The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 22 JUNE, 2016

NATIONAL

INTERNATIONAL

 

 

Textile Raw Material Price 2016-06-21

Item

Price

Unit

Fluctuation

Date

PSF

1007.93

USD/Ton

0.23%

6/21/2016

VSF

2060.04

USD/Ton

0%

6/21/2016

ASF

1919.86

USD/Ton

0%

6/21/2016

Polyester POY

993.45

USD/Ton

1.09%

6/21/2016

Nylon FDY

2224.60

USD/Ton

0%

6/21/2016

40D Spandex

4342.55

USD/Ton

0%

6/21/2016

Nylon DTY

2437.92

USD/Ton

0%

6/21/2016

Viscose Long Filament

5681.88

USD/Ton

0%

6/21/2016

Polyester DTY

1234.20

USD/Ton

0%

6/21/2016

Nylon POY

2064.61

USD/Ton

0%

6/21/2016

Acrylic Top 3D

2095.09

USD/Ton

0%

6/21/2016

Polyester FDY

1130.59

USD/Ton

0.68%

6/21/2016

30S Spun Rayon Yarn

2757.90

USD/Ton

0%

6/21/2016

32S Polyester Yarn

1676.07

USD/Ton

0%

6/21/2016

45S T/C Yarn

2437.92

USD/Ton

0%

6/21/2016

45S Polyester Yarn

1813.20

USD/Ton

0%

6/21/2016

T/C Yarn 65/35 32S

2133.18

USD/Ton

0%

6/21/2016

40S Rayon Yarn

2925.50

USD/Ton

0%

6/21/2016

T/R Yarn 65/35 32S

2209.37

USD/Ton

0%

6/21/2016

10S Denim Fabric

1.35

USD/Meter

0%

6/21/2016

32S Twill Fabric

0.82

USD/Meter

0%

6/21/2016

40S Combed Poplin

1.16

USD/Meter

0%

6/21/2016

30S Rayon Fabric

0.68

USD/Meter

0%

6/21/2016

45S T/C Fabric

0.68

USD/Meter

0%

6/21/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15237 USD dtd.21/6/2016)

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

 

Govt to turn attention to spectrum sale, textiles

After reforms in the foreign direct investment (FDI) regime, the government is likely to take up a few more measures to get spectrum proceeds and give a boost to the labour-intensive textile industry. These measured are likely to be taken up by the Cabinet on Wednesday. The Cabinet might consider a proposal to finalise the base price and auction terms for the upcoming sale of airwaves in seven telecom spectrum bands. Sources said after Cabinet approval, the process to start the spectrum sale would begin. An official said the sale was likely to start in August. The government has been on a reform drive since Reserve Bank of India Governor Raghuram Rajan announced his decision to not opt for a second term.

The inter-ministerial Telecom Commission had decided that for the spectrum acquired in upcoming auctions, a spectrum usage charge (SUC) of three per cent of adjusted gross revenue would be charged from mobile operators. A weighted average formula would be used for calculating the SUC on the total spectrum holding for all bands. This will be the biggest auction of airwaves so far and a sale at the base price would fetch the government Rs 5.36 lakh crore over 20 years. The government is auctioning 700 MHz for the first time, for which the Telecom Regulatory Authority of India (Trai) had recommended a record high base price of Rs 11,485 crore a MHz. If all available airwaves under this band were sold, it would yield Rs 4 lakh crore. However, industry players had termed the price too high and had sought to defer the sale of this band citing lack of ecosystem. The government expects revenue of Rs 98,995 crore from communication services in 2016-17, which includes proceeds from spectrum auction and other fees levied by the department of telecommunications (DoT).

The Cabinet is also likely to take up the National Textiles Policy-2016. In the works since last year, the policy aims to achieve $300-billion exports by 2024-25. India exported $36.25 billion worth of textile and related goods in the last financial year, 2.4 per cent drop from 2014-15. Competing nations Bangladesh and China have been blamed for aggressively edging out Indian exporters from traditional markets like Europe. The high price of domestic cotton, coupled with heavy duties on import of cheaper Chinese varieties, also hampered production of cotton goods, said an expert. Cotton-based readymade goods, among the highest foreign exchange earners, fell two per cent; cotton fabrics fell more than four per cent. The new policy also aims to create 35 million jobs by 2024-25. "The policy rests hugely on job creation as we have set a target of doubling the total number of people currently employed in the sector," a ministry source said on conditions of anonymity.

The Cabinet might also soon take up a review of the India-Korea Free Trade Agreement. The government is currently reviewing the trade agreement with South Korea and is expected to update it soon. India's CEPA with South Korea was implemented in January 2010 to liberalise trade norms. Bilateral trade, estimated at $16.58 billion in 2015-16, is heavily in favour of South Korea. India's exports to South Korea fell nearly 23 per cent in 2015-16 to $3.54 billion. Indian companies have sought a review of trade agreements with other nations that they claim have benefitted the country's trading partners more. They have pointed to steel products, which they said should be excluded from the free trade agreements (FTAs) with Japan and South Korea because these countries were flooding the Indian market.

ISSUES TO BE TAKEN UP

  • The Cabinet might consider a proposal to finalise the base price and auction terms for the upcoming sale of airwaves in 7 telecom spectrum bands
  • It is also likely to take up the National Textiles Policy-2016. In the works since last year, the policy aims to achieve $300-bn exports by 2024-25
  • India-Korea Free Trade Agreement might be reviewed in the meeting. India's CEPA with South Korea was implemented in January 2010 to liberalise trade norms

SOURCE: The Business Standard

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High cotton prices add to textile mills' problems

The sudden spurt in cotton prices this month has added to the problems faced by textile mills, particularly in southern Indian states of Telangana, Tamil Nadu and Andhra Pradesh. Price of Shankar-6 variety of cotton has increased from Rs 37,300 per candy of 356 kg at the beginning of this month to Rs 40,950 per candy on June 20, 2016, showing a rise of nearly 10 per cent. Cotton price remained in stable range of Rs 32,000 per candy to Rs 34,000 per candy last year. In January 2016, it was Rs 34,000 per candy, and slowly increased to Rs 34,300 per candy in April this year. But the price increase has acquired momentum this month, especially during the two-day period from 15th to 17th June. The average price of Shankar-6 was Rs 39,850 per candy on June 15, which rose to Rs 40,925 on June 17, up Rs 1,075. This sudden increase in prices has added to the already existing problems faced by textile and spinning mills, such as slowdown of exports, and devaluation of Chinese renminbi last August. The problem is especially acute for those spinning mills that do not have enough raw material stock.

To meet this situation, textile and spinning mill owners in southern Indian states have decided to shut down operations twice a week, according to media reports. Late arrival of monsoon is among the reasons being cited for the abnormal increase in cotton prices. Some industry bodies have suggested setting up a Cotton Price Stabilisation Fund to provide working capital at 7 per cent interest rate. With over 49 million spindles, the Indian textile industry is the second largest after China.

SOURCE: Fibre2fashion

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Industry faces a dark black tunnel through which many may not get thru to see the light of the day

Indian spinners have been going through a very difficult time over the last 2 years despite cotton prices being reasonably low due to a demand supply imbalance created out of new spinning mills coming up in some States (viable due to incentives rather than fundamentals) and slow demand locally due to two successive poor monsoons and overall subdued sentiments in the globe. Exports have failed to cheer us up due to the disadvantage created by FTAs of our competitors with the big buying nations and we as usual not this, where such a big disparity is there between spot cotton prices and yarn prices. The more disturbing fact is that no yarn buyer is hassled or is rushing to buy yarn — they know cotton prices have moved 30% and yarn just 15% — still no anxiety !!! It’s a serious crisis, hence kindly read me out (even if you disagree or find it boring)

WHY ARE WE HERE TODAY?

  • Unplanned and illogical incentives being given for building spinning capacities (so much that it’s practically irresistible for one to not invest (Central Govt has finally understood, but State Governments still haven’t)
  • Lack of any authentic crop and stock data in India despite being the 2nd largest producer and consumer.
  • Wrong and misleading cotton estimates from leading agencies /associations — gave a false notion that the country had enough cotton — agree its difficult to estimate, but if so then better not to give estimates
  • Crop size in 2015-16 season is turning out to be substantially lower than estimated, catching spinners on the wrong foot.
  • The Government turning a blind eye to the spinning industry without understanding the facts

- TUF payments delayed and companies penalised for system errors by Banks in filing TUF claims

- Retrospective amendments made to deny benefits under Incremental Export Incentives – industry had to go to Court for justice

- Export incentives given to all segments of the industry excepting Yarn under MEIS and subvention — does the end user industry in India have the capacity to consume Indian yarn?? India leads in exports not because we are the best, but because spinners have no choice but to undercut and sell yarn in exports to offload the 30% excess spinning capacity

  • The Rupee has weakened much less than most other able to break any ice anywhere. Cotton yarn has suffered further as the Government felt that yarn needs no incentives. Its true that yarn needs no more any investment incentives but it surely needs incentives to export. Requests went unheeded by the Govt from various Associations because they didn’t go into the details of demand – supply minutely or tried to understand the plight of spinning industry (though its classified as a stress industry by the Banking sector).!!!
  • Domestic consumption has remain muted due to 2 consecutive poor monsoons, fabric imports, and overall low sentiment in the economy

WHAT CAN SPINNERS DO TODAY?

Obviously there are no easy answers or perfect solutions. Further would depend on the situation of a mill but yes those with cotton should capitalise on this opportunity to make handsome profits and strengthen their Balance Sheets (remember in last few years those who stocked cotton have suffered also !!!). However, the reality is that most mills are not well covered and the median of mills coverage would be from 15 days to 45 days. Adjusting for yarn sold, the cotton available will be for maximum 15 days.

Sharing some options which mills may consider to atleast reduce the impact of the crisis.

  • If yarn is available or selling at cash loss position — isn’t it better to stock yarn instead of cotton ?? Sounds absurd, but do give it a thought. Cotton can be stocked to push up prices, why cant yarn be stocked !!! Why cant we use our cotton limits for yarn ??
  • If all mills decide to keep 15 days yarn stock — it would have a double impact — yarn prices would move up and mills would stock less cotton leading to less pressure on cotton demand
  • Spinners need to push their respective associations to knock at the Government door loudly and show them the truth.  Cotton supply: Surely tight but not so bad that mills have to close

We need to demand for similar benefits as the rest of the Textile Chain - don’t support further investments but save those who are there.

  • State Governments need to be approached by the Textile Ministry to create a balanced policy – Governments are telling farmers to reduce cotton production, but are incentivizing mills to come up.A serious look has to betaken at the overall Balance sheet of the country.
  • There are various rumours floating in market that we shall not have cotton in August/September to run the mills — due to lack of information no one can be sure of exact situation, however I am giving my own calculatedBalance Sheet (October 2015- September 2016) in Lac Bales for consideration.

It’s surely tight, but not so bad that mills have to close down due to cotton. Today cotton going up due to sentiments, as buying demand isn’t more than 50000 to 60000 bales per day while stock in hand is not less than 40 lac bales — its just a matter of perception as to who feels when they should offload. The day 10% of the stockists decide its time to sell, we shall see a correction (however as ending Balance Sheet is tight and monsoons are a bit delayed, hence any steep correction may not happen and may also not be desirable as would impact the yarn momentum leaving mills in a worse scenario).

A cautious cotton purchaseand using the limits for stocking yarn till it reaches a reasonable level, could be the answer to save the industry. Unfortunately the cotton trade keeps floating news but spinner stay muted and just looking in despair and complaining amongst themselves without taking any concrete action. We are anyway in a quagmire, very little visible hope around (anyway hope is hardly a strategy). So lets join together and see what best can be done to get out of the situation. I am not writing this to offer any fixed solutions, its more to prick all spinners to come together andthink of possible solutions and strategies to overcome this crisis in the best possible manner.

SOURCE: The Tecoya Trend

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Maharashtra eyes Make in India, Sagarmala maritime booster shot

Maharashtra accounts for nearly 15% of the total maritime trade in the country, with the state’s maritime trade having grown from 153 million tonne in FY15 to 154 million tonnes in FY16. Of this, nearly 80% traffic is handled at its two major ports and the remaining 20% at 12 operational non-major ports.

Major Ports

Of the two major ports in Maharashtra, JNPT is the largest (in terms of throughput) container port in India and the Mumbai port is a multi-commodity port. In term of cargo performance, nearly 40% of India’s container trade is handled at JNPT and Mumbai port accounts for about 6% of the total maritime traffic handled in the country. Both the major ports in the state are currently fraught with capacity constraints. While Mumbai port faces constraints in evacuation of cargo due to the city’s development, JNPT has been struggling with environmental issues and waterfront capacity over the last decade. The development of the Fourth Container Terminal (FCT) at JNPT will generate additional capacity. However, after its complete development, there is limited scope for expanding JNPT’s capacity.

Keeping this in mind, the Ministry of Shipping has decided to undertake the development of Vadhavan port as a satellite port for JNPT. As per the Techno-Economic Feasibility Report prepared by AECOM in 2016, Vadhavan port is expected to handle a total traffic of around 250 million tonnes by 2038. The study envisages phase-wise development with total costs (EPC) of about R30,000 crore.

Non-major Ports

Of the various non-major ports operational in the state, three ports including Dharamtar, Jaigad and Dabhol together accounted for about 14% of the total maritime traffic handled in Maharashtra in FY16. To improve the state’s maritime infrastructure, the Maharashtra Maritime Board (MMB) is developing 11 port projects. However, only one of them, the multi-purpose terminal of Karanja Infrastructure (affiliate of SKIL Ports & Logistics) at Karanja Creek is under construction, with the remaining projects under various stages of development.The Karanja port is being developed on a 200-acre land parcel with water frontage of around 1,000 metres. As per the preliminary results released this month, around 30 Ha of land has already been reclaimed, dredging is progressing as per schedule, and 58 piles have been laid for the construction of jetty. The Karanja port would be developed with an investment of R1,000 crore and is likely to be operational in the next two years.

Policy Initiatives

Despite various policies, progress of maritime projects in Maharashtra has been limited when compared to other maritime states such as Gujarat which added nearly 84 million tonnes to its port capacity between FY13 and FY15—Maharashtra added only 19 million tonnes in that period. A majority of non-major ports in Maharashtra, especially greenfield maritime projects, are struggling with issues related to environmental clearance and hinterland connectivity whereas Gujarat has successfully addressed the challenges.In order to accelerate the development of the maritime sector in the state, MMB has delineated the Maharashtra Maritime Development Policy (MMDP) 2016. The new policy expands and strengthens the role of MMB to provide fast-track clearances and enable faster project implementation. With such policy initiatives, the state is aiming to capitalise on projects such as ‘Make in India’·, ‘Sagarmala’ and ‘Make in Maharashtra’. However, the success of the policy transformation will ultimately be driven by the state’s capacity to mobilise resources and deliver on projects at the ground level.

SOURCE: The Financial Express

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DIPP keen to support traders

The Department of Industrial Policy & Promotion (DIPP) is keen to support traders in ease of doing business in the country, Ramesh Abhishek, DIPP Secretary, has said. Traders should, in the next two weeks, come forward and submit suggestions where ease of doing business could be improved at both the Centre and States, Abhishek said at an event on digital payments organised by the Confederation of All India Traders (CAIT) here on Tuesday.

SOURCE: The Hindu Business Line

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Crude oil, natural gas output down in May

Domestic crude oil and natural gas production fell 3.34 per cent and 6.88 per cent, respectively last month, according to data released by the Ministry of Petroleum and Natural Gas. Domestic crude oil production stood at 3.078 million tonnes in May 2016 compared with 3.184 mt in the same month last year. Natural gas production stood at 2.656 billion cubic meter during May against 2.852 billion cubic meter in the same month last year. Further, refinery throughput during the month grew 1.24 per cent to 19.950 mt compared with 19.705 mt in the same month last year.

SOURCE: The Hindu Business Line

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Why India should focus nearer East

India recently concluded the long-awaited contract with Iran to develop the Chabahar port, and a related deal involving the establishment of a trilateral trade and economic corridor. This engagement is possibly one of the most crucial steps which would not only enable India’s access to Afghanistan, but also large parts of Central Asia which are rich in natural resources. It is significant also because India gets to contest China’s influence in the region. While there’s been some headway in Central Asia, in the immediate neighbourhood things have not been quite so impressive in terms of India’s investments. Cambodia, Laos, Myanmar and Vietnam (CLMV) have all been exhibiting more than 5 per cent GDP growth over the last few years, as the world economy struggled to breach the 2.5 per cent growth. Myanmar and Vietnam have led the pack, with 8.5 per cent and 6 per cent growth respectively.

‘Acting’ East

In 2014, the Government announced the Act East Policy to bring more focus to this region, in particular, to the CLMV nations. However, no significant business engagements have resulted, and if this situation continues, the Act East Policy may just appear as old wine in a new bottle. The CLMV region has received a significant amount of FDI. Since 2011, the amount of FDI into the region has increased phenomenally from $13.3 billion in 2011 to $38.7 billion in 2015. A chunk of this has gone to Vietnam (60.6 per cent), followed by Myanmar (25.3 per cent). In 2015 alone, CLMV saw a 22 per cent increase in investments from around the world.

Interestingly, both these countries, Vietnam and Myanmar, also offer tremendous opportunities for India to access huge markets. Myanmar, along with Cambodia and Laos, by virtue of being a Least Developed Country, benefits from the most favourable regime available under the EU’s ‘Everything But Arms’ scheme, providing duty-free and quota-free access to the EU for the export of products, except arms and ammunition. On the other hand, the recently concluded Trans-Pacific Partnership (TPP) agreement to which Vietnam is a signatory along with 11 other Pacific economies representing 26 per cent of world trade, would provide almost duty-free access to goods produced in and exported from Vietnam.

While Myanmar could act as the gateway to the entire Asean region apart from tapping the significant local market, Indian companies in Vietnam would get direct access to the developing and developed markets of TPP members such as Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and the US, as well as Vietnam. Besides these, it goes without saying that CLMV would provide access to the entire Asean landmass.

India’s negligible presence

Unfortunately, bilateral economic engagement between India and the CLMV countries is less than satisfactory. The irony is that in spite of these apparent benefits, India’s cumulative investment in two of the large markets in the region, Myanmar and Vietnam, stands at an abysmal low of $1.1 billion and $2.2 billion, during 2011 and 2015. India’s share in total investments in the CLMV region during the same period stands at just 2.4 per cent.

On the other hand, while imports by CLMV doubled during 2010 and 2014, India’s share in its imports remained the same, hovering around 2 per cent, since 2010. The ground reality is that while China already has made significant inroads into CLMV, countries far from Europe and the Asia-Pacific are not far behind. It may not be out of place to conclude that India is increasingly being observed to be missing the bus in the CLMV region. Ideally, India should have been playing to its strengths in the region, executing projects in the area of healthcare, ICT and education, and possibly even replicating some of its African models. Good economics is good politics. India must increasingly push for engaging more with these four countries in the region so as to benefit not only on the economic front, but also be a constructive and strategic partner in their growth stories. For example, for India which supports the democratic principles in Myanmar, it would be easier to get the economic relationship with that country stronger. In the case of Vietnam, India’s current interests have been more skewed towards defence and security, and this needs to be widened economically as well.

A big dose of lethargy

While the Government in 2014 had expressed the desire to set up a ₹500-crore Project Development Fund (PDF) for catalysing Indian investments in CLMV countries, the same has not seen any significant traction on the ground either. Should this initiative see the light of day, it will usher in a good amount of Indian investments into the region, possibly in textiles, leather and low-end manufacturing, amongst others. The Kaladan multi-modal transit-transport system conceived in 2008 envisioning connecting India’s north-eastern States through Myanmar to its Sitwe port has been in limbo due to delay and escalated costs. The project was intended to be a landmark initiative that would facilitate India’s links to the Asean region. It is extremely important, given the geopolitical conditions, that inertia at the government level be shaken off so as to see the completion of the planned projects. There has been apprehension in some quarters about completion of the Chabahar port in time, in light of India’s recent record in delays in completion of strategic projects. Such notions should be corrected. As India goes to Laos in a few months to participate in the Asean summit, we hope to see some focus shifting back to the region.

SOURCE: The Hindu Business Line

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In textiles, we have lost the race to Bangladesh, Vietnam and Cambodia: Ajay Bagga, Market Expert

In a chat with ET Now, Ajay Bagga, Market Expert, says we have lost the race to a large extent to lower cost producers with better policies and able to get in faster than us. Edited excerpts

ET Now: If there is this pocket that in the last few days have been turning up on the list of gainers every single day, it has to be largecap auto. Four out of the last five days I have seen auto names have a cluster presence in the top gainers list as well now. Why is this suddenly happening? We are far away from the monthly sales numbers coming in. There is no such clarity on some great moves being taken by the government in the auto space compared to some of the others. Why this move in autos, what would your stance be?

Ajay Bagga: It is more linked to the economy. The expectation of a revival coming through on consumption both rural and urban and auto normally is leading indicator in terms of the economy. We are definitely seeing a turnaround in commercial vehicles. The financiers are seeing better NPAs in commercial vehicles. Already construction equipment and tractors remain a problem. So I am mystified why the tractor financials are getting bid up but let us see how long it takes but commercial vehicle financials definitely are looking better. So the CV cycle is reviving, two-wheeler are still not really revving up but I have been bullish on that and that really will follow the rural cycle as it turns around.

October-November is when two wheelers sales probably will start seeing very strong growth. Passenger vehicles is more muted. Sales are gaining but again with the two or three big triggers coming for urban consumption, the passenger vehicles will do better. So it is more in anticipation, that we are seeing an uptick. Otherwise, there is not too much of a trigger. Metal prices have been going up and so input costs will really impinge on the margins. Going ahead, that we will see is more about consumption.

ET Now: You could always argue that materially or realistically, not many of these moves will have an immediate impact on the listed space but something which is a policy for the space at large should get the space spurred and that is exactly what it has done. My question to you is more broad based. After the run-up that we have seen in the textile stocks and some of these have multiplied multiple times, the Welspuns and the Indo Counts of the world. With the new policy, with some more focus, etc, etc, would you still be an investor in these stocks?

Ajay Bagga: Very tough. Overall if you see on a micro sense, we lost the fight to Bangladesh and Vietnam, even Cambodia. Bangladesh now exports more textiles than India. Whatever it is, for safety issues, all those are there definitely. We are following rules but I think it is a very good policy. In that sense, let us read the fine print tomorrow. In terms of stocks, few of the names that you mentioned, if you remember, few years back we were valuing some of them as real estate plays. I do not know if you can still count them textile companies but that is just on lighter wane. How much value left? It goes case by case. Overall I think most of the run have been done already. You will see some more later entrants coming in trying to get on the bandwagon. I would urge caution because we have lost the race to a large extent to lower cost producers with better policies and able to get in faster than us. It will take some catching up to get back our market share in the world.

ET Now: Banks just starting to show some chinks in the armour after having a really a good run up. What would you be doing with banks by and large?

Ajay Bagga: Apart from what the technical experts are saying, fundamentally we stay away till Friday. I do not see any move, any trade as such given the huge event risk. Having said that, banks have had a very good run up right from budget day onwards. I think they are due for a correction. So I would agree with Siddhartha even on a fundamental sense that this quarter's results in another two to three weeks time or to say three to four weeks time are not going to be that great apart from the leaders who have always performed better but mostly it will be disappointing so we are heading into some softness into banks is what I feel.

ET Now: I heard your advice, stay light till Friday. Assuming Brexit does not happen, what then?

Ajay Bagga: I think the downside is more accentuated. Right now the way the global markets have rallied, people have become very complacent. Yes, it looks like Brexit would not happen. But after that you have a lot more issues with the global economy which are getting marginalised and not getting baked in. We have not really seen the flows come to us. We did not fall when the global markets were falling. We held up value well. So that is well done. But in the last two days, we did not really see the kind of rise for our markets and FII print remains negative. So if the FII outflows continue, that holds the market down. So again, very stock specific market. If there is any hiccup there, market could start reacting. A good monsoon is baked in. So a lot the positives have already got discounted into the market, becomes extremely stock specific and that is not very good for index going up very fast. I think it is a sideways market.

SOURCE: The Economic Times

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Apparel brand US Polo tops Rs 1,000 crore India sales in FY16

Apparel brand US Polo crossed the Rs 1,000-crore sales mark in India in the fiscal ending March 31, less than five years after it entered the country, according to a top executive of the company. US Polo's fastpaced sales puts it in the same league as Zara, which became the biggest apparel brand in India within four years of setting up shop. Zara now clocks over Rs 1,000 crore in retail sales here. In comparison, brands such as Louis Phillipe, Van Heusen and Benetton had taken nearly a decade to reach this mark. "We caught the consumer trend with a fashionable but highly affordable brand," said J Suresh, managing director of Arvind Retail, which holds licence to sell the brand. "The iconic logo with two polo players on horses helped too. India is possibly fastest growing market by sales and stores addition."

Arvind Retail opened the first US Polo store in India in 2011 and has since added nearly 230 more. The 750-sq ft store at Select City Walk in Delhi on average rakes in Rs 225 per sq ft a day. Zara, on the other hand, makes on average Rs 150 per sq ft each day from the same mall, although from a bigger store. According to Suresh, the company plans to open one US Polo store every week over the next few years as part of Arvind's broader push to grow its retail business. "Two factors have worked: they are more casual driven and less about fashion and second, they are a value international brand and well positioned on price, which appeals to wider audience," said Devangshu Dutta, CEO at Third Eyesight.

SOURCE: The Economic Times

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Nepal to route exim cargo through Vizag port

The Union government has declared Visakhapatnam port as the second gateway port for exim cargo of Nepal besides Kolkata/Haldia, according to a press release issued by the Visakhapatnam Port Trust (VPT). There is an ICD (inland container depot) at Birgunz in Nepal connected by rail to Raxoul station in India. The north and south highways in Nepal are also connected to India to serve the exim trade. Recently, India and Nepal finalised the agreement. Exim cargo will be transported from Jogbani or Birgunz in Nepal by rail or through four road routes. The cargo will be in sealed containers and in full rake only.

SOURCE: The Hindu Business Line

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FDI reforms to push US-India trade ties: USIBC

A series of reforms announced by India in particularly increasing Foreign Direct Investment in a number of sectors will provide a fillip to the potential of US-India bilateral trade, a business advocacy group has said. "The widened scope of FDI norms in defence, civil aviation, broadcasting services, and pharmaceuticals will provide a fillip to the potential of the US-India bilateral trade," US India Business Council (USIBC) President Mukesh Aghi said while referring to a series of Foreign Direct Investment (FDI) reforms by India.

Close on the heels of Prime Minister Narendra Modi's visit to Washington earlier this month, the notice that India would liberalise FDI in defence, broadcasting services, civil aviation and pharmaceuticals sectors has further buoyed investor sentiment, it said. Modi's recent visit to the US included major investment announcements by companies such as Amazon and Star India. "We applaud the liberalisation of FDI to 74 per cent in brownfield investments under the automatic route in the pharmaceutical sector, while also allowing investments beyond 74 per cent and up to 100 per cent through government approval," Aghi said.

Allowing up to 74 per cent through the automatic route will encourage investment to move swiftly into India in this important and growing sector and will further promote and expand healthcare access in India, Aghi said. The long-awaited National Civil Aviation Policy is expected to promote regional connectivity, boost tourism and stimulate the economy in tier 2-3 cities. India is the fastest growing aviation market with 21 per cent plus growth in the domestic sector in 2015-16, and can become one of the largest aviation markets in the foreseeable future, he added. "India continues to attract FDIs despite an uncertain global outlook. Major improvements have taken place in India's economy since Prime Minister Modi assumed office," Aghi said. "These reforms include accelerated infrastructure investment, greater openness to foreign direct investment, less red tape, and a revised bankruptcy code. "We had stated earlier that USD 45 billion is only a starting point for American companies to invest in India. With these newly announced reforms, FDIs, technology transfers, and jobs are likely to increase substantially," he said.The Indian government yesterday launched a second wave of FDI reforms allowing 100 per cent inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals, steps apparently aimed at neutralising fallout of Raghuram Rajan's decision to exit RBI.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 47.02 per bbl on 21.06.2016

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$ 47.02 per barrel (bbl) on 21.06.2016. This was lower than the price of US$ 47.24 per bbl on previous publishing day of 20.06.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 3172.68 per bbl on 21.06.2016 as compared to Rs. 3184.55 per bbl on 20.06.2016. Rupee closed weaker at Rs. 67.48 per US$ on 21.06.2016 as against Rs 67.41 per US$ on 20.06.2016. The table below gives details in this regard:

Particulars

Unit

Price on June 21, 2016 (Previous trading day i.e. 20.06.2016)

Pricing Fortnight for 16.06.2016

(28 May, 2016 to June 13, 2016)

Crude Oil (Indian Basket)

($/bbl)

47.02            (47.24)

47.61

(Rs/bbl

3172.68       (3184.55)

3191.77

Exchange Rate

(Rs/$)

67.48             (67.41)

67.04

 

SOURCE: PIB

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United States Industrial Fabrics Institute Endorses The Trans-Pacific Partnership

The United States Industrial Fabrics Institute (USIFI), a division of the Industrial Fabrics Association International (IFAI), announced its formal support for the Trans-Pacific Partnership (TPP) free trade agreement Tuesday. TPP was signed in February by the United States and eleven other countries and awaits congressional approval. The decision to endorse TPP came after an in-depth review of the finalized text and a determination that USIFI’s key objectives were met under the terms of the agreement. These objectives included securing:

  • A strong yarn-forward rule of origin for the vast majority of textile and apparel products;
  • Reasonable, multi-year tariff phase-outs for sensitive industrial textile products;
  • Preservation of the Berry and Kissell Amendments, U.S. government procurement laws mandating domestic preferences for national security purposes; and
  • Provisions that allow for effective customs enforcement cooperation among the TPP parties and other standard textile chapter terms included in U.S. free trade agreements.

“The U.S. textile industry can compete globally under trade rules that are reasonable and fair. We extend our thanks to USTR Ambassador Michael Froman and the U.S. textile negotiating team for their strong consideration of our input and analysis regarding provisions important to U.S. industrial textile manufacturers,” said Ted Anderson, USIFI Board Chairman and CEO of BondCote Corporation. “While every agreement includes tradeoffs, we recognize that the overall outcome on TPP is balanced and reflects core textile industry objectives. As a result, based on the text as drafted and agreed to by the TPP nations, we endorse this agreement,” Anderson added. USIFI is a coalition of domestic U.S. fiber, fabric and end-product manufacturers which serves member company interests in both domestic and international affairs. USIFI is a division of the Industrial Fabrics Association International (IFAI), which represents more than 1,500 members in the specialty textile industry worldwide.

SOURCE: The Textile World

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Indonesia's economic resilience boosted by reforms: WB

Even as the World Bank has lowered its growth projections for the world by half a percentage point to 2.4 per cent, Indonesia's economy is forecast to grow by 5.1 per cent thanks to continued policy reforms that have helped to counter the impact of slow growth. “Prudent monetary policy, increased public investment in infrastructure, and policy reforms to improve the investment climate, are helping Indonesia maintain growth in the order of 5.1 percent,” said Rodrigo Chaves, World Bank Country Director for Indonesia, in the June 2016 edition of the Indonesia Economic Quarterly released by the World Bank. According to the report, Southeast Asia's largest economy continues to prove resilient with GDP forecast to grow 5.1 per cent, mainly due to private consumption and public capital spending. But weaker than expected global economic expansion may moderate its growth recovery although continued policy reforms can help counter the impact of slowing demand and financial market volatility globally, said the report entitled Resilience through Reforms.

Numerous policy reforms have been announced since September 2015, and there appeared a shift in trade and investment policy towards deregulation. However, it is not yet known whether effective implementation of policy changes is taking place, and many sectors remain closed or partly closed to foreign investment. Increased private sector investment is essential for Indonesia, as pressures on public revenue may curtail the government's plans for much more infrastructure investments, which have supported economic growth. However, even with a lower revenue forecast and a larger fiscal deficit of 2.8 per cent of GDP, World Bank calculations show that 90 per cent of the original 2016 Budget investment target could be achieved.While private consumption growth remained resilient at 5 per cent year-on-year, slowing growth in fixed investment due to reduced government spending has contributed to Indonesia's real GDP growing at 4.9 per cent year-on-year in the first quarter of 2016. Weak global demand continues to put pressure on exports, the report noted. Currently, Indonesia's manufacturing exports are dominated by 'low-tech' products and operations are focused mainly on blending and assembly, making the country vulnerable to changes in a multinational corporation's location strategy.

SOURCE: Fibre2fashion

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NCTO hails US decision to buy local clothing for forces

The National Council of Textile Organizations (NCTO) lauded recent congressional actions to preserve critical requirements for the Department of Defence (DOD) to buy US-made textiles, clothing, and footwear. Last Thursday, the U.S. House of Representatives voted down an amendment to the defense appropriations bill (H.R. 5293) that would have permitted DOD to ignore the Berry Amendment and fund the purchases of foreign-made athletic shoes. NCTO supported a “NO” vote on the measure. In May, US Representatives Walter Jones and Niki Tsongas each offered amendments that were adopted by the House Armed Services Committee (HASC) during its markup of H.R. 4909, the FY 2017 National Defense Authorization Act (NDAA) that stopped attacks on the integrity of the Berry Amendment.

US Senator Lindsey Graham has led efforts to protect the Berry Amendment during that body's consideration of the NDAA (S. 2943). Senators Jack Reed and Angus King also have worked hard to make sure DOD buys American. “Laws requiring DOD to buy US-made textiles, clothing, and footwear are pro-jobs and strengthen America's national security,” said NCTO President and CEO Augustine Tantillo. “We thank all members of the House and Senate who have voted and worked to preserve the integrity of the Berry Amendment,” Tantillo continued. “The US textile industry looks forward to working with our friends in the House and Senate to make sure the Berry Amendment is kept whole as Congress completes its work on important legislation to authorize and fund America's armed forces,” Tantillo finished. The Berry Amendment (10 USC 2533a) is a law requiring DOD to buy US-made textiles, clothing, footwear, hand tools, measuring tools, and food.

SOURCE: Fibre2fashion

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Angola to import at least 20,000 ton of cotton a year to help textile industry

Angolian textile and apparel industry has been facing severe problems for past decade, which had a huge impact on cotton production. To cover the deficit the country is faced with to set its textile industry in motion will be importing at least 20,000 tons of cotton yarn a year to feed the textile plants of Satec, in central Cuanza Norte province, Textang II (Luanda) and Africa Têxtil in central Benguela province, as the units gear up to restart production in the coming few months. The minister of Agriculture, Afonso Canga, said that in the first years to come, they will have to import the raw-material, but afterwards they will reduce gradually, taking into account the investment being currently made in the growing of cotton locally and new technology they will be in a position to produce and meet the amount of cotton yarn needed. The minister justified the import of cotton yarn saying right now local growers are preparing their projects to start local production of the raw-material.

Minister Canga added that farmlands have been granted to private operators in the provinces of Malanje (northeast) and Cuanza Norte (north) for cotton growing. Central Benguela province will follow. The arrangements are also in progress for assistance to family production of cotton starting in central Cuanza Sul province, where some land has been put in place for the purpose, including technical aid and water. As the country waits for the textile units to start with the manufacturing process, the textile factories continue to work with imported raw materials. Once the units begin with the regular work, jobs would be created.

SOURCE: Yarns&Fibers

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