisfied refund claimants. In-fact even in a developed world VAT refunds are one of the chronic issue. According to Shehzad, it is not wise to keep sales tax on textile and other export oriented sector. The collection at one end and repayment at other end does not make sense. A major part of cotton produce particularly lower count textile yarn is exportable resources, if lower count yarn is declared zero rated exporters may be provided a big relief. The domestic consumption is based on fine/higher count. It is high time for tax managers together with stakeholders jointly workout modalities in way to intact proper revenue collection from this sector as well as it may address genuine problems of exporters. The focus of entire tax machinery should be shifted to other tax generating avenues.
SOURCE: Yarns&Fibers
China’s economy will grow by around 6.7 percent in the second quarter of 2016, on par with that recorded in the first quarter, a leading think tank said in a report yesterday. The State Information Center, an institution affiliated with the National Development and Reform Commission, predicted that with infrastructure investment and the real estate sector gaining steam, the Chinese economy is likely to stabilize in the next six months. The country’s economy grew 6.7 percent year on year in the first quarter. The growth further narrowed from the previous quarter’s 6.8 percent, which was already the lowest quarterly rate since the global financial crisis. The State Information Center said indicators including output of cars and crude steel, power generation and industrial added value have shown the economy beginning to stabilize. The government will spend 1.2 trillion yuan (US$184 billion) on infrastructure this year, and that will attract further investment worth 6 trillion yuan, according to the report. Meanwhile, land and housing sales continue to increase. Although the property inventory is still excessive, the report sees real estate investment picking up in the short run. The State Information Center singled out the service sector as a bright spot. With consumer spending on leisure, health care and information services increasing, the service sector should expand at around 7.5 percent in the second quarter, it said. While consumer demand is stabilizing, slower income growth and the lackluster job market cast a long shadow. The report estimated retail sales of consumer goods will grow by around 10.5 percent in the April-June period.
SOURCE: The Global Textiles
