The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 9 JUNE, 2016

NATIONAL

INTERNATIONAL

225 showrooms to be inaugurated in Tex Valley

As many as 225 showrooms will be inaugurated in the Tex Valley, a textile mall started under the Comprehensive Powerloom Cluster Development Scheme of the Union Ministry of Textiles, near here on June 9. Keys will be handed over to many of the leading textile brands who had booked the showrooms, a statement said. Chairman of the Tex Valley A Periyasamy said: “The Erode Textile Cluster is a strong powerloom cluster and has very aggressive manufacturing base with weak marketing linkages.” He further said, “Tex Valley has got 12 different product zones with over 100 manufacturers and wholesaler shops in each zone with proper index systems to identify easily by buyers. This will reduce the cost and time of the buyers and increase the confidence to encourage them to visit the Tex Valley market.” It also stated the Powerloom Development and Export Promotion Council (PDEXCIL) had entered into an agreement with Tex Valley to establish its Regional Centre in Tex Valley campus. Tamil Nadu Textile Corporation has identified Tex Valley as its logistics and Transit hub and sourced 10,000 sq ft of land in Tex Valley weekly market complex and started its operation in March.  Further, the mall has signed a pact with Fibre to Fashion, a leading Textile and Fashion magazine-cum-portal, to promote it among the textile fraternity across the country.

SOURCE: The Hindu Business Line

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More power looms to be upgraded

Reiterating the need for urgent modernisation of power loom sector to ensure holistic growth of the textile industry, Union Minister of State (Independent charge) for Textiles Santosh Kumar Gangwar said that 24 lakh power looms in the country would be upgraded in next eight years. “Since the BJP-led Union Government has come to power, 60,000 looms have been upgraded in 16 months,” he said at a function held to highlight the achievements of the Narendra Modi-led Government, here on Wednesday. The Minister said that the government had started reviewing the existing Free Trade Agreements (FTAs) with 15 nations so as to overcome the bottlenecks in the consumption of yarn which had arisen due to the classification of yarn in the ‘sensitive list’. He hinted that the government was seriously considering the demand of Tirupur exporters for setting up a Knitwear Board.

On the other initiatives, he said that subsidy to the tune of Rs. 50.94 crore had been sanctioned to Tirupur region under Technology Upgradation Fund Scheme during the last two years. Union Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti said of the 37 Mega Food Parks sanctioned by the Union Government, six had started functioning. “Another four Food Parks, which are aimed at promoting food processing, will be commissioned shortly in the country.” According to her, 38 new cold storage chains will be set up in the next two years. Coir Board chairman C. P. Radhakrishnan and senior BJP leaders spoke.

SOURCE: The Hindu

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Cotton exports drop on thin supply pushing prices higher

Cotton exports from India, the world's biggest producer, have nearly halted as local prices have rallied because of tight supplies thanks to the drought, forcing key importers like Bangladesh, Pakistan and Vietnam to turn to other suppliers. The freeze in Indian export will prompt Brazil, Australia and United States to raise shipments and has pushed global prices to near their highest since August. The price rise could subsequently push up fabric and clothing prices and put pressure on the margins of garment makers. “In last three-four weeks Indian exporters could not sign a deal. Our cotton is more expensive than Brazilian or Australian supplies,” said Chirag Patel, chief executive officer at Jaydeep Cotton Fibers Pvt. Ltd, a leading exporter. The landed cost of Indian cotton for buyers in Pakistan and Bangladesh is at 75 cents to 76 cents per lb compared to around 73 cents for Brazilian cotton, he said.

Pakistan and Bangladesh prefer Indian cotton due to lower freight charges. Local cotton spot market prices have surged 10 percent from a month ago to 38,400 rupees per candy of 356 kg (73.5 cents per lb) due to limited supplies after consecutive droughts cut production. A candy is equivalent to about two Indian bales of 170 kg each. India may produce about 34.1 million bales of cotton in the 2015/16 season that started on Oct. 1, down from last year's output of 38.3 million, the Cotton Association of India (CAI) estimates. India has exported around 6.5 million bales of cotton so far during the 2015/16 season, with Bangladesh and Pakistan accounting for more than half of the total exports, said Dhiren Sheth, president of CAI. In 2014/15 India exported 6 million bales.

Cotton supplies in spot markets have been dwindling even as domestic textile units are ramping up purchases, Patel said. In October to April cotton supplies in Indian spot markets fell 12.5 percent from a year ago. "The industry failed to judge the impact of drought on the production. Output turned out lower than the initial estimate," said a dealer with a global trading firm. "Now textile units are aggressively buying to make sure they have stocks for the next four months." The new cotton crop starts arriving from late September, but this year supplies could start from mid-October as sowing has been held up in key producing states because of a delay in the monsoon rains, said a trader based in Rajkot, Gujarat.

SOURCE: The Business Standard

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Korean firms offered land for industrial park in Telangana

The Telangana government has offered land for an exclusive investment park of Korean companies. A group of Korean businessmen, which includes representatives of Posco, Hyundai, and some electronics companies, touring Hyderabad as a part of the Korean Caravan, was shown a few sites to set up factories, services companies, and other infrastructure, including schools.

Govt offer

Arvind Kumar, Principal Secretary, Industries, Telangana, said, “At a meeting with the Centre recently, State Chief Secretary Rajeev Sharma had proposed the move to develop an exclusive park to host Korean companies. We are now in discussions and have shown some sites to them during the visit of the delegation here.” “Based on their response, we will offer them land and extend all necessary infrastructure to set up their facilities here,” he said on the sidelines of the meeting here today. Currently, Hyundai has an R&D centre here. They have two automotive plants in Tamil Nadu. “As they expand, we want them to consider Telangana to set up ancillary units,” he said. Gaurav Sishodia, Manager, KoreaPlus, said KoreaPlus is an initiative to encourage Korean investments in India while addressing concerns of some of the companies which have set up facilities or are in the process of setting them up. Cho Hyun, Ambassador of Korea, said, “After the Narendra Modi government assumed office and later with his visit to Korea, there is growing bonding between Indian and Korean companies. The Korean Caravan visiting Hyderabad is part of this exercise which seeks to tap into new areas.”

SOURCE: The Hindu Business Line

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Trade ties with India will grow: US legislators

Trade ties with India will continue to grow by leaps and bounds regardless of the leadership change in the US post elections, said a delegation of political leaders from America. Based on the solid foundation of bilateral relations laid by the US President Barack Obama and Prime Minister Narendra Modi , the two countries will work more and more in all areas of mutual interest, they said.  Jeff Morris (Democrat), State Political Leader from Washington , and Joyce Peppin (Republican), State Political Leader from Minnesota , expressed these views during an interactive session on the 'US Elections: Process and Mechanics, and the Impact of New Administrative Policies of the US on the Indian Businesses' organised by CII here, said a release.  India and the US share common interests as both are the oldest and largest democracies of the world, Peppin said.  She said that in a globalised world, businesses cannot be stopped from expanding and branching out anywhere in the world.  Morris in his address said, "The US would like to work in coalition with nations for common goals of peace and prosperity in the world. The US also believes in policy of free and fair trade as well as free movement of goods and services. In this regard, we vouch for open immigration policy as well as signing of special agreements with countries like India."  Man Mohan Singh Kohli , Past Chairman, CII CHANDIGARH Council & Chief Executive Officer Aroma Group, said, "A thriving democracy is the dream of any nation. Thus, the two biggest democracies of the world need to share and learn from each other and the wide interest in the US presidential polls is also natural.  The US-India strategic partnership goes beyond the merely transactional relationship and as the two largest democracies strive to achieve a balance between a sustainable and long-term strategic partnership and the comparatively short-term goals, there is clearly a need to communicate more with each other, he said.

SOURCE: The Economic Times

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India, US to expand economic relation, break down trade barriers

India and the US today vowed to expand economic relation between the two nations and explore new opportunities to break down barriers to facilitate movement of goods and services. The leaders of the two countries resolved to pursue US- India Totalisation Agreement and enhance engagement on intellectual property rights with a view to promote innovation and creativity.  "In order to substantially increase bilateral trade, they (leaders) pledged to explore new opportunities to break down barriers to the movement of goods and services, and support deeper integration into global supply chains, thereby creating jobs and generating prosperity in both economies," said the joint statement issued after a meeting between Indian Prime Minister Narendra Modi and US President Barack Obama .  They look forward to the second annual Strategic and Commercial Dialogue in India later this year to identify concrete steps in this regard, it added.

Highlighting the strong and expanding economic relations between the US and India, the leaders committed to support sustainable, inclusive, and robust economic growth, and common efforts to stimulate consumer demand, job creation, skill development and innovation. It was decided to continue discussion later this year on the US-India Totalisation Agreement. The 'Totalisation Agreement' seeks to do away with double taxation of income with respect to social security taxes. Under this agreement, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country. The two leaders also committed to make concrete progress on IPR issues by working to enhance bilateral cooperation among the drivers of innovation and creativity. They also commended the increased engagement on trade and investment issues under the Trade Policy Forum (TPF) and encouraged substantive results for the next TPF later this year. The leaders also welcomed the engagement of the US' private sector companies in India's Smart City programme. The leaders resolved to facilitate greater movement of professionals, investors and business travellers, students, and exchange visitors between their countries to enhance people-to-people contact as well as their economic and technological partnership. On the MoU for Development of an International Expedited Traveller Initiative (also known as Global Entry Programme) the statement said efforts will be made for entry of India into the said programme within three months.

SOURCE: The Economic Times

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India fastest growing economy, no one can ignore us: Rajnath Singh

Union Home Minister Rajnath Singh today said that India has emerged as a center point of global diplomacy and no country can now afford to ignore us. “India today is the center of global diplomacy and no nation can ignore us. India’s economy is the fastest growing economy in the world,” Singh said while attending a programme in Udaipur. The minister said that youths should polish their talent as per their potential and contribute in the development of the nation. Singh along with Rajasthan Chief Minister Vasundhara Raje laid the foundation stone of Maharana Pratap Indoor Stadium here. On the occasion, Raje announced the launch of ‘Khail-Maidan scheme’ from June 21 under which play grounds will be prepared in all the gram panchayats for training talented players. She said the government is focusing on improving and expanding facilities for players in the state so that they can excel at the national and international level.

SOURCE: The Financial Express

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US companies investing $45 bn in India: John Chambers

Members of the US-India Business Council have already invested $28 billion in India since September 2014 and another $45 billion is in the pipeline, Council Chairman John Chambers told Prime Minister Narendra Modi here. “In September 2014, USIBC members indicated an investment figure of $41 billion that was likely to be invested over a 2-3 year period. Today I’m happy to announce that in less than two years, about 20 percent of USIBC members have already invested $28 billion,” Chambers said. “In next 2-3 years, we will see this pace accelerating — again with 20 percent of our members indicating that USIBC members are on track to invest an additional $45 billion, which is a conservative estimate,” he added. Chambers met Prime Minister Modi just after his roundtable with USIBC members, which included the top brass of companies like PepsiCo, Master Card, Warburg Pincus, Lockheeed Martin, Boeing, Westinghouse, Intelsat, Emerson and 8Minute Energy. The prime minister also presented the USIBC Global Leadership Awards to Dilip Shangvhi of Sun Pharmaceuticals and Jeff Bezos of Amazon.

According to Vikas Swarup, Spokesperson for India’s foreign office, the prime minister outlined the strengths of Indian economy and its talented workforce to the chief executives and discussed with them the prospects for solar energy and digital connectivity. Later at a gala in his honour, Modi lauded the contributions of the Indian diaspora in the US and said a partnership between the American capital and innovation, with Indian human resources and entrepreneurship can prove a powerful combination. He also used the platform to emphasise that emerging economies also have a legitimate wish list for the rich nations. “It is very important for us that developed countries also open their markets, not only to goods from countries like India but also to services,” said Modi. “India is much more than a market. India is a reliable partner. It is a source of high quality scientific, engineering and managerial talent,” he said, adding: “We are encouraging foreign and domestic investors to set up high quality and efficient manufacturing facilities.”

On his part, he also promised disciplined macroeconomic policies, gender justice and empowerment, social security net and inclusive growth, while assuring that major steps had been taken to curb corruption, which was one of the main concerns and constraints in India. “This brings me to an achievement that I think even our worst critics do not dispute,” he said at the gala, where a host of top US political figures joined the business leaders to toast Modi.

SOURCE: The Financial Express

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Oil hits eight-month high

Oil prices jumped to their highest level in eight months on Wednesday, rising for a third consecutive session on supply disruptions in Nigeria and strong Chinese demand data. There was also a larger-than-expected drop in US crude inventories on Tuesday, indicating an easing of the global supply glut. A weak dollar, which hit a five-week trough against a basket of currencies on Wednesday, also boosted prices. The market sentiment is positive; the trend and the momentum points to further gains, said Carsten Fritsch, commodities analyst at Commerzbank. Brent crude futures rose to the highest level since last October.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 48.91 per bbl on 08.06.2016

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$ 48.91 per barrel (bbl) on 08.06.2016. This was higher than the price of US$ 47.80 per bbl on previous publishing day of 07.06.2016.

In rupee terms, the price of Indian Basket increased to Rs. 3263.97 per bbl on 08.06.2016 as compared to Rs. 3194.40 per bbl on 07.06.2016. Rupee closed stronger at Rs 66.74 per US$ on 08.06.2016 as against Rs 66.83 per US$ on 07.06.2016. The table below gives details in this regard:

Particulars

Unit

Price on June 8, 2016 (Previous trading day i.e. 07.06.2016)

Pricing Fortnight for 16.06.2016

Crude Oil (Indian Basket)

($/bbl)

48.91             (47.80)

47.26

(Rs/bbl

3263.97       (3194.40)

3171.62

Exchange Rate

(Rs/$)

66.74             (67.83)

67.11

SOURCE: PIB

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South African Clothing and Textile Workers Union (Sactwu) making efforts to push textile locals to grow export

The South African Clothing and Textile industry has reached steady state and is getting ready for bigger growth and grow the export industry for which the South African Clothing and Textile Workers Union (Sactwu) aims at pushing local textile manufacturers to revise policies and agendas. Sactwa said that the Trade and industry minister Rob Davies participated in a Clothing, Textile and Leather Industry Imbizo event aimed at injecting new life into the textile industry held at the Cape Town International Conference Centre. The union’s general secretary Andre Kriel said that the union is encouraging the clothing and textile industry to re-orientate their programs and become more focused on exports. Kriel further added that although the clothing and textile industry has reached a stable state and is ready for bigger growth they can’t just relax now they have to have a vision of where they want to lead the industry and think exports are quite a good incentive and it’s quite a good step to grow the industry further.

SOURCE: Yarns&Fibers

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Rise in Sri Lankan garment, textile exports by 10.3pc in Feb

Sri Lankan textiles and garments exports that comprise nearly 52 percent of total exports, during the month of February witnessed modest increase by 10.3 percent and helped to curb the negative growth of total exports to some extent, according to the Central Bank of Sri Lanka (CBSL). Garments exports to the European Union and the United States have increased by 11.7 percent and 8.7 percent, respectively, in February 2016. However, overall earnings from exports declined by 1.7 percent, year-on-year, to US dollars 888 million in February 2016 from a year ago due to reflecting lower commodity prices in the international market. The island’s trade deficit contracted 11.9 percent in February 2016 year-on-year to $552 million, owing to the sharp decline in imports which significantly outpaced the fall in exports, a statement said.

On a cumulative basis, earnings from exports declined by 2.0 per cent to US dollars 1,783 million during the first two months of 2016. The leading markets for merchandise exports during the first two months of 2016 were the USA, UK, Germany, India and Italy accounting for about 54 percent of total exports. Expenditure on imports declined by 5.9 percent, year-on-year, to US dollars 1,439 million in February 2016, continuing the year-on-year declining trend observed in the preceding seven months. Sri Lanka is looking to increase total apparel exports by five-fold, to $ 20 billion and by 2020 they are aiming at $50 billion national exports, which is an ambitious goal, while China’s premium knitting sector is gearing up to partner with surging Sri Lankan apparel sector.

SOURCE: Yarns&Fibers

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South Korea unveils 'electronic textile' for wearables

A team of South Korean scientists has developed an electronic device that can stick to clothing, paving the way for wearable displays and monitoring censors, Yonhap news agency reports, citing the South Korean Science Ministry. The electronic device attached to fabric via artificial cilia on its edges is dubbed 'electronic textile', said Ko Heung-cho, an associate professor at Gwangju Institute of Science and Technology. "We are ultimately targeting the development of an electronic device that can be used for a wearable computer though it will take some time. In coming years, we aim to make the electronic textile usable for wearable displays as well as health and pollution monitoring censors", said Ko Heung-cho.

SOURCE: The Telecom Paper

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Used clothing exports to East Africa ‘under threat

An increasing drive to promote domestic textile manufacturing in East Africa is threatening the trade in used clothing to the region, the Bureau of International Recycling (BIR) has been told. The warning was delivered at a session on the global trade in used clothing and textiles at the BIR’s annual Convention and Exhibition in Berlin last week (31 May – 1 June), where delegates disagreed on the status of the used clothing trade. East African countries are increasingly opposing trade in used clothing While some  consider used clothing to be a product generated through sorting operations and recognised market specifications, others notably the East African Community (EAC), continued to regard used clothing as a waste and a threat to new clothing production. This view has given rise to calls in some parts of the world for a ban on used clothing imports.

At a meeting on an EAC proposal to phase out imports of used textiles and footwear by 2019, BIR Textiles Division president, Mehdi Zerroug, of Framimex in France, said: “Second-hand clothing is a product and new clothing is a product – this needs to be understood.” The EAC comprises six countries, namely: Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan. Guest speaker Jalia Nabukalu Packwood, business development officer at Bangor University’s Sustainability Lab in the UK, explained that used textiles traders number in the many tens of thousands in places such as Uganda and Kenya. The convention heard that more than 80% of all clothing purchases in Uganda were used clothes, while Kenya collected US$ 54 million in tariffs on used clothing imports in 2013 alone. But despite the potential social and economic benefits derived from used clothing imports, EAC leaders consider the trade to be a threat to their plans to develop the local textiles manufacturing sector and to grow high-value jobs, Ms Packwood noted. East African nations also want to “increase the taxable base” given that people engaged in the second-hand clothing trade are “not paying that much tax”, she said.

Win-win

The widespread perception in EAC countries was that used clothing imports represented “dumping.” Ms Packwood argued it was important to change this mind-set by emphasising the benefits of the trade. She called on exporters to the region to develop “win-win” strategies that took account of the needs and goals of EAC countries. US textile recyclers, represented by the Secondary Materials and Recycled Textiles Association (SMART) have called for collaboration with BIR in response to the proposed EAC import ban.

SOURCE: The Lets Recycle

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Italian businessmen keen to invest in Pakistan

Italian businessmen are keen to make investment in Pakistan’s energy sector besides having joint ventures in other fields, said Pakistan Ambassador to Italy Nadeem Riaz. Speaking at the Lahore Chamber of Commerce and Industry (LCCI), he said that there is huge business potential in the two countries that should be tapped. He urged the LCCI to constitute a sector-specific business delegation for Italy to explore trade and investment opportunities, adding that information regarding the delegation should be provided to the Pakistani mission in Italy at least two months prior to the visit so that B2B meetings could be arranged with their Italian counterparts. “There is a vast scope for joint ventures in energy, pharmaceutical, agro infrastructure, automobile, textile and marble sectors,” said Riaz. He also stressed the need for Memoranda of Understanding (MOUs) between the top organisations of the two countries.

LCCI former president Farooq Iftikhar said that Pakistan and Italy should hold sector-wise study to evolve a comprehensive joint strategy to enhance the volume of trade between the two countries. He said that Italy had been very supportive to Pakistan within the EU with special reference to trade-related issues and Pakistan attaches the highest importance to its relations with Italy. Iftikhar said that the Italian investors can invest in energy, agro-based industries, construction, mining, textiles and tourism sectors, where Pakistan could contribute and find complementary areas in design and fashion. Other sectors included IT and telecommunication. “It is high time that the Italian investors come to Pakistan and make investments as the country is fast becoming a hub of economic activity in the region,” he added. LCCI former president Mian Muzaffar Ali said that there is vast scope in the field of dairy products in which Italy enjoys expertise and hence both the countries can make huge profits. He said that Pakistani businessmen should focus on Italy which is a diversified industrial economy with roughly the same total and per capita output as France and the UK.

SOURCE: The Tribune

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