INTERNATIONAL
Textile Raw Material Price 2016-10-24
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1049.45 |
USD/Ton |
0.71% |
10/24/2016 |
|
VSF |
2463.99 |
USD/Ton |
-0.66% |
10/24/2016 |
|
ASF |
1862.41 |
USD/Ton |
0% |
10/24/2016 |
|
Polyester POY |
1086.40 |
USD/Ton |
2.08% |
10/24/2016 |
|
Nylon FDY |
2350.18 |
USD/Ton |
0% |
10/24/2016 |
|
40D Spandex |
4360.40 |
USD/Ton |
0% |
10/24/2016 |
|
Nylon DTY |
2549.72 |
USD/Ton |
0% |
10/24/2016 |
|
Viscose Long Filament |
5572.44 |
USD/Ton |
0% |
10/24/2016 |
|
Polyester DTY |
1330.29 |
USD/Ton |
2.27% |
10/24/2016 |
|
Nylon POY |
2172.81 |
USD/Ton |
0% |
10/24/2016 |
|
Acrylic Top 3D |
2029.43 |
USD/Ton |
0% |
10/24/2016 |
|
Polyester FDY |
1285.95 |
USD/Ton |
1.75% |
10/24/2016 |
|
30S Spun Rayon Yarn |
3030.11 |
USD/Ton |
-0.49% |
10/24/2016 |
|
32S Polyester Yarn |
1738.98 |
USD/Ton |
0% |
10/24/2016 |
|
45S T/C Yarn |
2586.68 |
USD/Ton |
0% |
10/24/2016 |
|
45S Polyester Yarn |
1862.41 |
USD/Ton |
0.80% |
10/24/2016 |
|
T/C Yarn 65/35 32S |
2231.93 |
USD/Ton |
0% |
10/24/2016 |
|
40S Rayon Yarn |
3163.13 |
USD/Ton |
-0.47% |
10/24/2016 |
|
T/R Yarn 65/35 32S |
2320.62 |
USD/Ton |
-0.63% |
10/24/2016 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
10/24/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
10/24/2016 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
10/24/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
-0.43% |
10/24/2016 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
10/24/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14781 USD dtd 24/10/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Smriti Irani, Union Textile Minister, brightened the TEXPROCIL Export Award Function by stating that another special package for Made-ups and Home Textile Sector, similar to Rs. 6000 crore special package announced for garment sector, was under active consideration of the ministry. Thus, the textile industry may be celebrating one more Diwali, after the current Diwali, stated Irani. The minister further stated that Prime Minister Narendra Modi has a vision of doubling the income of farmers by 2022. "We are happy the farm yield has already increased and the country hopes to become a leading producer of cotton." The event was inaugurated in Mumbai on October 21, 2016 with lighting of traditional lamp by Smriti Irani, who was the chief guest. Dr. Kavita Gupta, Textiles Commissioner, was also present.
Irani later distributed the awards for excellence in exports of yarns, fabrics and home textiles. Leading textile companies like Welspun Global Brands Ltd, Vardhman Textiles, Trident Ltd., Alok Industries, Arvind Ltd, Loyal Textiles, GTN Textiles, Premier Mills, Paramount Textiles, SEL Group, Lahoti Overseas among others were some of the recipients of the awards. R K Dalmia, Chairman, Texprocil in his opening remarks congratulated all the award winners for facing the challenges of a slow global demand and intense price pressures to emerge leaders in their respective line of businesses during the year 2015-16. He said that as per a recent WTO forecast, the global trade volumes would rise only by 1.7 percent this year. This would be the slowest increase since the 2008 financial crisis and the first time in 15 years that global trade has grown more slowly than world GDP, he added.
R K Dalmia complimented the government on the announcement of the special package of Rs. 6000 crore for the apparel sector which he said was bearing fruit as the September export figures for apparel showed a growth of 12 percent compared to a downward trend for most other sectors. The chairman stressed that this special package also needed to be extended to the made-ups and home textile sector as that sector is equally, if not more labor intensive in comparison to the apparel sector. He also said that it will act as a pull factor for increased consumption of fiber, yarns and fabric produced domestically. Another critical area where the government needs to move with vigor is to expedite the negotiation of Free Trade Agreements with EU, Australia and Canada, he said. In countries like Turkey and China, high discriminatory tariff was posing a challenge in terms of market access into those countries. The chairman pointed out that cotton textiles of HS Chapter 52 was the single largest contributor accounting for almost 20 percent of our exports to China and if duties were reduced they had the potential to reduce India's trade deficit with that country.
Besides complimenting the government on the likely introduction of GST from April 2017, R K Dalmia also highlighted the oft repeated request of the industry that raw materials especially cotton should be available at international prices or lower. Finally, Dalmia mentioned that the spinning sector was going through rough times and the sector is looking up to the government for help and support. Inclusion of cotton yarn in the MEIS and extending the interest equalization scheme to merchant exporters will go a long way in reducing the stress levels in the Spinning sector as well as increase in exports. As part of the international promotion campaign for Indian cotton textiles, the Hon'ble Minister released Texprocil's newly designed corporate promotional literature including corporate brochures and pamphlets.
TEXPROCIL, the first Export Promotion Council set up in India in the year 1954, and is responsible for promoting exports of cotton textiles. The council is the international face of Indian textiles, a one point stop for those who wish to source textiles from India. It has 3000 members who are engaged in the exports of cotton textiles including yarns, fabrics and home textiles including made ups.
SOURCE: The New Kerela
Cotton production is estimated to increase by 3.84 percent in the 2016-17 season (beginning from October 1) to 351 lakh bales compared to the previous year, a top Central Government official said. Cotton production in 2015-16 season stood at 338 lakh bales (of 170 kg each), Textile Commissioner Kavita Gupta told reporters here after the season's first meeting of the Cotton Advisory Board. "The increase in production is mainly estimated on the basis of good monsoon, no pest attack and high density plantation in the southern zone," Gupta said. Even as the total area is expected to decline by 11.59 percent to 105 lakh hectares this year, compared to 118.77 lakh hectares, the output is expected to be higher due to increase in yield, she said. The total yield is expected to grow by 17.46 percent to 568 kg per hectare in 2016-17 from 483.79 kg per hectare last year, she added. The production in all regions, except the south, is expected to be high, she said. "In the southern region, the total output is expected to decline to 94 lakh bales compared to 108.50 lakh bales last year as there is a shift to other crops in Andhra Pradesh and Telangana," she said. Gupta added that the area under domestic cotton varieties is expected to be higher than last year. In 2016-17, the total area under domestic varieties is likely to be 18.90 lakh hectares, up from 11.95 lakh hectares last season. On the other hand, the area under Bt cotton is expected to decline to 86.10 lakh hectares in 2016-17 from 106.82 lakh hectares in the previous year, she added. Further, she said, exports this year is expected to decline as Pakistan, a key cotton market for India, is likely to see a bumper production this year. "The total export is expected to be 50 lakh bales this year, down from 69 lakh bales last year. This is because cotton crop in Pakistan, to which we exported 40 percent of the total shipments, is expected to have a bumper production. Moreover, our export to China is likely to remain same or marginally less than last year," she added. Last year, cotton production in Pakistan was hit due to floods.
SOURCE: The Money Control
Sagarmala, the ambitious programme for ‘Port-led development’ in the country is all set to change the logistics sector performance by optimizing India’s logistics modal mix. The flagship programme by the Ministry of Shipping will help in reducing the logistics cost for both domestic and EXIM cargo with optimized infrastructure investment. An overall cost savings of INR 35,000 to 40,000 Crore per annum by 2025 is estimated from the same.
According to a study conducted under the Sagarmala programme, there lies a significant potential for moving raw materials and finished products using coastal shipping and inland waterways which is 60-80% cheaper than road or rail transport. Although the share of coastal shipping and inland waterways in the country’s modal mix remains low, an emphasis on coastal shipping to complement road and rail transport can lead to overall logistic cost savings. The programme aims to increase movement of coal through coastal route from 27 MTPA in FY 2016 to 129 MTPA by 2025 and increase the share of inland waterways and coastal shipping in modal mix to increase from 6% to 12%. The programme envisions reduction in the cost of power generation by Rs 0.50 per unit of power.
It is estimated that for power plants located 800 to 1,000 km away from coal mines, the cost of coal logistics can contribute up to 35 per cent of the cost of power production. Particularly in the case of the Coastal power plants in Andhra Pradesh and Karnataka, that currently receive coal from Mahanadi Coalfields by Railways, significant savings can be achieved by taking coal through the rail-sea-rail (RSR) route. It is estimated that coastal movement of coal to these plants can result in annual savings of over INR 10,000 Crore to the power sector.
In addition, up to 50 Million tonnes of coal can be moved via coastal shipping for non-power thermal coal users (for example steel plants). Other commodities such as steel, cement, fertilizers, POL and food grains could also be moved via coastal shipping to the extent of about 80-85 MN tonnes by 2025. Additionally, an estimated 60 to 70 MN tones of cargo can also be moved over inland waterways (with focus on NW1, NW2,NW4 and NW5) by 2025.
The concept of "port led development" is central to the Sagarmala vision. Port led development focuses on logistics intensive industries (where transportation either represents a high proportion of costs, or timely logistics are a critical success factor). The population in adjoining areas would have to be sufficiently skilled to participate in economic opportunities on offer. The synergistic and coordinated development of four components, namely logistics intensive industries, efficient ports, seamless connectivity and requisite skill-base will lead to unlocking of economic value.
India, where the logistics cost (19% of GDP) is amongst the highest in the world will undergo complete transformation under the Sagarmala Programme, by unlocking the full potential of India’s coastline and waterways.
SOURCE: PIB
India has reiterated its commitment for a successful conclusion of the 2001 Doha Development Agenda (DDA) and other issues of interest to developing countries at the World Trade Organization (WTO), and made a fresh pitch for a global agreement on trade facilitation in services. In a mini-ministerial gathering of trade ministers in Oslo during October 21-22, commerce minister Nirmala Sitharaman “highlighted the centrality of the development dimension of the Doha Round and the need to work on the issues and ministerial decisions of special interest for developing countries”. “She underscored the need for prioritising the implementation of Bali and Nairobi ministerial decisions,” the commerce ministry said in a statement on Sunday.
The Doha round of negotiations have remained stalled since 2008, primarily over the issue of huge trade-distorting subsidies being given to farmers by the rich countries. While India and other developing nations want a reaffirmation to conclude the DDA first, developed countries seek to mostly dilute the negotiations and widen the mandate with new issues. India has also been seeking concrete work plans on a special safeguard mechanism for developing countries to protect their farmers from a spurt in imports, and on a permanent solution to the issue of its official grain procurement and food security in the country, as agreed on in the Bali ministerial. The two-day meeting was convened with a view to informally discussing various issues relating to the WTO negotiations and also to set the stage for the 11th ministerial conference of the multi-lateral body, to be held in Argentina in December next year. Sitharaman also highlighted the need for the trade facilitation agreement on services on which India has recently introduced a concept note in the WTO. “This will remove unnecessary regulatory and administrative burden of cross-border supply of services benefiting all members,” the statement said.
SOURCE: The Financial Express
As the World Bank looks set to release its annual ranking of countries in the ease of doing business later this week, India expects to improve its position from last year’s 130 out of 189 economies. The optimism stems from the fact that, for a second straight year, the country expects its ranking in “getting electricity’’ to improve substantially on the back of some “remarkable work” done by states, a senior government official told FE. Last year, India was placed at 70 of the 189 countries in “getting electricity”, compared with 99 in the previous year. This had helped the country improve its ranking by 4 notches. The government also believes that its “targeted intervention” to improve performance in difficult parameters — including dealing with construction permits and enforcing contracts — where the country has been faring badly for years now will start to pay, the official said. So while it will take some time to correct the course in certain legacy issues, especially in enforcing contracts, the DIPP believes the much-improved performance of states will be reflected in the country’s ranking for the years to come.
For instance, while only two states (Gujarat and Andhra Pradesh) had scored over 70% in a 98-point action plan for the ease of doing business — jointly decided by them and the Centre — last year, as many as 16 states have scored over 70% so far this year, that too on a 340-point action plan, showed the latest data by the Department of Industrial Policy and Promotion (DIPP). Importantly, 10 states have scored over 90% so far this year (Andhra Pradesh and Telangana top the charts in 2016, each scoring over 99%). The latest ranking of the World Bank takes into account reforms done up to the end of May, except in case of taxation. The performance in access to electricity has been impressive, the official said. For instance, in Mumbai, the time required for getting a new electricity connection has been reduced to an average of around 15 days from 67 days earlier. The number of procedures involved has been cut down to just 3 from 7.
Similarly, in Delhi, people can get connections in just 15 days now from as many as 140 days a few years earlier. The number of document required has been reduced to just 2 from 7 earlier. Access to electricity is crucial as it also has bearing on performance in some other aspects of the ease of doing business. Similarly, in “dealing with construction permits”, where the country was ranked at 183 of the 189 countries, the performance has improved. For example, in a city like Delhi which has traditionally fared badly in handling construction permits, the documents required for this purpose has now been cut to just 14 from 39 earlier. Nine departments involved in the process of the sanction of buildings have been integrated online. The drawing of the construction plan is “auto-checked” by a software and no site inspection is necessary. Reforms on this parameter have been even quicker in other parts of the country. On enforcing contracts in which India was placed at 178, the government has decided to set up commercial courts in a big way after the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill was signed into a law on January 1.
SOURCE: The Financial Express
Highlighting the importance of free trade agreements, NITI Aayog CEO Amitabh Kant said India must enter into such pacts to penetrate global markets and boost exports as the country cannot rely on domestic market alone to augment economic growth. “I am a great believer in FTAs. No country in the world has been able to do without exports. India can’t grow on the back of its domestic market. India must learn the art of exports. Unless you don’t penetrate global markets, it will be very difficult for India to grow,” Kant said. The government last month, reviewed the impact of free trade agreements (FTAs) on the domestic economy and employment generation amid concerns that FTAs may be helping trading partners more than India. The meeting was attended by Kant, among others.
India has implemented FTAs with several countries including Japan, South Korea and Singapore as well as the Association of Southeast Asian Nations (Asean). It is also negotiating similar pacts with several others, including the European Union, Australia, New Zealand and Canada. “The World Trade Organisation is not moving forward and therefore, the world is doing bilateral agreements. We should move forward with bilateral agreements,” Kant said, adding that for exports to grow and for India to become a great exporting nation, it is important to move towards FTAs. Kant, while addressing a meeting of the India-Japan Business Cooperation Committee here, said the Japanese companies “must adopt India as their home ground, must take much more risks and they will see results in the next 3-4 decades”. “In the last 68 years, we have made India a very complex, a very complicated and a difficult place to do business. We need to make India extremely easy and simple place. There has to be predictability, consistency and clarity of policies,” he said.
Noting that the Indian story for the Japanese companies had just begun, Kant said, “A huge possibility and potential (exist) for them to move away from a country they are overexposed to and over-invested in — China. The future of Japanese companies is not in Japan because of very small demand, their future is not in China, their future is in India”.
SOURCE: The Financial Express
Many commercial disputes gets entangled in the complex judicial procedures which ultimately results in loss of man-days and hamper the ease of doing business. In order to resolve this long standing issue the Prime Minister (PM) modi who is the head of executive and the Chief justice of India (CJI) TS Thakur have come together and appealed in unison to promote arbitration and resolve commercial disputes through professionally trained arbitrators, who could decide in a time-bound and cost-effective manner. Modi strongly encouraged a fully functional arbitration mechanism which he maintains is integral to ease of doing business while Justice Thakur cited the already existing humongous number of cases to push for this method of resolving commercial disputes. They were addressing a global conference on ‘National Initiative Towards Strengthening Arbitration and Enforcement in India’, organised by NITI Aayog. The three-day conference was attended by chief justices and judges of foreign courts, apart from various Supreme Court judges, including Justices Anil R Dave, J S Khehar, A K Sikri, S A Bobde and Uday U Lalit.
Seeking that India emerge as a global hub for arbitration Modi said, “This will provide additional comfort to investors and businesses. More importantly, it will also ease the case load on Indian courts. An enabling alternative dispute resolution ecosystem is a national priority for India. We need to promote India globally as an arbitration hub”
Spoke on further strengthening arbitration mechanisms in India & positioning India as a global hub for arbitration. CJI Thakur grudgingly pointed out that 18,000 judges have to hear five crore cases every year. “Out of the 50 million cases, 20 million are disposed of every year but this ever increasing avalanche of cases filed in courts is putting the judicial system under stress. So we have to look at some alternative to the conventional method of dispute resolution systems,”said Justice Thakur. “The need to strengthen the judicial system is intrinsically and deeply connected with our zeal to attract foreign direct investment,” asserted the CJI. Attorney General Mukul Rohatgi said, “If criminal cases can be decided within one year, it is not too short a period for arbitration proceedings to wrap up. Arbitration cannot become replica of ordinary courts and they must be decided expeditiously,”.
SOURCE: The Financial Express
As many as 80 lakh assessees of excise as well as service tax and VAT can start migrating their registration to the Goods and Service Tax Network portal by November 8, GSTN Chief Executive Prakash Kumar said. “On this date (November 8), we are releasing enrolments. This means getting these existing eight million assessees on to our system,” Kumar was quoted as saying by a PHDCCI release. The GSTN, which is expected to provide common and shared IT infrastructure for GST implementation, will transfer on-board to its platform the details of about 80 lakh existing assessees of excise, value-added tax, customs and service tax. Kumar said the migration of assessee details onto the GSTN platform will sort out inconsistencies and help industry get ready for GST implementation date of April 1, 2017. “This move will help them do business without any hassle from April 1 next year, which is the likely GST implementation date,” Kumar said.
GSTN, a not-for-profit entity incorporated in March 2013, has been set up primarily to provide IT infrastructure and services to the central and state governments, taxpayers and other stakeholders for implementation of GST. It has also been allowed to partner with other agencies for creating an efficient and user-friendly GST eco-system. Kumar also said that GSTN will in the coming days obtain imports related data (Bill of Entry) from the Central Board of Excise Customs (CBEC). This will be useful for levy of iGST (GST levy on imports). The GST will subsume excise, service tax and other local levies and will make India one market for seamless transfer of goods and services. The GST Council, consisting of Union Finance Minister and his state counterparts, is likely to decide on the tax rates in their November 3-4 meeting.
SOURCE: The Financial Express
Performance of States in improving the overall infrastructure for facilitating business has gone up, with a majority of them scoring over 80 per cent in the World Bank-Department of Industrial Policy & Promotion ranking of States, a senior government official has said. As many as 16 States had scored over 80 per cent in the World Bank- DIPP ranking of States based on 340 parameters on ‘Ease of Doing Business’, DIPP Secretary Ramesh Abhishek said at the 41st joint meeting of India-Japan Business Cooperation Committee (IJBCC) organised jointly with FICCI on Monday. “We are trying to address specific policy issues that would hasten the pace of reforms and remain determined on taking up issues in areas such as infrastructure and taxation to improve the manufacturing competitiveness in States,” he said. The next edition of the annual report is likely on Tuesday.
India, Japan cooperation
According to a joint statement issued at the end of the meeting, India and Japan discussed potential areas of cooperation such as pharmaceuticals and Information Technology. IJBCC pointed out India’s concerns such as the low share of Indian companies in the Japanese drug and IT market. The Indian side also sought improvement on the certificate of eligibility for Indian persons intending to obtain business visa for Japan, according to a release byFICCI. NITI Aayog CEO Amitabh Kant urged Japanese companies to rapidly move into the Indian market as the process of infrastructure creation and reforms will throw up ample opportunities for investment.
SOURCE: The Hindu Business Line
The proposed multiple rate GST structure will be "disastrous" and nothing more than same old VAT rates in a "new shape", former finance minister P Chidambaram said on Monday. "We sincerely hope that we do not misinterpret the design of standard, standard minus and plus rates of GST. We can have 20 rates. It will be disastrous and that cannot be GST, it will be fooling the country," Chidambaram told an interactive session with IIM Calcutta students on economic reforms. "A well designed GST is expected to have standard rate, plus and minus standard rate. That latitude interpreted to me as multiple rate — zero to 100 — that's not GST. That is simply existing VAT rates in a new shape, old wine in a new bottle," he said. He said he hoped better counsel would prevail which would reduce the number of rates to "three or so".
The new Goods and Services Tax (GST) will subsume a number of indirect taxes at the state as well as central level and is targeted for rollout from April 1, 2017. About states disagreeing and joining the second wave of GST reform, Chidambaram said that even when UPA had implemented VAT, some had not joined initially and they had joined later, and so eventually all states will fall in line. "Whatever, be the standard rates it will raise service tax," he said. At the GST Council meeting last week, there was virtual consensus among states on imposing of the cess, which tax experts and industry have opposed vehemently, saying it defeats the very concept of one-nation, one-tax. Besides, a four-slab tax structure of 6, 12, 18 and 26 per cent with lower tariff for essential items and the highest bracket for luxury and sin goods also found favour with them but a decision was put off to the next meeting on November 3-4.
SOURCE: The Business Standard
The government is leaving no stone unturned to undo the setback of sorts it suffered in its attempts to resolve the ticklish issues of tax rates and cess under the Goods and Services Tax regime. While analysts and experts agree that it is difficult to devise a ‘flawless’ Goods and Services Tax structure, industry is firm that there is no point in rolling out GST in a distorted form.
Centre’s proposal
In the recently held third round of meetings of the GST Council, the Finance Ministry had proposed a four-tier rate structure of 6 per cent, 12 per cent, 18 per cent and 26 per cent under GST. It had also called for a 4 per cent rate on gold and a cess on ultra luxury goods, tobacco and pan masala and aerated drinks as well as for clean energy. Defending the proposal for four-tier rate structure and a cess, NITI Aayog Vice-Chairman Arvind Panagariya said these would ensure less inflationary implications and lower tax rates for consumers as well as revenue predictability for the Exchequer. “The big gain from GST is having a single tax rate on a product across the country. No tax theory says that one rate in GST is better than two rates,” he told reporters. The Centre had argued for the cess as it requires Rs. 50,000 crore for compensating States for any revenue loss under GST for the next five years. For the purpose, it has also suggested creating a special compensation fund in the Public Account where the cess would be credited directly.
Panagariya argued that the advantage of levying such a cess is that it would be temporary. “After five years, it can be dropped. In case of a higher tax rate, there may be no inclination amongst States to remove it,” he said. But some States have opposed the cess and had called for higher tax rates on items such as consumer durable. Analysts and experts agree many of these distortions had to be brought in due to the decision to have an 18 per cent standard rate. “Ideally, there should not be a rate of 18 per cent. The Centre could have instead considered reducing the list of exempted commodities from 300 to a bare minimum,” said M Govinda Rao, Chief Economic Advisor, Brickwork Ratings and Advisor Deloitte. Rao, however said the proposal to levy a cess is better than higher tax rates as a cess will go to the Centre and it will not have to be shared with States in accordance with the Fourteenth Finance Commission’s devolution formula. “But it is likely that there will be a lot more negotiations with States,” he said.
Higher tax rate
India Inc views it differently. “Why start a GST with distortions? The cess should not be introduced. Levying a higher tax rate would be a better concept and it can be lowered once the compensation period is over,” said Mahesh Gupta, President, PHDCCI. Rajiv Dimri, leader, indirect tax, BMR, agreed and said that the whole concept of GST was to have a single tax rate. “The imposition of a cess, which is not available for credit, is against GST. It is a very bad idea as a revenue generating measure,” he said. The GST Council will meet on November 3 and 4 to discuss the rate structure under the indirect tax levy.
SOURCE: The Hindu Business Line
Invoice-to-invoice matching under the proposed goods and service tax (GST) in India will make it harder for the cash economy and other parts of the world will soon like to emulate this feature, says David Raistrick, Deloitte Global Leader for indirect tax. “India is the only country that is doing it (invoice-to-invoice matching). This is unique...People will have to comply or they will fall out of the GST chain,” Raistrick told ET in an interview. He said invoice-to-invoice matching will make it harder for people to use cash and for people to be in business and not pay tax. “Only those who play in the cash economy will feel the pressure as they will lose credit,” he added.
Raistrick, who supports indirect tax practices in Deloitte member firms and has also worked at the UK tax authority HM Revenue and Customs, sees introduction of this game-changing feature being done at the opportune time as the country is going in for a new tax framework and believes other global tax administrations to follow suit. “It is the right time to do as it’s a new tax. It’s going to happen everywhere. It should generate more revenues for the government and improve compliance," he said. Raistrick said if India sticks to 18% standard rate that would be reasonable, but pointed out that global norm was also to include petroleum and alcohol within GST but have additional excise duty levied on it to allow industrial consumers to claim credit. “It is the right time to do as it’s a new tax. It’s going to happen everywhere. It should generate more revenues for the government and improve compliance," he said.
Raistrick said if India sticks to 18% standard rate that would be reasonable, but pointed out that global norm was also to include petroleum and alcohol within GST but have additional excise duty levied on it to allow industrial consumers to claim credit. “I don’t think prices will start shooting up. Rates as proposed look sensible. What is proposed is below global average. Food, water goods of peoples’ interest can be lower.... Globally, that (imposing GST on petroleum and alcohol) has become a norm. I would not say what India should do but this is what the world has done,” he said. India is proposing to roll out GST from April 1, 2017, to create a seamless national market by merging central and state taxes on goods and services. He said GST will make it easy for foreign investors as they know and understand this tax and make the country an attractive investment destination. “India has a host of indirect taxes.... hidden from consumer....the current tax regime is very complex. It puts off foreign investment.... International business understands GST, so would feel more comfortable now,” he added.
The norm for launching new tax is 9-18 months and India's deadline may be very tight but the Central Board of Excise and Customs is preparing and that should help, he said. “The way CBEC has taken upon itself to prepare is fantastic. I have never seen any tax authority do as much. It will definitely help taxpayers. For small business there will be a challenge, but once implemented, it would be quite positive and administrative compliance burden would come down,” he said. He said some had already started acting and they would be fine. International businesses know GST so they will be fine but those that never believed that GST would be happening and deferred preparations till January “would not be fine”. On provisions such as anti-profiteering clause, he said: “I don’t personally like such provisions... I don’t think the new tax will be inflationary for India. Normal market economics would come into play.”
SOURCE: The Economic Times
Delays in receipt of dues from corporates remain a major challenge for micro and small enterprises (MSEs) in India, along with high cost of working capital finance and collateral requirements of lenders. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 stipulates that receivables of MSE suppliers must be paid within 45 days and accordingly disclosed in the buyer company's annual financial statements. However, CRISIL's study of receivables of its rated MSEs in four large industries - engineering & capital goods, chemicals (including pharmaceuticals), electrical components & equipment, and steel products - reveals that receivables are nearly twice the stipulated period. MSEs constitute three-fourths of the working enterprises in these industries and face the common challenge of sizeable working capital requirement because of their high receivables and inventory positions, accentuated by low bargaining power with principal customers.
Amend MSMED Act to ensure faster payments to MSEsCRISIL believes two quick amendments of the provisions of the MSMED Act can make it more effective. First, the recently launched Udyog Aadhar must be made mandatory for all transactions so that identification of MSEs and reporting of corporate payments to them becomes easy and verifiable. Second, the government must allow each industry to determine the optimal time period for clearing trade payables based on its own working capital cycle. Once the credit terms are mutually agreed by the buyer and their MSE supplier and adhered to, the predictability of cash flows becomes easier to assess for lenders. This should help banks to shift to cash flow-based funding from balance sheet or collateral-based MSE funding.
SOURCE: The Business Standard
Entrepreneurship Development Institute of India (EDII), plans to nurture 10 start-ups a year at its new technology business incubator - Centre for Advancing and Launching Enterprises (CrAdLE). The centre will nurture start-ups in manufacturing, food or agriculture business, renewable energy and health care. S Gopalakrishnan, co-founder of Infosys, is the chairman of CrAdLE's advisory board and the incubator will be open to selecting start-ups from its students, alumni and other would-be-entrepreneurs. "Technology business incubators are the need of the hour to facilitate a rapidly evolving start-up ecosystem. We are also going to encourage entrepreneurship for students who wish to start ventures while studying," said Gopalakrishnan.
EDII's incubator will also facilitate speedy commercialisation of technologies developed in academic and research & devlopment institutions and create a robust network. "Technology business incubation is the natural extension of EDII's present expertise in the areas of entrepreneurial education and research. We at CrAdLE shall provide start-ups not only the physical space to work from, but also mentoring by technology, law, marketing, taxation, finance and other experts to scale up their operations, accelerate their growth and reduce probability of failure," said Mayank Patel, CEO, CrAdLE.
SOURCE: The Business Standard
In an attempt to increase economic cooperation, the discussions at the BRICS summit in Ufa, Russia last year culminated in the constitution of the National Development Bank (NDB), a transnational bank, rivalling the IMF and other institutions historically dominated by western countries. The objective behind the NDB was first, to create a self-sufficient and independent financial institution for funding infrastructural development needs in developing economies. Second, to strengthen the economic ties within Brics. Third, to enhance this cooperation amongst Brics’ nations which would ensure greater say and influence on the international economic order, more commensurate with their dominant standing.
The need to bolster greater economic cooperation and development within BRICS has also led to the idea for a Brics-centric dispute resolution forum. The 8th BRICS summit at Goa, held on October 15-16, 2016, hosted by India as the chair of the bloc, presented an opportunity for addressing the new dispute resolution mechanism. However, with the summit focusing largely on improving regional cooperation for combating terrorism, this proposal remained on the back-burner. Even so, there is a need to address the future probability of such a mechanism and the challenges associated with the same, as it is likely to become an important issue in the time to come. The possibility of creating such a mechanism will come with its share of challenges.
The idea behind a Brics-centric dispute resolution mechanism stems from challenges faced frequently by developing countries in existing international arbitration frameworks. Arguably, the current international framework, particularly in investment treaty arbitrations, is extremely unfavourable for developing countries. There is inequitable representation of arbitrators from developing countries on such panels, resulting in a level of obliviousness regarding the socio-economic conditions prevailing in developing nations. This often leads to adverse economic ramifications of arbitral awards for these countries.
Investment treaty awards are perhaps the best specimens highlighting these challenges. Of the five-member bloc, India, Russia and South Africa are facing heavy consequences of arbitral awards in several high-profile investment treaty arbitrations. For instance, since the award against India in the White Industries case in 2011, several bilateral investment treaties (BITs) have been used to initiate arbitration proceedings against the government. Most recently, India suffered another adverse treaty award in the Antrix-Devas case, wherein it was found to have violated its obligations under the India-Mauritius BIT. The country has been asked to pay $1 billion in damages. Being repeatedly faced with liability under BITs, the Indian government had to come up with a new Model BIT to safeguard foreign investors.
Thus, the viability of an independent dispute resolution mechanism with a focus on Brics’ countries, is being deliberated. In fact, in August this year, the Federation of Indian Chambers of Commerce and Industry (FICCI), in collaboration with the ministry of finance hosted an international conference as a precursor to the BRICS summit. Eminent legal experts from all five member countries examined amongst other things, the viability of a Brics-centric arbitration centre,with a focus on arbitrating international commercial disputes between BRICS countries, and offering its services to other developing countries when needed.
While seemingly a convenient solution, an independent dispute resolution framework warrants thorough contemplation. At the outset, it is imperative to have a consensus on the oversight mechanism for the constitution and day-to-day functioning of the proposed dispute resolution framework. Further, there appears to be some confusion between an intra-BRICS arbitration centre (commonly called BRICS-centric), and a general institution head-quartered in one of the BRICS countries that offers international arbitration services to all developing nations.
It is important to appreciate that both these models will require distinct frameworks to govern them. While a Brics-centric arbitration centre may be better served under an exclusive treaty between BRICS nations, such an international document may not be needed for the setting up of an international arbitration centre by one or more BRICS countries. The latter could be constituted by local governments as independent institutions rendering international arbitration services to any individual across the globe, and not limited to disputes between BRICS nations. In fact, presently India has two such international mediation centres—one set up in the Gujarat International Finance Tec-City Company Limited, in collaboration with the Singapore International Arbitration Centre, and the other being the Mumbai Centre for International Arbitration.
Significant challenges may also arise regarding the jurisdiction of such an institution, whether this institution will be dedicated exclusively to intra-BRICS disputes, or make its arbitration services available to any individual across the globe. The scope of the disputes that are arbitrable will need clarity. For instance, whether the mechanism will address disputes between the governments of two BRICS nations, or between their respective citizens, or investment disputes between BRICS nations, given the fact that this proposal stems from the problems faced in existing international framework for investment arbitrations.
Finally, any intra-BRICS framework will only be effective if awards rendered by such a body are enforceable without the added difficulty of getting entangled in domestic proceedings. Problems of enforceability may cause diplomatic and policy challenges within the BRICS nations, thereby posing hurdles to the formation of a treaty framework which will supercede the domestic arbitration laws of these countries.
The notion of a new dispute resolution mechanism for BRICS requires a considerable amount of meaningful deliberation. The first step towards a transparent and effective dispute redressal mechanism for BRICS is a multilateral understanding among these countries, followed by formulation of mutually agreed guidelines or a code, to establish a mutually beneficial framework dealing with trade and investment issues. If the long process and stages of deliberations involved in the setting up of the NDB is indicative of anything, it is safe to say that treaties and institutions set up commonly for BRICS nations are nothing short of a herculean task.
A joint exercise must be carried out by the countries involved to understand how this arbitration mechanism will be coordinated and implemented between the nations, and its interaction with their domestic regimes. Dialogue with various stakeholders in these nations and building trust as to the reliability and efficiency of such a mechanism is crucial to its success. If implemented well, the idea of a BRICS-centric arbitration mechanism appears to be promising for increased cooperation and sustainable economic growth in these countries.
SOURCE: The Financial Express
The issue of terrorism dominated the proceedings of the recently concluded Bay of Bengal Initiative for Multi-Sectoral and Economic Cooperation (BIMSTEC) Outreach Summit in Goa. India in its bids to diplomatically isolate Pakistan in the wake of fidayen attack in Uri sought the cooperation of the BIMSTEC members to fight the menace of terrorism. The BIMSTEC leaders extended full support to India’s call and agreed to enhance counter-terrorism cooperation at the regional level.
The Goa summit assumes significance after the cancellation of the South Asian Association for Regional Cooperation (SAARC) Summit, which was scheduled to be held in Islamabad in November this year. All the South Asian nations joined India in boycotting the SAARC Summit after Pakistan-based jihadi outfit Jaish-e-Mohammad’s (JeM) attack on Uri army base on September 18, 2016. BIMSTEC, which includes all the SAARC nations barring Afghanistan, Pakistan and Maldives, has filled the void. Unlike SAARC, the BIMSTEC member nations are not having intractable political problems among themselves. During the Goa summit, the member nations agreed on early ratification of the BIMSTEC convention on cooperation in combating international terrorism, transnational organised crime and illicit drug trafficking.
BIMSTEC is a sub-regional grouping comprising seven geographically contiguous-littoral and peripheral South and Southeast Asian nations, namely, Bangladesh, India, Sri Lanka, Nepal, Bhutan, Myanmar and Thailand. The primary objective of BIMSTEC, which acts as a land bridge between SAARC and Association of Southeast Asian Nations (ASEAN), is to promote regional cooperation and economic integration in the area around the Bay of Bengal. The BIMSTEC region is home to 22% of the global population with a total gross domestic product (GDP) of USD 2.7 trillion. The priority areas of this regional forum include trade, economic cooperation, connectivity, agriculture, tourism, people-to-people contacts and technical and human resource development. The theme of the Goa outreach summit was “a partnership in opportunities”.
In their efforts to promote regional integration, the BIMSTEC leaders pledged to expedite the process of building multimodal physical connectivity in the region during the Goa summit on October 16. They expressed their satisfaction with the progress achieved in implementation of the recommendations of the BIMSTEC Transport Infrastructure and Logistics Study (BTILS) and agreed to explore the possibility of signing a BIMSTEC Motor Vehicle Agreement. Under the BTILS adopted in December 2013, the grouping has decided to finalise a short list of priority projects for regional connectivity for implementation. The Asian Development Bank has agreed to provide financial assistance to some of the projects.
BIMSTEC offers excellent opportunities for India to connect its Northeast with the economic power houses of ASEAN. New Delhi has been pitching for expanding sea and port connectivity in the Bay of Bengal region to make the movement of goods faster and cost-effective. Access to nearby ports for transportation of goods is urgently required for North East since the region is landlocked. Bangladesh, a key member of BIMSTEC, has already decided to allow transit facilities to the Northeastern states through its territory.
To overcome the geographical constraints a number of infrastructure projects are also underway to augment connectivity between the Northeastern region and Southeast Asian countries through Myanmar. The Kaladan Multimodal Transit Transport Project is one such vital initiative that seeks to connect Indian ports in the eastern coast with Sittwe port of Myanmar and then through riverine transport and by road to Mizoram providing an alternative route for transportation of goods to North East. India has attached priority to the up gradation of Sittwe port following the discovery of about 10 trillion cubic feet of gas in two blocks of Shwe field 60 km off shore from the port.
Another key connectivity project, the 3200 km-long India-Myanmar-Thailand Trilateral Highway from Moreh in Manipur to Moe Sot in Thailand via Mandalay in Myanmar, is essential for increasing people-to-people relations among the BIMSTEC members and accelerate India’s economic integration with ASEAN. New Delhi wants to extend the highway further eastward to ports in Cambodia and Vietnam and has urged the ASEAN members to expedite the project. Efforts are on to make the road operational by 2018. In order to gain access to the larger ASEAN market through seamless movement of passenger and cargo, New Delhi has been pushing for a Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicle Agreement (MVA)-like pact with Myanmar and Thailand.
BIMSTEC has the potential to generate trade worth USD 43-49 million under a proposed Free Trade Area (FTA). A framework agreement to set up a FTA was signed in February 2014 to increase the flow of goods and services in the BIMSTEC region. An early conclusion of FTA is necessary fort enhancing trade and investment in the region. During the outreach summit in Goa, the member nations renewed their commitment to the speedy completion of FTA negotiations. They agreed to initiate concrete measures to boost trade facilitation and offer special and differential treatment for least developed nations (LDCs) for their integration into the regional economy.
BIMSTEC has also made some progress in the arena of energy sector. In the wake of growing energy cooperation among the BIMSTEC member states, the leaders of the seven nations decided to accelerate the process of signing of the BIMSTEC Memorandum of Understanding on Grid Interconnection. They also called for early operationalisation of the BIMSTEC Energy Centre.
Considering the vast potential of the development of the blue economy in the region, the members resolved to deepen cooperation in areas such as aquaculture (both inland and coastal), hydrography, seabed mineral exploration, coastal shipping, eco-tourism and renewable ocean energy with the aim of promoting sustainable development of the Bay region.
Despite all efforts, there still exist a gap between the region’s immense potentialities and optimum utilisation. The sub-regional grouping has not made much headway in terms of implementation of its various schemes. The intra-regional trade and commerce have not grown substantially over the years and regional integration has also remained unfulfilled as infrastructural bottlenecks continue to persist. Studies have identified several impediments to India-Southeast Asia trade, including absence of common currency in border trade, restrictive visa regime, complex border crossing formalities and procedures and restrictions on the entry of motor vehicles.
Dissimilar economic credentials of the BIMSTEC member nations are also partly responsible for the slow progress of the regional forum. The economies of BIMSTEC vary in terms of resource base, size of market, level of industrial development and economic performance. BIMSTEC accommodates a fast-growing economy like Thailand as well as LDCs such as Nepal, Bhutan and Myanmar. Besides, domestic political instability in some of the member countries has delayed the proceedings of the grouping.
SOURCE: The Eurasia Review
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$ 49.41 per barrel (bbl) on 21.10.2016. This was lower than the price of US$ 49.93 per bbl on previous publishing day of 20.10.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3305.32 per bbl on 21.10.2016 as compared to Rs. 3332.39 per bbl on 20.10.2016. Rupee closed weaker at Rs. 66.89 per US$ on 21.10.2016 as against Rs. 66.74 per US$ on 20.10.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 21, 2016 (Previous trading day i.e. 20.09.2016) |
Pricing Fortnight for 16.10.2016 (Sep 29, 2016 to Oct 12, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.41 (49.93) |
48.69 |
|
(Rs/bbl |
3305.32 (3332.39) |
3243.24 |
|
|
Exchange Rate |
(Rs/$) |
66.89 (66.74) |
66.61 |
SOURCE: PIB
Prime Minister Nawaz Sharif will soon take a decision on a huge bailout package of over Rs175 billion for the textile industry aimed at supporting the exporters of textile products. A source in the Ministry of Textile Industry told The Express Tribune that a comprehensive bailout package had been finalised and sent to the prime minister for final approval for support of the textile sector, which accounts for more than 60% of the country’s total exports.
Pakistani textiles take a hit, orders drop 50%
The textile package was prepared keeping in view the country’s overall falling exports, which dropped to $20 billion from $24 billion within two years with a major decline in shipments of textile products. The source said after discussion with the Federal Board of Revenue (FBR), the finance ministry and other ministries, the package was finally submitted to the Prime Minister Secretariat, which is the final authority to take a decision. Most of the package was related to concessions in taxes, duties and tariffs in addition to offering duty drawback to the exporters, said the official, adding Finance Minister Ishaq Dar and the FBR were opposing the bailout. They argued that such concessions to the largest sector of the economy would have a huge impact on revenue collection, which would hamper efforts to meet the tax target.
Textile exporters argued that the concessions would not have any significant implications for the revenue receipts and would bridge the shortfall once overall exports started rising. At present, the higher cost of production and lack of modernisation are the key factors behind the reduced demand for Pakistan’s textiles in foreign markets. India, Bangladesh and some other countries are rapidly filling the gap due to their low cost of production. Commerce Minister Khurram Dastgir was the leading advocate of the bailout package to arrest a further decline in exports.
A rare flourishing textile business
At a recent meeting of the Senate Standing Committee on Textile, the commerce minister revealed that the government was considering a bailout package for revival and modernisation of the textile industry. The package would help modernise technology for value addition in textile products in addition to massive infrastructural modernisation of the industry. Besides, the government will give special tax incentives to enhance value addition. The proposed technological revival will help the industry compete with the regional competitors. A six-member committee consisting of officials from relevant ministries and stakeholders, which was constituted to review the challenges faced by the textile industry, has finalised the package.
SOURCE: The Tribune
The Nigerian Textile Manufacturers Association (NTMA) has urged the Federal Government to channel proceeds from Textile Development Levy to boost the competitiveness of the textile industry. Mr Hamma Kwajaffa, Director-General of NTMA, said in Lagos that the accrual from the levy would bridge the infrastructure deficits that presently impeded the industry. The Federal Government set aside 10 per cent import levy on imported faBRICS to develop operations of local textile manufacturers. The levy was to be collected on behalf of the government by the Nigerian Customs Service. According to Kwajaffa, no textile manufacturers has accessed the 10 per cent import levy on textile materials since it was established in 1997. “We are supposed to have 10 per cent of any fabric coming into the country as textile development levy. Till date, nothing has come to the coffers of textile manufacturers. “The levy was to cushion the infrastructure decay that has impeded our competitiveness with other countries and boost the export of locally produced fabrics. “Last year, about 4 billion dollars worth of faBRICS was imported into the country. The development levy from this, just like others, we did not get. “Now that all these proceeds are channeled into the Treasury Single Account (TSA), we are appealing to the government to establish it as a fund that would catalyse the activities of the industry. “The accrual should be given to Bank of Industry (BoI) to keep on our behalf and charge small interest rate of, maybe one or two per cent, from our members.” The director-general said the establishment of the fund would reduce the need for textile manufacturers to source finance from commercial banks at high interest rates. He stressed that the fund would boost production, competitiveness, employment, GDP contribution and revitalise the textile industry.
SOURCE: The Naija 247 News
The Russian technical textiles industry is steadily growing, thanks to the ongoing recovery of the national economy from the effects of the crisis and the prospects of lifting of the Western sanctions possibly by the end of the year, according to a recent report by the Russian Ministry of Industry and Trade. Despite the crisis, the technical textiles segment remains one of the most promising in the Russian light industry in terms of its future prospects. Unlike textiles for non-technical applications, which currently remain in stagnation, the Russian technical textiles industry is expected to grow by 7% in value terms this year. The ongoing industry growth is also reflected by the recently announced investment projects. For example, a new large-scale facility for the production of technical faBRICS has been recently commissioned in the Kursk region, in Central Russia. The project is implemented by Rabeks Textiles, one of Russia’s largest technical textile producers. It is reported that the new plant was commissioned on the basis of the local Kurskrezinotekhnika enterprise and is expected to be one of Russia’s largest technical textile facilities, which is located in the European part of the country.
Under the terms of the project, the volume of production at the enterprise at the initial stage will be about 400,000 sq. m. of technical faBRICS per month, with a possibility of a significant increase in due course. As part of the company’s strategy, the production volume will reach 900,000 sq. m. during the second stage of the project, which is scheduled to launch in the middle of 2017. According to some sources close to Rabeks, the volume of investments in the project may reach US$ 30 million at the initial stage. According to Victor Evtukhov, Russia’s Deputy Minister of Industry and Trade, the launch of the Kursk plant is just the beginning, and during the next several years the number of facilities in Russia, specialising in the production of technical textiles and nonwovens, should be increasing significantly. Evtukhov also added that the Russian government plans to focus on the complex development of the national technical textiles industry, considering it as one of the most promising segments of the country’s light industry until 2020. That means that Russia plans to establish production of the entire technological chain of synthetic materials, from chemical fibres and threads to technical textiles, for further use in different consumer and industrial applications. In the meantime, according to analysts of the Russian Association of Textile and Light Industry Producers, the demand for synthetic faBRICS and technical textiles in Russia will continue to grow in the coming years and will be significantly higher than in other segments of the domestic light industry.
As part of the government’s plan, the Tatarstan Republic, one of Russia’s most economically developed regions, will be the centre of further development of the national technical textiles and nonwovens industry of Russia for the coming years. That will also be due to the rich petrochemical base of the region, which should create conditions for the establishment of new industry’s enterprises within the region in the coming years. It is also planned that further growth of the industry will be achieved through the increase of the state support. At present, the annual volume of state support of the Russian technical textiles industry is estimated at RUB 2 billion (US$ 40 million) and there is a possibility that it could be increased in the coming years. The majority of these funds are allocated for the repayment of interest rates on loans that are mainly attracted by producers for the purchase of raw materials and other products. At the same time, despite numerous calls of producers for the increase of state support, the Russian government plans to provide further support only on the basis of the industry’s performance and its further results. This means that the quality of domestic products should significantly grow in the coming years, with the aim to compete with Western imports.
Prior to 2000s, the Russian technical textiles and nonwovens market was mostly dominated by imports, which were mostly supplied from the EU and the US, however, in recent years, the situation has changed significantly, whereas the quality of the local production has become almost comparable to the its Western analogues. This has resulted in a significant reduction of imports and the increase of the share of domestic products. In the case of good performance, the Russian government may consider the possibility of the provision of additional benefits for the industry, in accordance with the numerous calls of producers. Among the possible support measures is reducing of the rate of mandatory payments to the pension and health funds, (which are annually paid by producers), as well as the abolishment of part of the existing taxes. According to producers, high taxes currently remain one of the major obstacles, which restrict further development of the industry and complicate its further growth. In addition, further development of the industry also depends on the activities in the major consuming industries, and in particular, construction and defence industries, which in recent years have become the major applications of technical textiles in Russia.
According to analysts, in contrast to previous years, when the majority of technical textiles were supplied for the needs of local clothing industry, at present, most of the industry’s production is supplied to related industries, where the demand is growing at even higher rates. The Russian military and industrial sectors probably currently remain the biggest application markets of technical textiles in the country, and there is a possibility that the volumes of consumption will continue to grow in the coming years, due to ongoing militarisation.
SOURCE: The Innovation in Textiles
German technology can play a major role making the environment cleaner and increase energy efficiency of the textile industry, according to a discussion among the VDMA member companies during the opening of ongoing ITMA ASIA + CITME 2016, Asia's foremost trade fair dedicated to textile machinery, held in Shanghai, China, from October 21 to 25, 2016. The VDMA booth (H1F81) at the expo is the first contact point for visitors interested in German technology. Visitors can get a compact overview of manufacturers and their products in the useful pocket guide, listing all exhibiting VDMA members by halls and showing their stand location in the hall plans. With their products and services, the VDMA member companies have already taken steps towards Industrie 4.0, in China called intelligent manufacturing. Visitors to the event will have an opportunity to appreciate the high level of technology being proposed by more than 100 German machinery manufacturers.
Fritz P. Mayer, chairman of VDMA textile machinery and associate of Karl Mayer Textilmaschinenfabrik said, “VDMA member companies have been focussing on the issue of sustainability for their products, in order to satisfy the demand for efficient technology solutions that effectively cut back on consumption, and consequently on production costs. New technology is the number one key to better products and competitive production. And, technology is one precondition for resource and energy saving, he explained. Professionally investing customers are happy to pay for sustainable technologies and improved energy efficiency. VDMA calls this “Sustainability meets profit.”
VDMA started its sustainability initiative Blue Competence, to which over 40 textile machinery companies have adhered. IT conducted an analysis that examined the energy saving effects over the entire production chain of five textile products: A cotton T-Shirt, a functional T-Shirt a textile billboard, an architectural textile, and a hygienic nonwoven. In the production of these products up to 30 percent energy can be saved with German technology of today compared to the one available 10 years ago. Details of this analysis are available as a brochure at the VDMA booth.
Thomas Waldmann, managing director, VDMA Textile Machinery said, “Leading customers are increasingly interested in condition monitoring and predictive maintenance, including remote services. Immediate advantages of Industrie 4.0 are improved plant efficiency, more economical production processes, energy savings, more flexible production, just to name a few.”
SOURCE: Fibre2fashion
The 12-member Trans-Pacific Partnership (TPP) that was signed earlier this year may not come into effect in its present form. Both the US presidential candidates—frontrunner, Democrat presidential nominee Hillary Clinton and Republican candidate Donald Trump—are opposing the treaty in its current form stating that it is against the US trade interests. Clinton is against the implementation of the pact since contesting for the polls, while Trump has consistently condemned the ratification of the treaty in his poll campaign. Unless both of them revoke their decision of not supporting the agreement, Vietnam which stands to gain enormously from the trade deal that spans 40 percent of the world's economy will incur heavy losses. “My message to every worker in Michigan and across America is this: I will stop any trade deal that kills jobs or holds down wages, including the Trans-Pacific Partnership,” said Clinton during a campaign in Warren recently. She categorically said, “I oppose it now, I'll oppose it after the election, and I'll oppose it as president.”
Likewise, Trump has also taken a stance against the agreement. Reportedly, Trump who has been against the implementation of the treaty vouches to remove the US from the TPP membership if he wins the presidential polls. In a public address in Pennsylvania, Trump said, “The TPP would be the death blow for American manufacturing... It would further open our markets to aggressive currency cheaters.” Going by the statements of presidential nominees, it seems very likely that TPP will at least be revisited or reworked, if not altogether scrapped, after the new president takes over early next year. This will have a drastic effect on the textile and clothing sector of Vietnam, which expects duty on its exports to the US to reduce to zero from the current 17 per cent.
SOURCE: Fibre2fashion
New Zealand's top envoy in Seoul said Tuesday she hopes South Korea will join the Trans Pacific Partnership, calling the country a "natural partner." New Zealand is one of 12 countries that have joined what is expected to emerge as the world's largest free trade block. US President Barack Obama has been pushing to ratify the pact before the end of his term. South Korea has yet to decide whether to join. Its actual implementation, however, faces uncertainty as key presidential candidates in the United States, one of the major countries leading the initiative, have expressed skepticism in the course of their campaigning. "We hope that the TPP will pass before the conclusion of the Obama administration," Clare Fearnley, New Zealand's ambassador to South Korea, said during a discussion with journalists in central Seoul.
Mentioning that South Korea appears not interested in participating in the TPP, she said that all 12 member countries would "welcome" South Korea's decision if the country decides to join it. "We would hope that in the future Korea changes its mind about the TPP. From New Zealand's perspective, we think Korea is a very natural partner within the TPP," she noted. As for the free trade deal that went into effect last year between New Zealand and South Korea, she said that it has been proved to be a "very successful" two-way agreement, and Korea, in particular, has done quite well. "The trade between our two countries has grown significantly.... I have to congratulate Korean negotiators because looking at the first year's statistics, Korea has done very well under the Korea-New Zealand FTA," she said.
Touching on the North Korea issue, the ambassador said that New Zealand is working actively with other U.N. member countries to implement the resolution adopted in March after Pyongyang's fourth nuclear test and also joined the global consensus to call for additional sanctions for its continued provocation. "We work very constructively in New York with (South) Korean counterparts there. And we also understand the current focus is on sanctions and implementation," Fearnley said. She, however, cautioned against the current "sanctions-only" approach to resolve the stalemate, saying that consensus is that such punishment should be carried out with efforts to bring Pyongyang to the negotiating table in the end. "A great majority of diplomats that I deal with from a range of countries see sanctions and talks are part of a single process, while the focus now may be on the sanctions," she said. "And the objective of a great majority is to bring meaningful discussion in order to manage the situation and hopefully ameliorate the situation on the Korean Peninsula."
SOURCE: The Korea Herald
The central parity rate of the Chinese yuan weakened to a six-year low against the US dollar on Monday. The central parity rate of the Chinese currency renminbi, or the yuan, weakened 132 basis points to 6.7690 against the US dollar Monday, according to the China Foreign Exchange Trade System. It was the weakest level since September 2010 as increased market expectations for an interest rate hike in the United States led to a stronger dollar. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
The recent yuan depreciation can be attributed to a stronger dollar, said Wang Chunying, spokesman for the State Administration of Foreign Exchange, said at a press conference on Friday. Wang said that China's exchange rate mechanism has become more market-oriented and transparent which led to higher volatility for the yuan. Analysts believed despite short-term volatility from a stronger dollar, the yuan will maintain overall stability and the chance for a sharp depreciation is slim, backed by stable economic growth, balanced fiscal condition and ample foreign exchange reserves.
SOURCE: The Global Textiles
Oil prices dipped on Monday, with U.S. crude briefly falling below $50 per barrel, on news of the impending restart of Britain's Buzzard oilfield and Iraq's wish to be exempted from OPEC production cuts. Buzzard, the North Sea field that contributes to the Forties crude stream and which pumps about 180,000 barrels per day (bpd), will restart on Tuesday or Wednesday, from a month-long planned maintenance, an industry source said. Iraq's oil minister Jabar Ali al-Luaibi said the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC) wanted to be exempt from output curbs as it needed more money to fight Islamic State militants. OPEC hopes to remove about 700,000 bpd from an estimated global supply of 1.0-1.5 million bpd. Details of how much each member should cut have been left to its meeting in Vienna on Nov. 30. Brent LCOc1, the international benchmark for crude, settled down 32 cents, or 0.6 percent, at $51.46 a barrel. Its session low was $50.50.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 33 cents, or 0.7 percent, to settle at $50.52. WTI slid below $50 for the first time since Oct. 18, hitting a session low of $49.62, as some players locked in profits from oil's climb of more than $5 a barrel, or about 13 percent, over the past month. "We're seeing some length exiting the market," said Pete Donovan, broker at New York's Liquidity Energy. In Forties crude, which influences pricing for Brent, differentials were at their weakest in two weeks pending the restart of the Buzzard field. "Obviously, it means increased supply for Brent versus what had been the status quo," said David Thompson, executive vice-president at commodities-focused broker Powerhouse in Washington.
Still, losses in oil were limited by higher equity prices on Wall Street and by data from energy monitoring firm Genscape showing a weekly draw of about 1.0 million barrels of crude at the Cushing, Oklahoma, delivery hub for WTI. The Seaway Crude Pipeline system, a 850,000-bpd system which moves crude from Cushing to Gulf coast refineries, was completely shut down briefly after a leak was discovered late on Sunday. By Monday afternoon, the 450,000 bpd Seaway Twin, which was shut as a precaution, was restarted. But the 400,000-bpd pipeline, which it calls its legacy line, remained shut. News of the outage sent the prompt crude spread CLc1-CLc2, which often correlates to the supply-demand balance in Cushing, to the widest in nearly two months. Crude futures also pared losses toward the settlement as bulls gained more control. It was "just short covering ... people were short and got squeezed out," said Jimmy Brunn, managing director at Forecast Trading Group in Suffern, New York.
SOURCE: The Reuters
Business activity in the eurozone has expanded in October at the fastest pace so far this year. Germany was again the star. According to the latest surveys of companies conducted by IHS Markit, the region’s largest economy recovered from weakness in the summer as both manufacturing and services picked up. France’s overall private sector activity also expanded but at a slower pace, with the service sector weaker than expected. IHS Markit’s eurozone flash composite Purchasing Managers’ Index, seen as a good overall indicator of economic growth, jumped to 53.7 from September’s 52.6. It was far above the 50 point mark which indicates growth in activity. The surveys also found companies have been raising prices at the sharpest rate in more than five years. The upturn in both business activity and prices is welcome news for policymakers at the European Central Bank, who are running out of ways to stimulate the bloc’s economy.
SOURCE: The EuroZone News
