INTERNATIONAL
Textile Raw Material Price 2016-07-06
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1011.62 |
USD/Ton |
0.30% |
7/6/2016 |
|
VSF |
2045.73 |
USD/Ton |
0.37% |
7/6/2016 |
|
ASF |
1888.36 |
USD/Ton |
0% |
7/6/2016 |
|
Polyester POY |
1031.11 |
USD/Ton |
0.07% |
7/6/2016 |
|
Nylon FDY |
2173.12 |
USD/Ton |
0% |
7/6/2016 |
|
40D Spandex |
4271.30 |
USD/Ton |
0% |
7/6/2016 |
|
Nylon DTY |
5588.65 |
USD/Ton |
0% |
7/6/2016 |
|
Viscose Long Filament |
1251.41 |
USD/Ton |
0% |
7/6/2016 |
|
Polyester DTY |
2030.74 |
USD/Ton |
0% |
7/6/2016 |
|
Nylon POY |
2060.71 |
USD/Ton |
0% |
7/6/2016 |
|
Acrylic Top 3D |
1142.01 |
USD/Ton |
0.26% |
7/6/2016 |
|
Polyester FDY |
2397.92 |
USD/Ton |
0% |
7/6/2016 |
|
30S Spun Rayon Yarn |
2697.66 |
USD/Ton |
0% |
7/6/2016 |
|
32S Polyester Yarn |
1671.05 |
USD/Ton |
1.55% |
7/6/2016 |
|
45S T/C Yarn |
2405.41 |
USD/Ton |
0% |
7/6/2016 |
|
45S Polyester Yarn |
2832.54 |
USD/Ton |
0% |
7/6/2016 |
|
T/C Yarn 65/35 32S |
2173.12 |
USD/Ton |
0% |
7/6/2016 |
|
40S Rayon Yarn |
1783.45 |
USD/Ton |
0% |
7/6/2016 |
|
T/R Yarn 65/35 32S |
2697.66 |
USD/Ton |
0% |
7/6/2016 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
7/6/2016 |
|
32S Twill Fabric |
0.80 |
USD/Meter |
0% |
7/6/2016 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
7/6/2016 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
7/6/2016 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
7/6/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14987 USD dtd. 7/6/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Smriti Irani, who was moved from the human resource development ministry to textiles in Tuesday’s cabinet reshuffle, has set job creation, promotion of exports and welfare of weavers as her areas of focus. “Textiles industry is the largest employer after agriculture. I hope to engage with the industry to promote exports, skill more people and provide as much assistance as possible to weavers,” Irani told reporters on Wednesday after taking over as textiles minister.
Weaving is the weakest link in the textile value chain due to the earlier policy of reserving the segment for small scale industries, which discouraged large investments. Any assistance to weavers is expected to benefit states like Maharashtra, Gujarat, Tamil Nadu, Madhya Pradesh and Rajasthan, where there is a strong weaving community. Uttar Pradesh too has some weaving clusters in places like Varanasi, although not as prominent in output as in other states. The minister said she will try to create more opportunities for the youth in the textile industry. Irani is now responsible for implementing the Rs.6,000 crore special package for textiles and apparel approved by the Union cabinet on 22 June, aiming to create 10 million new jobs in three years and attracting $11 billion in investments.
Considering the employment-intensive nature of the industry, Irani has an opportunity to engage with labourers. The minister said she was happy to have been given charge of textiles to facilitate employment generation for women, in the context of the special package. “I am happy that I have been given the responsibility for implementing the policy that the prime minister dreamt of,” she said. Industry experts welcomed the promised welfare measures to weavers but said technology adoption and scaling up of weaving activities too should get equal attention. “India has a rich heritage in weaving, which should be protected and preserved. Handloom and khadi have a place in the industry. However, we should also pay equal attention to the adoption of modern technology to achieve scale and supply products that are competitive in world markets,” said D.K. Nair, secretary general, Confederation of Indian Textile Industry.
SOURCE: The Live Mint
Textile bodies like the Confederation of Indian Textile Industry (CITI) and Tirupur Exporters' Association (TEA) have congratulated Smriti Irani on her appointment as the Union textiles minister. “CITI, the apex industry chamber of textiles in India representing the entire value chain, congratulates Smriti Irani on her appointment as Union textiles minister. CITI welcomes Irani and assures all support and co-operation to her efforts to create maximum jobs and enhance the growth of the textile industry,” CITI secretary general Binoy Job said. CITI chairman Naishadh Parikh and other office bearers, Mukund Choudhary and J Thulasidharan too welcomed the appointment of Irani. In a letter sent to Irani, TEA president A Sakthivel said, “We would like to congratulate yourselves for assuming office as Union minister of textiles and with your latent talent coupled with grasping the issues expediently will be certainly helpful to address the issues and to come out with new strategies for the growth of textile industry which provides more employment next to agriculture in our country.” The letter also requested Irani to help in announcement of the guidelines and procedures to follow and avail the required benefit from the recently announced special package for the garment sector. “With your invaluable support, positive approach and guidance, we are confident that we could fulfill the aim of prime minister, to reach the envisaged export target (garment) of $30 billion from $17 billion in next three years and also provide the employment to one crore people, mainly to women workers,” the letter read. TEA has also sent a congratulatory letter to Ajay Tamta on his appointment as Union minister of state for textiles. Smriti Irani, a member of Rajya Sabha and former president of BJP Mahila Morcha, headed the ministry of HRD since Narendra Modi led government took office in May, 2014. She has been given the charge of textiles ministry at a time when the prime minister has set his focus on the textiles sector for creating few crore jobs in the next three years.
SOURCE: Fibre2fashion
The Chhattisgarh government on Tuesday approved a Gramodyog policy, with an aim to generate seven lakh jobs in village industries and allied sector during 2016-2021. After a state cabinet meeting, Chief Minister Raman Singh told reporters that efforts would be made to generate employment for weaker sections, women and artisans and craftsmen during the next five years. About 1.15 lakh people are employed in 35,000 units of khadi and gramodyog sectors and the target is to generate more than two lakh jobs in 50,000 units. The Cabinet also decided to raise the target for the export of silk textiles to Rs 100 crore from the current figure of Rs 60 crore. Efforts would also be made to boost kosa, handicraft and clay craft production. "To improve design, basic quality national-level institutes -NIFT, textile committee, NID, and other institutes will be established. Craftsmen and artisans above the age of 60 will be provided financial assistance. Children of traditional artisans are provided with financial assistance for higher education in crafts design,” the Chief Minister said.
SOURCE: Fibre2fashion
Passing the GST Bill in Parliament will be the government’s priority, Minister of State for Finance Santosh Kumar Gangwar said on Wednesday after taking charge of his office. “We hope the GST (Goods and Services Tax) will be passed in the coming monsoon session. Our focus will be to expedite the process of growth,” he told journalists. Arjun Ram Meghwal, who also assumed charge as a minister of state for finance on Wednesday, said: “We will like to speed up the process of economic growth and achieve the economic goals so that the benefit of economic development will reach the last mile.” Both Gangwar and Meghwal took charge of their posts in the presence of Finance Minister Arun Jaitley, who welcomed them with bouquets. Gangwar, who was the Minister of State for Textiles, was shifted to the Finance Ministry by Prime Minister Narendra Modi on Tuesday in a major reshuffle of his council of ministers.
SOURCE: The Financial Express
In 1980, the Export Oriented Unit (EoU) Scheme was launched in India to boost exports and increase production. Although a number of provisions and exemptions, including both fiscal and non-fiscal benefits, have been extended to the Scheme, the performance of EoUs has been far from satisfactory, particularly in the past few years. Therefore, it is time for a relook at the EoU Scheme if India is serious about achieving its target of $900 billion exports by 2020 as envisaged in the Foreign Trade Policy (FTP) of 2015–20. This issue is pertinent in the context of India’s declining exports and rising trade deficit. Owing to their flexibility and unique position, the EoU scheme flourished from 1980s up to the mid-2000s. This contributed to a process of structural change in domestic industry by way of technologies, skills, economic linkages and disaggregation of units.
However, there has been a gradual reduction in EoUs after the SEZ Act came into force in 2006-07. In 2007, the Comptroller and Auditor General (CAG) conducted a performance audit of EOUs; it revealed that many EOUs were not fulfilling the net foreign exchange (NFE) obligations, or not paying the central sales tax (CST), or were exceeding the limit in sales to the domestic tariff area (DTA). In 2015, the report of another CAG performance audit of EOUs was submitted and tabled in Parliament. The audit examined 370 EoUs over the period between 2009-10 and 2013-14. The CAG (2015) reviews the performance of EOUs and re-evaluates how successful they have been in achieving set goals. The performance evaluation brings out some startling facts on why EOUs have failed to deliver on its main objective, exports.
Growth and performance
The growth of EoUs under the scheme (Chart 1) has witnessed a downward trend over the past few years. Though the proportion of non-functional EoUs has slowed marginally, it still constitutes around 20 per cent of the total registered EoUs. The major reason, apart from SEZ Act, is the government’s inability to utilise properly the uniqueness of the 100-per-cent-EoU Scheme. Further, the performance of EoU exports has fallen drastically (Chart 2) and even turned negative in 2010-12. The declining growth of exports is the result of withdrawal of the tax benefits under the Income Tax Act, 1961 from 1 April 2011; as a result, EoUs opted out of this scheme. Unfortunately, there is no special provision in the FTP to promote the unique 100-per-cent-EoU Scheme. Similar export benefits were available to SEZs, along with allowance for domestic sales, but without any ceiling. The success of any scheme depends on proper regulation, auditing, and monitoring. However, and as observed by the CAG, the Ministry of Commerce and Industry (MOC&I) has not structured an internal audit mechanism to check and facilitate the functioning of EoUs.
Governance and other worries
Apart from the monitoring performed by the development commissioners (DCs) on quarterly/half-yearly/yearly performance, the Unit Approval Committee (UAC) monitors the Annual Progress Report (APR). But the CAG observes that few EoUs submitted the APR during 2009–2013. The CAG audit observed various cases of misrepresentation and non-compliance during 2009-14. Around 48 cases of incorrect/irregular DTA sales were recorded, which involved short-/non-levy of duty of nearly ₹62.50 crore. As per the scheme, EoUs can sell goods up to 50 per cent of the free-on-board (FoB) value of exports conditioned to positive net foreign exchange (NFE); the corresponding percentage for units manufacturing and exporting more than one product is 90 per cent, if the total DTA sales do not exceed the overall limit. But clearance of products into DTA often exceeds these prescribed limits.
Steps to improve performance
On the basis of the audit, the CAG gave the following recommendations to make EoUs more effective in boosting exports such as (1) initiate policies to stop the downward trend of EoU growth and performance with timelines by utilising the uniqueness of EoUs (2) implement an internal audit system and ensure that EoUs submit APRs timely containing relevant data related to exports, duty forgone, DTA sales, etc. (3) fixing liability for any non-compliance and modify the provisions for EoU to achieve objectives. The EoU scheme has not been successful due to various reasons such as complexities that arise due to its size, lack of entrepreneurial talent, lack of promotion of the scheme, and its limited share in manufacturing.
Similarly, in an earlier performance audit report, 2014, the CAG found out that the performance of SEZs to promote exports has been far from satisfactory. There too, CAG recommended the implementation of appropriate mechanisms for monitoring and controlling these zones, in order to prevent irregularities and promote exports and trade. In fact, the CAG report sampled 152 SEZs, and found that they were under-performing on exports (ranging from 46.16 per cent to 93.81 per cent of their targeted exports).
Exports promotion schemes such as EoUs and SEZs need to achieve their main objective of improving merchandise exports if India is to achieve $900 billion exports by 2020. EoUs have been performing poorly over the past five years. Apart from the inability of the FTP to make the best of the 100-per cent-EoU scheme, systemic issues, like timely submission of APRs, relevant data on DTA sales, duty forgone, and irregular internal audit system, has added to the problems. The first step is to clear the ambiguities and inconsistencies in role and procedure between policies and departments. To make the EOU Scheme succeed, the government could revise the scheme to suit the changing global environment and introduce new provisions to ensure proper functioning and monitoring, but without affecting its competitiveness with other related schemes and acts.
SOURCE: The Hindu Business Line
India is considering recalibrating its strategy, including renegotiating its tariff offers, for the proposed free trade agreement (FTA) with the EU following Brexit, with demands from key sectors for a separate trade pact with the UK gathering pace, sources said. But with both the EU and the UK busy grappling with Brexit, serious trade negotiations are unlikely to start anytime soon. Textiles secretary Rashmi Verma told FE: “Britain continues to be an important market for us, as it makes up for around 23% of the EU demand for Indian textiles and garments. We have requested the commerce ministry to look into the possibility of a bilateral preferential trade agreement (PTA) with the UK.” The UK accounts for over a half of India’s software services exports to the EU, 23% of key engineering and electrical goods exports and 16% of jewellery, precious metal and stones exports. So, senior industry executives from these sectors endorse an FTA or PTA with the UK. Britain alone accounted for 3.4% of India’s goods exports in 2015-16, while the EU – including the UK – made up for 17%.
Nasscom president R Chandrashekhar said once the current storm settles down, the UK will also be looking to compensate itself for no longer being part of the EU trade bloc. “At that time, a special trade arrangement or relation with India will become crucial to them. And for India, it will perhaps be a tad easier to negotiate with one nation instead of the entire EU,” he said. He, however, added that much will depend on the exact terms and conditions of Britain’s exit from the EU. Meanwhile, sources said the government is open to a trade pact with the UK, but India also remains committed to taking the proposed EU FTA talks to its logical end. “The EU isn’t ignorable just because Britain has decided to be out of the bloc,” said one of the sources. However, the Brexit has added to the workload of Indian negotiators as they have to deal with the UK separately now. As such, the FTA with the EU is still a work in progress, so there is a scope for renegotiation of offers in view of the Brexit reality, said the source. The government is closely monitoring the situation and a final call will be taken at an appropriate time, the source added.
With the depreciation of the pound, euro and Chinese yuan following the Brexit referendum, India’s export competitiveness to these regions has come under strain. If the situation persists, a trade pact with the UK or the EU will come handy, as fears of China pegging its currency to its advantage loom, said analysts. The pound, euro and the Chinese yuan have depreciated almost 12%, 2.3% and 1%, respectively, against the dollar while the rupee has appreciated 0.1% between the closing of June 23 and July 1. But a foreign diplomat posted in New Delhi said: ”Their (the EU’s) job is already cut out. They have to first finalise the terms of the British exit, which is a mammoth and complex task. Both the parties have to recalibrate their strategy even at the WTO. In such a situation, starting another front of negotiations (with India) could take some time,” he said. As such, differences already persist on the broad contours of the proposed FTA, including on EU’s insistence that India cut import duties on auto parts and wine and strengthen intellectual property rights regime and Indian demand for greater liberalisation in services.
Anwarul Hoda, a former deputy director general at the WTO and current chair professor for trade policy at Icrier, said the Brexit holds some potentially good news for India, apart from the obvious shocks. “The UK is more liberal than the rest of the EU. So, it could still be easier for India to clinch an FTA with the UK than with the EU.” There is a fair amount of chance that an FTA with the UK, if talks are initiated simultaneously, will be sealed before such a deal with the EU, he said. In fact, Britain doesn’t have the same baggage as the EU. For instance, the UK may not stubbornly insist on the removal of tariff barriers in automobiles as the EU, as the former isn’t a major auto player. The EU hasn’t yet given the dates for a resumption of the FTA talks, said the source mentioned earlier. Recently, commerce minister Nirmala Sitharaman had written to her EU counterpart, asking for dates to resume the negotiations.
SOURCE: The Financial Express
India will participate in Russia's biggest manufacturing sector exhibition, Innoprom, as the partner country in this year's edition to be held from July 10-14, a development that comes close on the heels of Prime Minister Narendra Modi's meeting with President Vladimir Putin in Tashkent where expanding bilateral economic partnership was a key item on the agenda of discussion. An Indian delegation led by the minister of state for commerce and industry Nirmala Sitharaman will take part in the mega fair to be held in Russia's Ekaterinburg city, officials said. India hopes to gain from this meet as the Modi government focuses on providing a boost to the manufacturing sector in the country. China was the partner country at the exhibition in 2015. The officials said the delegation will comprise chief ministers of Andhra Pradesh, Maharashtra and Rajasthan; representatives from Himachal Pradesh and Jharkhand; secretary, Department of Heavy Industries; and executives from 100 business firms. "Having great economic power with its more than 1.2 billion people India will be put in the spotlight at the Russian leading industrial trade fair. This is going to offer enormous sales potential for Russian and international exhibitors of Innoprom," a statement from the organisers of the exhibition said. "At the same time, entrepreneurs from India who exhibit at Innoprom gain broad access to new global markets," it said.
Russia has been keen to expand trade and investments with its old ally India. This was evident from President Putin's statements at the St Petersburg International Economic Forum and later during his meeting with the Indian PM on June 24. Indo-Russian economic partnership has not kept pace with the strong bilateral political and strategic ties. India has been expanding its presence in the hydrocarbon sector in Russia, besides eyeing entry into the Eurasian market through Eurasian Economic Union and Shanghai Cooperation Organisation. Innoprom has been held in Ekaterinburg since 2010. This year's themes include sustainable integration of industrial production and data transfer based on the Internet of Things (IoT) technology; new manufacturing system architecture; international production cooperation: resources, combining production facilities and development centres dispersed across the world in a single network and new model of efficient manufacturing for traditional industries. On July 11, an India-Russia business forum will be attended by Russian and Indian authorities and major business leaders.
SOURCE: The Economic Times
With India and the EU set to resume negotiations soon on a long stalled free trade agreement, Union Minister V K Singh has voiced India's stand that it looks for an early conclusion of a "fair, balanced and pragmatic" deal. Negotiations on the free trade agreement between India and the 28-nation European Union (EU) have been held up since May 2013 as both the sides are yet to bridge substantial gaps on crucial issues, including data security status for the IT sector. Speaking on 'What next for EU-India Relations?' at the Horasis India Meeting in Cascais yesterday, Singh said, "I am happy that the Chief Negotiators are meeting soon in Delhi and we look forward to seriously resuming the negotiations." He did not provide a date for the talks. In this context, India also looks forward to the early conclusion of a "fair, balanced and pragmatic India-EU Broad- based Bilateral Trade and Investment Agreement (BTIA)," Singh said. "There are a few outstanding issues in the BTIA where we have not yet been able to find common ground," he said. At the same time, Singh underlined that some of the recent reform initiatives taken by the Indian Government on its own have already addressed many pending EU demands. "We believe that outstanding issues can be resolved and progress can be made in the negotiations if flexibility is shown by both sides in a spirit of accommodation, taking into account the differentials in our economies," Singh said. "We have clearly reaffirmed our interest in resuming the negotiations and hope to see similar interest from the EU side," the minister said.
Launched in June 2007, the negotiations for the proposed BTIA have witnessed 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 pact is aimed at reducing or significantly eliminating tariffs on goods, facilitate trade in services and boost investments between the two sides. The EU is India's largest trade partner and export destination with bilateral trade touching USD 126 billion. The EU is also the largest investor in India contributing about 26 per cent of India's total FDI inflow. It is a leading source of cutting edge technology and development partnerships.
SOURCE: The Economic Times
India and Sri Lanka will start negotiations to finalise the Economic and Technology Co-operation Agreement (ETCA) later this month, a Sri Lankan Minister said. Speaking at an industry event, Sri Lanka's Minister of Development Strategies and International Trade, Malik Samarawickrama, said the bilateral relationship has deepened considerably since Sri Lankan President Maithripala Sirisena took over in 2015. The ETCA is expected to help Sri Lanka gain better access to India's rapidly growing market. The Minister said India is Sri Lanka's largest trading partner and the fifth-largest source of Foreign Direct Investment. The Minister added that Sri Lanka is also negotiating a similar trade agreement with China, its second-largest trade partner. The pact would provide an opportunity for Indian investors to set up base in Sri Lanka and export to China with preferential access to that country's market. Sri Lanka is also looking at signing trade agreements with Singapore, Pakistan, South Korea and Japan. The Minister further said that building infrastructure will continue to be a major focus area for the Sri Lankan government. The government of the island nation is working on creating a single electronic window for customs clearance, he added. The Sri Lankan government has reviewed 142 potential projects valued at over USD 40 billion that can be implemented over the next 15 years in Sri Lanka, Samarawickrama said. These include projects such as highways, roadways, housing, ports, transport, pharmaceuticals, real estate, IT and IT-enabled services, logistics and manufacturing in industrial zones. The Minister emphasised that the focus will be on the private sector and only a few projects would take the form of a public-private-partnership (PPP) model. He added that Sri Lanka would be ready to assist in the provision of land for setting up major investment projects. The Minister noted that India can play a big role through infrastructure development and also by creating jobs in the services sector in the island nation. Potential Indian investors would benefit from Sri Lanka's resilient economy, educated workforce, and preferential access to large markets and rapid growth in sectors like infrastructure. The Minister said that Sri Lanka would welcome Indian investors who are looking at joint ventures with MSMEs and the country would benefit greatly from the transfer of know-how and technology from India. Investment in MSMEs could also help reduce skill deficit, especially through education and vocational training. Sri Lanka is keen on cooperating with educational institutes to set up overseas centres in that country and collaborate through research and academic exchanges too.
SOURCE: The Economic Times
With Britain deciding to leave the European Union, one can expect the country attracting Indian firms to invest there with bigger incentives in terms of tax breaks and lesser regulation, an RBI official has said. Inaugurating a seminar on 'Importance of Financial Documents in Foreign Trade' here, U Chiranjeevi General Manager In-charge, Reserve Bank of India, Kochi, said the implications of Brexit are significant for China and India as they are significant exporters to the EU and Britain. "In all probability, they will have to revisit bilateral investment protection agreements with the UK separately. The UK accounts for 15 per cent of India's total merchandised trade, but its share has been declining." "Thus, one can expect Britain to try extra hard to woo Indian companies to invest there by providing much bigger incentives in terms of tax breaks, lesser regulation and other financial incentives," Chiranjeevi was quoted as saying in a release issued by Ficci.
Noting that RBI has always taken a calibrated and open-ended approach to strengthen foreign trade, the official said past few years, the Foreign Trade policy has been more favourably inclined towards exports compared to imports. The day-long seminar yesterday was organised by International Chamber of Commerce India (Indian affiliate of ICC) in association with Ficci and State Bank of India.Chiranjeevi said, Category-I banks are required to conduct export transactions in conformity with Foreign Trade Policy in vogue and the rules framed by the government and the directions issued by RBI. "RBI has taken effective steps to move in tandem with the government's efforts towards Make in India, Digital India, Start-Up India Stand-Up India and ease of doing business."
SOURCE: The Economic Times
A US government report has sought to contest India’s claim of being the world’s fastest-growing major economy, joining sceptics to say the claim of 7.6% growth in 2015-16 may be “overstated”. The report by the Bureau of Economic and Business Affairs of the US department of state added India has been “slow to propose other economic reforms that would match its rhetoric”, a veiled criticism of the Modi government on two key parameters of governance.
“Ostensibly, India is one of the fastest-growing countries in the world, but this depressed investor sentiment suggests the approximately 7.5% growth rate may be overstated,” the report said. But it didn’t offer any data analysis to back its own claim. Rather, it appears to have bought the theory of sceptics of the new GDP series who say India’s decent economic growth figures don’t match other high-frequency indicators like falling exports and imports, and low industrial output expansion and credit growth.
SOURCE: The Financial Express
India and Bhutan today agreed to extend the Agreement on Trade, Commerce and Transit, which is expiring on July 31, for one more year. The existing agreement was signed on July 29, 2006, for a period of ten years. Officials of both the countries held discussions here to finalise the text of the draft new agreement. Till the finalisation of the new draft, both the sides agreed that “in the interim, to prevent disruption of trade, the existing agreement may be extended for a period of one year or till the date of coming into force of the new agreement, whichever is earlier,” the commerce ministry said in a statement. The visiting Bhutanese delegation led by the Secretary, Ministry of Economic Affairs, Bhutan discussed the issue with Indian officials here. “After deliberations, it was agreed that the new agreement may be signed at the earliest, after obtaining the internal approvals by both the sides, and it would be made effective from a mutually agreed date,” it added. The major items of imports from Bhutan include electricity, metals, minerals, alcoholic beverages, chemicals, cement, timber and vegetables. The major exports from India are petroleum products, minerals,machinery, automobiles, chemicals, wood, plastic and rubber. The bilateral trade between the countries stood at $ 721 million in 2015-16 as compared to $ 483.81 million.
SOURCE: The Financial Express
Ahead of Prime Minister Narendra Modi’s four-nation tour of African countries, Assocham today said trade agreements at bilateral and multilateral levels along with investment and capacity building cooperation are needed to fructify unity between the two regions. “No fruitful trade relationship with African nations can be built without supplementing and complementing it with an equally organic and trustworthy investment relationship where capital can flow into key African development sectors seamlessly and only then mutual economic benefit can be derived,” Assocham Secretary General D S Rawat said. Ahead of his departure, Modi today said his four-nation tour of African countries is aimed at enhancing ties with that continent, particularly in the economic sphere and people-to-people contacts. Modi will begin his tour with Mozambique and then travel to South Africa, Tanzania and Kenya.
Focus of the visit will be on deepening cooperation in areas of hydrocarbons, maritime security, trade and investment, agriculture and food. Rawat outlined sectors like pharmaceuticals, capital goods, automobiles and spare parts are areas offering new trade opportunities that need focus to enhance trade relations between India and Africa. “Consumer goods, wholesale and retail, construction, housing, telecom, financial and banking services are the sectors where India can engage itself with African nations at various levels,” he said.
SOURCE: The Financial Express
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$ 45.15 per barrel (bbl) on 05.07.2016. This was lower than the price of US$ 46.82 per bbl on previous publishing day of 04.07.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3043.20 per bbl on 05.07.2016 as compared to Rs. 3145.61 per bbl on 04.07.2016. Rupee closed weaker at Rs. 67.40 per US$ on 05.07.2016 as against Rs. 67.18 per US$ on 04.07.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 05, 2016 (Previous trading day i.e. 04.07.2016) |
Pricing Fortnight for 01.07.2016 (June 14, 2016 to June 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
45.15 (46.82) |
46.34 |
|
(Rs/bbl |
3043.20 (3145.61) |
3127.02 |
|
|
Exchange Rate |
(Rs/$) |
67.40 (67.18) |
67.48 |
SOURCE: PIB
Vietnam's exports of textiles and garment products increased 5.1 percent to US$10.7 billion in the first six months, the slowest pace since 2010, which industry insiders attribute to the rise of new suppliers in the global market. The downshift means the industry, which accounted for nearly 14 percent of the country's exports last year, is likely to miss the annual shipment target of $31 billion this year, according to news website Dau Tu. Buyers are not cutting back purchases altogether but they are increasingly turning toward other suppliers such as Bangladesh, Cambodia, Laos and Myanmar for lower import tariffs and thus lower prices, local media reported, citing industry insiders. Vu Duc Giang, chairman of Vietnam Textile and Apparel Association, told news website Bnews that Vietnam will have to wait at least two years before its free trade agreement with the EU and the Pacific-Rim trade pact TPP take effect. The former has been signed off but the latter is still waiting to be approved by each of the 12 member states. At the moment, Vietnam's textile shipment is subject to an average tariff of 17 percent in the US and nearly 10 percent in the EU. The industry's exports grew 8.2 percent to $22.63 billion last year, according to figures released by the General Statistics Office of Vietnam. However, the industry's own data showed it actually shipped $27.2 billion worth of textiles and garments products in 2015, up more than 10 percent from the previous year.
SOURCE: The Thai News
Peru's textile industry generates over 250,000 formal jobs and serves many international clothing brands, Foreign Trade and Tourism Magali Silva said on Wednesday. "We produce one of the world's finest cotton varieties, such as Peruvian Pima, also included among Peru's flagship products," the government official told. The Inca country also produces fine alpaca fibers, whose population accounts for 80% of the world's total. Remarks were made during the opening of the 12th Exporting Textile Forum. Organized by Peru's Exporters Association (Adex), the event will enable national businesspeople to learn about opportunities offered by emerging markets, and the latest fashion trends. Thus, the event is expected to positively impact on competitiveness and exports expansion.
Positioning
Since 2015, Peru consolidated as Pacific Alliance's second largest knitted clothing supplier, after Mexico. Such exports to the bloc exceeded US$800 million, accounting for nearly 30% of shipments abroad. Peru is one of Brazil's top garment suppliers having ousted China in the t-shirts category.
SOURCE: The Andina
Even in its moribund state, the Nigeria textile industry is worth N4.7billion, this is as indications emerged that the federal government has started the process of prioritising the revamp of the sector by encouraging local investors in the industry and patronage of locally made fabrics. The Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar, who disclosed this at the inaugural edition of the Africa Fashion Week Textile and Garment manufacturing conference in Lagos, also stated that the current administration has concluded to resuscitate the cotton and textile industry. The theme of the conference is ‘Making Nigeria the Fashion Hub of Africa,’ Other experts who spoke at the event were unanimous in their opinion that improved access to finance, creation of manufacturing hubs, as well as constant electricity supply would unlock the growth potential of the Cotton, Textile and Garment (CTG) sector. Chairman of the conference and President, Nigerian-British Chamber of Commerce (NBBC), Mr. Dapo Adelegan, had earlier disclosed that the textile industry is the 2nd largest industry in any nation. Proclaiming that the future of the industry in Nigeria is bright, he urged that the conference should be used as a platform to encourage investment in the CTG sector which will ultimately, boost the GDP of the country.
Speaking further on the plan of the Buhari’s administration to rebuild the industry, Abubakar, said government is fully committed to reviving the CTG sector of the manufacturing industry and would also support all parts of its value chain of which fashion is one. This process, she said, is in line with the core economic mandate of President Muhammadu Buhari’s administration to create jobs. The minister outlined some of the steps taken by the federal government in reviving the CTG sector such as the creation of an enabling business environment, the repositioning of government agencies like Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and Bank of Industry (BOI), appropriation of funds to the CTG industry and resolution of the issue of multiple taxation.
She said: “Government is creating an enabling environment by improving the ease of doing business for which a presidential committee driven by the private sector would be set up. SMEDAN industrial training fund and Bank of Industry are being repositioned to address the MSMES. They are core to the implementation of the National Enterprise Development Programme (NEDEP) which is aimed at generating about five million jobs. “Funds are being set aside to refinance the CTG sector and address legacy problems including power. Tax incentives and changes in regulations do affect employment. Proposals are being discussed on how the issue of multiple tax can be addressed.” The minister also announced that the government would soon create Information and Communications Technology (ICT) and garment production hubs and urged members of the fashion industry to take advantage of the project to develop the value chain of the sector. “Government is also looking into setting up ICT and garment production hubs which will offer opportunities across the value chain. I would like to implore the fashion industry to look at these areas in the value chain especially currently underdeveloped and look for collaborative ways of moving this forward. This will bring in more people into the industry which has the potential to generate employment,” Abubakar remarked.
In his keynote address, the Lagos State Commissioner of Finance, Dr. Mustapha Akinkunmi, said the importation of foreign fabrics and clothing which is as a result of Nigerians preference for foreign goods is hampering the growth and development of the textile industry and the fashion value chain. He said this is regrettable in spite of superiority of some local and African apparel such as Adire, Kampala and Ankara to the foreign ones that are being dumped in the country. He urged young Nigerians in the fashion industry to take advantage of vocational training, micro-financing and employment trust fund initiatives of the state government to create innovative designs and apparels using local fabrics. While decrying the dearth of fashion institutes in the country, he announced the intent of the Lagos State Government to establish centres of excellence for fashion design training at the state owned university and polytechnic.
Speaking on the need for the conference, Founder, Africa Fashion week Nigeria, Ms. Ronke Ademiluyi said; “After six years of creating opportunities for Nigerian designers to excel on the global stage, we were compelled to commit resources to the development of the local fashion industry value chain. Without a thriving local value chain, we will be unable to translate the runway success of our designers and fashion entrepreneurs to job creation and shared prosperity for our nation. Our commitment is to improved access to finance for designers, capacity development programmes and establishment of manufacturing hubs.” The Africa Fashion Week Textile and Manufacturing conference is the primary activity of the first day of Africa Fashion Week Nigeria. Organised by AFWL Africa Concepts, the conference aims to redefine textile and garment production processes in Nigeria.
SOURCE: The Nigeria Today
The trade gap increased 10.1% to $41.1 bn; April's trade deficit was unrevised at $37.4 bn. Economists polled by Reuters had forecast the trade deficit rising to $40.0 bn in May. The US trade deficit widened more than expected in May as rising oil prices helped to push up the import bill while exports were constrained by the lingering effects of a strong dollar. The Commerce Department said on Wednesday the trade gap increased 10.1 per cent to $41.1 billion. April's trade deficit was unrevised at $37.4 billion. Economists polled by Reuters had forecast the trade deficit rising to $40.0 billion in May. When adjusted for inflation, the deficit increased to $61.1 billion from $57.5 billion in April. Despite the increase, the inflation-adjusted trade deficit in April and May remained slightly below the average for the first quarter, suggesting trade was on track to make a modest contribution to gross domestic product in the April-June period. The Atlanta Federal Reserve is currently forecasting second-quarter GDP rising at a 2.6 per cent annualized rate. The economy grew at a 1.1 per cent pace in the first quarter. US financial markets were little moved by the trade data. The dollar's sharp rally against the currencies of the United States' main trading partners between June 2014 and December 2015 has undercut export growth.
With the dollar weakening this year on a trade-weighted basis, some of the drag on exports had started to fade. An Institute for Supply Management survey on Friday showed manufacturers reported an increase in new export orders in May for four straight months. But the dollar has been regaining strength in the wake of last month's British referendum to leave the European Union and economists say this, together with an anticipated slowdown in economic growth in the region, could renew pressure on exports. In May, exports of goods slipped 0.2 per cent to $119.8 billion. Overall exports of goods and services dipped 0.2 per cent to $182.4 billion. Exports of capital goods, automobiles and consumer goods fell. But industrial supplies and food exports increased in May.
Exports to the European Union fell 4.2 per cent, with exports to the UK plummeting 15.6 per cent. Goods shipped to Canada and Mexico, the US’ main trading partners, also declined in May. China also bought fewer U.S.-made goods in May, with exports to that country falling 1.7 per cent. Imports of goods increased 1.9 per cent to $182.1 billion in May, with higher oil prices accounting for part of the rise. Oil prices averaged $34.19 per barrel in May, the highest since December, up from $29.48 in April. The $4.71 increase in the average oil price in May from April was the biggest in five years. Despite the oil price increase, the petroleum trade deficit was the smallest since February 1999 as the country depends less on foreign oil. May's increase in imports also suggested a pick-up in domestic demand. Imports of industrial supplies, automobiles and consumer goods increased in May. Food imports also rose. Imports from China surged 13.8 per cent as cellphone imports rose. With exports falling, the politically sensitive US-China trade deficit jumped 19.4 per cent to $29.0 billion in May.
SOURCE: The Business Standard
