INTERNATIONAL
Textile Raw Material Price 2016-05-25
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1012.73 |
USD/Ton |
-0.45% |
5/25/2016 |
|
VSF |
2043.77 |
USD/Ton |
0.22% |
5/25/2016 |
|
ASF |
1921.75 |
USD/Ton |
0% |
5/25/2016 |
|
Polyester POY |
983.75 |
USD/Ton |
-1.90% |
5/25/2016 |
|
Nylon FDY |
2226.79 |
USD/Ton |
0% |
5/25/2016 |
|
40D Spandex |
4377.32 |
USD/Ton |
0% |
5/25/2016 |
|
Nylon DTY |
2097.15 |
USD/Ton |
0% |
5/25/2016 |
|
Viscose Long Filament |
1105.77 |
USD/Ton |
-0.48% |
5/25/2016 |
|
Polyester DTY |
2470.82 |
USD/Ton |
-0.31% |
5/25/2016 |
|
Nylon POY |
5687.47 |
USD/Ton |
0% |
5/25/2016 |
|
Acrylic Top 3D |
1250.66 |
USD/Ton |
-0.61% |
5/25/2016 |
|
Polyester FDY |
2066.65 |
USD/Ton |
0% |
5/25/2016 |
|
30S Spun Rayon Yarn |
2775.86 |
USD/Ton |
0% |
5/25/2016 |
|
32S Polyester Yarn |
1689.92 |
USD/Ton |
-0.18% |
5/25/2016 |
|
45S T/C Yarn |
2440.32 |
USD/Ton |
0% |
5/25/2016 |
|
45S Polyester Yarn |
1830.24 |
USD/Ton |
0% |
5/25/2016 |
|
T/C Yarn 65/35 32S |
2135.28 |
USD/Ton |
0% |
5/25/2016 |
|
40S Rayon Yarn |
2928.38 |
USD/Ton |
0% |
5/25/2016 |
|
T/R Yarn 65/35 32S |
2226.79 |
USD/Ton |
0% |
5/25/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
5/25/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
5/25/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
5/25/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
5/25/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
5/25/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15252 USD dtd. 25/05/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Fiscal correction is necessary and need of the hour. Excise duty on manmade/ synthetic textiles should be reduced to 6% from the current level of 12.5%. The demand will grow on lower excise duty, according to industry sources. Sources informed that reduction in excise duty to 6% and its extension up to the yarn stage will not only be revenue neutral but revenue plus. Uniform tax structure on entire textile value chain as adopted by all our neighboring countries including China will infuse substantial growth across the textile value chain, sources pointed out. The current contraction in domestic demand, sources noted, is a cause of great concern as the cloth produced from man-made fibre is used by common man. It is an irony that a person buy a polyester shirt of Rs.100 or a synthetic sari of Rs.200 pays the highest taxes as compared to one who buys cotton shirt or sari worth Rs.1000 and pays no taxes, sources stressed. Sources noted that capital incentives for waving and finishing sector should be given to encourage value addition with in the country under Make in India initiative. On the export front, sources said that eExports incentives under Chapter 3 of Foreign Trade Policy should be uniform across the textiles value chain.
Stating that India is in a peculiar stage today, sources pointed out that Indian has surplus cotton but there are no buyers. It has surplus cotton yarn capacity, thanks to thousands of crores given as subsidy under TUF in last decade but do not have sufficient export market. Manmade textiles, which have a large demand, are not produced in sufficient capacity. China exports 65% of manmade textiles out of its exports of US$350 billion while India’s share of manmade textiles out of its exports of US$40 billion is less than 20%. Our share in world market of manmade textiles is less than 3.25%. This is largely due to discriminative excise duty structure, sources pointed out With a total revenue income of Rs.625 crores (net of MODVAT on raw materials), government may temporarily see a short fall of revenue, which will be more than mitigated by increased production and consumption of manmade fibres, sources said.
SOURCE: The Tecoya Trend
Net profit of Surat Textile Mills reported to Rs 3.58 crore in the quarter ended March 2016 as against net loss of Rs 1.52 crore during the previous quarter ended March 2015. Sales rose 99.04% to Rs 39.25 crore in the quarter ended March 2016 as against Rs 19.72 crore during the previous quarter ended March 2015. For the full year,net profit rose 139.45% to Rs 6.13 crore in the year ended March 2016 as against Rs 2.56 crore during the previous year ended March 2015. Sales declined 8.10% to Rs 117.22 crore in the year ended March 2016 as against Rs 127.55 crore during the previous year ended March 2015.
SOURCE: The Business Standard
Slow growth in domestic consumption and exports is likely to pose a challenge for textile spinners if demand remains muted this fiscal, ratings agency Icra said. “The slow pace of growth in spun yarn production has been driven by factors like tepid domestic consumption and limited growth in exports. With cautious outlook on cotton yarn exports, domestic demand growth will determine the production growth going forward,” Icra’s AVP, Corporate Sector Ratings, Anil Gupta said. As per Icra estimates, the domestic consumption growth for cotton yarn in 2015-16 are expected to be 1.4 per cent compared to 7.6 per cent in the previous fiscal. The consumption growth for spun yarn is estimated to be 3.1 per cent in 2015-16 from 6.3 per cent in 2014-15. It said this is the lowest level of domestic consumption growth since 2012-13. The ratings agency said the growth in cotton yarn shipments has also been slow with exports of 1,302 million kg in 2015-16, an increase of 3.7 per cent compared to growth rates of 47.5 per cent and 18.3 per cent witnessed in FY13 and FY14, respectively. In terms of cotton yarn production, the industry witnessed slowest pace of growth in 2015-16. Production is estimated to have grown by 2 per cent to 4,136 million kg and is the lowest in last four years. Cotton yarn production had grown by 14.6 per cent, 9.6 per cent and 3.2 per cent in FY13, FY14 and FY15, respectively. Since cotton yarn accounts for three-fourths of India’s yarn production, the country’s total spun yarn production has also emulated this trend with a 3.2 per cent growth in 2015-16, compare to 11.3 per cent, 9.1 per cent and 3.4 per cent growth in FY13, FY14 and FY15, respectively.
SOURCE: The Financial Express
Looking for safer development models in renewable energy, spinning mills in the textile belt of Coimbatore and Tirupur have begun hunting for investors to fund small solar farms on the rooftops of their factories. Investor interest in funding small, rooftop units in the south have also picked up with other avenues of investment such as real estate still lumbering in a slow recovery phase and attractive returns from a round-the-year textile industry. The other attraction for rooftop farms is that power can be consumed directly, with minimal wheeling or transmission charges for the energy as opposed to drawing power from distant solar farms or state-provided grid power. Coimbatore-based denims manufacturer KG fabriks was one of the earliest to go for a rooftop solar plant after the Alpine Group. Srihari Balakrishnan, who heads KG, said: "Our rooftop solar unit takes care of about 20% of our power needs, while the rest is met through wind power and thermal power. Till now, the rooftop plant has generated close to 16 lakh units." Tamil Nadu's spinning industry with a yarn manufacturing capacity of 2.25 crore spindles, had had several plunges into renewable energy. A large portion of small and medium mills have gone for wind farms and some into solar farms developed by independent power producers. Wind power turned problematic after the industry and the state locked horns over the state's backing out wind farms - cutting off turbines when supply exceeded demand during wind seasons. Gamesa, a wind power developer, had even begun selling solar projects to the state textile industry to tap into the demand-supply gap in renewable power. "A back-of-the-envelope calculation shows rooftop solar farm is an attractive option for investors," said Prabhu Damodharan, secretary, Indian Texpreneurs Federation.
In most of the spinning mills in Tamil Nadu, the rooftop can accommodate solar plants to the capacity of 1-3 MW. The Indian Texpreneurs Federation has invited three solar power developers to negotiate terms for development of about 50 MW of rooftop plants in the first phase of this drive. Industry representatives say there is potential to develop well over 500 MW of rooftop solar systems in Tamil Nadu. The cost of raising solar plants revolves around Rs 5.05 crore per MW, according to the state electricity regulator's latest paper. Textile industry sources say the cost of photo-voltaic modules and other components are set to reduce further, resulting in higher earnings for long-term investors in rooftop solar power.
SOURCE: The Economic Times
Bhoday Sales Corporation is tucked inside the industrial zone of Ludhiana. A small machine tooling factory with a net worth of not more than Rs 10 lakh, it makes manufacturing equipment for other plants in the city. Of late, it has fallen on bad times. Sales are down. At one time, says its founder, 68- year-old Maan Singh, the company used to make four power presses a month. It now makes one a month. Bhoday is far from being the only company that is struggling in Punjab. A story published last December in Scroll reported industrial units across the state – steel plants in Mandi Gobindgarh, sporting goods manufacturers in Jalandhar, textile units in Amritsar, bicycle-makers in Ludhiana – were shutting down or relocating to other states. A similar narrative is visible in industrial hubs in three other states that Scroll surveyed. About 80 kilometres from Delhi, in Rajasthan’s Bhiwadi Industrial Area, hardly any new units have come up since 2014. “Instead, a hundred units have shut down in these two years,” said Brij Bihari Kaushik, the president of the Bhiwadi Manufacturing Association. In Kalunga Industrial Area on the outskirts of Rourkela, one of the central steel-making towns of Odisha, Subrata Patnaik, the secretary of the Rourkela Chamber of Commerce and Industry said, “Out of 50 induction furnaces, 40 are closed.” Further south in Coimbatore, one of the prime industrial towns of Tamil Nadu, the manufacturers of groundwater pumps said the volume of business has fallen by 20%-30 %in the last 3 years. These are puzzling trends. Between them, these industrial clusters in Punjab, Rajasthan, Odisha and Tamil Nadu house a range of manufacturing industries. Some of them export what they make. Others live off domestic demand. And yet, each of them has the same story to tell – of slowing business and shuttering units.Try and understand why and you arrive at the fundamental limitation of the "Make In India" programme.
The proposition
"Make In India" is one of the cornerstones of Prime Minister Narendra Modi's blueprint for the country. You know the backstory. Manufacturing growth has been slowing down in India. Between 2007 and 2012, it grew by just 7.7%, far below the targeted growth rate of 10%-11%. This is a concern because India needs a robust manufacturing sector not just to boost economic growth but also to provide employment to the country's burgeoning population. In the next 15 years, an estimated 250 million people will join the labour force. With agriculture in decline, India needs the manufacturing sector to step in and create a lot of jobs. Accordingly, after coming to power, the Modi government launched its "Make In India" programme. Similar to the National Manufacturing Policy proposed by the previous Congress-led United Progressive Alliance government, it seeks to make India grow like China by producing goods for external markets. Among other things, the government has eased the process of regulatory approvals for setting up manufacturing units in India. This export-driven push, claims the government, will create 100 million jobs and boost the manufacturing sector's contribution to India's GDP to 25% – up from the current 17% – by 2022. Two years down the line, the programme is snared in conflicting claims. The government claims it is doing well. In a speech in February, Modi said: “When we started the Make in India campaign, manufacturing growth in the country was 1.7%. This year it has improved substantially. In the current quarter, manufacturing growth is expected be around 12.6%.” But a visit to industrial clusters across the country shows de-growth – not growth.
What explains this?
Punjab
The immediate factors vary from state to state, cluster to cluster. But taken together, they raise a large question about the competitiveness of manufacturing in the country, and whether companies will Make in India if these issues are not addressed. Businesses in the state are struggling to compete with cheaper competition from units in other Indian states or in China. Jalandhar was once the global hub of sports goods manufacture, specialising in inflatables, the industry term for volleyballs, basketballs, footballs, beachballs and the like. That has changed with the entry of China. Said Vipan Mahajan, the head of the local sporting goods manufacturers' association, “We produce at $2 and they, at $1.50. How do we compete? Today, 90% of the market is theirs.”
Why is Punjab costlier? Partly, because of its location. Both raw materials (like iron ore for its steel plants) and ports (for exports) are more than 1,000 kilometres away. At the same time, the cost of doing business from Punjab is rising. The state government is cash-strapped. In a bid to mop up additional revenues, it has tacked additional charges like a cow cess, infrastructure cess, electricity duty and octroi on to power bills. The cost per unit of power in Punjab has risen to Rs 8 – much higher than in neighbouring states. The state also imposes higher taxes on industry. A letter by the Mohali Industries Association says LED manufacturers in Punjab pay a value-added tax of 13.5%. In contrast, their rivals in neighbouring states pay 5.5%. The final straw, say manufacturers, is the predatory extraction of the ruling Akali Dal. A businessman, who wanted to set up an atta (flour) factory, alleged that the party asked him for a 3%-4% chunk of his turnover. “My margins will be 10%-15%,” he said. “Three per cent-4% was too high.” All these factors are making it harder for units in the state to compete with their peers elsewhere. Larger companies are relocating. Smaller ones, like Bhoday, are struggling to stay afloat.
Tamil Nadu
Coimbatore has a different story to tell. The city’s industrial cluster of micro, small and medium industries (collectively called MSME) is yet to recover from the crippling power shortages that the state faced seven years ago. In nearby Tirupur, the cotton yarn producers are facing a raw material crunch. Over the years, cotton production in Tamil Nadu has severely fallen. Facing labour shortages, cotton farmers have moved to plantation crops like coconut, or converted their farmlands into residential plots. The fallout? The industry now gets barely any cotton from the fields around it. Said S Sakthivel, executive secretary, Tirupur Exporters Association, “Our demand for cotton bales is 110 lakh tons but what is locally available is just 5 lakh tons. Most cotton is now produced in Gujarat, Madhya Pradesh and Maharashtra, which means we have to import as much as 100 lakh tons.” Trucking in the bales all the way from Gujarat adds as much as Rs 8 per kilo to the costs of yarn-makers. It is harder for them (and their buyers) to compete with spinning mills coming up in Gujarat and Maharashtra, not to mention the ones in China, Bangladesh and Vietnam.
Odisha
Steel plants in the state have been are struggling for a long time. Their troubles started when India began exporting raw iron ore to China in the run up to the Olympics last decade. “It was a mistake to allow the export of ore,” said the head of a steel plant in Rourkela, who argued that India should have used the ore to raise its domestic steel production. “Instead of making Rs 4,000 per ton exporting ore, we could have made Rs 45,000 per ton exporting steel,” he said. That would have made domestic manufacturers more competitive and created a more robust industrial economy in the state. But instead, he said, the state saw a “silent accommodation of mining interests”. More recently, as the price of steel in China fell, Indian steel companies prevailed upon the government to impose import tariffs. This meant the small and medium enterprises that require steel were unable to capitalise on the low import prices. “If I am a furniture shop making almirahs, the product gets costlier,” said a businessman who runs a company that cuts and shapes sheet metal for other industries in Coimbatore.
Diminishing competitiveness
What is common to these industrial clusters is the loss of competitiveness. This is where the failing of the "Make In India" campaign lies. While it eases the regulatory process of setting up businesses in India, it doesn't do much to make manufacturing in India globally competitive. The impediments go beyond issues like poor infrastructure. Political risk is an especially large factor. As mentioned earlier, in Punjab, the ruling Akali Dal, which has the Bharatiya Janata Party as an alliance partner, is extracting rent from industry and overcharging for power. In Tamil Nadu, despite a looming power shortage, businessmen complain the ruling All India Anna Dravida Munnetra Kazhagam went slow on tapping alternative sources of energy. They say the state has dragged its feet on connecting already-installed windmills to the state powergrid. Said a Coimbatore-based businessman, who did not want to be identified, “The centre has a good idea [Make In India] but unless the state cooperates, they cannot do a thing.” Other factors – seemingly unrelated to manufacturing – also impact the "Make In India" programme. Take Coimbatore's groundwater pumpset industry and Tirupur's textile units. For both to revive, agriculture has to be saved first. This is possible only when governments start taking climate change, water availability and agricultural prices more seriously. To make Odisha’s steel makers globally competitive, state and central governments have to stop valuing the profitability of some companies over others. Such factors go far beyond the limited imagination of the "Make In India" programme.
Shrinking industry
In the absence of meaningful steps to boost India's manufacturing competitiveness, we are seeing two trends. First, industrial production is shrinking in the country. Second, large manufacturing units in distressed industrial enclaves are setting up their expansion units in other states. For instance, an official at Nahar Industrial Enterprises, which used to manufacture cotton yarn, garments and woollens in Punjab, reported that the company now makes 40% of its yarn and denim in Madhya Pradesh. Similarly, steel plants in the state are shifting to the country's mineral belt, and cycle makers and other companies are gradually shifting production to states offering them tax sops. This is a weak solution to the problem of India's diminishing competitiveness. While relocating production in India will improve a unit's competitiveness within India, it probably isn't enough to make a firm globally competitive.
A garment manufacturer in Tirupur said his competitors in Vietnam are twice as efficient. “The only reason we continue to get business," he explained, "is because our clients don't want to be too dependent on any one country for their production.” He is planning to relocate some of his units from Tamil Nadu to the industrial cluster of Sri City in Andhra Pradesh, just to make sure he is not the costliest supplier from India to his buyers. At the same time, while larger units can relocate, smaller ones cannot. Take Bhoday's Maan Singh. When Scroll met him last year, we asked if he too was planning to relocate. “Companies with money can relocate,” he said. “They can buy land elsewhere and start up again. But we cannot do that." "Why will our customers follow us to the new place?” he added. "All of them come to Ludhiana. Most machine tooling factories are here." This is creating an outcome where – even if the larger units survive – the smaller ones are shutting down.
What it means for labour
Diminishing competitiveness is also changing India's labour markets. There is rising migration, outsourcing and dependence on casual labour. Said Sikandar Saini, an instructor at an Industrial Training Institute in Bhiwadi, “60% workforce in even the biggest factories like Maruti, Honda, Hero is now in thekedaari [contract] system." If the large units use contract workers, the smaller ones will follow suit, he said. "Workers want to write to Modi, that if you cannot ensure job security like before, at last improve wages and work conditions for contract workers,” he said. In Tirupur, in recent years, local workers have been replaced by cheaper migrant workers from Bihar and Odisha. Simulatenously, factories have outsourced production to contractors who farm out the work (like stitching, embroidery, washing) to families who work from their homes and get paid on a piece-rate basis. Both measures come with their own complications. Not only does outsourcing create more uncertain economic lives for workers, it can also work out more expensive for companies in the long run. As Brij Mohan Mittal, a businessman in his sixties who owns a forging unit in Bhiwadi, said: “Illiterate workers damage machines.” As for outsourcing, that brings in concerns about quality control. In the small industrial units, workers are hit even harder. Unable to relocate, the units try and stay afloat by doing away with labour. In Ludhiana, Maan Singh's Bhoday has let go its staff. “We don’t have labour. We are not able to pay more than Rs 6,000. Khud kaam kartey hain to nikalta hai." We can make ends meet only if we do the work ourselves.
SOURCE: The Scroll
The government is focussed on improving infrastructure and driving innovation to ensure that India ranks among the top 30 countries in terms of ‘ease of doing business’ in the next 3-4 years, Niti Aayog CEO Amitabh Kant said on Tuesday. Speaking at an IAMAI event here, Kant said the ecosystem of innovation is just “beginning to blossom” and one is seeing a resurgence of young Indians starting new businesses. “Our objective is that India must become a very easy and a very simple place to do business in. This is one government that is focussed on innovation and trying to make India an easy simple place to do business,” he added. Stating that India has jumped up 12 positions in the ease of doing business, Kant said the government has taken various steps in this regard including bringing in the bankruptcy law, e-biz platform for a single channel of approvals and is also introducing a national company law tribunal.
According to the World Bank’s Doing Business Report 2016, India ranks 130 out of 189 countries in the ease of doing business. “...our objective is that in the next 3-4 years, India must come in the top 30 countries as far as ease of doing business is concerned,” he added. Kant added that the government is strongly focussed on enhancing the infrastructure sector and improving connectivity. He also released a report by the Internet and Mobile Association of India (IAMAI) that highlights the opportunities for India to become a leading player in the global data centre market. “Decision to set up data centre in the country cannot be mandatory and it will not be conducive for the ecosystem. For a conducive policy and regulation on data centres, we have to work in partnership with the industry and bodies like IAMAI,” he said. He added that a dialogue will be initiated with departments like IT, telecom and energy to create the best possible infrastructure for data centres. According to the report, India’s data centre infrastructure market is pegged to be around USD 7 billion by 2020 from about USD 2.2 billion currently. This would make India the second largest market for data centre infrastructure within the Asia/Pacific region by 2020. “India has the potential to capture a big share in the global data centre market. However, there is a need to address some of the risks and barriers and create the right incentives for businesses to build effective data centre infrastructure in the country,” IAMAI President Subho Ray said. The report calls for the government to facilitate data centre operations in India through clear policies to facilitate trans-border flow of data and tax sops and incentives to woo foreign players. It also warns against the dangers of “forced localisation of data” adding that the same would reduce competitiveness, harm India’s GDP and fledgling reputation as an emerging data centre hub.
SOURCE: The Tecoya Trend
The Union government is confident it would be able to garner an adequate number of votes in the Rajya Sabha to ensure the passage of the Constitution amendment Bill on goods and services tax (GST) during the forthcoming monsoon session of Parliament. Based on this, it has already begun working on a timeline that envisages roll-out of the GST regime from April 2017. Top government sources told Business Standard that all political parties other than the Congress and the All India Anna Dravida Munnetra Kazhagam (AIADMK) have supported the GST Bill. AIADMK leaders are understood to have indicated that their members in the Rajya Sabha would not come in the way of the passage of the Constitution amendment Bill on GST. The understanding is that AIADMK members in the Upper House would abstain at the time of voting. This is expected to help the government as the Congress, whose strength is already reduced, would be further isolated, paving the way for the passage of the Bill.
According to the current government thinking, the Constitution amendment Bill is likely to be taken up for discussion and voting in the Rajya Sabha during the very first week of the monsoon session. This will give adequate time for the Bill to be sent to states, so that at least half of them could approve it. Once that is obtained, the government plans to introduce two GST Bills, whose passage should not be a problem as these would be money Bills, for which the Rajya Sabha's approval is not mandatory. These Bills could be approved by Parliament either in the winter session or in the first half of the Budget session next year. The government's confidence on rolling out GST from April also stems from its internal assessment that most chief ministers are in favour of the new tax regime that would introduce uniform rates and improve the ease of doing business.
SOURCE: The Business Standard
US senators questioned on Tuesday whether India.s development of a port in southern Iran for trade access risked violating international sanctions, and a State Department official assured them the administration would closely examine the project. "We have been very clear with the Indians (about) continuing restrictions on activities with respect to Iran," Nisha Desai Biswal, Assistant Secretary of State for South and Central Asia. Affairs, said on Tuesday. "We have to examine the details of the Chabahar announcement to see where it falls in that place," she testified to the Senate Foreign Relations Committee. Indian Prime Minister Narendra Modi on Monday pledged up to $500 million to develop the Iranian port of Chabahar, to try to give his country trade access to Iran, Afghanistan and Central Asia. The route is currently all but blocked by Pakistan, long at odds politically with India. The United States and Europe lifted sanctions in January under a deal with Iran to limit its nuclear program but some restrictions to trade remain, tied to issues such as human rights and terrorism. Biswal said she believed India's relationship with Iran was primarily focused on economic and energy issues, and said the administration recognized India's need for a trade route. "From the Indian perspective, Iran represents for India a gateway into Afghanistan and Central Asia," she said. "It needs access that it doesn't have." Biswal said she had not seen any sign of Indian engagement with Iran in areas, such as military cooperation, that might be of concern to the United States. Modi is due to visit the United States next month and will address a joint meeting of Congress, a rare honor. Senator Ben Cardin, the committee's top Democrat, asked if Biswal expected formal security cooperation agreements to be signed during that visit. She noted that India and the United States have already strengthened their security cooperation in several areas. "We're looking at what additional areas we can engage in to deepen that cooperation," Biswal said. Washington sees its relationship with India as critical, partly to counterbalance China's rising power. President Barack Obama has called it "one of the defining partnerships of the 21st century."
SOURCE: The Economic Times
India today promised a conducive environment for Chinese investors and urged them to participate in ‘Make in India’ and other flagship programmes of the government to boost bilateral trade. “We will facilitate your efforts to make your investments in India profitable. We must take advantage of the opportunities that abound in the growth of both our economies,” said President Pranab Mukherjee addressing a meeting of the India-China Business Forum here on the second day of his four-day visit to China. The forum, attended by industrialists and businessmen of both sides, was told by the President that India would like to see greater market for Indian products in China in a bid to balance bilateral trade which is now in China’s favour. This, he said, would particularly be needed in sectors where the two countries have natural complementarities as in drugs and pharmaceuticals and IT and IT-related services and agro products. “It is a matter of satisfaction that there is emerging focus on two-way investment flows,” he said. The President noted that the bilateral trade between India and China has grown steadily since the turn of this century from $2.91 billion in 2000 to $71 billion last year. Guangdon province boasts of a $one trillion economy with high manufacturing and other industries along with being a powerful export house of China. It has sister province relationship with Gujarat and Maharashtra. A pilot smart city cooperation project has been announced between Shenzhen and the Gujarat International Finance Tec-City in Gujarat last year.
Referring to the links of 2nd century before the Christian era between Guangdong and Kanchipuram through a direct sea route, Mukherjee said this is an exciting time for India and China to reinforce the old linkages and join hands for new. Noting that India has recorded a growth rate of 7.6 per cent each year for over a decade now, he said India believes that it cannot grow in isolation. “In an increasingly interconnected world, India would like to benefit from technology advances and best practices of different countries. “The comprehensive reforms introduced in key areas of our economy have enhanced the ease of doing business in India. Our foreign investment regime has been liberalised through simplified procedures. And removal of restrictions on foreign investments,” he said. The President said these reforms have renewed the interest of global investors in India. In 2014, there was a 32 per cent growth in investments and in 2015, India emerged as one of the biggest global investment destinations, he said.
SOURCE: The Financial Express
India and the US are unlikely to sign the long-pending bilateral investment treaty (BIT) during Prime Minister Narendra Modi’s visit to Washington next month. The US is said to be unhappy with India’s model of the BIT and has made it clear that it will not negotiate the same. The Indian model does not have the provision for most-favoured nation (MFN) and does not clarify on fair and equitable treatment (FET) provision. A team of officials from the US Treasury Department have told their Indian counterparts that “there is a huge gap between the India’s model and US’ model of BIT”, a senior official, privy to the development, told BusinessLine . For instance, the absence of provision for MFN status unlike the US model —MFN helps in substantial protection of standards for investors — has become an issue. The US also wants specific provisions to be inserted to safeguard interests of its entities investing in India. It seems to be miffed with the fact that the Indian BIT model does not have clear provisions on fair and equitable treatment (FET), which is there in the US 2012 model, sources said. “A lot more discussion is still needed. It will be too ambitious to expect that it can be concluded by next month,” an official source said. A high-level delegation of officials from the US had visited India earlier this month and had held talks with Finance Ministry on the investment pact. It had also indicated that India should use the provisions stated in investment chapters of its trade pacts with Japan and Korea as the basis of negotiating a “high-standard BIT” as those contain somewhat similar provisions that are laid out in the US BIT model. The next round of talks is expected to take place during the second round of India-US Strategic and Commercial Dialogue. However, to ensure early conclusion of the talks, issues of intellectual property rights and the totalisation agreement are being discussed separately. India and the US have been negotiating the BIT since 2008 and discussions have gathered momentum since the Union Cabinet approved the text of the model treaty in December last year.
FDI flow
With the US being one of the top investors in India, it has been widely expected that it would be the first country to sign the revised treaty. In 2015-16, the US was the fifth largest investor in India with foreign direct investment equity inflows amounting to $4,192 million.
SOURCE: The Hindu Business line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.74 per barrel (bbl) on 25.05.2016. This was higher than the price of US$ 45.72 per bbl on previous publishing day of 24.05.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3152.39 per bbl on 25.05.2016 as compared to Rs. 3095.63 per bbl on 24.05.2016. Rupee closed stronger at Rs 67.45 per US$ on 25.05.2016 as against Rs 67.71 per US$ on 24.05.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 25, 2016 (Previous trading day i.e. 24.05.2016) |
Pricing Fortnight for 16.05.2016 (28 Apr to 11 May, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.74 (45.72) |
43.00 |
|
(Rs/bbl |
3152.39 (3095.63) |
2859.50 |
|
|
Exchange Rate |
(Rs/$) |
67.45 (67.71) |
66.50 |
SOURCE: PIB
TUV SUD, an international service provider in testing, inspection, audit and certification yesterday signed a memorandum of understanding (MOU) with the HCM City Association of Garment Textile Embroidery and Knitting (AGTEK) to help its members access global markets. Under the MOU, the two sides will co-organise quality and safety workshops and awareness programmes related to the textile and garment industry, according to Sathish Kumar Somuraj, general director of TUV SUD Vietnam. The in-house training sessions would aim to provide local manufacturers an updated and more in-depth understanding of stringent international quality and safety standards, he said. Phạm Xuân Hồng, AGTEK chairman, said Việt Nam has improved its business opportunities by signing free trade agreements with some key global players like the EU, US, Japan, Korea, and ASEAN, he said. While these agreements would bring global market access to Vietnamese businesses, it also means that Vietnamese manufacturers have to comply with more stringent quality and safety regulations, he said. "International government safety and quality regulations on textile and garment products are changing constantly, especially in today’s free trade business landscape. “Global buyers, especially those in Europe and the US, are increasingly demanding with respect to the kind and quality of products they want." Somuraj said quality and safety control are essential for companies in Việt Nam, especially those looking to take their products to international markets. The MOU also includes a special promotion for the association’s members, who are mainly small and medium-sized enterprises for whom cost is a concern, he said. The agreement is expected to immensely benefit member companies and take their business to the next level, he added. – VNS
SOURCE: The Vietnam News
Honduras is pursuing an ambitious development plan focused on strengthening the textile industry, according to government sources. The Central American country has established itself as a leading player in recent years, currently holding the spot as the second largest exporter of textiles in the Americas, after Mexico. Here we present the top five reasons why Honduras is on the path to becoming the leader of the textile industry in the Americas.
1. Sustainability
The key to success for this transformation is sustainability. The plan, a joint initiative of the government and the private sector, seeks to position the country as a leader in the Americas that pushes the frontier of sustainability and innovation in textiles, raising the bar for development and productivity in the industry. This is a critical factor in the current global context where consumers, particularly the younger generations, demand sustainable practices and supply chain integrity throughout the production process.
2. Less environmental impact in textile production
Honduras has made large strides on environmental issues, following a business model that seeks and achieves high quality processes. Focused on the environment, Honduras has invested heavily in technology to ensure the sustainability of all manufacturing processes in the textile industry. For example, 100 percent of production plants treat water used in the fabric dyeing process to reduce environmental impact. Additionally the industry recycles more than 15 million pounds of salt per year used in the dyeing process. More recently, production plants have started adding new technologies to use recycled fibers.
3. Better labor conditions for workers in the textile industry
Honduras is implementing concrete actions to improve the quality of life of workers in the textile industry by providing access to social housing, a social protection system and education plans. These initiatives also contribute to building a highly skilled work force to fulfill the demands of this fast-growing industry worldwide.
4. A roadmap to transform the industry
In the next five years the Honduras 20/20 development plan seeks to create 200,000 new jobs in the textile industry, adding to the 145,000 existing jobs in the sector. The strategy to drive growth is focused on significant investment in infrastructure for the industry, as well as on providing tax incentives and strengthening legislation to create a more business-friendly environment.
5. Honduras is the center of America
The country's location in the heart of the Americas gives Honduras' textile industry a competitive advantage: preferential access to key markets including the United States and Europe. This geographic proximity allows reduced shipping times and costs to major ports in the United States (two and a half days) and Europe (14 days), compared to Asian markets. There is no doubt that the skilled labor force, sustainable management of natural resources, privileged geographic location, and strong labor rights for workers, will continue strengthening Honduras' leadership position in the textile industry in the Americas. Any company producing textiles and any consumer wearing garments "Made in Honduras" can be confident in the quality and integrity of the country's products.
SOURCE: The PR Newswire
Uganda and Bangladesh the two countries plan to share information and technology on trade where Bangladesh will be extending its textile and jute products to the country for which they are set to sign a Memorandum of Understanding (MoU). Mr Mahmood Hudda, the Honourary Consul of Bangladesh in Uganda, said that the exportation of jute products to Uganda is timely as the country moves from plastic packaging to biodegradable materials. They are also looking at the Trade ministry to look into tax exemption on importation of jute to facilitate the trade on duty free basis. On taxing jute products, former Trade minister Amelia Kyambadde said that it is an issue that will be considered in future since the country has undergone the budgeting process. The MoU has been presented to the Ministry of Internal Affairs for vetting of documents to formulate the bilateral trade.
SOURCE: Yarns&Fibers
The textile and apparel industry in Mauritius has become a reliable supplier of high-value garments, minister of industry, commerce and consumer protection Ashit Gungah has said. “For more than 45 years, the Mauritian textile and apparel industry has been constantly re-inventing and re-engineering itself to maintain its niche position on the global apparel market. In doing so, the industry has emerged as a reliable and trusted supplier of high-value garments,” the minister said at the recently held Trend Forum 2016. Gungah recalled that the Forum aligns with the government programme and the strategy of Enterprise Mauritius to develop and promote the fashion industry, both locally and abroad. He underlined the need to promote the development of the fashion industry and to propel the 'Made in Mauritius' label products internationally. To that end, he stressed, the ministry will provide all necessary support to operators with a view to strengthening supply capacity and enable enterprises to quickly respond to fast changing trends by offering new products for every season. The minister said there is a need to turn toward high-end products with more stylists. “We can see the future more confidently if we can transform the textile industry into a fashion industry. To meet this objective, training is imperative,” he said. The two-day forum reviewed the latest global trends and was an exercise in knowledge sharing on how to create collections for various target markets.
Organised by Enterprise Mauritius in collaboration with the fashion agency HEAT Group, the event coincided with the first edition of the Mauritius Fashion Week, which was held from May 13-21. Around 100 participants from the textile and fashion industry as well as independent designers, ateliers of Haute Couture, SMEs, women entrepreneurs, and fashion and design students participated in the event that included seminars, interactive workshops and networking sessions. Various themes such as key products, design concepts and key colours were presented.
SOURCE: Fibre2fashion
SAARC Development Fund (SDF) and Asian Development Bank (ADB) have signed a pact to mobilize new funds to jointly finance projects. Areas such as transport, road connectivity, ICT, industrial development, trade and investment and energy will be the focus areas of co-funding of projects in the SAARC member states, SDF Chief Executive Officer (CEO) Sunil Motiwal said in a statement. ADB has already submitted a road connectivity project proposal titled ‘South Asia Sub Regional Economic Cooperation (SASEC) Road Improvements Project’, Nepal to SDF for co-funding. SDF was established by the eight SAARC member states in April 2010 to promote the welfare of the people of SAARC region, improve their quality of life, and to accelerate economic growth, social progress and poverty alleviation in the region.
SOURCE: The Financial Express
Oil extended losses in Asia today as a stronger US dollar and progress in controlling wildfires in Canada’s crude-producing Alberta province dampened prices. Hawkish remarks by US Federal Reserve officials hinting at a June interest rate hike pushed up the greenback against major currencies. “A stronger US dollar continued to extend pressure on commodity prices,” CMC Markets analyst Margaret Yang said in a note. A stronger US dollar makes dollar-priced commodities like oil more expensive, curtailing demand. At around 0930 IST, US benchmark West Texas Intermediate for July delivery was down 17 cents at USD 47.91. Brent North Sea oil, the European benchmark, for July was down 20 cents at USD 48.15. Prices have rebounded since plunging to near 13-year lows below USD 30 in February but are still well short of peaks of more than USD 100 a barrel reached in June 2014. There are market concerns that a supply glut may return following news of Canada lifting evacuation orders for several oil production sites in fire-ravaged Alberta province amid cooler weather and light rain. Prices were also weakened by comments from Iranian officials who vowed to keep up oil production after the lifting of Western sanctions in January. “USD 50 appears to be the resistance level because there seems to be not enough of a will to boost it any higher,” IG market strategist Bernard Aw told AFP. All eyes are now on the OPEC meeting in Vienna on June 2 where it is hoped an agreement to cut production can be reached, Aw said. The market is also keeping an eye out for inventory data from the American Petroleum Institute, which is due later today, followed by US Energy Information Administration data tomorrow.
SOURCE: Tecoya Trend
Source Africa will take place for the 4th time in Cape Town this year. It is now the most important annual pan-African textile, clothing and footwear trade event on the international calendar. Source Africa will bring together manufacturers, buyers, suppliers and services providers in one major integrated event, enabling international and African buyers to view and explore an extensive array of products and services from Africa. The event will promote African manufacturers to both regional and international buyers, with the aim of increasing market share for the continent as well as developing regional trade between African countries.
Enterprise Mauritius (EM) will lead a major delegation of 39 enterprises to the Source Africa Trade Show this year. The main objectives behind their participation are to maintain their visibility as the ‘Preferred Next Door Partner’ and to boost exports to South Africa. Companies will be showcasing a wide range of products ranging from knitwear, T-shirts, polo shirts, jeans, high-end suits and accessories. In addition to participation in the trade show, Enterprise Mauritius will be organising a fashion show on 8 June to showcase the ‘Savoir Faire’ of Mauritian manufacturers.
Arvind Radhakrishna, CEO of Enterprise Mauritius, said that South Africa was the third export market for Mauritian textile and apparel products in 2015. Exports to South Africa have increased by 500% over the last decade and last year it reached R6bn, registering a 21% increase compared to 2014. With decades of experience and renewed investments in high-end design skills and manufacturing technology, Mauritian textile and fashion producers now supply leading fashion brands, primarily in the Euro zone and US, namely: Calvin Klein, Adidas, Woolworths, Tommy Hilfiger, Puma, Harrods, River Island and Levi.
The South African business community is progressively recognizing the benefits of partnering Mauritian manufacturers for their sourcing options due to the preferential trade agreement and short lead time. It is exciting times for Africa as they prepare to take full advantage of the opportunities that will open up from the African Growth and Opportunity Act (AGOA) renewal. AGOA, a US government trade preference programme, offers certain African producers the opportunity to export a myriad products including apparel, textiles and footwear, to the US with up to 35% reduction in duties. As a result, several recognized US brands and retailers are already sourcing from the region and taking great advantage of savings on both labour and duty rates. Source Africa will align itself to this important initiative as well as the other regional duty free trade preference agreements. A series of business seminars, including key topics such as AGOA – the Africa Advantage, will be presented by top industry speakers.
Africa will play an increasingly important role in the textile, apparel and footwear industry over the next decade. International buyers are showing stronger interest, fuelled in part by AGOA, and the African industry is showing an increased ability to meet that demand with world class capabilities that are getting better every day. Source Africa is a world-class sourcing event that supports the growth and development of business, trade and economic opportunities in Africa. More than 1,500 professional decision makers are expected to arrive at Cape Town's CTICC on 8 and 9 June, 2016, for Source Africa, which will feature more than 180 exhibitors interested in expanding their exports. Countries represented include: South Africa, Mauritius, Lesotho, Kenya, Egypt, Madagascar, Tanzania, Ethiopia, Nigeria and Zimbabwe.
SOURCE: Yarns&Fibers
