The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 26 SEPTEMBER 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-09-25

Item

Price

Unit

Fluctuation

Date

PSF

1013.12

USD/Ton

0%

9/25/2016

VSF

2528.31

USD/Ton

0%

9/25/2016

ASF

1888.36

USD/Ton

0%

9/25/2016

Polyester POY

1017.62

USD/Ton

0%

9/25/2016

Nylon FDY

2420.40

USD/Ton

0%

9/25/2016

40D Spandex

4421.17

USD/Ton

0%

9/25/2016

Nylon DTY

5623.12

USD/Ton

0%

9/25/2016

Viscose Long Filament

1288.88

USD/Ton

0%

9/25/2016

Polyester DTY

2233.06

USD/Ton

0%

9/25/2016

Nylon POY

2060.71

USD/Ton

0%

9/25/2016

Acrylic Top 3D

1236.43

USD/Ton

0%

9/25/2016

Polyester FDY

2622.73

USD/Ton

0%

9/25/2016

30S Spun Rayon Yarn

3102.31

USD/Ton

0%

9/25/2016

32S Polyester Yarn

1678.54

USD/Ton

0%

9/25/2016

45S T/C Yarn

2607.74

USD/Ton

0%

9/25/2016

45S Polyester Yarn

1843.40

USD/Ton

0%

9/25/2016

T/C Yarn 65/35 32S

2248.05

USD/Ton

0%

9/25/2016

40S Rayon Yarn

3237.19

USD/Ton

0%

9/25/2016

T/R Yarn 65/35 32S

2367.95

USD/Ton

0%

9/25/2016

10S Denim Fabric

1.37

USD/Meter

0%

9/25/2016

32S Twill Fabric

0.84

USD/Meter

0%

9/25/2016

40S Combed Poplin

1.19

USD/Meter

0%

9/25/2016

30S Rayon Fabric

0.70

USD/Meter

0%

9/25/2016

45S T/C Fabric

0.67

USD/Meter

0%

9/25/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14987 USD dtd. 25/09/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Textile ministry preparing plan to promote handicrafts & tribal communities: Smriti Irani

The government through convergence of various ministries is working on a plan to promote tribal, handicrafts community and fill the various gaps, Union Textile Minister, Ms Smriti Irani said at an ASSOCHAM event. I had a meeting three days ago with the minister in-charge for tribal affairs and we are propagating a plan between two ministries so that there is convergence of effort to ensure things like uniqueness of their craft, the fact that they have challenge of not understanding the amount of opportunity the market has to offer to them, social challenges with regards to education, healthcare are met including housing, said Ms Irani while inaugurating an 'ASSOCHAM Global Investors' India Forum.' So we are preparing a plan to ensure, not only in the tribal community but in the handicrafts community per se, we have these interventions with convergence of various ministries and we reach out, she added. I think one of the biggest challenges in the handicrafts sector as I have said, is that those who were interested in their care between the central and state government or between state government and administration at the district level, the gaps arose in those areas which have not been filled for too long because it was nobody's baby, so now we are hoping that we bridge that gap, further said the minister.

Sharing her experience in the Human Resources Development (HRD) Ministry, she said, I have personally seen how much success is met when there is direct communication between centre, state and district administration because we had that deadline by the Prime Minister to build toilets across all government schools across India in just one year which looked like a statistical and infrastructural impossibility. I am proud to say that has been one of the landmark efforts of our government and I am hoping that we have a similar intervention in the handicraft, handloom sector as well because when you look at the north-east tribal community, you see them coming out with lovely handlooms as well but the challenge there has been that there needs to be a streamlined process of engagement across government in the federal structure so that it benefits the last mile individual, so that's what we are hoping to do, said Ms Irani. She also informed that government was conducting a study of all the reserves that India has. We are in the process of digitising our land records in the country, so under the Digital India program, that is an emphatic push by the Government of India, said the minister. Also from the land and irrigation perspective, the Prime Minister has been very clear in his instructions that we need to map all that we have invested in our seven decades of democracy in irrigation systems of our country, how many of them are genuinely functional, how many need an intervention where they can be now propped up again and service the land around it, how many actually need new structures so those studies and mappings are underway currently, she added.

In terms of an intervention for soldiers, how they can be better protected through clothing, she said, We have identified within the Ministry, our engagement with the Ministry of Defence as to what kind of support that we can give, the industry can have a huge intervention, not only from R&D (research and development) perspective but also from investment perspective, so that we self-support our systems, our army for their needs be it at Siachen or any other station. This includes our forces like BSF, CISF because they also have these technical textile needs. The union minister also informed that Textile Ministry was in discussion with Road, Transport and Highways Ministry to ensure that logistical challenges are met and sought industry's support in this regard. If we look at the logistical challenges that India has, as compared to Bangladesh, yes from placing the order onwards to processing that order takes longer in India than it takes in Bangladesh, so we are in conversation with Nitin Gadkari ji to ensure that our logistical challenges are met but after we have these facilitations we will need industry to step up and fill the gap from the perspective of investment envisaged, said Ms Irani.

Highlighting the various challenges being faced by the power loom sector in India, she said, There are many complex issues ranging from subsidising for up-gradation of looms onwards to even providing money so that renewable energy can be used for looms, we are working out some kind of support for the entire sector but my biggest concern is for those who have one-two looms or less than eight looms because till now most of the money has gone to people who are organised better, not the individual power weaver, where everything is shutting down.

Talking about poor response from the industry to help build toilets in government schools across India while she was in the HRD Ministry, she said With a lot of hope I went out and pleaded with everybody in the industry to help me build toilets in the country, only five per cent stepped up, in fact Government of India funded it, we ensured that if a district collector said that I am not getting money in time, I would RTGS that fund straight from the centre so that my toilets are made in time. She also said that the government was trying to push through administrative reform measures, that will make the engagements easier with institutions or individuals who want to bring about change on the ground. One has to recognise that government can only become that facilitator, that bridge and it is ultimately the industry and the people who have to walk the talk. On the issue of caste inequalities, Ms Irani said, I think we have to be conscious of our challenges and address those challenges from a social and economic point of view, the challenge is that there are more people who divide compared to those who are there to fill those gaps. She also said that there is a need to drive the children to pursue excellence and not to pursue a certificate as to promote innovation one needs to have an adventurous spirit that is engaged with at a very young age.

SOURCE: The Business Standard

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Hank yarn delivery lead times to handloom sector high: Study

A study has concluded that hank yarn delivered by the National Handloom Development Corporation (NHDC), used for producing handloom textiles, has high lead times. The study commissioned by the textiles ministry, as a remedy, suggested that idle capacity in the mills of the state run National Textile Corporation (NTC) be utilised to produce the hank yarn. According to media reports, the study also found that on an average, 327.71 million kilograms of cotton yarn across all counts is required annually by the Indian handloom sector. "The major concern of the stakeholders is lead time for the delivery of hank yarn, who also suggested that NHDC should operate with a minimum inventory model to offer supply of various counts of hank yarn on a timely basis,” the study said. Handloom weavers get the yarn through various sources like traders, handloom societies, yarn depots, NHDC and also directly from mills, but are entitled to a 10 per cent subsidy on hank yarn supplied by NHDC.

SOURCE: Fibre2fashion

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Maharashtra plans new policy to restore cotton yields

In order to restore falling agriculture yields, particularly cotton in the state, Maharashtra is planning to bring in a new policy, which will focus on promoting indigenous seeds rather than GM seeds. The new policy would debut after studying measures adopted by states, which have posted good growth in farming yields and thereby production. This was informed by Maharashtra agriculture minister Pandurang Fundkar, who said that while only 7,000 saplings of BT cotton can be planted on one acre of land, farmers can plant 100,000 saplings of hybrid cotton seeds in the same area. Media reports quoted the minister as saying that Madhya Pradesh recorded the highest growth in farming output at 20 per cent in the last fiscal, with Gujarat posting 8.45 per cent, Andhra Pradesh 8.40 per cent and Chhattisgarh 7.8 per cent. An expert committee will visit these high growth states and study the policies adopted by them to increase agricultural growth rate in Maharashtra.

SOURCE: Fibre2fashion

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Cotton association voices concern over lower crop estimate in 2016-17

Members belonging to the Indian cotton fraternity are planning a visit to Colombo to meet up with the port officials in that island country. The idea is to tide over any supply shortfall, particularly at the end of the season."It is very premature, but yes, we are in talks with the port officials seeking support for a raw material centre at Colombo port. Such a facility will help the mill sector in Tamil Nadu to import cotton more quickly, be it from West Africa, Australia or even the US," Srihari Balakrishnan, Managing Director, Sri Kannapiran Mills said, on the sidelines of the 37th Annual General Meeting of the Indian Cotton Federation (ICF).

Though the dates have not been finalised yet, the delegation, according to Srihari, would comprise of 4-5 members and looking to travel during October first week. "We are awaiting confirmation from Colombo Port officials." ICF sources perceive that textile manufacturers in Tamil Nadu would benefit if the proposal comes through. Earlier, in his presidential address, J Thulasidharan, President, ICF said the area under cotton in 2016-17 has been estimated to be lower by 10 per cent compared to the current year. "China's fibre policy and release of old stock might tilt the global cotton demand and supply equation. Further, cotton supply could be tight due to the overall shortfall in acreage. It is therefore necessary to guide farmers on practising Precision Cotton Farming. Unless farmers are reassured of increased yield and better realisation, they will not undertake cotton cultivation. All stakeholders should work towards quality cotton supply," he added. ICF Vice President P Nataraj stressed the need for a conducive cotton trade policy. Cotton Scientist V Santhanam, who was co-opted as member, ICF at the 37th AGM of the federation suggested the need for a visit to China to understand the factors for increased productivity. "We should explore and understand," he reiterated

SOURCE: The Hindu Business Line

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Cotton prices to trade steady

Cotton futures gained almost 50 per cent between March and July, triggered by short supply in the domestic market. The price had touched a peak of ₹23,570/bale (1 bale=170 kg) in July and is currently at ₹20,530/bale. Cotton prices moderated in August on reports of favourable weather in top producing nations such as India and the US. However, concerns over depleting stocks, higher consumption demand and prospects of better US exports limited the extent of price correction.

Global supply and demand

The USDA puts global cotton output at 20.99 million tonnes (mt) for 2015-16 (August-July), 19 per cent down over 2014-15. With lower production and almost the same level of consumption, carry-forward stocks have reduced noticeably to 21.45 mt in 2015-16, down for the first time since 2010-11. However, the global output situation is expected to go up to 22.31 mt in 2016-17 with likely higher produce from the US, Pakistan and Australia. The USDA reports that consumption of cotton is expected to exceed production by 1.9 mt in 2016-17. Higher consumption is attributed to increased domestic demand from China, Bangladesh and Turkey. Import restrictions in China, accompanied by rapid expansion of the Bangladeshi textile sector over the years, have catapulted Bangladesh to the slot of top importer of cotton.

China factor

Lower price realisation along with increasing preference for food grain crops in China has led to a 36 per cent decline in its cotton acreage in last two years alone. China’s cotton production is estimated at 4.57 mt in 2016-17 against 6.53 mt in 2014-15. However, its cotton consumption demand is expected to remain firm in 2016-17 due to lack of quality stocks in government’s reserves, decreasing stocks amid reduced production and lower imports.

Domestic scenario

Despite India having the largest sown area and being the largest cotton producer, its productivity remains amongst the lowest. Lower acreage, yield and inferior quality have bought down the stocks significantly. The resistance of GM cotton against pests like whitefly and disease of leaf curl virus has prompted farmers to switch to pulses and oilseeds. The cotton industry seems divided over the production estimates for 2016-17. The Cotton Association of India (CAI) expects almost the same output at 33.6 million bales in 2016-17 (October-September) against 33.77 million bales of 2015-16 while demand is forecast at 30.8 million bales. The millers, however, expect production to go up by 4-5 per cent over last year. As per government data, the acreage under cotton is 10.2 MHa till September 2, 11 per cent down from 2015-16.

Maharashtra experienced one-and-a-half month’s late sowing amid delayed monsoon yet the acreage may increase due to adequate soil moisture and decreased threat of pests. However, the doubt over the impact of delayed sowing on yield remains. Clarity on this will come only after the quality of first picking is observed which is due in November-December. India’s exports are expected to be at the lowest levels since 2008-09 impacted by lower domestic stocks, expected noticeable drop in imports by Pakistan and continued decline in export to China. The domestic cotton market looks to trade in range with slightly firm tone on rapidly depleting stocks and lower production prospects. However, somewhat bleak export outlook and hopes of higher imports are likely to restrict any sharp gains in cotton market. We may witness good corrections during the arrivals season. Watch out for the planting progress, growing conditions and weather. Similarly, the global cotton market is likely to remain range- bound with upside risks on expectations of higher production from top growing nations, except India, while lower global inventories and robust Chinese demand will limit downside risks.

SOURCE: The Hindu Business Line

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Bihar to go for branding of khadi

Chief Minister Nitish Kumar today said the Bihar government would go for branding of finer quality of khadi clothes made in the state to attract the "newer generation" through designer garments made of it. He said this at a function to mark the 'Rashtriya Charkha Diwas' here in a bid to promote the khadi industry in Bihar. Proper branding of khadi clothes would raise its demand among the people, the chief minister said, adding that the state Industries department has entered into an agreement with NIFT for "new design" khadi garments. In a bid to promote the khadi industry in Bihar, the state government would erect a Rs-17 crore building for it to set up showrooms, he added. "From October 2, the state government would offer a 10-per cent concession on purchase of khadi clothes," Nitish said. The state government was making "every effort" to popularise khadi in view of the centenary celebrations of Champaran satyagraha, Mahatma Gandhi's first major agitation against the British, he added. Industries Minister Jai Kumar Singh and Gandhian Razi Ahmad were present on the occasion among others.

SOURCE: The Economic Times

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DGFT adds new service providers in EPCG scheme

Providing great relief to the job working units in garment clusters like Tirupur, the Director General of Foreign Trade (DGFT) has issued a notification which includes a list of service providers to be added under the Common Service Providers (CSP) in the Export Promotion Capital Goods (EPCG) scheme. The newly added CSP can now avail EPCG benefits. The list of CSP under the EPCG scheme includes job workers or third party service providers. Citing an example the DGFT says, “There may be multiple garment exporters obtaining services at different stages of garment manufacturing, such as knitting, dyeing, compacting, printing, embroidering, labelling, cutting etc, from a number of other units who own these facilities but do not engage in the export of garments. These job workers will now have the flexibility to not own all the infrastructures for conversion from input to final export products, but are eligible to get benefits under the EPCG scheme.” “The Tirupur Exporters' Association (TEA) has been continuously representing to exempt the job working units from the fulfilment of export obligation when they import machinery under EPCG Scheme,” TEA president Dr. A Sakhtivel said in a statement.

During his meeting with Union commerce minister Nirmala Seetharaman earlier this week in New Delhi, he specifically emphasised the need to exempt the job working units from fulfilment of obligation for the benefit of Tirupur cluster and the minister immediately agreed and assured to issue a Trade Notice in this regard, Sakthivel said. Glad that the long awaited relief has seen light of the day, he added that the job working units are the backbone for the garment exporting units as only about 30 garment exporting units have the integrated facilities and others depend on job working units only for their manufacturing activities.

SOURCE: Fibre2fashion

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GST Council sets exemption limit at Rs 20 lakh

The GST Council has decided to exempt businesses from the Goods and Services Tax (GST) if their annual turnover is less than Rs 10 lakh for northeastern hill states, and Rs 20 lakh for rest of India. Businesses with annual turnover less than Rs 1.5 crore would be assessed by states (in case of goods), while others would be assessed under dual control. “For GST, the exemption threshold is fixed at Rs.20 lakh,” the Council's chairman and Union finance minister Arun Jaitley told reporters after conclusion of the second day of the panel's first meeting. “So those with a turnover of below Rs.20 lakh annually will be exempted from GST. With the north-east states, the exemption threshold is Rs 10 lakh,” Jaitley said.

On the issue of administrative control over indirect tax assessees, it was decided that states would have sole jurisdiction over businesses having a turnover of Rs 1.5 crore or less, while the jurisdiction for businesses exceeding that limit would be jointly with the Central and state governments, Jaitley informed. In another major decision, the Council agreed that base year of compensation would be 2015-16. The Council also decided that service tax assesses would be vetted by the Centre. However, since the GST allows the states to also tax services, over time state revenue officials would be trained so they can begin assessing assessees in the service sector. The Council would meet again on September 30 to approve draft rules, and again from October 17-19 to decide rates and slabs.

SOURCE: Fibre2fashion

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GST unlikely to get ratified this Assembly session, says Kerala FM

The goods and services tax (GST) Bill is not likely to get ratified during the upcoming session of the Kerala legislative Assembly but would come up for discussion only during the Budget session, due in April next year, Kerala Finance Minister T M Thomas Isaac said on Friday. “Consensus is yet to be arrived at between Centre and states regarding GST rate fixation. Hence, the ratification of the GST Bill will only happen during the Budget session,” Isaac told reporters after the GST Council meeting in New Delhi. The Goods and Services Tax Council, in its second day of meeting, has struck political consensus on the GST threshold limit. "The Council today fixed the turnover-based exemption limit from such levies at Rs 20 lakh, but left the decision on fixing the actual tax rates and the finalisation of draft rules for later," the minister said.

Meanwhile, the council has agreed on fixing a tax rate of 1 per cent for turnover of Rs 20 lakh to Rs 50 lakh, he said. The issue of dual control over small traders was also resolved with states getting exclusive control over all dealers up to a revenue threshold of Rs 1.5 crore. "The Centre will collect service tax of up to for turnover of Rs 50 lakh to Rs 1.5 crore," Isaac said. The revenue exemption limit will be Rs 20 lakh for all states with the exception of northeastern and the hill states where the limit will be Rs 10 lakh, he said. He also said that the base year for calculating compensation would be 2015-16 and the formula for payment of compensation would be deliberated between the state and Central authorities. The Finance Minister will conduct a seminar on the Goods and Services Tax (GST) and its implications for Kerala on September 29 during the Assembly session which is scheduled to begin on September 26.

SOURCE: The Business Standard

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NITI for 10-year tax holiday for coastal economic zones

NITI Aayog, a policy think-tank of the government, is pushing for a 10-year corporation tax holiday for proposed coastal economic zones (CEZs) provided these generate a threshold of employment. An informal proposal to this effect came at a time when the finance ministry is looking at phasing out exemptions given on corporation tax and reducing the levy to 25 per cent from the current 30 per cent at present. “Aayog has proposed a 10-year holiday from corporation tax for CEZs,” an official source said. It is still being debated whether CEZs would come up through an Act such as special economic zones (SEZs) had come or will these would be built through an executive order. While the legislative backing would be a preferable route, the government does not have a majority in the Rajya Sabha. As such, both the options are being mulled, sources said. Basically, the proposed CEZs, which would be of much bigger size than SEZs, are being planned on coastal lines of India to set up labour-intensive industries such as clothing, electronics as well as electrical manufacturing, light manufacturing to tap export markets. The Chinese experience with these zones such as Shenzhen is being told to sell the idea of these zones. When asked why should CEZs be given corporation tax holidays when the finance ministry is phasing out these exemptions, sources said this could be an area of tension, which would be resolved. The finance ministry had announced a plan to phase out tax exemptions so that it could cut corporation tax rate to 25 per cent in four years starting this year from 30 per cent at present. It had said profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate tax payers.

In this year's Budget, finance minister Arun Jaitley had said the new manufacturing companies which are incorporated on March 1, 2016 onwards would be given an option to be taxed at 25 per cent provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation. The argument in favour of these zones are that India has not been able to generate employment in manufacturing since large players are missing in those areas which generate jobs and hence face absence of economies of scale. “Unfortunately, large firms are missing in India in precisely the sectors in which they are needed the most: employment-intensive sectors such as apparel, footwear, electronic and electrical products and host of other light manufactures,” writes Aayog vice-chairman Arvind Panagariya in his blog. In the blog, titled Jobs, Growth and Coastal Economic Zones, he says these are products in which China has done well thereby generating a large volume of good jobs for its workers.

In 2014, China exported $56 billion worth of footwear compared with $3 billion by India and $782 billion worth of electrical and electronic goods compared with $9 billion by India, he rolls out statistics in the blog to buttress his arguments. An important advantage of locating the zones near the coast is that they would attract large firms interested in serving the export markets. These firms would bring with them technology, capital, good management and links to the world markets. They would help create an ecosystem around them in which productive small and medium firms would emerge and flourish, says Panagariya.

It may make sense to initially limit the number of zones to a few, perhaps two or three. This would help ensure that many sector-specific zones and clusters emerge within each CEZ to fully exploit economies of scale and agglomeration. Simultaneous creation of too many zones would spread the available public resources thinly while also diffusing economic activities with potential synergies. The Aayog vice-chairman says the domestic market still remains small and fragmented so that it will not give rise to genuinely large firms. For example, home market in electronic goods is $65 billion of which $26 billion is already supplied by domestic firms. In comparison, the world market in electronic goods is $2 trillion. Domestic market can serve as an attractive complement; it cannot substitute for the large world market, he says.

WORKFORCE SHARE OF MANUFACTURING

  • Manufacturing firms with less than 20 workers each employed 73% of manufacturing workforce but produced only 12% of manufacturing output in 2010-11, a study says
  • Only 10.5% of manufacturing workforce in India was employed in firms larger than 200 workers compared to China's 51.8% in 2005, says ADB
  • 84% of India's manufacturing workforce was in firms with less than 50 workers compared to China's 24.8% in 2005, says ADB
  • These differences translate into substantially lower average labour productivity and wages in India than China

SOURCE: The Business Standard

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MFN or not, trade with Pak 'abysmally' low, says Assocham

Amid reports that India is considering withdrawal of most favoured nation (MFN) status to Pakistan in the wake of the Uri terror attack, Assocham on Sunday said the special privilege has not made much of a difference as trade between the two remains “abysmally” low. Of India's total merchandise trade of $641 billion in 2015-16, Pakistan accounted for a meagre $2.67 billion. India's exports to the neighbouring country worked out to $2.17 billion, or 0.83 per cent, of the total Indian outward shipments while imports were less than $500 million, or 0.13 per cent, of the total inward shipments. “In all, trade with Pakistan was equivalent to 0.41 per cent of India's global merchandise commerce,” said D S Rawat, secretary general of Assocham. “Thus, the MFN status or no MFN has not made much of a difference on the bilateral trade. While India has granted Pakistan the MFN status, Islamabad had not responded... even with the MFN status, Pakistan's exports to India remained less than half a billion dollars.” He said that for political reasons, the businesses have not been showing interest in each other. “Going forward, as things stand today, almost no movement is seen in the immediate future. Even the symbolic presence of Pakistan exhibitors at the annual India International Trade Fair (IITF) in November in New Delhi is not expected, whether or not formal ties are snapped or not, given the present state of affairs,” said Rawat.

On its part, India Inc has come out in support of Prime Minister Narendra Modi for pushing India's interest, the industry body said, adding that strategic decisions are fully in the domain of the government. Even as India was grappling with the global slowdown, its merchandise exports stood at $261 billion in 2015-16 while imports were $380 billion. India's main exports markets are the European Union, the US, Africa and the South-East Asia.

SOURCE: The Business Standard

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India, China strategic economic dialogue to be held on Oct 6, 7

India and China will hold the fourth round of the Strategic and Commercial Dialogue (SED) on October 6 and 7 that will seek to strengthen cooperation in areas of infrastructure, energy, urbanisation and hi-tech products. The last round was held in March in Beijing. This was preceded by the first two rounds in 2011 and 2012 in Beijing and New Delhi respectively. The idea was mooted by former Chinese Premier Wen Jiabao in December 2010. However, this will be the first round of SED that will be held under the present Narendra Modi-led government. “This time India is planning to propose some modifications to the working groups… We have asked for specific working groups under some of the broad ones,” said NITI Aayog Vice-Chairman Arvind Panagariya. He said this time the Chinese side will be led by Xu Shaoshi, Chairman, National Development and Reform Commission (NDRC) who will be bringing with him a high-powered delegation consisting an unprecedented 220 members. The SED presently has five working groups — infrastructure, energy, environment, new and renewable energy and high technology cooperation. India wants the working group on infrastructure to be split into two so that the cooperation on railways between both countries can be given more focus. Panagariya added that the issue on trade deficit with China may be discussed during the meeting.

SOURCE: The Hindu Business Line

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Turkmenistan intends to increase textile export

The large-scale work is carried out in Turkmenistan to fully reveal the country's economic potential and increase the textile export, Turkmen President Gurbanguly Berdimuhamedov said at a government meeting. “Turkmenistan creates conditions for bringing the domestic textile industry to a new level by making huge investments in the implementation of major industrial projects," Neutral Turkmenistan newspaper cited the president as saying. “It is necessary not only to increase the industrial capacity, but also introduce the advanced technologies,” the president added. More than one million tons of cotton is grown in Turkmenistan annually, which is the raw material base for the development of the textile industry.

SOURCE: The Trend News Agency

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Pakistan fails to get benefit of GSP Plus as exports keep declining

Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has severely criticised government’s attitude towards continuously declining exports over the last few years. Addressing the annual general meeting here on Sunday, PHMA’s newly-elected Chairman Mohammad Adil Butt bemoaned that even the benefits of GSP Plus status could not be of any help to the industry. On the occasion, the results of body’s elections were announced according to which Muhammad Amjad Khawaja was elected as Senior Vice Chairman and Mohammad Younus Sony as Vice Chairman. The newly-elected members of Central Executive Committee are Dr Mohammad Mushtaq Mangat, Naseer Ahmad Butt, Syed Nahid Abbass, Javed Iqbal and Khawaja Musharraf Iqbal. Members elected on Zonal Committee include Usman Jawaad, Dr Mohammad Imtiaz Ali, Naeem Ahmed, Dr Khurram Anwar Khawaja, Sheikh Mohammad Sarwat Kapoor and Mian Khalid Pervez. The newly-elected office-bearers will took their offices on October 1, 2016. Besides this, Haji Mohammad Shafi of Faisalabad was unanimously elected as Chief Patron of PHMA (North Zone). “What to talk of expansion of units or further industrialisation and investment in the country when the existing factories are unable to utilise their full capacity,” Adil Butt asked the government. He declared that his industry could meet the foreign exchange requirements of the country if it was enabled to work day and night and a level-playing field, compatible to competing countries, was provided to it at this critical situation.

At the same time, he also called upon the industrialists to tackle the problems of industry on their own because the government was not thinking enough for them, while time, on the other hand, was running out fast. He therefore advised the businessmen to find their own innovative solutions according to their own needs to become able to meet the market requirements. He resolved that Association would play a leading role in this regard. He further said that China factor was not only opening up new opportunities for Pakistan but also bringing with it threats of different kinds. He therefore advised the business community to be ready for dealing with difficulties in the time coming ahead. The newly-elected chairman said that knitwear export industry was the largest employment providing sector of the economy, besides being the leading export earning sector. He expressed concern that the export of knitted garments had been declining for the last couple of years, but the government does not seem bothered. He explained that constraints being confronted by the industry due to warlike situation being faced by Pakistan over the last so many years was a major setback to the country’s industry; otherwise we could have performed better and improved a lot. “The supply of gas has been ensured through Re-gasified Liquid Natural Gas although it will cost more,” he said, and added, “The foreign importers are, however, not coming to Pakistan for placing export orders while we have to cross so many hurdles for managing our foreign travels. Newly-elected Vice Chairman Amjad Khawaja noted that Textile Policy 2014-19 offered enormous opportunities for development of value-added garment sector provided it was properly implemented and required finances were timely released.  “The previous Textile Policy 2009-14 could not bring any significant change for the sector because its contents were not implemented in their true spirit,” he said. He, therefore, demanded that proper implementation of the current policy should be ensured so that the industry could bank on its provisions with confidence.

SOURCE: The Nation

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S.Korea's import volume posts fastest growth in nearly 2 years in August

South Korea's import volume posted the fastest monthly growth in nearly two years last month, indicating expectations for economic recovery in the near future, central bank data showed on Monday. The import volume index stood at 124.58 in August, up 7.5 percent from a year earlier, according to the Bank of Korea (BOK). It marked the fastest increase since December 2014. Import volume of general machinery jumped 22.7 percent, with those for chemical products gaining 18.9 percent. Imports of primary metals and textile goods grew 10.8 percent and 9.2 percent respectively. Those for coal and oil products increased 10.1 percent last month. In terms of value, imports rose 0.7 percent in August from a year ago, marking the first increase since September 2014. It was a rebound from a 13.1 percent decline in July. The rebound reflected expectations for economic recovery in the near future. Slower fall in global oil prices also contributed to the rebound in import value last month. The export volume index advanced 3.9 percent in August from a year earlier, but the export value index declined 1.4 percent amid lower crude oil prices. The net terms-of-trade index for goods, which gauges how many goods can be imported with a unit export, came in at 101.29 in August, up 1.3 percent from a year earlier. The income terms-of-trade index, which measures how many goods can be imported with total export proceeds, stood at 132.84 in August, up 5.2 percent from a year ago.

SOURCE: The Global Times

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