INTERNATIONAL
Textile Raw Material Price 2016-07-04
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1011.86 |
USD/Ton |
0.90% |
7/4/2016 |
|
VSF |
2029.73 |
USD/Ton |
0.15% |
7/4/2016 |
|
ASF |
1894.41 |
USD/Ton |
0% |
7/4/2016 |
|
Polyester POY |
1014.86 |
USD/Ton |
0.75% |
7/4/2016 |
|
Nylon FDY |
2180.08 |
USD/Ton |
0% |
7/4/2016 |
|
40D Spandex |
4284.98 |
USD/Ton |
0% |
7/4/2016 |
|
Nylon DTY |
2405.60 |
USD/Ton |
0% |
7/4/2016 |
|
Viscose Long Filament |
5606.55 |
USD/Ton |
0% |
7/4/2016 |
|
Polyester DTY |
1235.88 |
USD/Ton |
0.24% |
7/4/2016 |
|
Nylon POY |
2037.24 |
USD/Ton |
0% |
7/4/2016 |
|
Acrylic Top 3D |
2067.31 |
USD/Ton |
0% |
7/4/2016 |
|
Polyester FDY |
1187.77 |
USD/Ton |
4.84% |
7/4/2016 |
|
30S Spun Rayon Yarn |
2706.30 |
USD/Ton |
0% |
7/4/2016 |
|
32S Polyester Yarn |
1650.84 |
USD/Ton |
0% |
7/4/2016 |
|
45S T/C Yarn |
2413.12 |
USD/Ton |
0% |
7/4/2016 |
|
45S Polyester Yarn |
1789.17 |
USD/Ton |
0% |
7/4/2016 |
|
T/C Yarn 65/35 32S |
2706.30 |
USD/Ton |
0% |
7/4/2016 |
|
40S Rayon Yarn |
2856.65 |
USD/Ton |
0% |
7/4/2016 |
|
T/R Yarn 65/35 32S |
2180.08 |
USD/Ton |
0% |
7/4/2016 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
7/4/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
7/4/2016 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
7/4/2016 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
7/4/2016 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
-0.45% |
7/4/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15046 USD dtd. 30/06/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The much-awaited new National Textile Policy will soon be placed before the Cabinet seeking approval, a top official said. Textile Secretary Rashmi Verma also said the policy contains a package to boost job creation and promotion of made-ups for the home textile sector, on the lines of the one which was extended to the apparel industry. "The draft textile policy will be soon placed before the Cabinet and the home textile sector can also look forward to a package similar to what is extended to the apparel sector," Verma said at an event here, according to a release issued by Texprocil. Besides, she said the government has already started the process of reviewing the existing free trade agreements (FTAs) and is also seriously negotiating the FTAs with EU, Australia and Canada.
On Brexit issue, Verma said the time is right for India to sign a separate bilateral agreement with the Great Britain and the process for starting a dialogue is already on. The government last month approved a Rs 6,000-crore special package for textiles and apparel sector to create one crore new jobs in 3 years, attracting investments of USD 11 billion and generating additional USD 30 billion in exports. The measures approved 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.
SOURCE: The Economic Times
TEXPROCIL, the first Export Promotion Council set up in India in the year 1954, and responsible for promoting Cotton Textile exports from India held a function yesterday at the Hotel Taj Santacruz in Mumbai to release an Ernst Young Study report on “Textile Industry as a vehicle of job creation for inclusive growth”. The event was attended by the leading industry heads in the textile and clothing industry. In his welcome address Shri R. K. Dalmia, Chairman, Texprocil initially thanked the Secretary for sparing her time and making it for the release of the study report despite her hectic schedule. The Chairman mentioned that there were 3 objectives in undertaking the study. Firstly, to map the top 20 textile products in demand in major importing countries in comparison to what India is supplying to these markets and thereby analyze reasons for mismatch in demand & supply, if any, and chalk out suitable corrective action to be taken up by the industry. He also reiterated the importance of finalisation of FTAs with EU, Australia and Canada in addition to negotiation of concessional tariff with China to highlight the impact of business being lost to other competing countries owing to tariff disadvantage faced by the Indian suppliers. Thirdly, he said that this study was done to clearly bring out the employment potential of the textile sector, especially in rural India by developing non-migratory models of manufacturing like the ‘hub & spoke’ model being popularised in countries like Bangladesh, Cambodia & Myanmar. This study was done by conducting primary research in various production centres and also by one-to-one meetings with manufacturers and exporters of fabric and home textiles in small, medium and large scale sectors, he said. He mentioned that the study report also confirms that manufacturing of Home Textiles is as labour intensive as garment making and equally suffers the tariff disadvantage of 9.6 % to 16 % in countries like EU and Canada, there by losing business to other competing countries and hence the Home Textile segment should be treated at par with Apparel segment of the value chain.
The Chairman emphasized that the present apparel special package benefit should be extended to Home Textile sector immediately so that the two packages are implemented simultaneously. This will not only lead to substantial increase in employment in rural India but also augment export of Home Textile products. He concluded by humbly requesting the government to extend support to the textile sector as a whole and in particular, value added product such as Home Textile to achieve growth in exports as well as create more direct jobs in the sector. Shri M Ramaswamy, immediate past Chairman of the Council in his address gave a brief background on why the study was commissioned and the ideology and philosophy behind undertaking such an extensive study. He stated that when the new government came into power there were insightful slogans like Make In India, Clean India and Skilling India and the textile industry was the best suited to create the necessary social impact through these programs. He added that the textile industry was the most labour intensive in the manufacturing sector and inspite of the industry meeting all the objectives of the visionary programs of the government, it was unable to occupy the mind space of the policy makers. It was with this background that Texprocil assigned the study to an international accredited research company so that the results would show that the textile industry with its low cost of operation could create a huge social impact.
The textile industry also reached out to women on the job front in rural areas. He also mentioned that the home textile sector was similar to the garment sector and that headroom for growth in home textile for jobs was much more than the headroom for growth in apparel. He remarked that Ernst Young based their study on research with many small, medium and big companies, interaction with workers and collected huge amount of data. He hoped that the results of this study would reach the decision and policy makers in the Ministry. Shri Anurag Malik, Partner EY (Skill development) in his brief presentation said that there were 5 main themes which came out strongly in the Texprocil-EY study report. First was the size and employment generating capacity of the textile industry. Secondly, he said, the most significant impact of the industry was that it employed many women including married women in rural areas. The third theme was the movement into non-migratory models like the hub n spoke method successfully employed in Bangladesh Cambodia etc. The fourth theme was the absence of FTAs with EU, Australia and Canada because of which almost 55 lakh jobs are lost due the added exports that would have been generated if the FTAs were signed. The fifth theme brought out the similarities in process in the home textile sector and the garmenting sector and mentioned that home textile is also labour intensive and helps in the social upliftment thereby impacting poorer segments and other lower strata of society.
Smt Kavita Gupta, Textile Commissioner in her speech said that all schemes and policies are drafted keeping the interests of the industry in mind. She also said that the Hon’ble PM wants to give priority to the textile sector and hence the special package was extended to the apparel industry. She complimented the Secretary Textiles Smt Rashmi Verma for her sincere efforts in playing a major role to push for the various incentives and sops in the special package for apparel. She said that the Ministy of Textiles is always ready to support the industry and be part and parcel of their dreams and vision. In her address, the Chief Guest of the function Smt Rashmi Verma, Secretary Textiles said that this study report was released at a very appropriate time considering that all schemes and proposals which are placed before the Ministry and Cabinet have emphasis on job creation. She complimented Texprocil and Ernst Young for carrying out this significant study. The two key findings in the report, she said, were the immense potential of employment generation in the textile and clothing industry and secondly the potential of generating more jobs if FTAs like EU, Australia and Canada are finalized. She also detailed the specifics of the package given to the apparel sector saying that the garmenting industry worked on very low margins and hence needed a buffer while competing with countries like China, Bangladesh, Vietnam and Cambodia who enjoyed a zero duty advantage in most of the markets that India exports to. She also said that the package contained tax incentives and sops so that garmenting units could be compensated for the duties and state levies through duty drawback. She also mentioned that the capital subsidy for the apparel sector has been increased by an additional 10% thereby making the total capital subsidy to 25%. On FTAs she said that the government has already started the process of reviewing the existing FTAs and is also seriously negotiating the FTAs with EU, Australia and Canada.
On the recent Brexit issue, Smt R Verma said that the time is right for India to sign a separate bilateral agreement with Great Britain and the process for starting a dialogue is already on. She mentioned that the made-ups sector is also as important as the garment sector as it was both labour intensive and also created many jobs especially for women. The home textile segment was significant as it not only created jobs but also fostered demand for downstream products like yarns and fabrics. Finally she said that the draft textile policy will be soon placed before the cabinet and the home textile sector can also look forward to a package similar to what is extended to the apparel sector.
SOURCE: The Business Wire India
The Kerala State Textile Workers’ Federation (KSTWF), affiliated to the Indian National Trade Union Congress (INTUC), has called on the State government to revise the wages of mill workers. President K. Surendran in a release here on Monday said a State committee meeting of the federation demanded wage revision with immediate effect in the textile mills under private, public, and cooperative sectors. The union demanded hike in basic wages and dearness allowance of the mill workers as the workers were reeling under price rise.
SOURCE: The Hindu
Textile sector triggers worry over the announcement by the Union Government in a special package which allow availing of duty drawback at ‘all industries rate’ for domestic duty paid inputs even when fabrics were imported under Advance Authorisation Scheme. As the generic permission of duty exemption to garments made of all fabrics will only result in even cotton fabrics getting dumped from abroad into the domestic market. Already, the textile mills that produce cotton fabrics and provide huge employment are in a predicament due to the glut in the market. Moreover the unbalanced export-import policies on many segments of the apparel trade are seen with concern by textile sector when it comes to getting a level playing field with the global competitors. According to the textile sector, the duty drawback concession should have been confined only to garments made of fabrics produced using man made fibres (MMF). The industrialists feel that if at all the government was interested in the boosting the employment in the sector, which is the claimed objective of that special package, the permission to import the fabrics without duty through the Advance Authorisation Scheme should have been restricted to fabrics made of MMF.
Presently, there is a huge disparity in the international prices of fabrics made of MMF and the domestically made fabrics out of the MMF. Whereas, the case with the cotton made fabrics is entirely different and hence, the government should rethink on the new initiative announced, pointed out S. Dhananjayan, an industry consultant and chartered accountant. Moreover, the major chunk of the shelf space in the retail chain stores abroad were now occupied by the garments made of MMF. But the main hindrance for the garment exporters in the country for moving to MMF fabrics is the exorbitant prices quoted as the segment has been in the control of a few manufacturers.
SOURCE: Yarns&Fibers
The government has approved an export policy to give a fillip to export oriented units (EOUs) in the state. The policy was finalised on the basis of recommendations of the Indian Institute of Foreign Trade, Kolkata, which had carried out an in-depth analysis of the export potential of Himachal. Exports worth Rs 5,003 crore and Rs 5,486 crore had been made in 2013-2014 and 2014-2015 from the state though a drastic decline was witnessed in the following year where the share of exports went down to Rs 2,788 crore. Providing additional incentives for the promotion of exports, giving market development assistance to micro and small EOUs, granting land at concessional rates to the sector and grant of public utility status for such units were the other highlights of the policy, a copy of which is with The Tribune. Director, Industries, Amit Kashyap said there were 15 categories of products which were being exported from the state. Initiatives under the policy include connectivity of various industrial areas to the nearest Inland Container Depot, setting up of an export park for textiles, a mini export park for exotic vegetables, fruits, flowers, fisheries and an export park for electronics manufacturing centre, skill development and training an entrepreneur in exports. The government will promote the export of mushrooms, blankets, wool, plant, laboratory equipment, rabbit meat, textile furnishing articles, carpets, green tea, flowers, fruit juice, pickles, jams, herbal products, ski-boots, cross-country ski footwear, honey, footwear with outer soles of leather, glass envelopes, including bulbs and tubes, mineral water and agro chemical products.
Special emphasis has been laid on promoting the Micro Small and Medium Sector Enterprises (MSMEs) with provisions like exemption from the GST (VAT). The MSMEs installing new pollution control devices will also be provided financial incentives. Other measures like exemption from the state excise duty for a period of seven years, implementation of the tax beneficiary schemes, introduction of tax relaxation schemes, single window system for all refunds, control over labour unions, truck unions, goods and services tax are part of the new export policy. Among other concessions announced for the EOUs include concessional rate of electricity duty and stamp duty.
SOURCE: The Tribune India
The International Cotton Advisory Committee has revised downwards its forecast for India’s cotton output for 2016-17 (October-September) to 6.3 million tonnes (mt) from 6.5 mt estimated in June. The revised cotton output estimate for 2016-17 is, however, up eight per cent from a year ago, it said. “Better monsoon weather may boost yield by six per cent to 521 kg/ha, though pest pressure remains a concern,” the cotton body said in a report, adding that cotton area in India is expected to expand by one per cent to 12 million hectares in 2016-17. The report also highlighted that Pakistan’s cotton production is projected to surge by 19 per cent to 1.8 mt, while cotton area is likely to contract by five per cent to 2.7 million hectares as farmers switch to other crops that are fetching higher returns. Pakistan has faced huge losses due to pest attack in 2015-16, but the measures taken to combat the pests is expected to help partially recover cotton yields by 25 per cent to 662 kg/ha in 2016-17, the report said. In China, cotton production is forecast to decrease by 10 per cent to 4.7 mt, according to the report, while cotton area in the country is estimated to decline by 10 per cent to 3.1 million hectares due to high production costs and reduced government support. The cotton body has estimated global cotton output in 2016-17 at 23 mt — up five per cent on year as average yield is seen improving by five per cent to 735 kg/ha.
SOURCE: The Hindu Business Line
The National Human Rights Commission (NHRC) has issued notice to the State Government, Department of Labour and the Labour Commissioner, seeking report on a complaint that the rights of women workers in the State’s textile retail sector were violated rampantly. The Commission allowed two weeks’ time to submit the report. The complaint alleged that employers often did not allow women workers of textile retail shops to sit or use the rest room during their more-than-ten-hour duty. According to the complaint, women workers’ basic rights to ‘sit’ and ‘pee’ have not been protected in the Kerala Shops and Commercial Establishment Act-1960. While issuing the notice, the Commission observed that the allegation indicated serious violation of the right to health and the right to dignity of female workers in textile retail shops. “The government is bound to take the necessary steps to protect the rights of women workers. An agitation is going on against managements of textile shops, and most of the agitators face penal action from their employers. In some cases, those appointed as sales women are transferred to godowns when they protest, and the godowns are devoid of proper lighting, drinking water, fan or toilet. “We appeal to the government to strictly enforce the law,” said Asamghaditha Meghala Thozhilali Union (AMTU) state secretary P Viji, responding to the notice.
SOURCE: The New Indian Express
Jawaharlal Nehru Port has become the first port in India to implement logistics data tagging of containers. The logistics data bank tagging of containers, a first of its kind facility, will help importers and exporters track their goods in transit. An RFID (Radio Frequency Identification Tag) tag would be attached to each container which would be tracked through RIFD readers installed at different locations. It will integrate the information available with various agencies across the supply chain to provide detailed real time information within a single window. The government claims that this is an important ‘ease of doing business’ initiative focused towards document, time and cost reduction for the benefit of trade. “This would help in reducing the overall lead time of the container movement across the western corridor and lower the transaction costs incurred by shippers and consignees,” claims the Ministry of Shipping.
According to the Ministry of Shipping, “this would provide visibility and transparency of EXIM container movement by covering the entire movement through rail or road till the Inland Container Depot and Container Freight Station.” This would help in reducing the overall lead time of the container movement across the western corridor and lower the transaction costs incurred by shippers and consignees.
SOURCE: The Financial Express
With the country expected to get a good amount of rainfall in the current year, Finance Minister, Arun Jaitley said India is in a sweet spot and can grow at a healthy pace in 2016-17. “India is in a sweet spot. The 7.6 per cent growth that we achieved was in a situation when global growth was slow and we had two years of deficient rainfall…this year it seems that we will have good rainfall… that is why despite the challenges in the global economy, there are sings that India can grow at a good pace,” Jaitley said while addressing the National Conclave on Mines & Minerals in Raipur, Chhattisgarh. Jaitley also said that the while the mining sector in India and the world over has faced challenges of low prices, higher economic growth will require more mineral resources. “The mining industry has been going through a phase of low prices, but the cycle would soon change. Industrialists must realise what they invest today will pay dividends to both the country and the State in the coming years,” he said.
5 projects inaugurated
The Finance Minister also inaugurated five pilot projects of the Chhattisgarh government to be implemented under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). Under this scheme, miners are required to contribute to the District Mineral Fund which will be used to implement various development and welfare projects in mining affected areas that complement the existing Central and State schemes, minimise the adverse impact of mining on environment, health and ensure long-term sustainable livelihood for affected people. Steel and Mines Minister Narendra Singh Tomar urged all stakeholders to work together to increase the share of share of mining in the GDP from 2.4 per cent to six per cent. The industry expressed hope that with the new policies for mining in place, the sector can meet the target set by the Minister. “Well, I think at least the policies are in place now because transparency is there in a very big way. I am glad that the exploration policy was announced as that was a gap earlier. So hopefully, there will be more exploration and we can capitalise on that,” said TV Narendran, Managing Director of Tata Steel, who also attended the event.
Meanwhile, Tomar said that after a contraction in the mining sector in 2012-13 and 2013-14, the Ministry’s initiatives have led to a nine per cent growth in production of major and minor minerals. “Already seven mineral blocks have been successfully auctioned out of a total of 55 that were put on the block. These have already raised more than Rs. 13,000 crore for the State governments over the course of the mine life. There were no bids in 17 blocks and another 31 blocks will be auctioned soon,” the Minister said.
SOURCE: The Hindu Business Line
With the Centre opening up various sectors for FDI, TUV Rheinland, a global provider of technical, safety and certification services, is extremely bullish on India. In a conversation with BusinessLine , Thomas Fuhrmann, Managing Director - India, talked about how the German firm is trying to partner with the Indian government in the skill development area and about the company’s investment plans in the country.
How have the last two years of Modi government changed the business environment for you? Do you see things changing from an ease-of-doing-business perspective?
The new government has planned as well as started many initiatives. We, as a testing, training, inspection, certification and consulting company, strongly believe that Make in India is the most significant and relevant initiative which acts as a catalyst for our business in the present and future. The vision and way ahead for making India a globally recognised and competitive manufacturing hub is a very smart move by the Modi government, as it will attract many global players to set up their operations in India. The Make in India programme is a great boost for us as it will interest global players to set up production units in India and export to countries in Europe, the US, Middle East, Gulf countries, South-East Asian countries and many more. Unlike India, these countries have strong as well as strict quality and safety regulations. We, as a certification and inspection agency, can help them meet these regulations as per international standards. This definitely changes the perspective of doing business in India.
What are some of the major challenges you still see in India for businesses?
In India, the end consumers are concerned about quality and safety but are less informed about how to identify if the product is meeting international standards. The government has to impose strict guidelines on quality and safety to ensure not only that the product is safe but also that the environment is less affected. In the renewable energy sector, there are challenges with respect to the RPO (renewable purchase obligation). Some States have increased their RPO; however, there are still many States that have to give their consensus. This indirectly affects our renewable industry business as increased RPO will attract more players in the business. On the contrary, the government is also taking steps to impose strict policies on quality and safety. In 2015, the BIS (Bureau of Indian Standards) had passed a compulsory registration scheme under which 30 electronic and telecommunication products were listed. TUV Rheinland India was India’s first laboratory to get a BIS accreditation to certify electronic and electrical products. Furthermore, recently, the ISSDA (Indian Stainless Steel Development Association) also introduced the Stainless Steel Quality Control Order wherein any domestic or foreign producer has to get a BIS marking on the relevant grades. Therefore we see the new government is taking good steps towards creating regulations on quality in various sectors. The demand for qualitatively excellent and certified products is so elementary that these regulations are supportive to boost exports by Indian economy.
What would the increased FDI limit in various sectors mean for TUV Rhineland? Would you be looking at making new investments in India in the near future?
As per the DIPP (Department of Industrial Policy and Promotion), FDI limit has been increased in sectors such as mining, petroleum and natural gas, civil aviation, infrastructure telecom, railway, etc. We have ample opportunity to serve these industries directly or indirectly. We feel with the new development by the government, the economy has opened up to invite global giants to be partners in growth. We can observe that there are many projects being initiated by international companies and we can offer them product and system certification, quality control, provide training to their employees as well as supply skilled labour and many more. We invested a huge amount in operational infrastructure such as offices, laboratories and training centres and we have similar plans in the coming years. We are investing in a new headquarter in Bangalore, wherein our major office and all our laboratories except the EMC, will be under the same roof. We are also planning to open new offices and laboratories as well as to invest in 50+ new training centres all over India.
Our investment plan for the year 2017 covers approximately over €2.5 million (about Rs. 18.66 crore). What would be your core focus areas next year?
We would definitely like to focus on our Academy & Lifecare business which deals with training. The government has a target of training over 400 million skilled people by 2022. We feel that the government has a very ambitious target and we will partner it in achieving the targets. We also have some projects partnered with the government. We will also concentrate on Product Safety, under which we extend the scope in the field of renewables including solar photovoltaics, IT infrastructure as well as wireless.
Are you looking at working with the government on the various skill development initiatives? What are the other areas that you’re looking at engaging with the government?
I would like to take this opportunity to talk to you about this MNRE project on “Suryamitras”. The government has a target of creating 50,000 “Suryamitras”, or skilled manpower in the solar energy sector, over tyears. We are the leading technical service provider for the solar industry wherein we work closely with investors, owners and manufacturers to understand their complexities and provide them with solutions. With this experience, we are committed to help MNRE create 50,000 “Suryamitras”. We plan to create 50 training centres to aid the project. We want the government to look at us as a service provider for imported as well as exported goods, infrastructure projects, etc. We would like to support the government in taking better steps towards environment protection, education and skill development and in the field of renewables.
SOURCE: The Hindu Business line
India forecast an electricity surplus for the first time in at least eight years because of transmission improvements and more generation. The country may have 1.1 percent excess electricity supplies in the year ending March 2017, according to the power ministry’s Central Electricity Authority. A 2.6 percent surplus for the period is forecast for peak periods, when daily demand is highest. India’s power deficit shrank to below 1 percent in May. The narrowing gap masks unfulfilled demand in a country where one in five citizens don’t have access to electricity and a market for back-up power thrives because of unreliable supplies. Prime Minister Narendra Modi’s plan to light up every household by 2019 and boost manufacturing in the country are expected to help lift electricity demand. “The overall surplus estimation, while skewed due to the position in Western region, demonstrates the progress India has made in resolving fuel and power generation issues,” said Sambitosh Mohapatra, a partner at PwC India. “As the economy grows, financials of state utilities improve and rural electrification progresses, the surplus will get absorbed.”
Though supplies may surpass demand at a national level several parts of the country may continue to face shortages, according to the Central Electricity Authority. Part of the reason is that money-losing state distributors curtail power purchases and resort to blackouts. A plan to restructure their debt and make them profitable is underway. Power demand during the current fiscal year is expected to grow 9 percent to 1.21 trillion kilowatt hours, while supplies are expected to rise almost 13 percent to 1.23 trillion kilowatt hours, according to the Central Electricity Authority. India, home to a sixth of the world’s population, accounts for about 6 percent of global energy use.
SOURCE: The Bloomberg
Extending gains for the fourth straight session, the rupee on Monday firmed up by another 5 paise to close at a two-week high of 67.27 on sustained selling of dollars by banks and exporters on the back of higher domestic equities. Weakness of dollar in the overseas market also boosted the value of rupee against the dollar, a forex dealer said. Exporters and banks preferred to reduce their dollar position on hopes of foreign capital inflows into domestic equity markets. The rupee opened higher at 67.23 as against the last Friday's closing level of 67.32 per dollar at the Interbank Foreign Exchange (Forex) market and hovered in a range of 67.1475 and 67.29 before ending at 67.27, showing a gain of 5 paise or 0.07 per cent. The rupee has gained by 68 paise or one per cent in four trading days. The dollar index was trading 0.06 per cent lower against a basket of six currencies in the late Asian trade. Meanwhile, the RBI fixed the reference rate for the dollar at 67.1848 and euro at 74.8304. In cross-currency trades, the rupee firmed up further against the pound sterling to finish at 89.31 from 89.52 on last Friday and also edged up further against the euro to 74.88 from 74.89. The domestic currency moved up further against the Japanese yen to 65.58 per 100 yens from 65.67.
SOURCE: The Business Today
With two high-level dialogues coming up between both the countries, India is all set to battle it out with the US armed with a robust agenda. India plans to use the Bilateral Investment Treaty as a negotiating tool to get the US to sign the long-awaited Totalisation Agreement. High on India’s agenda is the Totalisation Agreement, which will allow Indian temporary workers employed in the US repatriate the money they contribute towards America’s social security system when they leave the country. Currently, Indian workers working there cannot bring back their savings due to the absence of this pact. New Delhi is also expected to warn Washington that deduction of an estimated $4 billion annually from Indian professionals who are not in a position to enjoy social security benefits in the US could be in violation of global norms on services trade. “The Commerce Ministry is examining whether the General Agreement on Trade in Services allows for such mandatory deduction from particular countries which leads to lowering of competitiveness of the sector. We plan to discuss the matter in detail at the meeting,” stated another official. However, so far the US has refused to get into a totalisation pact with India on the grounds that it did not meet the legislative requirement of having at least half its population under social security cover. It has also asked India to firm up its domestic social security base further in order to enter into the pact. But India is planning to play it up with the BIT that the US is so strongly pushing India to sign, sources said.
India and US are expected to discuss all these issues at the two upcoming dialogues – the Strategic and Commercial Dialogue (S&CD) and the Trade Policy Forum (TPF) – that will also witness the visit of some of the key officials of the Obama administration. US Secretary of State John Kerry and Commerce Secretary Penny Pritzker will come down to the capital for the S&CD, while US Trade Representative Michael Froman will be attending the TPF. Terming both these events as “rare occurrence” as they are happening in India one after another, a top official of the Ministry of External Affairs (MEA) said the government is already firming up an agenda that consists some of the “sticking points” as far as trade and investments are concerned.
Visa issue
Next on the agenda is the visa issue where India is expected to ask the US to roll back the fee hike in professional visas – H1B and L1. “New Delhi will also be keen to take up with the Washington its tendency to keep imposing higher visa fees on the IT sector,” the official said. India has filed a case against the US decision to further increase the visa charges for IT professionals from the country. Last month, Republican Senator Chuck Grassley asked his government to stop issuing immigrant and non-immigrant visas to citizens of 23 countries, including India. India is also planning to find an amicable solution to the range of trade disputes it is having with the US at the World Trade Organisation (WTO). As a result, India is also planning to take up the issue of domestic sourcing norms followed by various US states in different sectors, officials said. The S&CD will take place at the end of next month while the TPF is scheduled in November.
SOURCE: The Hindu Business Line
Mauritius has invited investment from Indian corporate in the country's textile sector while identifying high-end garments for increasing its exports to India. Mauritius offers great opportunity to Indian business houses to make investment in different sectors, including textile manufacturing, Seewraj Nundlall, country head of board of investment, Mauritius, told reporters recently in Chandigarh. The Mauritius government provides hassle-free environment for companies to start their own business, Nundlall said. “Any investor can incorporate its company within a day and one can get occupational permit within 5-7 working days. And there is no minimum capital requirement and there is 15 per cent corporate tax,” he said. Indian companies can also consider Mauritius as an investment destination for access to African countries.
Last year, Mauritius exports to India were valued at $20 billion while its imports were $2 billion. To further increase its exports to India, Mauritius has identified several items, which includes high-end garments. India Mauritius Global Partnership Conference is scheduled from July 24-27 in Mauritius and is expected to be attended by 250-300 businessmen from India, Pritpal Singh Pannu, president of India Mauritius Trade and Cultural Friendship Forum, said.
SOURCE: Fibre2fashion
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.82 per barrel (bbl) on 04.07.2016. This was higher than the price of US$ 46.17 per bbl on previous publishing day of 01.07.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3145.61 per bbl on 04.07.2016 as compared to Rs. 3113.55 per bbl on 01.07.2016. Rupee closed stronger at Rs. 67.18 per US$ on 04.07.2016 as against Rs. 67.44 per US$ on 01.07.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 04, 2016 (Previous trading day i.e. 01.07.2016) |
Pricing Fortnight for 01.07.2016 (June 14, 2016 to June 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.82 (46.17) |
46.34 |
|
(Rs/bbl |
3145.61 (3113.55) |
3127.02 |
|
|
Exchange Rate |
(Rs/$) |
67.18 (67.44) |
67.48 |
SOURCE: PIB
Steps taken towards the normalization of relations between Turkey and Russia have raised expectations in the Turkish textile and apparel sectors that commerce with Russia will speed up. Speaking with Anadolu Agency (AA), Laleli Industrialists and Businessmen Association (LASİAD) President Gıyasettin Eyyüpkoca said Turkey was a really good producer, and Russia a very good consumer, stressing that the two countries have been partners for nearly 25 years. Indicating Turkey's shared interests with Russia, Eyyüpkoca said: "We knew that the problem with Russia would not last too long. The steps taken towards the normalization of the relations are quite healthy and positive. The greatest love sees fighting. Our relations with Russia sit on a firm basis, and I can say that relations between us will be healthier, and commerce will be along international norms."
Stating that steps towards normalization would directly contribute to tourism, exports of fruit and vegetables, as well as the textile and apparel trade, Eyyüpkoca foresees an increase in apparel sales of 15-20 percent over the short term. Istanbul Apparel Exporters' Association (IHKIB) President Hikmet Tanrıverdi said the apparel sales played an important part in economic relations between Turkey and Russia, and was among the sectors most affected by the cooling in relations. "We aim to rapidly move up to our former position in relation to the recoveries in economy along with the new period. Starting from 2017, we expect exports of between $400 million to $500 million."
Recalling that during the 2009 global crisis, Turkey exported $182 million worth of apparel to Russia, a number that reached $412 million in 2013, Tanrıverdi said Russia was one of Turkey's top ten markets, but the problems emerging in the Russian economy and problems in bilateral relations had caused export to slide back to where it was six to seven years ago, dropping to $204 million for 2015. Tanrıverdi said apparel exports to Russia during the first five months of 2016 hit $45 million, marking 49.5 percent of Turkey's apparel exports.
Russian Federation National Security Academy Foreign Economic Relations Vice President Talat Enver Çetin said he believed the relations between Turkey and Russia would continue and strengthen in the coming period. Asserting that the increasing collaboration between the two countries alarmed Western powers, Çetin said, "Future relations will be established more firmly in the fields of tourism and energy, so as to not break off again."
SOURCE: The Daily Sabah
Due to new sustainable technologies developed by Italian textile machinery manufacturers, CO2 emissions contracted 221,000 tons in 2014, equivalent to CO2 emissions generated by 38,000 cars. Sustainable innovation is among the primary goals promoted by ACIMIT; the association of Italian textile machinery manufacturers, to be achieved through collaboration with recipients of innovative research and companies. ACIMIT in partnership with the Blumine/sustainability-lab, has backed a study aimed at around 30 textile machinery producers committed to rendering their own products and processes greener. The study highlights the important role played by technology in the sustainability programs of the businesses.
Speaking at the AGM of ACIMIT, president Raffaella Carabelli said, “Within the sustainability context, research and innovation have become a core issue, and Italy's textile machinery sector is definitely at the forefront.” “Thanks to our sustainable technologies project, over 1000 'Green Labels' have been assigned to innovative and sustainable machinery. This is a crucial result that promotes the project's commitment and the efforts displayed by over 40 manufacturers taking part in the initiative,” she added. In 2015, production value of textile machinery makers rose 13 per cent year on year to €2.6 billion, with exports growing 15 per cent to €2.2 billion. “This sort of progress has not been seen in the industry since 2011, attributable to signs of a recovery in the domestic market, as well as a recovery in the world's most important market for textile machinery: China,” Carbelli remarked.
SOURCE: Fibre2fashion
The textile manufacturers are expanding into retail markets as textile manufacturing and exports have become unviable owing to a steep rise in the cost of doing business mainly on account of sharp increase in energy prices and shortages in the last three years, said Aptma leader Gohar Ejaz. This is in spite of an array of budgetary measures for this financial year to support investment in the textile industry to boost falling exports. Few consider these decisions enough to save collapsing industry, revive the closed production capacity, and encourage investment at least in the short to medium term. A textile producer from Faisalabad who was forced to close down 50,000 spindles in last two years because viability issues, said that though the government has in theory declared their exports zero-rated by removing 3pc sales tax, it has done nothing about local and innovative taxes that form almost 8-9pc of their cost. A major factor driving investment out of textile industry is the losses suffered by manufacturers including major textile groups over the last three years on the back of declining exports. A large number of textile factories in Punjab are closed and in some cases the owners just do not have money to pay the salaries to their workers, said Amena Cheema, chief executive officer of the Punjab Board of Investment and Trade.
Overall, Pakistan’s exports are down 12pc or $2.7bn in the first 11 months of the last fiscal from a year ago. The textiles, which form almost three-fifth of export revenues, have declined by 7pc or $909m due to the sluggish yarn demand from China and subdued international cotton prices. The government’s lack of attention to the matter and a strong rupee relative to other currencies have been key reasons behind dismal export performance, a JS Research report said in June. Consequently, India and Vietnam have successfully penetrated the Chinese market, replacing Pakistan as the largest cotton yarn supplier. According to JS Research, three-fifths of the decline in textile exports is due to lower quantity sold whereas the remaining two-fifth is owing to lower product prices. A vocal critic of the government’s ‘anti-industry bias’ and export policies, said that India and China had stolen Pakistan’s share in the international market because their governments had helped their industries keep their cost down to protect jobs and foreign exchange revenues.
India has recently announced an incentive package for the textile industry to create 10m new jobs in three years, attract investment of $11bn and generate $30bn in exports. At the moment Pakistan exporters require this kind of encouragement from their government to revive their industry and exports. JS Research report expects budgetary measures to push textile exports by 10pc this year if average Arab Light crude price stays at $40/bbl and machinery imports increase by 15pc on the back of China Pakistan Economic Corridor. With textile industry going under, a State Bank report last week said further worsening of the textile industry could hit stability of its creditor banks. The textile sector’s infection ratio — the relationship between non-performing portfolios and the total loan portfolio — is also at elevated level, said SBP’s Financial Stability Review. As of September 2015, it said, the gross non-performing loans of the textile sector stood at 29pc; most of the bad debts were placed in the loss category. Gohar pointed out that the chances of closures and defaults in the textile industry are increasing as three quarters of textiles produced in the country are exported in one form or the other. Unless the manufacturers are able to export their products, the chances of further increase in losses and closures cannot be ruled out. And the industry cannot boost exports unless the government helps it slash cost of doing business to make their exports competitive in the global markets.
SOURCE: Yarns&Fibers
The Nigerian government has reaffirmed its commitment to revive the lost glory of the country's cotton, textile and garment industry that has become uncompetitive. At the Textile and Garment Manufacturing conference organised by Africa Fashion Week Nigeria (AFWN) 2016 in Lagos last week, Mrs Aisha Abubakar, the Minister of State for Industry, Trade and Investment said that the government was passionate about promoting growth in the industry and across its value chain, according to media reports. She said that the government would continue to create an enabling environment to promote the ease of doing business and active participation of the private sector to boost production. She stressed that government initiatives toward stimulating growth in the industry included tax incentives, harmonised tax, infrastructural development and financing. Abubakar said that the government was looking at creating production hub for Cotton industry and Information, Communication and Technology (ICT) sector. She said: “Nurtured MSMEs can contribute to GDP, job creation and wealth for the citizens. “We urge all stakeholders to contribute to economic growth by giving their best so that we can have a Nigeria that we can all be proud of.” Abiodun Akinkunmi, the Commissioner for Finance, Lagos State said that textile and garment industry had a strategic role to play in economic development. He said, “Africa is behind in terms of industrialisation because it has become over supplied with garments from China and used clothes from Europe and US sold at give away prices. The low prices rather than boost the African market kills our cultural heritage. Our love for foreign clothes is destroying our economy.” He urged local manufacturers to improve the standards and quality of their products in order to discourage the dumping of foreign textiles and garments in the country.
Meanwhile, the Nigeria Textile Garment and Tailoring Employers Association has urged the government to prosecute smugglers to revive the ailing industries in the country. Director-General of the association, Hamm Kwajaffa who also spoke at the Textile and Garment Manufacturing Conference, said that mere seizure of products was not enough to encourage local production. He said the government should eradicate smuggling to the barest minimum by the diligent prosecution of smugglers and destruction of smuggled goods. “There should be patronage of locally produced goods by the government at all levels through effective policy. Besides, the unavailability of cotton, which forms the raw material for production, has been a challenge to the textile industry,” he said. He said that these challenges were the reasons why the manufacturing, especially the textile sector was uncompetitive.
SOURCE: Fibre2fashion
Problems of farmers in Pakistan and other developing countries cannot be resolved as long as the farmers are made to compete with heavily subsidized cotton from major players. Pakistan’s Ambassador to the global trade body Dr Tauqir Shah while addressing the special session on cotton at World Trade Organization (WTO) in Geneva said that they call for a swift and speedy action which allows their cotton growers along with textile industry to fairly compete into the world market. At the WTO, Pakistan has effectively raised the issue of cotton subsidies by big cotton growing countries, particularly the United States and India. As cotton is the lifeline of Pakistan’s economy; they are fourth largest producer after China, India and US, and have third largest spinning capacity in Asia after China and India. Cotton and its value added products contribute approximately 57% of Pakistan’s annual exports earnings. Cotton provides livelihood to 1.5 million farming families and jobs to 40% of countries industrial labour force, and considerable number of them being women, Dr.Tauqir said according to a message received from Geneva. The ambassador contended that cotton producing areas are among the poorest in Pakistan; most of cotton growers are small farmers; Pakistan’s average farm size is 2.6 hectors, and 96 % of its farms are less than 10 hectors.
After struggling for many years with adverse terms of trade and declining cotton prices, the life of cotton farmers has been further complicated by climate change and extreme weather conditions, floods, heavy rains and droughts in some areas, he said adding that this has resulted in 34% reduction in cotton production. A direct effect is the negative growth in agriculture and they missed their GDP growth target by 0.5 % due to cotton crises. While citing that International Cotton Advisory Committee data, Dr Tauqir Shah argued that domestic subsidies in cotton production in major cotton producing countries is a critical issue, resulting in an uneven level playing field for cotton producers worldwide. What is more worrying is that proportion of cotton produced through government assistance has increased in recent years. The International Cotton Advisory Committee (ICAC) data shows that globally total subsidies to the cotton sector are estimated at a record $10.4 billion in 2014-15, up from a record of $6.5 billion in 2013-14. Furthermore, 76% of world production is under assistance. Pakistani farmers growing without such subsidized assistance are facing income losses. These un-capped sky rocketing subsidies by major producers have loaded the dice against poor farmers from Pakistan and other developing countries. The ambassador highlighted that Pakistan has prime interest in formulation of disciplines regarding subsidies on cotton production and trade.
Pakistan introduced massive reforms in the cotton sector during last two decades. All government interventions in the form of price mechanisms and State intervention in form of Cotton Export Corporation has been done away with. Members in WTO have been promising reform and level playing field to resource poor farmers for decades, but unfortunately international community have failed their poor farmers, who grow sliver fiber and get nothing in return. Cotton production in Pakistan has declined by one third and more alarming is that the area under cotton cultivation is declining, and farmers are cultivating other crops. This has serious implications for Pakistan’s economy. As a result Pakistan are forced to import 3 million bales of cotton; it is a manifestation of unfair market conditions that cotton country like Pakistan has to resort to imports. They are importing from countries which are major subsidizers; and cotton imports from India have increased many fold. Hence, Pakistani farmers can no longer compete with surplus supply of heavily subsidized cotton from big producers.
SOURCE: Yarns&Fibers
The International Labour Organization's Better Factories Cambodia's (ILO-BFC) 33rd Synthesis Report released on Friday, notes that for the second year in a row, the number of confirmed cases of child labour (typically workers between 12 and 15 years old) has dropped from 65 in 2013 to 28 in 2014 and 16 in 2015. The report presents an overview of the status of compliance with the labour law in the factories where the programme operates. The findings are based on ILO-BFC factory assessment reports on 381 garment factories and cover the period between May 2015 and April 2016. The findings also indicate that important improvements have been made since early 2014 when the BFC programme resumed the practice of publicly reporting its findings. When comparing the status before and after public reporting, improvements include compliance related to the requirements of holding regular evacuation drills (+13 per cent), unlocked emergency exit doors (+10 per cent), no discrimination against workers (+6 per cent), among other areas. Additionally, 47 per cent of factories, comply with all 21 critical issues since public reporting has resumed, up from 28 per cent in just 2 years. The report also indicates that the top ten non-compliance issues remain the same as in the previous year including issues related to occupational safety in the workplace, overtime, and temperature levels in the factory.
While an increase of some compliance levels is a positive signal for the garment industry and their workers, there is also a need for further improvement in common areas of non-compliance that are indicated in the report” said Esther Germans, Programme Manager of the ILO-BFC. “As a result, Better Factories Cambodia is placing even more emphasis on supporting factories and workers in identifying and addressing the root-causes of challenges they are facing. The programme is also entering into much closer collaboration with the government around increasing capacity for workplace inspections and the application of the government's role on enforcement and remediation.” “Collaboration with and between the Royal Government of Cambodia, the Garment Manufacturers Association in Cambodia, trade unions, factory owners and international buyers remains essential to drive sector wide change. The ILO-BFC programme will continue to collaborate with its constituents to promote the growth and sustainability of the industry,” she added.
SOURCE: The Global Textiles
Enterprises in the textile and dyeing sector are struggling to find skilled laborers to carry out their expansion projects to cash in on opportunities from Vietnam’s stronger international integration, heard Vietnam Textile Summit 2016 in HCMC on June 29. Speaking at the second summit co-held by the Vietnam Cotton and Spinning Association (VCOSA) and Shanghai-based conference organizer ECV International, Truong Van Cam, vice chairman of the Vietnam Textile and Apparel Association (VITAS), said the current labor force structure really backs development orientations for the apparel sector. He cited statistics as saying that young laborers aged between 15 and 29 account for 26% of the country’s total workforce and female workers make up almost half of the number of people of working age. Female workers register 75% of total headcount in the textile and garment sector. However, textile and dyeing enterprises are short of skilled labor. “A majority of Vietnamese enterprises in the sector did not have sufficient capital to buy modern technologies in previous years. Now they lack competent people who can use advanced technologies,” Cam said.
VCOSA vice chairman Nguyen Son said it would take years to train employees as most of them are not tech-savvy as they come from rural areas where vocational training is poor. To build a core workforce, foreign companies often train them in Vietnam or abroad, and they can replace foreign experts after about three years of training. Son suggested textile and garment firms collaborate with vocational schools to launch short-term courses targeting fresh graduates to meet their employment demand. VCOSA chairman Nguyen Van Tuan said foreign direct investment (FDI) approvals for textile and garment projects have increased rapidly in recent years. Foreign firms have registered a total of US$8.2 billion for such projects in a 13-year period ending in 2013, including US$5.8 billion for apparel projects and US$2 billion for fiber production. FDI pledges for textile and garment projects in 2014 and 2015 amounted to US$5.8 billion, with US$3.3 billion going to cloth production and registered by investors from China, Taiwan and South Korea. By end-2015, fiber output had risen to 1.1 million tons a year and enterprises had churned out 8.9 million square meters of cloth. However, Vietnam has to import 6.44 million square meters of cloth a year. To meet the export revenue target of US$50 billion by 2025, the apparel sector expects to double its workforce to five million workers, up from 2.6 million in 2015.
SOURCE: VietNamNet
