INTERNATIONAL
Textile Raw Material Price 2016-06-26
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
998.18 |
USD/Ton |
0% |
6/26/2016 |
|
VSF |
2038.64 |
USD/Ton |
-0.07% |
6/26/2016 |
|
ASF |
1902.73 |
USD/Ton |
0% |
6/26/2016 |
|
Polyester POY |
984.59 |
USD/Ton |
0% |
6/26/2016 |
|
Nylon FDY |
2204.75 |
USD/Ton |
0% |
6/26/2016 |
|
40D Spandex |
4303.79 |
USD/Ton |
0% |
6/26/2016 |
|
Nylon DTY |
2416.16 |
USD/Ton |
0% |
6/26/2016 |
|
Viscose Long Filament |
5631.16 |
USD/Ton |
0% |
6/26/2016 |
|
Polyester DTY |
1223.18 |
USD/Ton |
0% |
6/26/2016 |
|
Nylon POY |
2046.19 |
USD/Ton |
0% |
6/26/2016 |
|
Acrylic Top 3D |
2076.39 |
USD/Ton |
0% |
6/26/2016 |
|
Polyester FDY |
1120.49 |
USD/Ton |
0% |
6/26/2016 |
|
30S Spun Rayon Yarn |
2718.18 |
USD/Ton |
-0.55% |
6/26/2016 |
|
32S Polyester Yarn |
1661.11 |
USD/Ton |
0% |
6/26/2016 |
|
45S T/C Yarn |
2423.71 |
USD/Ton |
0.31% |
6/26/2016 |
|
45S Polyester Yarn |
1797.02 |
USD/Ton |
0% |
6/26/2016 |
|
T/C Yarn 65/35 32S |
2114.14 |
USD/Ton |
0% |
6/26/2016 |
|
40S Rayon Yarn |
2869.19 |
USD/Ton |
0% |
6/26/2016 |
|
T/R Yarn 65/35 32S |
2189.65 |
USD/Ton |
0% |
6/26/2016 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
6/26/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
6/26/2016 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
6/26/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/26/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/26/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.151011 USD dtd.26/6/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A day after approving a Rs 6,000 crore special package for the textile sector, the Centre said concrete steps are being taken to set up textile parks across the country in a big way with emphasis on linking these with tourism. “As many as 24 textile parks have been set up in different parts of the country in the last two years of the BJP-led NDA government. Now, we are trying to link this key sector with tourism,” Union Textile Minister Santosh Gangwar said.
Taking a dig at the previous UPA regime, Gangwar said only 16 textile parks had been set up during the last 10 years of their rule while the NDA government is promoting this sector by providing Rs 40 crore for development of each proposed park. Referring to textile-tourism linkage, he told reporters that the Centre has already provided Rs 10 crore for development of Raghurajpur area in Odisha, which is famous worldwide for its ‘pattachitra’ paintings. Similarly, steps will be taken to identify areas with tourism potential where textile and weaving activities have been in vogue, said Gangwar, who is on a visit to Odisha as part of celebrations marking completion of two years of the NDA government at the Centre. However, Gangwar lamented that not a single proposal has been received from the Odisha Government for development of the garment and apparel sector though textile parks have so far been set up in 11 states. “The Centre is keen to provide all forms of assistance if the state government sends any proposal for textile parks and similar projects,” he said. The Centre is also taking appropriate measures for promoting the textile sector in a big way in north-eastern states, he said, adding that entrepreneurs are being asked to set up garment units in the region.
Noting that China, a key player in the textile and garment sector, is now lagging, the minister noted that neighbours like Bangladesh and Myanmar are fast emerging as major competitors. India must gear up in order to meet the challenges from these countries, he emphasised, hoping that the Rs 6,000 crore package approved yesterday by the Centre will play a major role in giving a boost to the textile and apparel sector. Union Minister of state for Food Processing Industries, Sadhvi Niranjan Jyoti, who was also present at the press meet, said six mega food parks have been set up in different parts of the country in the last two years while 15 more are now being developed. The Centre plans to set up 42 mega food parks by 2018-19 while 200 small processing units will be established for the benefit of farmers.
SOURCE: The Odisha TV
Textile machinery manufacturers' body India ITME Society does not see any immediate threat from Brexit, its Chairman Sanjiv Lathia has said. "England is not a big buyer of textile machinery. Textile manufacturing moved away from England long ago to China. So we don't see much impact on Indian textile machinery manufacturing," Lathia said here. Though it is too early to react, it has come just two days after new textile policy was announced by the Centre which focuses on creation of 1 crore jobs as well as manufacturing and exports, he said in a release issued today. The newly announced Central government's textile policy will strengthen employment in the country. The policy is aimed at creating 1 crore jobs over the next three years, following labour-friendly measures such as initiation of fixed term employment and enhancing duty drawback to push textile and apparel exports, he said. Lathia and India ITME Society Vice Chairman Rajendran were in the city yesterday in connection with the Roadshow of India ITME 2016 exhibition.
The 10th edition of the expo will be held in Mumbai from December 3 to 8. About 1,000 exhibitors from 93 countries will showcase some of the latest products and machinery at the event. From fabric to finished garments, the expo will showcase the latest in textile engineering. It is expected to have a footfall of 1.5 lakh, the release said. The textile sector contributes 14 per cent to industrial production, 4 per cent to India's GDP and constitutes 13 per cent of the country's export earnings, it said. Textile sector is one of the largest source of employment generation in India. It employs over 4.5 crore people directly. India has the second largest manufacturing capacity globally. Lathia further said India is the second largest textile market in the world, ranking first in loom capacity and second in spindlage. Indian textile and apparel is expected to reach a market size of USD 220 billion by 2020, with an 11 per cent annual growth, the release added.
SOURCE: The Economic Times
Union Minister Bandaru Dattatreya today asked Telangana government to submit new proposals to strengthen textile and handloom industry in the state. "The Centre has earmarked Rs 6,000 crore as a special package for textile and garment sector to take it on par with Bangladesh and Vietnam, creating textile parks in the country helping in creation of infrastructure in textile sector, promoting fashion technology so as to give fillip to the production especially in small-scale industries," Dattatreya said. "The approval for a special package for employment generation and promotion of exports in textile and apparel sector will be for the generation of one crore jobs in this industry over next three years and, of this, 75 per cent would be women," the Union Minister of State for Labour and Employment told reporters here. The package includes a slew of measures, which are labour friendly and would promote employment generation, economies of scale and boost exports, he said adding the package would help in social transformation through women empowerment. The Minister urged the Telangana government to send proposals to benefit out of these decisions. Places like Warangal, Pochampalli, Narayanpet and Gadwal can be developed under the new initiatives, he said. Shortly, a meeting will be arranged with the Telangana Textile Minister and guidelines of the Central Government would be discussed.
As for the Employees Provident Fund Scheme Reforms concerned the Centre shall bear the entire 12 per cent of the employers' contribution under the EPF for new employees of garment industry for first three years, who are earning less than Rs 15,000 per month, he said. He also said there will be no inoperative EPF accounts in the coming days and with the usage of latest technology, every PF account will be linked to UAN number and Aadhaar. "The EPFO has settled all the pending cases as of now," he said. Speaking on the 'Start-up India, Stand up India' initiatives, Dattatreya said that around 18 lakh youths can get employment through this scheme.
SOURCE: The Economic Times
A government initiative to create millions of jobs and increase exports in the textile and garment industries could put vulnerable workers at greater risk, activists said, calling for better enforcement of existing labour laws. A package to generate 10 million jobs and boost exports by $30 billion over three years was unveiled on Wednesday but the measures, including cutting overtime, have raised concerns about workers' rights. India is one of the world's largest textile and garment manufacturers, supplying many leading international brands. The $40-billion-a-year industry employs around 45 million workers. Workers' rights campaigners say the industry is built on the back of cheap contract labour. "Creating more jobs will only mean even less regulation on the floor, with managements happily taking in new workers and firing old ones," said Jayaram K.R., a member of the Garment and Textile Workers' Union (GATWU), based in Bengaluru. "There are numerous labour laws that already exist and most of them are not being implemented in factories." The "labour-friendly" measures approved by the Indian cabinet include capping overtime for workers at 8 hours a week in line with International Labour Organization (ILO) norms in order to create more jobs.
The government also plans to subsidise employers' social welfare contributions for workers. It said most new jobs would go to women, who already make up 70 per cent of the workforce in the industry, "helping in social transformation through women's empowerment". But Gopinath Parakuni, general secretary of Cividep India, which campaigns for workers' rights, said the new measures would not help workers, and urged tighter regulation to stop workplace abuses. "When there are increasing cases of human rights violations being reported from the sector, better regulation is required. Instead, the government is dangling a carrot to the industry by offering subsidies to make more profits," he said. Campaigners say the seasonal nature of work in India's textile industry, the advent of fast fashion and increasing global competition have created exploitative labour conditions. "The industry is moving towards 'piece rate', where a worker is paid depending on how many pieces of garment she completes in a day," Parakuni told the Thomson Reuters Foundation. "Pressure on the worker has increased and in the name of labour flexibility, managements have been given an upper hand to hire and fire at will." A government presentation on the reform package highlighted that in recent years Bangladesh and Vietnam have overtaken India in garment exports. "This is what they want to fix and workers' welfare is not the focus," Jayaram said. "Managements are happy hiring migrant contract workers because it means no additional benefits have to be given. Even minimum wages are sometimes a fight." A long-standing demand of activists, not been addressed in the new programme, is to allow workers freedom of association and give them a voice in wage and pension negotiations.
SOURCE: The Economic Times
Indian garment exporters are seeing an opportunity in Britain's decision to exit the European Union. Even as the record drop in the Pound Sterling will impact un-hedged export contracts with British garment importers, Indian exporters say there is scope to gain in the long-term if the Indian government initiates fresh dialogue with the British Government for a Free Trade Agreement. An FTA is a trade highway between nations, allowing faster market access for exporters, besides duty incentives for businesses on both sides. India has been pushing for an FTA with the European Union for some time now. With Britain being a key a target destination, and with its exit from the 28-member alliance, the doors are open wide for an FTA, believe exporters. A Sakthivel, President of Tirupur Exporters Association, said: "India has been facing a lot of issues in TRIPS, Pharmaceutical, Automobile, Visa and movement of professionals which are blocking the commencement of negotiations to have FTA with Eu. We feel that when India starts negotiations with UK immediately for FTA, India could get the early bird advantage and increase our trade significantly." The Trade Related Aspects of Intellectual Property Rights (TRIPS) has been a prickly issue impeding the FTA with EU. India's commitment to widening supply of generic drug medicines clashed with data exclusivity protection measures for drug firms to sell their products with exclusivity.
Speaking to ET on the phone, Sakthivel said the immediate impact of brexit was evident in the pound's tumble to its 30-year-low. However, he is cautiously optimistic of business prospects going forward as Britain goes about the process of exiting the union. Sakthivel noted that The United Kingdom contributed to 10.62% of overall exports into the EU of Rs 1,11,178 crore, making The UK occupies the number one position among EU countries in garment exports.
SOURCE: The Economic Times
Thirukumaran, managing director, Estee Exports, sounded worried on hearing about Britain having decided to exit from the European Union, impacting currency values.He is one of the exporters from the tiny town of Tirupur, half of whose business comes from the euro. He has lost five per cent of the value. “It might sound small but for an exporter like us, it’s big, especially at the current circumstance,” he said. However, not many are that bearish in this town, which export Rs 26,000 crore of knitwear annually. A Sakthivel, president, Tirupur Exporters Association, says soothingly: “Yes, it will have an impact but it will be temporary. In the long run, this will help us, since the UK will support more, which it could not when it was part of the EU.” The EU is a major destination for readymade garment exports from India. In 2015-16, the latter were Rs 111,236 crore, of which the EU’s share was 37 per cent. “In the immediate term, Indian apparel exporters should only benefit from this. Exports to the UK and Europe will be more remunerative for us, due to the rupee’s fall,” said Rahul Mehta, president of the Clothing Manufacturers’ Association of India.
Of the $16-17 billion of Indian apparel export, Europe forms 45 per cent, within which the UK is 40 per cent. For made-ups, the share of Europe is 20-25 per cent, of which the UK forms 15-20 per cent. “Though a small share, the UK exit should benefit the Indian made-ups industry due to rupee devaluation,” said a senior official at Welspun Group, on condition of anonymity. Welspun is a leading home textile or made-ups exporter. The textile industry also hopes a Brexit could mean India emerging as a stronger political and trade partner for Britian, thereby expediting work on a free trade agreement (FTA). “Moreover, even the EU could now look at India favourably with regards to an FTA. This should also benefit the Indian textile industry,” Mehta added. Of the total, knitwear export last year was Rs 50,150 crore, of which the Tirupur share was Rs 23,050 crore or 46 per cent. Total knitwear export to the UK was Rs 5,519 crore and from Tirupur, around 30 per cent was going to the UK. Some exporters are worried about the existence of the EU itself. Now that Britain has left, said one, many might follow. In which case, India would need to separately neotiate an FTA with each, a long process. Exit of the UK will also open the door for some more business on the long run, feels the Association., For example, the UK has been buying high-end products from Italy’ beforre it joined the EU, it bought these from countries like India. With the UK exiting, there would be customs duty and other levies, making Italian products costlier. To conclude, a mixed reaction or even confusion among garment exporters on what the future is going to be.
SOURCE: The Business Standard
Union government's Chief Economic Advisor Arvind Subramanian today said Brexit was a sad development but India would not be affected by it due to its solid macroeconomics. "Brexit is a very sad development...it has consquences for both the United Kingdom and Europe," he said while delivering keynote lecture on 'Overview of Indian Economy' at an international conference being held here as part of the ADRI Silver Jubilee Celebrations. "We are able to deal with it as we've solid macroeconomics," he said.
Stating that Brexit is a significant development with serious political and economic consequences for both the UK and Europe, Subramanian said it was a landmark moment in the history since World War II. The decision has reversed the experiment by the European countries for togetherness as a collective entity, he said, adding the elites would now be forced to recalibrate and adjust.
SOURCE: The Economic Times
Exports from special economic zones (SEZs) logged a marginal growth of 0.77 per cent to Rs 4.67 lakh crore in 2015-16. The exports from such 204 zones were Rs 4.63 lakh crore in 2014-15, according to the data of the Commerce Ministry. "Overseas shipments from these zones have recorded a positive growth in the last fiscal, this means that there is a potential to boost the country's total exports from these zones. We need to focus here," an official said. The country's overall exports in rupee terms had registered a dip of 9.89 per cent in the last fiscal due to global demand slowdown particularly in India's traditional market such as the EU. Industry experts said taking into account the figures, the government should take some immediate steps to boost exports from SEZs. "The reason for positive growth in SEZ exports are easy way to do business in these zones. It has huge potential but the government will have to extend support to us like rollback or cut in the minimum alternate tax (MAT)," Export Promotion Council for EOUs and SEZs (EPCES) Vice-Chairman Rahul Gupta said. EPCES is the apex body of special economic zones. He said in the current fiscal, exports from SEZs would only improve if the government give special focus in resolving the taxation issues. "We are hopeful that the commerce ministry would take the issue of SEZs with the Finance ministry to boost the exports," he said adding at the time when the government is putting special emphasis on generating new jobs and pushing manufacturing activity in the country, "the SEZs needs special attention". About the duty forgone issues from these zones, another expert said that the view of the Finance Ministry on this is not logical. As per the Commerce Ministry's data, as on March 31, these zones have attracted investments worth Rs 3.76 lakh crore and has generated employment to 15.91 lakh people. Highest number of SEZs are operational in states like Tamil Nadu, Karnataka, Telengana and Maharashtra.
SOURCE: The Economic Times
India’s merchandise exports to Britain are set to be affected in the short term, following the nation’s exit from the European Union (EU).The government would keep an eye on the British currency, the pound sterling, set to affect trade in the short term, Commerce Minister Nirmala Sitharaman said. The pound plunged to a 30-year low against the dollar on Friday, down 12 per cent. As the pound devalues, imports by Britain are set to become more expensive. If the nation is unable to transfer that extra cost to consumers, its imports will fall. India’s exports to Britain stood at $8.8 billion in 2015-16 while merchandise goods worth $5.1 billion were imported from the country. This translates into a comfortable trade surplus of $3.7 billion. This might change as currency volatility hits the British currency. Indian apparel export will be heavily hurt, an estimated $1.8 billion in the past financial year. These represented India’s largest exports by value. For apparel, Britain is India’s largest market in the EU, accounting for around 30 per cent of all exports.“Its exit would significantly dilute the relevance of the proposed free trade agreement (FTA) for us. Also, volatility will hit the industry hard at a time we are trying to revive from a five-month decline in exports since January,” said Ashok G Rajani, chairman of the Apparel Export Promotion Council.
Apart from increasing imports from Britain and the EU, British products are also set to compete more with Indian ones in common markets due to its falling value, if their currency remains weaker on a medium-term basis.In the long term, India’s exports would be affected, experts said. Much of that would depend on what negotiation Britain works out with the EU within the two-year window available to replace the terms of the EU membership. “If Britain gets the same treatment in terms of free tariff and free movement of persons, not much will change for India,” said S C Ralhan, president of the Federation of Indian Export Organisations. However, if Britain gets treated as a non-member country, it might lead to a positive impact on India’s exports to the EU as well as to Britain, he added. India’s engagement with the EU, especially on current negotiations involving the proposed India-EU free-trade agreement, will also be under review. The Broad-based Trade and Investment Agreement (BTIA) will be revisited now on a different template, considering the absence of Britain, India’s third-largest trade partner in the EU. “My interest will get changed because the number of tariff lines (products) will change (now). I will calibrate and the EU will also calibrate. Now they would reassess and we will also be going to reassess,” Commerce Secretary Rita Teaotia said.
SOURCE: The Business Standard
Indian logistics players do not see much impact on their business from Brexit, but many are on a ‘wait-and-watch’ mode as there could be changes in shipping routes and some effect on shipping insurance firms in London. Blue Dart says it does not see any direct impact on the domestic logistics industry. “I don’t think there will be much of an impact on the sector. Blue Dart has most of its business within India, with 8 per cent coming from the international segment. I don’t think there will be an impact on that as well,” Anil Khanna, Managing Director, Blue Dart, told BusinessLine . The Indian Foundation of Transport and Research Training said the road transport sector was waiting for an impact on crude prices. It also pointed out that the Finance Ministry had been silent on cutting down excise duty which has sharply increased since November 2014, when diesel was deregulated. “Indian shipping firms will not be impacted, as for India, the European Union is a trading partner and so is the UK. The routing in due time might change. Shipping firms will have to watch the impact of P&I (protection & indemnity) clubs. The front-end offices of most of these firms are in London, under the financial authority of the UK. But, many of these firms are registered in Brussels, or other parts of the UK,” said Anil Devli, CEO, Indian National Shippers Association.
However, S Chandrasekaran, an independent policy analyst in the shipping and foreign trade sector, feels that Brexit will have serious impact on the international shipping route. The Gibraltar, a part of Britain, but tip of the Spanish peninsula, is the entry point to the Atlantic from the Mediterranean Sea. The people of Gibraltar have voted to “remain” in the EU.“Some time ago, people in Gibraltar had voted through a referendum to remain in the UK. As the UK voted to quit, there will be higher tension leading to higher insurance and shipping rates,” said Chandrasekaran. Through Strait of Gibraltar, some 71,000 vessels cross every year carrying 240 million tonne of cargo, accounting for 14 per cent of maritime traffic.
Echoing a similar view, Mantrana Maritime Advisory said Brexit could create a negative impact on trade and shipping. “London is a shipping hub where all the insurance, banking firms are headquartered. Brexit could generate local competition between European countries to create a new hub with an intention to undermine the dominance of London as a shipping hub,” said Anand V Sharma, Director, MMA.
Growth stagnation
The vote reduces the strength of Europe to generate stimulus and growth.“Growth stagnation would directly impact trade and port traffic, including utilisation of ships. A fall in utilisation of ships would lead to a fall in charter rates, which are already at rock bottom,” said Sharma. “Currency fluctuation might undermine India’s exports of goods and services to the UK. For locals in the UK, imports have already become 10 per cent expensive due to currency devaluation. This, along with further devaluation, could trigger curbing spending, leading to a fall in trade,” added Sharma.
SOURCE: The Hindu Business Line
Can Brexit open up new areas of opportunity for India and the UK? While it might still be too early to predict how things will pan out between India and the United Kingdom, they don't look as bleak for India as they do for the EU. In fact, if UKIP (UK Independent Party) leader Nigel Farage is anyone to go by, Indians might find the UK more welcoming. In a recent interview he was quoted as saying, "I have to confess I do have a slight preference. I do think, naturally, that people from India and Australia are in some ways more likely to speak English, understand common law and have a connection with this country than some people that come perhaps from countries that haven't fully recovered from being behind the Iron Curtain." Prime Minister Narendra Modi had told a press conference in London last year that India considered the UK to be a gateway to Europe, indicating his preference for the 'Remain' camp. But the 'Leave' verdict could give India, the third largest investor in the UK, greater operating room in a country with which India has shared a historically warm relationship. Rajya Sabha MP Swapan Dasgupta is among those who believe that India should utilise the opportunity to forge a more meaningful partnership with Britain. "It was a vote against an uncaring super state and uber cosmopolitanism. Yet, Brexit offers great opportunities to engage with a UK that is bound to become economically more free. If India gets into the act without delay, it may be possible to negotiate a mutually beneficial FTA that had become impossible under the EU. The UK can remain India's foremost trading outpost in the West. Brexit signals new opportunities for India and Indians."
India's official reaction, however, was much more guarded and cautious. An external affairs ministry spokesperson said, "We value our multifaceted relationships with both the UK and the EU and will strive to further strengthen these ties in the years ahead." Brexit will undoubtedly have huge implications for the EU project and nobody can say for certain if London will retain its position as the premier financial capital. Author Patrick French believes the Brexit vote "is the most significant change to British power projection since Suez in 1956. I don't think it makes a great difference for Indian companies, except in as far as Brexit diminishes the power of London as the world's financial capital. A continued fall of sterling gives opportunities to Indian investors." During Modi's last visit to Switzerland, India announced it would restart negotiations for a free trade agreement with EFTA (a parallel European group of four countries, including Iceland, Lichtenstein and Norway). After Brexit, it's possible for the UK to join forces with the EFTA. But there are some genuine worries also. What if Indian companies relocate to a country like, say, Ireland, as the new gateway to the EU? That might cloud bilateral economic prospects which currently give India a position of some importance in the UK as evidenced by the British government's decision to intervene with labour unions after Tata SteelBSE -0.94 % announced its exit.
SOURCE: The Economic Times
The commerce department has sought cabinet approval to expand the Asia Pacific Trade Agreement (APTA), focusing on areas that will encourage domestic manufacturing as part of the Make in India initiative. As part of the exercise, India is focussing on importing raw materials and intermediaries from APTA member countries and, in return, giving higher tariff concessions on more products. The increased import of raw materials, intermediaries and components such as machine tools, chemicals and plastics will reduce costs and improve competitiveness of domestic industry. "The expansion has been done with Make in India as an objective," said one official. This comes as various multilateral agencies have said that Asian economies are growing faster than their western counterparts. "We are waiting for the cabinet to give a date to consider the APTA expansion," said an official aware of the development, adding that the process had taken time since there were concerns related to China. The government has been seeking the inclusion of domestic manufacturing and employment generation in India's trade agreement negotiations and, if approved by cabinet, APTA will be the first pact to take these into consideration. APTA covers Bangladesh, China, India, Laos, South Korea, Sri Lanka and Mongolia.
India has proposed duty concessions on almost 3,000 products, a sharp rise from 570 now. Duty concessions have been increased by a margin of preference of 33%, implying that duties on each of the products will be reduced by a third for the importing countries. Until now, India has been giving concessions that are 23.9% lower than the customs duty of respective products under APTA. "The import of raw material such as minerals, industrial goods and electronics will make the domestic market competitive. Since most significant economies of the world such as India, China and Korea are present in the agreement, its membership should be expanded to central Asia as well especially because Mongolia has also joined in," said Ram Upendra Das, professor at Research and Information System for Developing Countries. According to Das, India's exports to APTA were $28 billion in FY14 while imports from the bloc were $61billion. APTA is the only operational trade agreement linking India and China, two of the fastest-growing markets in the world. The two countries are separately negotiating the Regional Comprehensive Economic Partnership (RCEP) agreement with 14 others.
SOURCE: The Economic Times
Textile exporters have urged the federal government for a comprehensive textile package to facilitate the domestic industry and attract more investment in the sector. "In the current situation, when our competitors are announcing billions of dollars packages for their industries, and in absence of a textile package Pakistan's industry cannot compete in the world market," said Shabir Ahmed, Patron-in-chief Pakistan Bedwear Exporters Association. He said that recently Indian government approved Rs 60 billion special package for textiles & apparel sector to create 10 million new jobs in three years. As per estimates, Indian textile package will attract investments of $11 billion, besides generating $30 billion in exports. In addition, these measures also include additional incentives for duty drawback scheme for garments, flexibility in labour laws to increase productivity as well as tax and production incentives for job creation in garment manufacturing, he informed. Shabir said that India had took this step to facilitate the domestic industry and attract more investment in the textile sector, as over the last few years, Indian apparel manufacturing had shifted to countries like China which had cost advantages. He said that India had already advantages of economies of scale and Pakistan was facing a tough competition in the world market. "We believed that this package is a threat for the Pakistan's textile industry as well as exports as these measures will help Indian exporters to capture the foreign markets," he added.
Indian officials are confident that they will overtake Vietnam and Bangladesh in garment exports within next three years if the package is properly implemented, Shabbir mentioned. He said that there was need that Pakistan's government should also announce a comprehensive textile package to facilitate the country's largest export sector, otherwise Pakistan may lose some foreign markets. "While, our competitors are facilitating their industries, our government is not taking preventive measures to protect the domestic industry," he said. He said that UK's departure from EU may also put some negative impact on Pakistan's exports and now exporters were worry about the GSP plus status. Shabir urged the ministry of commerce for proper marketing and study of foreign market that can help exporters to boost their exports and earn more foreign exchange for the country.
SOURCE: The Business Recorder
With Britain's exit from European Union a reality now, India and the Eu will have to recalibrate the proposed free trade agreement (FTA) with the 28-nation bloc, a top government official has said. "My interest will get changed because number of tariff lines (products) will change (now). I will calibrate and the EU will also calibrate. Now they would reassess and we will also reassess," Commerce Secretary Rita Teaotia told PTI. She was replying to a question about the impact of Brexit on the ongoing negotiations between India and EU on free trade agreement. Teaotia said recalibration is required as some items of interest to Britain may have to be removed. She clarified however that the talks will not start all over again."Not at all. There has been a lot of work done, there may be some modifications, moderation because of the work began in 2007 and we are in 2016 now. So certainly the world is some what different. Our policies have emerged...so the parameters of the discussions will be somewhat different. "UK exit will certainly affect our interests that means what are those lines (or products), we are interested in, that will certainly have some repercussion. We will be studying that," she said later in the evening.
On the FTA issue, Commerce and Industry Minister Nirmala Sitharaman said: "I would think, they (EU) would need time now to assimilate this outcome. Once they assimilate the outcome, they will only then respond...I will talk to my counterparts." Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) have seen many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits and liberal visa regime. The talks have been held up since May 2013 as both the sides are yet to bridge substantial gaps on crucial issues. Although top officials from both the sides have met, but they have not yet fixed any date to resume the talks. Sitharaman also said the first impact would be visible on currency volatility as there is a possibility of devaluation of the pound and euro. "So the impact of volatility of the currency is something which might have an immediate impact on our exporters," the minister told reporters. She said India is in a position to face the eventuality of this outcome. "We will however have to keep watching currency based volatility, both in the short and the medium term and also look at the impact on overall trade itself," Sitharaman said. The bilateral trade between India and the UK stood at $14 billion in 2015-16 as against $14.33 billion in 2014-15. India has received $23.10 billion FDI from Britain during April 2000 and March 2016. Two-way trade between India and the EU dipped to $88.4 billion in 2015-16 from $98.5 billion in the previous fiscal.
SOURCE: The Economic Times
Government will support Indian companies operating in the UK to help them do business with the European Union post-Brexit, Minister of State for Finance Jayant Sinha said. "Business change is constant and (our) companies are very competitive and capable and I am sure they will be able to adjust to this. "Whatever support is required on the trade side or in terms of negotiations or discussions with other sovereigns, we will be there to support them," he told reporters hours after Britain voted to leave European Union. There are concerns that Indian companies in the IT and automobiles sector, having base in UK, may face issues in getting preferential assess to the EU market post Britain's exit. Europe is the second largest market for Indian IT-BPM industry, constituting almost 30 per cent of the sector's export revenue of about $100 billion. While Mahindra Group said Brexit would have muted impact on it, $100 billion Tata group said access to markets and a skilled workforce would remain important considerations for its businesses in Britain. Tech Mahindra, however, said London-headquarters Indian companies may have to look at Europe from a different standpoint. IT body Nasscom said Indian IT companies may need to establish separate headquarters/operations for EU. This may lead to some disinvestment from UK, it said, adding that skilled labour mobility across EU and UK could be impacted. "The first priority of the UK will be to first have a new political leadership... They will have to work through what their arrangement with the EU and other trading partners, ofcourse India is one of those. But that is a long-drawn out process," Sinha said. India, he added, is on a "rock solid" foundation right now. "India is a haven of stability, both our macro economic fundamentals and reform and growth agenda is very very strong. We have a fortress balance sheet in terms of reserves," he added.
SOURCE: The Economic Times
Brexit and related uncertainties could stoke a heightened volatility in the currency market and the Reserve Bank of India (RBI) can be expected to intervene, multiple times a day if needed, say currency dealers. The market consensus is that the rupee is unlikely to cross 69 a dollar. Most probably, it would trade between 67.5 and 68.8 in this week.Going by the initial reaction of the rupee in the Brexit aftermath, it is unlikely to be in a free-fall. However, some depreciation would be needed to maintain competitiveness, at a time when other Asian currencies are falling more. While the rupee fell one per cent on Friday, in response to Britain choosing to leave the European Union,the South Korean won fell about 2.5 per cent.Pramit Brahmbhatt, head of Veracity Financial Services, sees rupee trading in a range of 67.5 and 68.5 a dollar this week. The volatility related only to Brexit, the rupee should not cross 69 a dollar, said Harihar Krishnamurthy, head of treasury at First Rand Bank. There will be some unpredictability, though as a risk-off stance in markets strengthens the dollar and weakens emerging market currencies. “Contagion possibilities of Brexit could fan weakness. However, weak commodity and crude oil prices, and high gold prices would provide a buffer. Large forex reserves and a low current account deficit (CAD) at one per cent( of gross domestic product) would also cap the rupee fall to around 69,” he said.
Technical charts show the rupee’s crucial resistance level at 68.2 a dollar. If that crosses, rupee can go up to 68.8, said Abhishek Goenka, managing director of IFA Global, a currency consultant. Piyush Wadhwa, IDFC Bank’s senior director and head of financial markets Piyush Wadhwa, also sees rupee to trade in the range of 67.5 to 68.8 in the short term. On Friday, in fact RBI intervened at 68.2. The local currency strengthened back to close at 67.97 , down 1.1 per cent from its previous close but strengthened 1.9 per cent against the euro and gained 7.5 per cent against the pound . RBI's foreign exchange reserves, at a record $363 billion gives the central bank enough ammunition to intervene. So, the market is not very concerned. "There is no panic ," said Goenka of IFA Global. Bonds, meanwhile will show far more resilience. In fact, as a response to Brexit, the ten year bond yield in India fell two basis points. Bond yields fall as prices rise. One basis point is a hundredth of a percentage point. “Bond markets would take comfort from good rupee liquidity, as well as the RBI stance to keep liquidity available through OMOs (open market operations) and repos. Liquidity infusion by Bank of England and the European Central Bank, and onset of the monsoon would also be supportive. The only risk is if inflation edges up and foreign investors sell bonds.The 10-year yield closed at 7.47 per cent on Friday. Here again, 10 year benchmark is seen capped at 7.6 per cent,” Krishnamurthy said.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.11 per barrel (bbl) on 24.06.2016. This was lower than the price of US$ 47.26 per bbl on previous publishing day of 23.06.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3135.84 per bbl on 24.06.2016 as compared to Rs. 3184.15 per bbl on 23.06.2016. Rupee closed weaker at Rs. 68.01 per US$ on 24.06.2016 as against Rs. 67.37 per US$ on 23.06.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 24, 2016 (Previous trading day i.e. 23.06.2016) |
Pricing Fortnight for 16.06.2016 (28 May, 2016 to June 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.11 (47.26) |
47.63 |
|
(Rs/bbl |
3135.84 (3184.15) |
3193.12 |
|
|
Exchange Rate |
(Rs/$) |
68.01 (67.37) |
67.04 |
SOURCE: PIB
Indonesian Industry Ministry, Saleh Husin is encouraging its textile industries order to develop or diversify products for fashion needs. In a press release on Saturday, Industry Minister said that diversification is a strategic move because of the current development of the market demand for raw material for fashion products is relatively high. Unfortunately, he added that most of the raw materials are imported. Also the development of the textile industry and textile products (TPT) in the last two years have been stagnant, both in domestic and international markets and this is the result of a slowing world economy. It said that the step for diversification is considered important in line with the development fashion industries and design creations by designers. The textile and garment industry of Indonesia is an important contributor to Indonesia’s economy, serving as a large source for jobs and export earnings. The Indonesian government is hopeful that Indonesia's export share in the world market will increase from 1.8 percent currently to 4 or 5 percent in the next 10 years.
SOURCE: Yarns&Fibers
Textile industry workers in the country have scheduled to hit the streets on July 6, 2016 to draw government’s attention to the collapse of the textile industry in the country. According to the workers, they have been left with no other option but to take to the streets over government’s lack of interest in salvaging the industry which employs a huge number of people from total collapse. A joint letter dated June 20, 2016 and signed by union chairmen of the three textile manufacturers in the country (ATL, Printex and GTP) to the Greater Accra Regional Police Commander informing him of the intended demonstration enumerated challenges that have led to the collapse of the textile industry in the country. “Our textile industry is on the verge of total collapse due to the intensified illegal trade in pirated/smuggled textile fabrics from China and Far East countries. If nothing is done immediately to rescue the remaining textile companies, we are all at risk of losing our jobs”. According to the workers, about 80% of the workforce in the industry has been sent home and the remaining are on their way home. “The textile companies have no order and as at now some have sent about 80% of their workforce home and their future cannot be guaranteed.” ATL, for example, which used to have a workforce of more than 3,000 some few years ago, now has a permanent workforce of 750. Information gathered by Weekend Finder indicates that there has been shortage of materials at the factory for the past two weeks and this, according to a source close to the company, has been the norm for the past two years. Local Union Chairman of the company, Mr Asumadu Ebenezer, the total workforce left at the factory is 250, comprising of only the printing section and administration. The weaving and spinning department of the company, totalling about 230 workers, are currently home. Mr Richard Neequaye, Chairman, Printex Local Union, told Weekend Finder that the company has reduced its workforce from 750 a year ago to 324. He said if the company does not receive any new orders by next week, more workers would be laid off. According to the textile workers, the Anti-Textile Piracy Taskforce of the Ministry of Trade, is overwhelmed by the escalating “criminal activities of the textile trader.” “In view of this development, the only option left to the workers is to demonstrate in Accra to draw attention of the general public to the irreparable harm these traders are causing the industry,” the workers noted.
SOURCE: The Ghana Web
Racing against time to close the textile value chain and make it a circular economy, Sweden's IVL Environmental Research Institute is devising an automated sorting machine that will make sorting a lot speedier and accurate than the manual process. “An automated sorting of textiles makes it possible to manage large streams of textile and at the same time produce sorted textiles that are better adapted to different recycling,” explains Maria Elander at IVL, which is spearheading a project SIPTex that was launched in 2015 to consider the possibility of automated sorting. As of now, textiles that are collected at stores are sorted manually. However is a difficult task to sort clothes and other textiles for recycling, partly because a growing proportion of the textiles consist of mixed materials. Industrial and automated sorting processes, suitable for fibre-to-fibre recycling, are necessary in order to handle large amounts of fabric with high precision, says Elander as SIPTex is poised to enter its second phase. The potential for increasing textile recycling in Sweden is great. Of all the clothing and household textiles sold in Sweden only around 20 per cent are gathered for reuse. Less than 5 pe rcent are recycled. The figures for EU are more dismal: Every year 4.3 million tonnes of textile waste is used in the EU as landfill or incinerated. The goal is to eventually create sorting capacity for 45 000 tonnes of textile recycling, according to an IVL press release.
In the first phase of the IVL-led research project SIPTex conducted in 2015, the potential for an automated sorting was examined. The project conducted a small scale testing technique where optical sensors detect different types of materials. It's the same kind of technology that is used when sorting packages, now used in a new context. SIPTex showed that automated textile sorting has the potential to provide both high sorting rate and a high purity of the sorted textiles. Based on the promising results the project is now moving on to the next step - building a unique test environment for automated textile sorting, the release said. Behind the project is a broad consortium of eleven partners, including IVL research institute, authorities and participants from different parts of the textile value chain. A sorting facility will be leased and operated in Sweden for a year and the facility will handle and sort used textiles that are collected at recycling centres in Stockholm and Malmo. The sorting will be done based on the need of the potential customers. The project will also test and evaluate new possibilities for how to collect textile and textile waste, as well as examine how targeted communication efforts can contribute to an increased textile collection. “The idea is to create a sorting solution that is tailored for the needs of both the textile recycling industry and the textile business. Thus becoming the link that is missing today between textile collection and a high-quality textile recycling,” says Elander.
SOURCE: Fibre2fashion
Africa-inspired designs are now regularly shown on the catwalks in fashion shows in Paris, London and Milan. Fashion is big business, the combined apparel and footwear market in Sub-Saharan Africa is estimated to be worth US $31 billion according to data from Euromonitor International. It is important to look through a value-chain approach to see the contribution that a "made in Africa" brand can make to African economies. Technological changes in manufacturing, distribution and marketing are driving the growth of the fashion industry. The fashion industry is expected to double in the next 10 years, generating up to US $5 trillion annually. In the USA alone, every year $284 billion are spent on fashion retail, through the purchase of 19 billion garments. This presents a tremendous opportunity for Africa at various levels of the value chain: from design to production to marketing, the fashion industry is a profitable business. Although the good news is that the African fashion industry is already developing. But it is still in its infancy. It needs to do a lot to build its fashion industry. The textile industry value chain begins with the production of cotton, spinning and twisting of the fibre into yarn, the weaving and knitting of the yearn into fabric, and the bleaching, dying and printing of the fabric to obtain the fashionable garments that is worn today.
Targeting the fashion industry means targeting the whole value chain, from the smallholder farmers to the fashion designers. The fashion industry in particular holds considerable potential to motivate and bring change to some of the most disadvantaged people, especially women and youth, while advancing structural transformation. Today, international textile firms are looking at Africa not only for the purpose of production in view of increasing labour costs in Asia. They are also looking at Africa to take advantage of the growing African consumer market. This presents an opportunity for African countries to find their place in these value chains, from the producers of raw materials on up.
Creating the right policy environment for businesses to thrive and attract investments is essential. The Government of Rwanda is a good example: it is one of Africa's most competitive economies and a top reformer in improving the business environment. And it has recognized that fashion means business. This has created the foundation to attract foreign investors to work with local designers, establish garment factories and boost the textile and fashion industries. H&M is building a factory in Ethiopia and PVH is looking at Kenya for the production of its brands, including Calvin Klein and Tommy Hilfiger. But the cost of doing business is still too high. Energy shortages, high costs and poor access to energy, combined with high costs incurred by transport, logistics and custom facilities, can erode the advantages of lower labour costs and impede a country's ambitions to industrialize.Sub-Saharan Africa consumes a mere 181 kWh in power. Compare this with 13,000 kWh in the US and 6,500 kWh in Europe and it is obvious how little this is - 1.4% of what the US consumes and 2.8% of what Europe consumes. About half of all firms across Africa have their own generator to complement or replace electricity supplies as needed. This represents a big disadvantage for firms trying to grow their business.
Finally, building an industry requires investing in the skills and qualifications of people. Achieving high quality production flexibility, while raising productivity is only possible with a workforce that has the necessary skills. As governments become increasingly aware that apparel production offers large-scale employment opportunities, they need translate this awareness into investments in their people. Lesotho, Ethiopia and Kenya, for instance, have recognized this and are establishing training centres and tertiary institutions to promote the technical qualifications for people in the textile and apparel industries. With industrialization, as one of the Bank's High 5 strategic priorities and Africa currently accounts for just 1.9% of global manufacturing. There is an urgent need for Africa to rapidly industrialize and add value to everything that it produces, instead of exporting raw materials that make it susceptible to global price volatilities. The fashion industry is a case in point. Instead of exporting raw cotton, Africa needs to move to the top of the global value chain and produce garments targeted at the growing African and global consumer class. By fostering value chain development, the Bank prioritizes, among others, the agriculture and agro-processing industries, given their potential for value addition, and close interactions with the textile, fashion and clothing industries. The Bank is currently undertaking a study to look at the feasibility of setting up the AfDB initiative ‘Fashionomics’ online platform with the aim of strengthening the value chains in the textile and fashion industries. It intends to support micro, small and medium enterprises (MSMEs) operating in the African fashion and textile sector by connecting them with financial services providers and mentors to help them grow their businesses. The online Fashionmics platform will link designers throughout Africa with other designers, buyers, and suppliers.
SOURCE: Yarns&Fibers
As labour in China gets expensive and the economy is witnessing a slowdown, the country's manufacturing sector is exploring developing economies such as Ethiopia for production and investment. A delegation of Chinese textile, leather and light manufacturing industry associations recently visited the Ethiopia under the aegis of United Nations Industrial Development Organization (UNIDO) and expressed their interest to invest in Ethiopia. UNIDO goodwill ambassador and delegation leader of the Chinese industry associations, Helen Hai held talks on Wednesday with Prime Minister Hailemariam Dessalegn on ways of facilitating investment in the East African nation. "The reason why we are coming here is actually because Ethiopia is embarking a new chapter of development which is leading a successful example for Africa to follow," Hai said according to the Ethiopian news agency ENA.The participating Chinese delegates were from China Textile Association, Hong Kong Chamber of Textile Association, and Chinese Chamber of Light Manufacturing. "We have signed a collaboration agreement with Ethiopian Investment Commission (EIC) and we are going to be partners", she said describing the business environment in Ethiopia as favourable. Ethiopian Prime Minister Dessalegne said the light manufacturing industry sub-sector is one of the priority areas in his country, which looked forward to more foreign investment in this sector.
SOURCE: Fibre2fashion
