INTERNATIONAL
Textile Raw Material Price 2016-08-25
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1017.4633 |
USD/Ton |
0% |
8/25/2016 |
|
VSF |
2445.2183 |
USD/Ton |
0.25% |
8/25/2016 |
|
ASF |
1893.654 |
USD/Ton |
0% |
8/25/2016 |
|
Polyester POY |
1048.27275 |
USD/Ton |
0.29% |
8/25/2016 |
|
Nylon FDY |
2359.553 |
USD/Ton |
0.64% |
8/25/2016 |
|
40D Spandex |
4388.468 |
USD/Ton |
0% |
8/25/2016 |
|
Nylon DTY |
2013.886 |
USD/Ton |
0.75% |
8/25/2016 |
|
Viscose Long Filament |
2066.4875 |
USD/Ton |
0% |
8/25/2016 |
|
Polyester DTY |
1157.233 |
USD/Ton |
0% |
8/25/2016 |
|
Nylon POY |
2562.4445 |
USD/Ton |
0% |
8/25/2016 |
|
Acrylic Top 3D |
5617.8402 |
USD/Ton |
0% |
8/25/2016 |
|
Polyester FDY |
1290.9911 |
USD/Ton |
0% |
8/25/2016 |
|
30S Spun Rayon Yarn |
3020.829 |
USD/Ton |
0% |
8/25/2016 |
|
32S Polyester Yarn |
1743.364 |
USD/Ton |
0% |
8/25/2016 |
|
45S T/C Yarn |
2412.1545 |
USD/Ton |
0% |
8/25/2016 |
|
45S Polyester Yarn |
3171.119 |
USD/Ton |
0% |
8/25/2016 |
|
T/C Yarn 65/35 32S |
2389.611 |
USD/Ton |
0% |
8/25/2016 |
|
40S Rayon Yarn |
1923.712 |
USD/Ton |
0% |
8/25/2016 |
|
T/R Yarn 65/35 32S |
2284.408 |
USD/Ton |
0% |
8/25/2016 |
|
10S Denim Fabric |
1.3751535 |
USD/Meter |
0% |
8/25/2016 |
|
32S Twill Fabric |
0.8431269 |
USD/Meter |
0% |
8/25/2016 |
|
40S Combed Poplin |
1.1902968 |
USD/Meter |
0% |
8/25/2016 |
|
30S Rayon Fabric |
0.6958427 |
USD/Meter |
0% |
8/25/2016 |
|
45S T/C Fabric |
0.6732992 |
USD/Meter |
0% |
8/25/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15029 USD dtd. 25/08/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In many ways, the 1990s were a period of incredible cultural transformation. That was when the information technology revolution took root as a booming Silicon Valley sent ripples across the world. It was the time India was liberalizing, with new markets opening up. The time was ripe for new products. The rich Indian inheritance of textile skills and natural raw materials offered exciting and unlimited potential. Suddenly, the world was an open market, hungry for anything original and different. And I had graduated from the National Institute of Design, Ahmedabad. Textile design was my passion and strength and I set off on a journey, throwing myself into the world of weaving. I set up a weaving design studio for the Handicraft and Handlooms Exports Corporation of India Ltd (HHEC). This gave me ample scope to experiment with, and develop, woven textiles for markets abroad. It was an exhilarating time. I explored the possibilities of Tussar silk, with its outstanding colour and texture, and its immense, but still hidden potential. The products we developed in that period under the Neeru Kumar brand were extremely well received the world over. Japan, Europe and the US were fertile markets. Economies were doing well; Japan, especially, was experiencing an economic bubble and was willing to pay more than the rest of the world for good design. It was the best market to work with. I happened to find like-minded studio weavers in Japan who were just setting up and wanted to collaborate with an Indian weaver. It was a symbiotic partnership that lasted more than 20 years. There was mutual learning and growth, with a free and generous exchange of ideas and aesthetics. I attribute our success in exports in the 1990s to the defining features of the textiles we designed using indigenous raw materials, developing exceptional products from Odisha Ikat and Bengal Khadi muslin, with sophisticated hand-weaving techniques, in a colour palette that caught global attention. This gave our brand a strong visual and textural identity. Many classics from our work repertoire found space and appeal across the world—from Hollywood film sets to homes with Zen-like interiors. We had a Khadi clothing exhibition in Japan in 2001, which was a huge success.
Currently, textiles from our collections are sold from prestigious museum outlets, such as the Victoria & Albert Museum in London, the San Francisco Museum of Modern Art, the Harvard Art Museums, the Art Institute of Chicago, the Rubin Museum of Art and the Brooklyn Museum, both in New York. Since the late 2000s though, there has been a significant change, with international markets looking for cheaper merchandise. Except in very niche, high-end markets and some select global stores, the handmade is not sought after in the same way it used to be. The cumulative effect of the global financial meltdown, felt especially in Europe and even Japan, the need to push up quality to compete with the best, the surge in machine-made textiles and the decreasing availability of handspun yarns, which contribute to making unique products, has led to a fall in handloom exports from India. On the supply side too, the production possibilities have become more constrained, for traditional weaving work no longer offers viable livelihoods. Young-generation weavers are considering other occupations, so finding skilled workers to create distinctive products, workers who are willing to deal with detailed design intervention, is no longer easy. Earnings have come down and there is little to motivate them. Machine-made textiles should ideally not pose a threat to handmade textiles because it is simply impossible for a machine to replicate the distinctive, almost luminous, qualities of the handwoven. It is important for us, and future generations, to understand, respect and value the effort that goes into the making of handmade textiles. A conscious effort has to be made to sustain these skills, especially in the area of hand-spinning, which lends to handwoven fabric such singular character. It is only in the development of specialized hand skills and their application that hand-weaving will be able to make its mark in world markets.
There is little hope for the wonderful inheritance of Indian handmade textiles unless the product speaks for itself. It is here that design intervention must focus—by playing upon the uniqueness and luxury that handmade offers. This is where experimentation can play a vital role in supporting the survival of exquisite textiles made by the human hand, mind and eye, and the knowledge and skills that India is fortunate to still possess in such abundance.
SOURCE: The Live Mint
U.S. retailers including J.C. Penney and Wal-Mart are scrutinizing whether sheets Welspun India Ltd. had said were high-end Egyptian cotton were actually cheaper knock-offs, questions that have sent the textile company’s shares plunging more than 40 percent. Since Target announced Friday that it was pulling the sheets from its stores and online and was terminating its relationship with the company, other retailers have launched investigations into the certification claims from Welspun, one of India’s largest textile makers. Target said an investigation confirmed that Welspun had used another type of non-Egyptian cotton between August 2014 and July 2016, and the retailer is offering refunds to its RedCard and Target.com customers who bought the sheets during that time. Target declined to say what spurred its investigation. Welspun told investors this week it’s conducting an audit. It said in a conference call that the product in question with Target is about 1 percent of the textile company’s overall sales and about 10 percent its business with Target. Welspun’s shares have fallen more than 40 percent since Friday on the BSE, the largest exchange in India, and were down 8 percent Thursday.
Wal-Mart spokeswoman Marilee McInnis said Welspun supplies the retailer with a number of products including some of the sheets. She said Wal-Mart is reviewing Welspun’s certification records and plans to have “additional conversations” with the company. “If we discover an issue, we will handle it appropriately,” she added. Bed, Bath & Beyond said it is working with an independent third party to audit of the supply chain and will “aggressively pursue its investigation and take appropriate action, if needed.” Penney said it was too early in its review to determine what actions may be necessary. Macy’s said Welspun produces some of the chain’s private-brand products but they are not involved in this situation because they are not marketed as 100 percent Egyptian cotton. But it said it was monitoring developments.
SOURCE: The Seattle Times
The Chhattisgarh Government planning to develop ‘green’ Textile Park with world class eco system for the textile industry. For which the Chhattisgarh State Industrial Development Corporation (CSIDC) has identified a land parcel measuring 30 hectares at Village Khapri, Tehsil Tilda in Raipur district for the development of Green Textile Park. The project will comprise of elaborate solid waste management practices, treated water supply system, storm water management, rain water harvesting and common effluent treatment plant. The proposed Textile Park at Tilda is aimed at providing one stop integrated facilities with manufacturing support, welfare and common infrastructure facilities to the prospective textile industries., officials stated. Also there will be testing laboratory (including equipment), Design centre (including equipment), training Centre, trade & display centre, conferencing and meeting facilities, warehouse/raw material depot, packaging unit canteen and worker hostels and recreation centre. Notably, the Central Government has approved projects worth Rs.99 crore for upgradation of key industrial infrastructure in Chhattisgarh.
Currently, the infrastructure of Urla Industrial Area in Raipur and Sirgitti Industrial Area in Biilaspur are being upgraded which includes improvement of roads, water and power supply facilities, officials stated. The Centre has approved an estimated Rs.54.81 crore for upgradation of infrastructure facilities at Urla Industrial Area and around Rs.44.60 crore for Sirgitti Industrial Area. Significantly, the Industrial Growth Centre at Urla near Raipur is set to emerge as one of the key industrial zones having world-class infrastructure in the country. The Centre has already accorded final approval for upgradation of infrastructure at Industrial Growth Centre, Urla in Raipur district at a total project cost of Rs.54.81 crore . The Central Government’s grant approved for the project is Rs.12.26 crore, officials stated. The Upgradation of the infrastructure is being done under the Central Government’s ‘Modified Industrial Infrastructure Scheme (MIIUS). As many as 11 different projects in the country have been accorded final approval with central assistance of Rs.283.23 crore.
SOURCE: Yarns&Fibers
Indian economy is expected to clock 7.9 per cent growth in the current fiscal driven by better monsoon, government pay hike, key reforms and FDI inflows, Goldman Sachs said. The global financial services major said the GDP is expected to improve gradually and for the April-June quarter it may slow a tad to 7.8 per cent, in part due to unfavorable base. It had grown at 7.9 per cent in the previous quarter. “For the fiscal year 2016-17, we forecast real GDP to grow by 7.9 per cent year-on-year, higher than consensus expectations of 7.5 per cent and up from 7.6 per cent in FY16,” Goldman Sachs said in a research note. It further noted that a better monsoon, civil service wage hike following 7th Pay Commission, a favorable fiscal monetary policy mix, the recent passage of key reforms and continued FDI inflows should all support growth. It said key risks to India’s growth trajectory include a faster pace of US Fed rate hikes than is currently priced in, concerns about Chinese growth and capital flows. Domestically, it cited aggravation of bad loans problem of state-owned banks or fiscal revenue slippage as potential risks. Moreover, corporate leverage may constrain activity in heavily levered sectors, it added.
Lauding the several important policy changes and reforms that have taken place over the past couple of months in the country like passage of the GST bill, government approval of the inflation targeting framework (along with the designation of a new RBI governor), Goldman Sachs said these initiatives paint a “positive” picture for the economic trajectory ahead. Positive monsoon developments for the first time in three years is also supportive of growth numbers. “These developments have supported foreign capital inflows over the past quarter. Moreover, a stable INR amidst global risk-off events, including Brexit, has helped investor confidence,” the report said. The report said that besides, the big ticket reforms like the GST bill and the bankruptcy code, several ‘nuts and bolts’ reforms have also been carried out in the year including measures to ease doing business, a pick-up in infrastructure investment, and easing in FDI restrictions in the defense, aviation, retail and e-commerce sectors, among others. “We believe the government’s focus on executing these reforms and building out rural infrastructure will have a gradual positive impact on India’s economic growth trajectory,” the report said. The country’s real GDP growth accelerated to 7.9 per cent year-on-year in the first quarter of this year and recorded a five-year high growth rate of 7.6 per cent for the 2015-16 fiscal on robust manufacturing growth.
SOURCE: The Financial Express
Goods and Services Tax (GST) rate of 18 per cent would be ideal, and beyond that demand would be directly hit, Confederation of Indian Industry (CII) president Naushad Forbes has said. The intention of GST is not to increase or decrease the total amount of taxes collected, he said and added that the implementation of the GST could pose a challenge. “The revenue neutral rate of 18 per cent would result in an increased collection of taxes in the long run. Beyond 18 per cent, demand would be directly hit,” Forbes said while interacting with reporters in Kolkata. “Supposing you had 22-23 per cent, it will directly hit demand. If you suddenly end up paying 5-8 (percentage point) more, then the immediate effect is you consume less,” Forbes explained. The GST is the biggest tax reform and it would push the GDP growth by 1.5 to 2 per cent, Forbes said, and added that the projected GDP growth rate would be around 8 per cent in 2016-17. He said there is a strong hope for betterment due to several factors like high FDI inflow, falling interest rates, strong macro fundamentals, and all three—inflation, fiscal deficit, current account deficit—being under control. The agricultural sector is expected to grow at 3 per cent, while industry and services sectors are likely to grow at 8.2 per cent and 9.8 per cent, respectively, he added. The implementation of the GST, however, could pose a challenge as transactions of producers and end consumers have to be linked. Moreover, taxes have to be matched on the IT systems of Centre, states and companies. For smooth working of the GST, it is essential that all states are on the same page at least in terms of systems and procedures. “A common tax is okay. But you (states) cannot have your own form. If you have that, then there will be 29 different forms in 29 different States. That defeats the whole purpose,” he said.
SOURCE: Fibre2fashion
As India enters the final countdown phase of GST, the key objective of the much-talked about tax legislation would be to improve the ease of doing business and achieving revenue goals, asserted leading economist Parthasarathi Shome. “We are in the final countdown for GST. It is less than a perfect reform. We need it and we are going ahead with it. But the basic question is not that. Are we easing business operations, are we enabling entrepreneurs to produce more and are we doing enough to catch the corrupt from the taxpayers’ side? “Until we achieve that, we will be a fledging economy and we will under-achieve our true potential,” Shome, former adviser to the Finance Minister in the previous government, said while addressing a meeting at the Madras Institute of Development Studies.
Low ranking
Shome, who is also a Visiting Fellow at MIDS, quoting World Bank statistics, said the country’s ranking was poor on many key parameters, such as starting of business, dealing with construction permits, ease of paying taxes, enforcing contracts and resolving insolvency and cross-border trade issues. “Since there is little accountability in tax administrators and policy-makers, we get away with all that,” he added. He was driving home the point that the tax administration required to be made more efficient and the government should invest more in modernising tax administration. “Our cost of collection, which is administrative expenditure in proportion to the total money collected (by officers), has come down from 1.36 per cent in 2000-01 to 0.6 per cent now. “This is the lowest in the world. It means the government has not invested in tax administration and modernisation — either in infrastructure or in the modernisation of the department and improving the personnel,” he added. He stated that without modernising the tax administration, it would not be feasible to double or even treble the number of taxpayers (about six crore now), going forward. To meet the revenue goals under GST, the exemptions should be few, the general GST rate should not be impeded by too many accompanying lower rates, and the administration should be efficient and transparent with lower compliance costs. C Rangarajan, Chairman, Madras School of Economic pointed out that it would be definitely advantageous to move towards GST.
SOURCE: The Hindu Business Line
Expectations of growth in the manufacturing sector improved marginally in July-September, fuelled by hopes of higher exports, according to a survey by Ficci. The quarterly manufacturing survey by the Federation of Indian Chambers of Commerce and Industry (Ficci) on Thursday revealed the proportion of respondents expecting higher growth during July-September rose marginally to 55 per cent from 53 per cent during the previous quarter. However, manufacturers are yet to regain confidence in growth prospects as was evident in January-March, when 60 per cent of respondents expected higher growth. The industrial sector accelerated to an eight-month high in June, growing by 2.1 per cent with the aid of electricity and mining. Manufacturing, which contributes 75 per cent to the Index of Industrial Production, grew 0.9 per cent during the month, slightly higher than 0.6 per cent in the previous month. The latest uptick in growth expectation, according to the survey, is primarily due to a slight improvement in the export outlook, with 41 per cent of respondents confident of higher exports, up from 36 per cent in the previous quarter. After rising for the first time in 18 months in June, merchandise exports shrank in July by 6.84 per cent on a decline in shipments of engineering goods and petroleum products.
Gauging expectations of manufacturers across 13 major industries, including automobiles, capital goods, cement, chemicals, and textiles, the survey showed the hiring outlook continued to remain subdued. Only 25 per cent of respondents confirmed hiring additional workforce, same as in the previous quarter. The survey suggested eight of the 13 industries were likely to witness low to moderate growth (less than 10 per cent). Five sectors - capital goods, cement and ceramics, chemicals, metal forging, and paper products - are likely to witness strong growth of over 10 per cent. The mild improvement for the quarter also reflected in investment- 27 per cent of respondents reported plans for capacity addition against 25 per cent in the previous quarter.
Manufacturers pointed to the uncertain economic environment, unfavourable market conditions, competition from imports, delayed clearances, and cost escalation as major constraints for expansion. The average interest rate paid by manufacturers remained high at 11.5 per cent per annum, similar to the previous quarter's figure. On Wednesday, Commerce and Industry Minister Nirmala Sitharaman pitched for a cut in the repo rate by as much as 2 percentage points by the Reserve Bank of India to help cash-starved medium and small enterprises. The average capacity utilisation of the manufacturing sector fell to 74 per cent in April-June from 76 per cent in January-March, the survey noted.
SOURCE: The Business Standard
The United Kingdom (UK), European Union’s (EU) second-biggest economy, voted by a margin of 52% to 48% to end its 43 years long EU membership, pursuant to a referendum on June 23, 2016. Although in the short-term Brexit may negatively impact India’s trade and investment, it opens up significant long-term opportunities for India.
Opportunities for India
1) Free Trade Agreements (FTA) with UK and EU
India and EU have been negotiating the Bilateral Trade and Investment Agreement (BTIA) since 2007, covering trade in merchandise, services, and investment. This is yet to reach a conclusion. However, post-Brexit, UK will necessarily be excluded from BTIA. Among EU countries, while Germany is India’s largest trade partner, UK stands to be India’s third-largest trade partner and biggest importer of goods. Moreover, India has had a trade surplus with UK in the past three years. It is thus crucial for India to have a first mover advantage by executing a bilateral trade agreement with UK encompassing goods, services and technology.
Furthermore, after losing access to the single market, UK will need to independently navigate global (and EU) tariffs and non-tariff barriers including standards, regulations or rules of origin. Relying solely on World Trade Organization (WTO) rules to enhance trade would not remove trade barriers. UK would therefore mainly depend on independent trade deals. Also, with 50 trade agreements between EU and other countries ceasing to apply to UK and after losing EU’s market, UK would want to develop trade relations with emerging markets like India. This strengthens India’s negotiating position. For UK, India is an attractive trade partner, given its high proportion of skilled working-age population and high growth rate. This strengthens the possibility of an FTA between UK and India and presents a significant opportunity for India’s financial and small and medium-sized enterprises (SME) sectors.
UK and India share complementary interests. An FTA would enhance Indian exports of garments, textiles, machinery and instruments to UK, and Indian imports of engineering goods, spirits, beverages, etc. from UK. Similarly, trade in services of Information Technology (IT) and banking would also benefit. UK was the biggest investor in India among the G-20 nations in 2015, while India represents the third-largest source of foreign direct investment (FDI) in Britain. An FTA can lead to greater trade and investment between the two countries.
Moreover, EU and India would emerge as strong trade partners through enforcement of BTIA. EU is India’s largest trading partner accounting for approximately 13% of its total world trade, while India is EU’s 10th largest trading partner. India is reliant on EU for machinery, nuclear reactors, optical and photo equipment, aircraft, etc. On the other hand, EU’s top imports from India include mineral fuels, oil, distillation products, organic chemicals, textiles, etc. The key sectors of trade in services between the two are sea and air transport, computer and information, financial and banking services.
Indian exports of industrial, agricultural and pharmaceutical products to EU have been hampered by issues concerning Sanitary and Phytosanitary Measures, Technical Barriers to Trade and other Non-tariff Barriers. Despite several rounds of negotiations, BTIA has failed to conclude. Access to EU markets was a key driver for Indian companies to invest in UK. With Brexit, UK would no longer remain India’s gateway into Europe. It therefore, becomes even more important for India to conclude BTIA negotiations to access other EU countries.
However, one of the hurdles in the conclusion of these negotiations is EU’s demand for reduction in India’s tariff rates. While EU’s average MFN applied tariff rate is approximately 4.3%, India has an average MFN applied tariff rate of 13.3%. A lowering of tariffs may increase trade with EU, but for India, this may mean more imports than exports, increasing India’s trade deficit. However, it is crucial to evaluate other positive impacts resulting from increased imports such as increase in India’s industrial growth and as a result, export growth.
2) Rise in cheaper imports from UK
Currently, India’s highest imports from EU countries come from Germany. However, with the depreciation of the pound post-Brexit, high quantity of British goods would be available for cheaper prices to the Indian consumer.
Negative impacts
Indian Exports: In the short-term, due to depreciation of the pound, imports into UK would be costlier, which would adversely affect Indian exports, worsening India’s overall trade deficit. However, given the increase in Indian exports to emerging markets, this is not a major threat to India.
Indian companies in UK: Indian IT services companies that have exposure to UK and EU markets and companies based in UK would face several challenges. The depreciation in pound would affect their earnings in rupee terms and a possible increase in tariff barriers would result in increased trading costs. Moreover, there will be increase in operation and compliance costs.
Brexit would possibly lead to bilateral agreements of UK and EU with India. The precise impact of India’s FTAs with UK and EU on its trade balance cannot be known with certainty. However, the FTAs would certainly lead to a rise trade volumes for India. This would result in greater investment in India, lower prices of goods, more competition and greater variety for consumers. There is a possibility that the long-term benefits of Brexit would outweigh the short-term costs for India.
SOURCE: The Financial Express
India has agreed to eliminate tariffs on an equal number of products for all member countries of the proposed Regional Comprehensive Economic Partnership (RCEP) on the condition that it is allowed to stagger implementation of the cuts over a longer period of time depending on the country involved and the item. New Delhi has also insisted that services be part of a single undertaking, together with goods and investments, and not a separate agreement. RCEP countries, including the ten-member ASEAN, South Korea, Japan, China, India, Australia and New Zealand, are trying to create one of the largest free-trade bloc in the world and want to conclude the negotiations by next year. “The three-tiered approach was given up in favour of a single-tier tariff cut at the RCEP as it was reasoned that in a bloc it could lead to complications. India, on its part, insisted that agreement on services should be part of the single undertaking and that tariff cuts should be staggered and time period for each country would be different,” Commerce and Industry Minister Nirmala Sitharaman told reporters recently. This is a step back from India’s original position of giving China — the country Indian industry is most apprehensive about in the 16-member bloc — the lowest opening (on about 42 per cent items) in the three-tier structure and also its subsequent proposal of not bringing down tariffs to zero. However, if India is allowed a long-term staggering of the tariff cuts for China, it may lower damage to the Indian industry.
While the RCEP members were working on eliminating tariffs in 10 years, the staggering would logically be done over a longer period, although the details are yet to be culled out. “We will try to bring in a longer time-frame on most sensitive products from China and some from other countries including Australia and New Zealand—the countries with which we do not have any existing free trade pacts,” a Commerce Ministry official said.
Jakarta meeting
India’s proposal of not reducing tariffs to zero but moderating them made at the Jakarta meeting in July did not pass muster because it came too late in the day and also because in all other pacts the country has signed, it has agreed for tariff elimination, the official added. New Delhi is not too keen on elimination of tariffs as it is unhappy with the free trade pacts with countries including Japan and South Korea as numbers show that these have favoured the partner countries more. Although India has insisted on services being part of the single undertaking at RCEP, not much progress has been made in terms of offers made by member countries, especially in the area of movement of professionals.
SOURCE: The Hindu Business Line
Strong economic relations between the United States and India can create employment opportunities in both the countries and strengthen their economies, a vision shared by both President Barack Obama and Prime Minister Narendra Modi, the White House has said. “The President believes that more effective cooperation between the two countries can improve the economy in both of our countries, create jobs and promote economic growth. And I know that Prime Minister Modi shares those goals,” White House Press Secretary Josh Earnest told reporters yesterday. He said Obama has found Modi to be an effective interlocutor and partner in pursuing those goals. “The President is pleased about the progress that we’ve made over the first seven and a half years of his presidency, and we’re going to spend the remaining five months or so here trying to do all we can to advance it even further,” he said. US Secretary of State John Kerry and the Commerce Secretary Penny Pritzker are headed to India next week for the second Strategic and Commercial Dialogue (S&CD). This is likely to be the last major meeting between India and the outgoing Obama Administration. During the same days, Defence Minister of India Manohar Parrikar would be in the US for a meeting with his American counterpart, Defence Secretary Ashton Carter. Obama and Modi are likely to meet in China next month on the sidelines of the G-20 Summit. However, No formal announcement has been made in this connection yet. Earnest said Obama has devoted significant time and resources in strengthening the relationship between the United States and India. “The President has visited India on two occasions, I believe, and each of those trips has been dedicated to strengthening the political relationship between the world’s two largest democracies but also trying to strengthen further the economic ties between our two countries,” he said in response to a question.
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$ 46.58 per barrel (bbl) on 23.08.2016. This was lower than the price of US$ 47.31 per bbl on previous publishing day of 22.08.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3125.22 per bbl on 23.08.2016 as compared to Rs. 3178.74 per bbl on 22.08.2016. Rupee closed stronger at Rs. 67.09 per US$ on 23.08.2016 as against Rs. 67.19 per US$ on 22.08.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 23, 2016 (Previous trading day i.e. 22.08.2016) |
Pricing Fortnight for 16.08.2016 (July 28, 2016 to Aug 10, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.58 (47.31) |
40.73 |
|
(Rs/bbl |
3125.22 (3178.74) |
2723.62 |
|
|
Exchange Rate |
(Rs/$) |
67.09 (67.19) |
66.87 |
SOURCE: PIB
Global Organic Textile Standard (GOTS) will co-host a roundtable with the China National Textile and Apparel Council (CNTAC) on organic textiles in China's Xinjiang province on September 19 this year. Textile manufacturers, representatives of Chinese and international brands like H&M, Puma, C&A, etc, and government officials are expected to attend the event. GOTS and CNTAC had signed a memorandum of understanding in August 2013 to cooperate and promote China's organic textile supply chain collaboratively. In view of the increasing demand of organic textiles in China, the 'Stakeholders Roundtable on Organic Textiles' is aimed at further improving the industrial standardisation of China's organic textiles, enhancing the market awareness and the supply chain system of organic textiles, promoting the global reach of Chinese organic textiles, and guiding corporate social responsibility and sustainability of global textile supply chain. The roundtable will cover topics like: Harmonization of Chinese national standard and Group Standard-setting on Organic Textile as well as GOTS standard; The research and study on China's organic textile industry and market; How international stakeholders can drive this trend?; and The support in the local industrial policy. The event has so far received positive response and support from stakeholders, according to GOTS China.
SOURCE: Fibre2fashion
The Vietnam Textile and Garment Association (VITAS) has urged the government to prepare a development strategy to 2025 with a vision towards 2040, as the present plan has become obsolete. The association has also asked the government to group textile and garment enterprises in concentrated industrial parks to attract domestic and foreign capital. The Vietnamese government had last prepared a development strategy to 2010 with vision towards 2030. This plan targeted Vietnamese textile and apparel exports to cross $20 billion by 2020, but the country's exports have already surpassed this target by fetching around $27 billion in 2015. The grouping of textile and garment industrial parks at one place would facilitate wastewater treatment, which is important for the industry's sustainability and environment protection, VITAS chairman Vu Duc Giang said, according to a news agency report. The present textile and garment industrial zones in northern provinces of Nam Dinh, Thai Binh and Hung Yen and two southern provinces of Binh Buong and Dong Nai are spread over a few hundred hectares each. Increasing the area for setting up of textile and apparel industrial zones to 500-1,000 hectares would attract more domestic and foreign capital, Giang felt. Further, it is necessary to upgrade transportation infrastructure connecting these industrial zones with ports and logistics centres, he said. Since setting up a wastewater treatment system is very costly, the government should offer a preferential lending rate for companies willing to invest in such treatment systems, he suggested. Growing at 4.72 per cent year-on-year, Vietnam's garment and textile exports earned $12.6 billion in the first half of 2016.
SOURCE: Fibre2fashion
Peru's textile-clothing sector generates 400,000 direct jobs; the figure might expand due to better performance, National Society of Industries Chairman Andreas von Wedemeyer affirmed. Von Wedemeyer noted such field requires greater support to improve productive conditions. "We must take into account 10% of manufacturing sector's GDP is explained by textile clothing industry," the guild leader pointed out. He went on to add sector leads to tax revenue worth S/.1.10 billion (about US$333 million). Thus, its contribution is "highly relevant" to country's development. The businessman made remarks during the presentation of the 10th International Suppliers of Textiles and Apparel International Fair (Expotextil Peru 2016). The event will take place in Lima on October 20-23. 25,000 visitors are expected to attend.
SOURCE: The Andina
Despite plunge in EU clothing imports from China in volume by 9.9 percent in the first three months of 2016 compared to corresponding period of last year, China remains by far the EU’s largest clothing supplier but a number of other countries gained market share, according to a new report from the global business information company Textiles Intelligence – Trade and trade policy: the EU clothing import market and its ten largest supplying countries. The declines in both periods represented the steepest falls among the EU’s ten largest clothing suppliers. As a result, China’s share of EU clothing imports from all sources declined in both periods, from 43.3% in 2014 to just 35.1% in the first three months of 2016. Furthermore, during the first three months of 2016 the average price of EU clothing imports from China fell by 0.3% while the average prices of imports from Bangladesh, Cambodia, Myanmar and Vietnam all rose noticeably. EU clothing imports from Bangladesh, for example, rose by 4.2% in the whole of 2015 and were up by 8.0% in the first three months of 2016. As a result, Bangladesh’s share of EU clothing imports from all sources in the latter period reached 24.6%. Meanwhile, EU clothing imports from Cambodia shot up by 12.6% in 2015 and were up by 17.7% in the first three months of 2016, EU clothing imports from Pakistan rose by 6.5% in 2015 and were up by 8.4% in the first three months of 2016, and EU clothing imports from Vietnam increased by 3.2% in 2015 and were up by 1.6% in the first three months of 2016. This apparent shift in sourcing from China to other countries in Asia reflects the fact that several companies in China have moved, or plan to move, at least some of their clothing production to other countries in order to benefit from abundant supplies of cheaper labour. In particular, many Chinese companies are opting to move to countries in South-East Asia where wages are lower than in China. In Cambodia, for instance, the average wage for garment workers is only a fifth of that in China while in Myanmar the average wage is even lower than that in Cambodia. As well as the benefit of cheaper labour, a number of exporting countries in South-East Asia—and South Asia—benefit from preferential trade agreements with the EU and the USA, the world’s two biggest import markets, whereas China does not.
Manufacturers in Bangladesh, Cambodia and Myanmar, for example, benefit from duty-free access to the EU through the EU’s Generalised Scheme of Preferences (GSP) Everything But Arms (EBA) arrangement. And manufacturers in Vietnam stand to gain from improved access to the EU import market once the EU-Vietnam free trade agreement comes into force. Having said that, the average price of EU clothing imports from China was the third lowest among the EU’s leading ten suppliers in 2015.
SOURCE: Yarns&Fibers
Turkey's cotton industry have started investing in new technology as the result its domestic cotton consumption is expected to rise to 6.89m 480 pound bales, a ten year high next year and up 115,000 bales from the previous session, the USDA’s official said. According to the US Department of Agriculture's bureau in Ankara, Turkish textile exports has raised due to increased sales in Europe, as well as thawing relations with Russia. Political instability among many of Turkey's neighbours is forcing the industry to focus on competing in the European markets. War conditions in Syria, Iraq and Ukraine, and also stopping of exports to Russia after the Turkish downing of a Russian plane in November 2015 all caused exports to decline to these destinations, the bureau said. In the meantime, mills had to lower their margins to keep their market share in the European market to continue operating. Turkish mills have been investing in new machinery and technology to increase quality and lower costs in order to get ahead in the very competitive international textile trade, the bureau said. Turkish domestic production was forecast to surge by 21% year on year in 2016-17, to 3.21m bales. This will be the biggest crop since 2006-07. This will even be larger than the official USDA 2015-16 forecast, of 3.00m bales. The bureau said that ample irrigation water and high quality seeds used in recent years affected yields positively. The heavy production will reduce imports, but by less than expected, due to the robust demand. The bureau saw imports at 4.02m bales in 2016-17, down from 4.13m bales in the previous season. But imports from the US will fall, relative to other destinations, due to anti-dumping legislation. After a lengthy antidumping investigation, Government of Turkey announced three percent antidumping duty on the US cotton imports starting from April 2016. However, the industry feels some of the US cotton will come under the inward processing regime for exports and so will not be subject to the antidumping duty. Hence, the US will remain top seller to Turkey.
SOURCE: Yarns&Fibers
