INTERNATIONAL
Textile Raw Material Price 2016-08-09
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1021.57 |
USD/Ton |
-0.87% |
8/9/2016 |
|
VSF |
2404.66 |
USD/Ton |
0% |
8/9/2016 |
|
ASF |
1890.13 |
USD/Ton |
0% |
8/9/2016 |
|
Polyester POY |
1032.82 |
USD/Ton |
0.51% |
8/9/2016 |
|
Nylon FDY |
2295.15 |
USD/Ton |
0% |
8/9/2016 |
|
40D Spandex |
3420.23 |
USD/Ton |
0% |
8/9/2016 |
|
Nylon DTY |
1950.13 |
USD/Ton |
0.39% |
8/9/2016 |
|
Viscose Long Filament |
2062.64 |
USD/Ton |
0% |
8/9/2016 |
|
Polyester DTY |
1140.08 |
USD/Ton |
-1.30% |
8/9/2016 |
|
Nylon POY |
2505.17 |
USD/Ton |
0.60% |
8/9/2016 |
|
Acrylic Top 3D |
5593.87 |
USD/Ton |
0% |
8/9/2016 |
|
Polyester FDY |
1281.09 |
USD/Ton |
-0.70% |
8/9/2016 |
|
30S Spun Rayon Yarn |
2985.20 |
USD/Ton |
0% |
8/9/2016 |
|
32S Polyester Yarn |
1785.12 |
USD/Ton |
0% |
8/9/2016 |
|
45S T/C Yarn |
2407.66 |
USD/Ton |
0% |
8/9/2016 |
|
45S Polyester Yarn |
3135.21 |
USD/Ton |
0% |
8/9/2016 |
|
T/C Yarn 65/35 32S |
2385.16 |
USD/Ton |
0% |
8/9/2016 |
|
40S Rayon Yarn |
1950.13 |
USD/Ton |
0% |
8/9/2016 |
|
T/R Yarn 65/35 32S |
2325.16 |
USD/Ton |
0% |
8/9/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
8/9/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
8/9/2016 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
8/9/2016 |
|
30S Rayon Fabric |
0.69 |
USD/Meter |
0% |
8/9/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
8/9/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15001 USD dtd 09/08/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Finance Ministry has imposed definitive anti-dumping duty on viscose staple fibre, excluding bamboo fibre imports from China and Indonesia. The move follows the recommendation of the designated authority in the Commerce Ministry in its final findings in early July this year. The petition seeking anti-dumping duty on such viscose staple fibre was filed by the Association of Man-Made Fibre Industry of India on behalf of the domestic industry. One of its members, Grasim Industries Ltd, is the sole producer of VSF (excluding bamboo fibre). VSF, excluding bamboo fibre, is mainly used in the textiles industry — in fashion wear, home furnishings and carpets, household textiles and also for medical uses. The anti-dumping duty — which is valid for five years — ranged from $0.103 per kg to $0.512 per kg in the case of VSF imports from Indonesia. For VSF imports from China, the anti-dumping duty ranged from $0.180 per kg to $0.194 per kg.
SOURCE: The Hindu Business Line
The Centre has proposed an amendment to the labour rules to allow the textiles industry to hire workers on a fixed-term contract. In a bid to provide flexibility in hiring and firing, the government introduced “fixed-term employment” of workers in the apparel manufacturing sector in the proposed Industrial Employment (Standing Orders) Central Rules, 2016 published on August 4. This will apply to factories employing a minimum of 100 workers.
Fixed-term workers
Such fixed-term workers will get the same benefits and terms of employment, including working hours, wages and allowances, as provided to permanent employees in the same factory. A contract worker will be entitled to the same statutory benefits passed on to a permanent worker “in a proportionate manner.” However, the textile industry will not be required to give the fixed-term worker any notice period for terminating the contract or any compensation in the case of retrenchment. “With the introduction of a provision for ‘fixed-term employment’, industries such as garment etc. will be benefited and achieve their full growth and employment potential, as it gives employers flexibility in employment,” the Union Labour and Employment Ministry said in a separate note. The Ministry said that certain kinds of industrial activities were seasonal in nature and providing permanent employment “for many workers is not feasible at all the time.”
Seasonal nature
“The textile business is seasonal in nature and we need to employ people for a shorter duration which is not permitted so far. As a result, the industry resorts to hiring contract labour. The move will help us hire workers for a fixed term directly without going through the contractor,” said B.K. Goenka, Chairman at Welspun Group. The move is a part of the reform package approved by the Union Cabinet on June 22, in a bid to give a boost to the textile sector.
SOURCE: The Hindu
Textile minister Smriti Irani has given the go-ahead to supersede the Apparel Export Promotion Council (AEPC) and to appoint a government administrator to take over its management. “Keeping in view the large scale fraud of government grants by the Council, it has been decided that the government may appoint an ‘Administrator’ to take over the management of the Council so that its functioning may be streamlined to protect the public interest,” says textile secretary Rashmi Verma’s letter to corporate affairs secretary Tapan Ray. “I would request you to examine the possibility of appointing a ‘Government Administrator’, superseding the existing executive body of the Council as provided in Section 397 to 400 of the Companies Act,” wrote Verma on July 12.
Under the Act, a Section 8 company such as AEPC can be “superseded” and a government administrator be appointed only through the Company Law Tribunal under the Ministry of Corporate Affairs. Documents with The Indian Express show that the textiles ministry had received a plethora of complaints against AEPC on issues of corporate governance, mismanagement of funds, misuse of Apparel International Mart and illegal leasing of office space in Delhi to benefit a private firm. While taking cognizance of the transgressions, the ministry started issuing “corrective actions” since June 2015. Reminders were sent but “AEPC, despite clear directions from the Ministry under Article 101 (i) has shown disobedience and not willing to improve its corporate governance,” wrote Verma.
It was only after Irani moved to Textiles that the ministry toughened its stance, say sources. Barely a week into her new job, she swung into action. The trigger for her decision was also because of AEPC’s recent attempt to wriggle out of government scrutiny, they said. The AEPC last month informed the ministry that it no longer wanted a government official as its secretary general claiming that “it was an autonomous body not controlled by the government”. “Accordingly, AEPC has decided to select a candidate outside the government,” it wrote on July 1. AEPC was indicted by the CAG on August 2 for extending undue benefit of Rs 17.42 crore to private firm Teesta Urja Ltd through a flawed tendering process for leasing of a furnished office accommodation.
It is also accused of operating a private Institute of Apparel Management at government-funded Apparel International Mart without government’s nod as well as leasing out the premise — which was set up with the objective of a showcase facility for readymade garment — to private unrelated companies. The Council had also allegedly appropriated Rs 48.58 crore of earnest money deposited by garment exporters and returned only Rs 10 crore after the ministry issued an order last February. A mismanagement of “Driving Industry Towards Sustainable Human Capital Advancement” scheme resulted in winding up of the project with AEPC due to release Rs 74.50 lakh to DISHA applicants.
SOURCE: The Indian Express
Additional Director General of Foreign Trade Sonia Sethi today reassured the micro small and medium enterprises (MSME) sector that her office is working to improve governance and transparency with a time-bound schedule of services to ensure exports pick up in the coming months. Addressing the open house meet organised by the World Trade Centre Mumbai and All India Association of Industries Sethi said: "My team is pulling up its socks on all issues faced by industry and the potential entrants in the MSME segment. The MSME clusters are our priority in export promotion."
As per the Foreign Trade Policy 2015-2020, India's exports is targetted to jump from USD 465.9 billion to USD 900 billion by 2020 - i.E. From a share from 2 to 3.5 per cent. Sethi also assured the exporters that she would soon convene a meeting of the committee on quality complaints and trade disputes. "We have a comprehensive basket of deliverables and our effort is to facilitate and resolve difficulties faced by exporters. Large part of our systems is now online," she explained.
SOURCE: The Business Standard
After consolidating its garments business into a single entity last year, the $41-billion Aditya Birla Group is planning another round of corporate reorganisation to unlock value and beef up the balance sheet, at least three sources aware of the matter said. A part of this two-step restructuring may involve the merger of Grasim and parts of Aditya Birla Nuvo, which is likely to be followed by the hiving-off of the financial services business of AB Nuvo into a separate company. A top source close to the transaction said discussions are evolving and that serious consideration is being given to the merger proposal. While granular details are still sketchy, sources said one of the key motives behind this mega restructuring is to strengthen the balance sheet of Idea Cellular ahead of spectrum auction and the launch of Reliance Jio, which analysts expect will result in heightened competition and price wars. A final announcement could be expected as early as this week. The boards of Grasim and AB Nuvo are scheduled to meet on Thursday for quarterly results. An Aditya Birla Group spokesperson declined to comment.
If financial services is demerged from other businesses of AB Nuvo, it could unlock significant value for Nuvo's shareholders, said analysts. Nearly two-thirds of AB Nuvo's revenues come from financial services. Investment bank JM Financial is one of the advisers for the restructuring, a source added. The merger and the complete reorganisation could involve a number of steps. A direct merger of Nuvo and Grasim and the simultaneous spinning-off of financial services business into a separate company is among the options. The other option is to demerge the non-financial business of Nuvo, which includes carbon black and viscose filament yarn, into Grasim and turn Nuvo into a holding company for financial services, including life insurance. This will make it easier for the financial services business to secure a partner.
Grasim's holding in group company UltraTech could also be spun off separately, another source added. With holdings in the group's financial services, telecom, fashion and lifestyle, and divisions of fertilisers, insulators, linen manufacturing and rayon, Aditya Birla Nuvo is positioned as a diversified conglomerate within the group. Aditya Birla Financial Services (ABFS) is currently a 100 per cent subsidiary which houses the non-banking financial company, housing finance, asset management, general insurance advisory, private equity, broking and wealth businesses, among others. The life insurance JV — Birla Sun Life Insurance — is however held independently under Nuvo as a separate venture. Nuvo also owns 23.3 per cent in Idea Cellular, the separately listed telecom venture, and 9 per cent in Aditya Birla Fashion & Retail as of the past financial year. "Post the acquisition of Jaypee Cement, the UltraTech balance sheet is already stretched. But a combined balance sheet of Grasim and UltraTech can be leveraged substantially for future capex requirements of businesses," said an official in the know on condition of anonymity as the talks are still in private domain. As of FY16, Grasim and Nuvo have Rs 2,424.73 crore and Rs 890.94 crore cash in hand, respectively, as per ETIG database.
Following its merger with Aditya Birla Chemicals last February, Grasim has been positioned as a conglomerate. Grasim also houses the viscose fibre and chemicals businesses. But most of its value is created by the cement business, which it derives from its 60 per cent stake in UltraTech. In the past fiscal, Grasim clocked total consolidated sales of Rs 36,217 crore and posted a net profit of Rs 2,359 crore. As much as 21 per cent of sales came from viscose fibre, 9.5 per cent from chemicals and the remaining from the cement business. However, while valuing the company, analysts give only holding value to the cement business as Grasim holds shares of UltraTech and not the business. So while UltraTech gets a market capitalisation of Rs 1.05 lakh crore with past 12 months net profit of Rs 2,475 crore, Grasim is valued at only Rs 48,000 crore on past 12 months net profit of Rs 3,103 crore. The group's cement business was split between Indian Rayon (now Nuvo) and Grasim in the 1990s before it was shifted completely to Grasim which in turn got merged with Ultratech. Of the total AB Nuvo revenues of Rs 14,700 crore last fiscal, around Rs 9,200 crore was from ABFS. If all the businesses of AB Nuvo are valued separately, analysts arrive at a figure of approximately Rs 25,000 crore with Rs 19,000 crore coming from financial services. At Tuesday's close, AB Nuvo's market capitalisation stood at Rs 20,280 crore. According to calculations by analysts, Aditya Birla Nuvo is trading at a 20 per cent holding company discount while Grasim is trading at close to 30 per cent holding company discount on Tuesday's prices.
Idea Cellular recently said it has over Rs 4,000 crore on its balance sheet and generates between Rs 11,000-12,000 crore of free cash each year. On Monday, Idea's chief executive said the company was transforming from a voice services into a voice and data player, and that its investment in airwaves will be based on this. However, a person familiar with developments at Idea Cellular said the merger plans have nothing to do with the telco's participation in the auction or any other plans. "RJio's entry in 2H16 will likely increase competitive intensity; voice tariff hikes could be tough,and data ARMBs could fall further. Incumbents face the risk of data cannibalizing voice,as well as margin pressure with rising competitive intensity. Idea, with relatively smaller balance sheet, is at higher risk. Potential spectrum auctions put earnings at risk as well,as they imply higher leverage,"said analysts Vishal Jaisingh and Amruta Pabalkar at Morgan Stanley on Aug 8th.
SOURCE: The Economic Times
A fresh order from Madras High Court have set aside the confusion prevailing in the hosiery sector in Tirupur knitwear cluster with regard to the ‘revision of minimum wages for employment in tailoring industry’. Justice M. Kirubakaran, in the order pronounced a few days back, had stated that the Government Order dated October 10, 2014, issued by Labour Department, on ‘Revision of minimum rates of wages for employment in tailoring industry’, would not be applicable to the employment in hosiery industry. The order came on a petition moved by three textile units in Tirupur cluster questioning the Government Order dated October 10, 2014, and its validity over the hosiery industry. The petitioners pointed out that the minimum wages in the said GO should be applicable only to the ‘tailoring industry’ not to the units placed under ‘hosiery industry’. They moved the court after the confusion came up following another Madras High Court order in July this year in which industrial units were asked to pay the arrears in the wages if the workers were paid lower than the minimum wages fixed in the GO dated October 10, 2014, from then till 2016. Tirupur Exporters Association president A. Sakthivel was categorical in their statements that the GO in 2014 and also the court order in July asking to pay arrears were not applicable to hosiery sector and only meant for tailoring industry.
SOURCE: The Hindu
Hope of a better offer in negotiation over services trade has been behind India’s willingness to consider similar levels of tariff cut in goods trade for all nations within the proposed Regional Comprehensive Economic Partnership (RCEP) agreement. The recently-concluded ministerial level meet at Laos saw India officially communicate its position, which represented a significant shift from its earlier position of a three-tiered approach to tariff reduction. However, as negotiations reached stalemate, with a greater number of countries pushing for dismantling of differential levels of reduction, India has shown flexibility in its stance, said a commerce ministry official. However, most nations are reluctant to discuss the issue, the official quoted above said. “We have a sense now that most nations are only comfortable in opening up services as far as their existing tariff norms permit but we aim to bank on our latest position.” he added.
India is primarily interested in securing greater market access for services trade and is pushing for easing restrictions in the sector. It is especially looking at opening up issues under Mode 4, which deals with cross-border migration of services professionals. It will now be up to India to negotiate on its latest offer in the upcoming round of talks set to start from August 14 in Ho Chi Minh City, Vietnam. Trade experts suggested the new strategy might help in moving services negotiations forward, which have barely progressed in the last few rounds. “India’s new approach is expected to provide movement in services as well as other aspects of the talks where countries have struggled to arrive at a balanced plane of discussion,” director-general of policy think tank Research & Information System for Developing Countries said.
On merchandise trade, if similar levels of tariff reduction is finalised under RCEP, India, with its relatively high most favoured nation rates of trade, is set to lose out more than those with lower levels like China. The rates refer to the lowest possible tariff a country can accord to another in trade. Under the previous plan, the 10 countries which are part of the Association of Southeast Asian Nations (Asean) were being offered up to 80 per cent tariff liberalisation. Of this, 65 per cent elimination of tariff was to come into force immediately upon completion of the agreement. 15 per cent tariff elimination was to happen over 10 years. In the second tier, India offered 65 per cent tariff elimination to South Korea and Japan, with whom it has free trade agreements. In turn, these two countries offered 80 per cent tariff elimination to India. Finally, in the third tier, India proposed a 42.5 per cent reduction in tariff lines to China, Australia and New Zealand, which offered India 42.5 per cent, 80 per cent and 65 per cent tariff lines reductions, respectively.
While mega goods exporter China had vehemently opposed the approach, India managed to rope in Japan and South Korea to endorse its plan. However, the Asean bloc had submitted a joint paper in support of a single tariff reduction during the 13th round of negotiations held in New Zealand, reportedly after a direct interference by China. There was also a rift among Asean nations with different levels of development over this. The Asean nations want to see the agreement through as soon as possible and are being played by China against India for leverage over negotiations on services where India has taken an aggressive stance, said a commerce ministry official.
The Asean nations are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam. Apart from Asean, RCEP involves six countries with whom Asean has free trade agreements — Australia, China, India, Japan, South Korea, and New Zealand. Japan and China had earlier pressed India for either common tariff for all member countries in 10 years or to make the initial tariff liberalisation more ambitious. India had asked Japan to find a common ground on the issue.
TALKING POINTS
SOURCE: The Business Standard
The ambitious International North-South Transport Corridor or INSTC that aims to connect Mumbai with St.Petersburg for transfer of goods through a multi-modal transport system in a fortnight by reducing the current time period of 40 days has inched towards reality with Azerbaijan fast-tracking missing rail link between its border and the Iranian border. Azerbaijan that shares border with Iran and Russia is a key element in the implementation of INSTC. The corridor was proposed by India, Russia and Iran way back in 2000 but got momentum only after nuclear deal was signed last year between Tehran and world powers that allowed ease of doing business with Tehran. The Presidents of Russia, Iran and Azerbaijan met in Baku on Monday and among other issues gave push to INSTC ahead of Vladimir Putin's India trip in October for the annual BRICS summit.
Official sources here informed that Azerbaijan Railways has recently carried out construction work on their section of the road of over more than 8 km from Astara area to the Iranian border. Nadir Azmammadov, spokesperson for Azerbaijan Railways CJSC, recently stated that excavation work on a 7-km stretch of the future railway line also has been completed. Along with this pile foundations have been sunk to a depth for two spans of the railway bridge that will cross the Astara River.The work has been expedited because Azerbaijani President Ilham Aliyev has instructed completion of rail link of INSTC before the end of this year. After the railway link is ready, the commissioning of the first stage of the North-South project will be announced, sources said. India, Russia and Iran had signed an agreement on building INSTC in September 2000, in St.Petersburg. The agreement entered into force in May 2002. Azerbaijan joined the convention in September 2005. The INSTC is a land- and sea-based 7,200-km long network comprising rail, road and water routes that is aimed at reducing costs and travel time for freight transport in a bid to boost trade between Russia, Iran, Central Asia and India. It will link South Asia to Western and Northern Europe. The route was tested with dry runs conducted from Mumbai. Cut in travel time is the biggest advantage besides India's access to landlocked Central Asia. For instance, India and Russia use maritime routes for freight transport at the moment, with goods reaching their destination in approximately 40 days. The INSTC will allow freight from Mumbai to reach St.Petersburg in 14 days. A study, conducted by the Federation of Freight Forwarders' Associations in India showed that the INSTC would be 30% cheaper and 40% shorter than the existing routes. Other states involved in the project include Armenia, Belarus, Kazakhstan, Kyrgyzstan, Oman, Tajikistan, Turkey and Ukraine.
SOURCE: The Economic Times
Dollar selling by banks and exporters towards the close of market helped rupee recover from early losses and settle flat at 66.84 against the US currency. Fag-end dollar selling dollars on the back of partial recovery in equity markets as RBI kept key policy rates unchanged helped the rupee’s recovery, a forex dealer said. The rupee had dropped to 66.98 a dollar on dollar demand from banks and importers ahead of announcement of RBI policy in the morning. The Reserve Bank of India kept its benchmark lending rate viz. the repo rate unchanged at 6.5 per cent after a monetary policy review. After the policy announcement, the rupee recovered to 66.83 per dollar on fag end selling of dollars in view of part recovery in the equity market. It closed flat at 66.84 per dollar. Foreign capital inflows also boosted the rupee value against the dollar, a forex dealer said. Foreign portfolio investors and foreign institutional investors bought shares worth a net of Rs 144.15 crore today, as per provisional data released by stock exchanges. The BSE Sensex resumed higher at 28,289.22 and firmed up further to 28,289.96 in the early trade. But, it declined to 27,956.77 before ending at 28,085.16, still showing a loss of 97.41 points or 0.35 per cent. The dollar index was trading down by 0.01 per cent against a basket of six currencies in the late afternoon trade.
Meanwhile, the RBI fixed the reference rate for the dollar at 66.9633 and euro at 74.1752. In cross-currency trades, the rupee firmed up against against the pound sterling to settle at 86.72 from 87.25 on Monday while dropped against the Japanese yen to end at 65.39 per 100 yens from 65.31. The domestic unit ended steady against the euro at 74.05. In the forward market, premium for dollar continued to decline on sustained receivings from exporters. The benchmark six-month premium for January 2017 eased to 189—191 paise from 190—192 paise yesterday while ended steady for the for forward July 2017 contract at 388—390 paise. Veracity Financial Services’ Pramit Brahmbhatt said, “It was muted trade on a today when Raghuram Rajan announced his last policy and kept key interest rate unchanged“. “Trading range for the spot USD/IINR pair will be 66.50 to 67/USD,” he added. In global markets, the pound fell against the dollar in the late trade as a Bank of England policy maker said that interest rates can be dropped again and quantitative easing can be expanded
SOURCE: The Hindu
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$ 42.46 per barrel (bbl) on 08.08.2016. This was higher than the price of US$ 41.38 per bbl on previous publishing day of 05.08.2016.
In rupee terms, the price of Indian Basket increased to Rs. 2833.68 per bbl on 08.08.2016 as compared to Rs. 2765.10 per bbl on 05.08.2016. Rupee closed stronger at Rs. 66.74 per US$ on 08.08.2016 as against Rs. 66.81 per US$ on 05.08.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 08, 2016 (Previous trading day i.e. 05.08.2016) |
Pricing Fortnight for 01.08.2016 (July 14, 2016 to July 27, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
42.46 (41.38) |
43.20 |
|
(Rs/bbl |
2833.68 (2765.10) |
2901.31 |
|
|
Exchange Rate |
(Rs/$) |
66.74 (66.81) |
67.16 |
SOURCE: PIB
Nigerian Textile Manufacturers Association (NTMA) has disclosed that Nigeria currently spends over $4 billion annually importing textiles and ready made clothing. The Director General of Nigerian Textile Manufacturers Association (NTMA), Hamma Kwajaffa disclosed this yesterday in Abuja. Textiles used to be Nigeria’s foremost industry, and the second largest employer after government and utilizing indigenous raw materials such as cotton in the past. However, despite government intention in recent time to revive the sector, the reality on ground continues to be worrisome. But Kwajaffa is of the opinion that Nigeria has the potential to produce for the local market of over 170 million people, which represents a large natural market for textiles, while also exporting to the ECOWAS market of 175 million people, as well as to the developed world such as the United States under AGOA and EU GSP scheme which Kenya, Ethiopia, Lesotho, Madagascar and a number of African countries are already exploiting. According to the DG, the prevailing unprecedented harsh environment has no doubt dealt a serious blow to the already fragile industry. “Unless urgent steps are taken by the government to address key issues raised by the industry, the ray of hope that had arisen from the recent government initiatives may get extinguished.” he said “Influx of smuggled goods continues to flood major textile markets in Kantin Kwari, Kano and Balogun and Oshodi, Lagos. It not only undermines the local industry, steal our jobs, and deprive government of revenue it is a drain on Nigeria’s precarious foreign exchange reserves” Hamma Kwajaffa stressed. He pointed out that other developing countries are helping their textile industry in many ways due to its high employment potential, noting that Ethiopia has among the most competitive power tariff at 4 US Cents/Kwh, which is a fifth of the power cost in Nigeria. “Recently, India, which is the second largest textile producer in the world after China, announced a $ 1 bn incentive package for the textile & apparel industry to create 10 million jobs in 3 years.” He commend the interest shown by the government in reviving the Nigerian textile industry. In the past 6 months, adding that the association was called by the Minister of industry, Trade and Investment, Governor of CBN and even the Vice President who is at the helm of the economic affairs, in which a list of 8 specific issues were brought to the notice of the government.
Most of the issues for which government intervention was sought are within the ambit of existing policy framework whereas some require new initiatives. Re-scheduling of the CTG loan facility by the Bank of Industry to 10+2 years was agreed by the government. “The price of gas supplied to the local industry is pegged to the American dollar and was not reviewed after the drop in global oil and gas prices. The current domestic tariff at $7.38 per MMSCF is 3 times the price of gas in international market. There is a need to review the tariff on gas supplied to the industry in Naira which should be affordable. Scarcity of black oil has crippled the operations of the textile mills in the north. There is a need to ensure availability of the fuel oil to the textile mills by way of direct allocation from Kaduna and other refineries.” “Consistent supply of certified seeds is required to ensure adequate supply of cotton to local textile industry Under the dual exchange rate policy being currently pursued, CBN should allocate forex at official rate for meeting the need for import of essential raw materials by the textile mills” “There is a huge backlog of unutilized EEG-NDDC (Negotiable duty credit certificates)- a sovereign instrument issued under the seal of the Federal government. NTMA had suggested the redemption of NDCC’s in lieu of BOI loan instalment owed by the textile companies” he said “The need for import substitution has never been felt stronger before. The government should persuade its MDA’s to source all their uniforms from the local textile mills. The scheme for supply of free meals to school children should be extended to free uniforms to be procured by the government from local textile mills Checking the influx of smuggled goods and action against counterfeit textiles which fake the Nigerian trade marks in an effective manner” According to Jaiyeola Olarewaju, former Director General of NTMA,the benefits from a competitive textile industry in Nigeria are numerous. First of all is the recurring saving of foreign exchange to the tune of $ 4 billion a year on account of import substitution. He said increase in capacity utilisation will quadruple direct employment from the current level of 24,000 persons in 5 to 7 years. Greater demand for cotton will boost the income of Nigerian farmers.” “The government needs to walk the talk and fulfil the assurances given to the sector”, he advocated.
SOURCE: The Nigeria Today
Among the country's foreign currency sources, the textile and apparel industry is expected to generate one billion USD by the end of GTP-II. Hence, the Ethiopian Textile Industry Development Institute (ETIDI) has the responsibility in discharging nation's development mission by ensuring the sector's sustainable development through capacity building, knowledge transfer and innovative approaches. In order to intensify the journey to industrialization, the government has undertaken a range of various activities in the manufacturing sector, like facilitating working atmospheres and transforming micro and small enterprises into medium ones and creating market chains. Customer satisfaction has been considered to be more dependable upon the present reality of Ethiopian textile and apparel industry. The textile market has become highly competitive. The final product cost is determined by the various components of entire supply chain.
On a recent Process Optimization in Textile Processing Seminar, from the Institute of Chemical Technology (ICT) of Mumbai Prof. Rv Adivarekar said that textile sector is probably the world's largest industry. The customer demands consistent quality of the product. Determining targets for maintaining and achieving best possible outcome at each stage of textile processing ultimately helps ensuring delivery of product with optimum performance. ICT Resident Staff and Team Leader at ETIDI Dr. Kedar Kulkami said that optimization of concentration of auxiliaries and basic chemicals is used for processing. The concentration of various basic chemicals as well as auxiliaries used in actual process is not standardized. The testing of these is not done in laboratory and the actual concentration used in the process is not optimized accordingly. "The effect of variation in quality of chemicals should be minimized by optimizing their concentration is actual recipe. Our intervention has been helpful in overcoming some of their problems and thus trouble shooting was exercised." he added.
Dr. Ashook Athalye from G.M. Technical Service, Atui Ltd, Gujarat, India in his presentation entitled "Role of compatibility in product optimization" said that the harmoniousness co-existence and synergistic effect is achieved by determining and ensuring the use of compatibly products and processes. It involves adequate use of substrates and their blend proportions, operating machine designs and their installations, processing sequence, colorant usage and combinations, chemical compositions and stability. Ultimately, the goal is to achieve best possible results and to deliver superior textile and material to the user, he added. The true measure of the successful performance of the textile processing is the percentage of right first time as well as right every time production and the best levels can be consistently obtained by significantly optimizing the process of operations. The process of wide variety of fibers necessitates adequate dyestuff's selection from diverse classes of colorants , he said. The textile and apparel sub-sector is among the priority sub-sectors identified by the government in transforming the country's traditional agricultural based economy to industrialization. It has been one of Ethiopia's traditional domestic business mainly relied on traditional based and home grown old age spinning drop wheel and hand loom up to the modern textile and garment integrated mill was established in 1939 in Dire Dawa by the name of Dire Dawa Textile Factory.
Currently, Ethiopian textiles and apparel industry encompasses spinning, weaving, finishing of textiles, manufacture of cordage, rope, twine, netting, knitting mills, and manufacturing of wearing apparel. The firms in the industry produce products such as cotton and woolen fabrics, nylon fabrics, acrylic and cotton yarn, blanket, bed sheet, shirts, carpets, gunny bags, wearing apparels and sewing thread.
Moreover, the ongoing second Growth and Transformation Plan (GTP II) of Ethiopia, and its industrial development strategy are all centered agricultural-based, manufacturing sector-driven and export-led development. The GTP pursued the growth through the export-driven industrialization strategy focusing on labour and capital intensive manufacturing industries, export-oriented and import substituting industries.
The key strategic directions are small and medium scale industrial development; and large scale industries with special emphasis all geared to poverty alienation and development. The manufacturing industries that have given due attention are agro- processing industries, textile and clothing, food and beverage industries, tannery and leather goods, pharmaceutical industries, chemicals and chemical products industries, paper and paper products, plastic industries, building materials, glass and glass products, metal and metal engineering among others.
SOURCE: The All Africa
The Danish Embassy in collaboration with Novozymes - a biotechnology company - is organising a series of seminars, business meetings, and textile mill visits in Lahore, Faisalabad, and Karachi to make the Pakistan's textile industry more competitive. Speaking at the first seminar in Lahore, Danish Embassy Charge d' Affaires Jakob Rogild said, "Danish companies are known for their innovation and technically-proven solutions to some of the key challenges being faced by the textile industry in Pakistan. Danish and Pakistani companies can forge partnerships in variety of sectors to benefit from each other's competences." "As the Pakistan's textile sector is facing energy crisis and water shortage as well as high cost of raw materials that directly hampers its competitiveness in the international market, sustainable technological solutions can support the industry in mitigating these challenges," he added.
Meanwhile, Jens Kolind, vice president for technical industries at Novozymes, said, "We understands that Pakistan textile industry wants to remain a good competitor in the global textile arena, so we will like to support the sector with the help of our solutions." Some of the solutions presented during the seminars showed that energy costs could be cut by 25%, water consumption could be reduced up to 75%, processing temperatures reduced to 20 degree Celsius, and processes shortened by up to 90 minutes. Addressing the seminar, Danish Embassy Commercial Counsellor Assar Qureshi said, "Denmark is eager to strengthen and enhance bilateral trade ties with Pakistan as the current level of bilateral trade - though steadily increasing - has much more potential to grow."
SOURCE: The Daily Times
