INTERNATIONAL
Textile Raw Material Price 2016-11-16
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1024.60 |
USD/Ton |
0% |
11/16/2016 |
|
VSF |
2289.85 |
USD/Ton |
0% |
11/16/2016 |
|
ASF |
1866.88 |
USD/Ton |
0% |
11/16/2016 |
|
Polyester POY |
1112.11 |
USD/Ton |
0.66% |
11/16/2016 |
|
Nylon FDY |
2377.36 |
USD/Ton |
0.62% |
11/16/2016 |
|
40D Spandex |
4302.58 |
USD/Ton |
0% |
11/16/2016 |
|
Nylon DTY |
2515.91 |
USD/Ton |
0% |
11/16/2016 |
|
Viscose Long Filament |
5498.55 |
USD/Ton |
0% |
11/16/2016 |
|
Polyester DTY |
1334.53 |
USD/Ton |
0.55% |
11/16/2016 |
|
Nylon POY |
2144.00 |
USD/Ton |
0% |
11/16/2016 |
|
Acrylic Top 3D |
2038.98 |
USD/Ton |
-0.14% |
11/16/2016 |
|
Polyester FDY |
1341.82 |
USD/Ton |
0.55% |
11/16/2016 |
|
10S OE Cotton Yarn |
2197.96 |
USD/Ton |
7.49% |
11/16/2016 |
|
32S Cotton Carded Yarn |
3318.09 |
USD/Ton |
0.22% |
11/16/2016 |
|
40S Cotton Combed Yarn |
3784.81 |
USD/Ton |
0.19% |
11/16/2016 |
|
30S Spun Rayon Yarn |
2858.66 |
USD/Ton |
0% |
11/16/2016 |
|
32S Polyester Yarn |
1728.32 |
USD/Ton |
0% |
11/16/2016 |
|
45S T/C Yarn |
2566.96 |
USD/Ton |
0% |
11/16/2016 |
|
45S Polyester Yarn |
1852.30 |
USD/Ton |
0% |
11/16/2016 |
|
T/C Yarn 65/35 32S |
2202.34 |
USD/Ton |
0% |
11/16/2016 |
|
40S Rayon Yarn |
3019.10 |
USD/Ton |
-0.48% |
11/16/2016 |
|
T/R Yarn 65/35 32S |
2246.09 |
USD/Ton |
0% |
11/16/2016 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
11/16/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
-28.97% |
11/16/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
11/16/2016 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
11/16/2016 |
|
45S T/C Fabric |
0.64 |
USD/Meter |
0% |
11/16/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14585 USD dtd. 16/11/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile and leather, which are labour-intensive industries, are facing the heat of centre's decision to demonetise the Rs 500 and Rs 1,000 currencies. Companies are not able to pay wages to workers and not able to procure raw materials. While agreeing that the centre's move will stream line the system, it will increase the cost of doing business. Tirupur Exporters Association (TEA) welcomed the government's move, but requested to allow withdrawal of higher amount, based on the average amount they have been regularly withdrawing from the banks for the past six months, which would help them to meet the payment of weekly wages and other sundry expenses without having any difficulties. Of the around six lakh workers, 40-50 per cent are migrants. Many of these workers don't have bank accounts. These workers usually get paid an amount of around Rs 300-400 a day. “We are ready to open accounts, but bankers are burdened with heavy load ever since demonetise came into effect and in one go bankers are not able to thousands of accounts,” said an exporter.
The challenge is that while we require around Rs 10-15 lakh a month in cash to pay to the employees, the banks are only allowing withdrawal of up to Rs 20,000, added Sabu M Jacob, chairman and managing director of Kitex Garments. "Every month we have around 150-200 new employees joining and they may have to be paid in cash till they get a bank account and given that even normally it would take around 15-60 days to open an account for the migrant workers, now the opening of new accounts has now come to a standstill," he added.The leather industry has impacted 10-12 % business, since 90 per cent of the units are SMEs. The major problem is sourcing of raw material, which are supplied mostly from the rural parts, said Rafeeque Ahmed, Chairman, Council for Leather Exports (CLE). “Everybody is confused and don't know what to do since they don't have cash,” said Ahmed.
Almost 20 per cent of the around 2.5 lakh workforce in the leather industry are temporary workers and each has to be paid around Rs 400 a day. The pressure will be build on every week till the issues are addressed. He added that many of the employees don't have proper address proof and despite the units are ready to give letter, banks are not willing to open accounts for them. While welcoming the centre's decision, Ahmed said such things cannot be implemented over night. The positive side of the story, according to a senior official from the industry, is many of the units in the traditional clusters were not recording PF and other employee benefits properly, since most of the transactions has been in cash, they will either pay less or wont show them on records. Now, all this will not be possible. Industry sources said that some of the companies giving two months salary and bonuses in advance in order to dispense the 500-1000 Rupee notes.
SOURCE: The Business Standard
In their Pre-Budget memorandum to the Finance Ministry, exporters have demanded that credit refunds under the impending Goods and Services Tax (GST) should made efficient to the extent that automatic system if tax credits be brought into operation. Besides, multiple Advance Ruling (AR) centres at the Central and state Levels should be set up to bring about certainty for exporters."What credit can accrue, what cannot accrue, what is exporter's liability and what is due to him can be brought about by the AR, thus helping the export sector," said P K Shah , Former Chairman of the Engineering Exports promotion council (EEPC) India. He said the engineering sector also demand that all products made of steel should be compensated by higher drawback rates since the protection given to large steel manufacturers against imports has resulted into higher cost of production for exporters, particularly for the small and medium enterprises.
In its memorandum, the EEPC India said even though the present exemption would not be possible under the GST so as not to break the entire value-taxation chain," , it is important that the refund system be made efficient as exports are zero rated". It has also been demanded that for definition of the medium scale firms, the upper limits of investments in plant and machinery should be increased to Rs. 50 crores from the present limit of Rs.10 Crores. The upper limits of the micro and small enterprises should also be revised upwards since due to high inflation during the last couple of years, the production cost has increased considerably.
SOURCE: The Times of India
Minister of State for Finance Arjun Ram Meghwal on Wednesday said that the Budget date has been finalised as February 1, though a formal confirmation is awaited from the Cabinet Committee on Economic Affairs. "It is almost decided that February 1 will be the date for presentation of the Budget. The date will be formally decided in the CCEA meeting," Meghwal told IANS in an interview. The minister said that it was also necessary to present the Budget early as the implementation date of the Goods and Services Tax (GST) has been fixed at April 1, 2017. The other two major changes regarding the upcoming Union Budget are, converging of the Rail Budget with the General Budget and doing away with the Plan and Non-Plan Expenditure. Instead the Budget will have Revenue and Expenditure classification. "Revenue Department has also started the pre-Budget consultations with the various stakeholders and Finance Minister's (Arun Jaitley) consultations with major stakeholders are also planned to be held in advance," Economic Affairs Secretary Shaktikanta Das had said earlier.
SOURCE: The Economic Times
Winter session of Parliament: Goods and Service Tax (GST) which will absorb local levies and indirect taxes has already missed many deadlines, will the Opposition’s onslaught against the Centre over the demonetisation affect the passage of GST? The Answer could be, YES! According to Hindustan Times report, The priority for Congress is to corner the BJP-led NDA over the demonetisation of 1,000 and 500 rupee notes. “Right now, the main issue is the surgical jumla (drama) of the demonetisation by Prime Minister Narendra Modi. The GST is not in our radar screen,” Congress strategist and Rajya Sabha MP, Jairam Ramesh told HT. “I think the GST is a forgotten issue. Let us first see if the session runs or not. Then only the possibility of GST being passed arises,” said Ramesh.
Even as the government may not require the Opposition’s support to pass the GST legislation, a united opposition might as well delay the passage of the bill through chaos and ruckus in the House. The Rajya Sabha may not get a chance to vote on the GST bill as the government is likely to introduce it as a money bill — such bills do not require the approval of the Upper House.
The Centre wants to pass the GST bill to roll out the new tax regime from April 1, 2017. “We are getting the Constitution amended for GST on which discussions have been on since long… since Congress’ time. I am confident that we will do those amendments and pass the GST,” home minister Rajnath Singh said recently. In the last session, the government managed to pass the Constitution amendment bill on the GST as the Congress and other opposition parties came on board. Now, with a hostile opposition gunning for the BJP-led government, it might be a tricky situation for pushing the GST bill. “Thousands of ‘rich’ and ‘corrupt’ persons standing in queue. The poor are cheering from their homes! Banks are doling out cash to citizens. That is proof that ‘Achhe Din’ has arrived! Millions of working people standing in queue. Long live productivity,” former finance minister P Chidambaram on Tuesday tweeted, taking potshots at the government.
SOURCE: The Financial Express
The Central government has circulated three draft Bills relating to the Goods and Services Tax (GST) with states for consultation, a senior government official said adding that these will be taken up for discussion in next GST Council meeting on November 24-25. The GST Council will have to clear Central GST (CGST), Integrated GST (IGST) and the compensation Bills before they can be introduced in the Winter Session of Parliament, which commenced Wednesday. States have time of over a week to give their views on the three draft laws relating to GST. The Centre and the states have already decided on a four-tier GST rates— 5 per cent, 12 per cent, 18 per cent and 28 per cent-— but is yet to decide on the issue of cross empowerment to avoid dual control.
On November 10, Lok Sabha had listed three draft Bills relating to GST for introduction in the Winter Session of Parliament. The constitutional amendment enabling rollout of the indirect tax regime was passed by Parliament in August, following which it became an Act in September after ratification by 16 out of 31 states and state legislatures. The government aims to introduce GST, which will subsume excise, service tax, VAT and other local levies, from April 1, 2017.
SOURCE: The Indian Express
The countdown to the roll-out of the goods and services tax, or GST, has begun. The government, enterprises, regulators and consumers are gearing up to handle the tax implications of “one-country one-market structure”. A lot has already been written about how enterprises can prepare for GST. However, in my opinion, GST is not just a financial reform, but a broader business reform. It has the potential to relook at how enterprises conduct their business in India. With GST, enterprises have an opportunity to revamp systems, go beyond the physical constraints of supply chain, and focus on what matters the most for any business—customer experience! It doesn’t just stop there. With delinking of the physical footprint from direct tax implications, enterprises can use this opportunity to move beyond physical structures, ‘go digital’ and provide digital experiences.
But first, why digital? Digital is the norm in today’s era as consumers respond more when they have better digital experiences. A recent study conducted by SAP concludes that a great digital experience directly correlates with customer loyalty and advocacy. The outcomes of the study indicate that consumers who are delighted with a brand’s digital experience are almost 10 times more likely to remain loyal than those dissatisfied with it. Moreover, consumers ‘delighted’ with the digital experience of a brand are significantly more likely to recommend the brand, to the tune of positive 77%, versus a negative 60% for dissatisfied experience. A poor digital experience these days causes more harm to a brand than just a lost sale. Negative word of mouth in digital spreads faster and wider, resulting in ‘switching economy’. A successful digital experience strategy lends enterprises the ability to serve customer needs through personalization.
What has GST got to do with the digital experience? GST has a much wider impact on the way enterprises will conduct business in India. It is change from physical to digital. As enterprises take steps to comply with the GST regime, they must use new agile models of sourcing and delivery through a better supply chain.
Free up working capital: The other big benefit of GST is to free up working capital. A recent study from CARE Ratings concluded that GST could help to reduce logistics costs by up to 20% from current levels. These potential savings can help the enterprises to build a digital footprint instead of the traditional route of investing in new offices for a bigger physical footprint.
Level playing field: One of the direct implications of GST that I foresee is the level playing field that GST provides for enterprises of all sizes. Imagine what the Indian Premier League (IPL) did to Indian cricket. Today, we see players from across the world getting uniform exposure on a globally competitive platform. Similarly, GST unifies and simplifies tax structures across all Indian states, ensuring enterprises of reduced barriers to entry and allowing the ability to compete equally.
Bigger play for SMEs: For small and medium enterprises (SMEs) that are usually more cash-strapped, there is potential to save and reinvest in growth and redefine business prospects.
Personalization and real-time pricing strategy: More information allows enterprises to use sophisticated analytics tools, offer personalized experiences to a diversified base of customers that opens up opportunities for pricing strategies to be more real time and tailored for various business segments.
As businesses take steps to adapt to the new GST regime, it is an opportunity to ‘go digital’ and redefine the business processes.
SOURCE: The Live Mint
Goods and Services tax (GST), which is often known as a historic reform, is now around the corner. After president Pranab Mukherjee gave his assent on September 8, 2016, the Government is firing on all cylinders to implement GST by April 1, 2017. However, the implementation will be little early for the existing tax payers. The existing taxpayers will have to enroll themselves under the GST database by the end of this month. Goa’s state government has already issued a deadline of November 29, 2016, and asked all the existing tax payers in the state to enroll themselves on www.goacomtax.gov.in.
Who all are liable to enroll?
Existing taxpayers are liable to enroll under GST system portal. An existing taxpayer is an entity registered with any of the authorities;
Further enrollment here means validating the data of existing taxpayers and filing up the remaining key fields.
Which is the final date of enrollment?
If you are a taxpayer in Goa, then you should read the notification and get yourself enrolled before November 29, 2016.
For rest of India, the dates have also been announced. The table is as follows:
|
STATES |
START DATE |
END DATE |
|
Pondicherry, Sikkim |
8/11/2016 |
23/11/2016 |
|
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh |
14/11/2016 |
29/11/2016 |
|
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram |
30/11/2016 |
15/12/2016 |
|
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan |
16/12/2016 |
31/12/2016 |
|
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh |
1/1/2017 |
15/01/2017 |
|
Service Tax Registrants |
1/1/2017 |
31/01/2017 |
|
Delta All Registrants (All Groups) |
1/2/2017 |
20/03/2017 |
Procedure for enrollment under GST System Portal
#Point 1 – Paperless procedure: The whole system of enrollment will be paperless; hence, no hard copies shall be entertained by the department. Further, all the aforesaid registered taxpayers will need to visit the GST system portal.
Further, it is mandatory for every person to register if the annual turnover is more than Rs 20 lakh, the exemption limit.
#Point 2 – Provisional ID and password: Before visiting the GST system portal, you must have the provisional ID and password given to you by your concerned state authorities.
In Goa, all the registered taxpayers will have to visit the government office between November 9 and November 11, 2016, to collect sealed envelope containing the provisional ID and password.
The provisional ID format is here as under:
Hence, contact your ward officer to complete the online pre-registration under GST.
#Point 3 – Documents and information required: To complete the registration procedure, you must have the following information:
Further, also carry the following documents which needs to be uploaded on the website:
#Point 4 – Fill information and submit: After you submit the form with all the information and documents, an acknowledgement number will be generated. Save that number for future correspondences.
Here are some points which may help you during enrollment process:
What to do in case I have not received the ID and password?
In case you have not received the provisional ID and password, kindly contact your concerned authorities.
Who can be primary authorised signatory?
A primary authorised signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of the taxpayer. All communication from the GST System Portal relating to taxpayer will be sent to him.
For example, in case of proprietor, the proprietor himself or any person authorised by him; in case of partnership, any of the partner authorised or any person authorised; in case of Company/LLP, Society, Trust, the person who is authorised by Board or Governing Body, etc., can act as primary authorised signatory. A copy of authorisation needs to be uploaded.
Which details are prefilled in the enrolment application for enrolling with GST?
Following details are auto-populated in the enrolment application based on your existing data:
Can I make changes in in my legal name, state name and PAN in the enrolment application?
You cannot make changes to legal name, state name and PAN as appearing in the enrolment application. These details have been migrated from existing tax systems of State or Center, as the case may be.
Conclusion
GST is now a reality and it is far more complex and stringent when it comes to compliance. Enrollment is only a procedural aspect; however, the real game will begin from April 1, 2017. I would recommend all the existing taxpayers or the newcomers to prepare for GST. The penalties concerning it could cost you few lakh even for a small mistake.
Hence, lay down your strategy in advance and go and win the world.
SOURCE: Your Story
The Jharkhand government today decided to appoint PricewaterhouseCoopers Pvt Ltd to provide consultancy services for a period of one year for implementation of GST in the state. A decision in this regard was taken in the meeting of the state cabinet which was held at the Project Building here and was chaired by Chief Minister Raghubar Das. An official statement issued after the meeting said the state government has approved funds to be incurred on skill development training of 20 lakh youth by the year 2021. The state government also approved additional funds worth Rs 3430.04 lakh for execution of 1,541 mini rural water supply schemes to be executed in 17 IAP districts under NRDWP. The cabinet also approved Rs 97.77 crore for establishing solid waste management system in Godda Town Panchayat. It was also decided to increase the retirement age of the teachers teaching in government engineering college, state polytechnics and state women polytechnic colleges. It was decided that contractors participating in contract bid in urban local bodies for execution of developmental scheme will now be registered on a centralised manner. The state government approved constitution of development authority for Particularly Vulnerable Tribal Group.
In another key decision, the state government decided the ownership of the land under the SPT Act would remain with the landowners. For the CNT Act it was decided the ownership of the land would remain with the owners and within six months their land would be returned if the purpose of acquisition is not fulfilled. The cabinet also decided that people hit with land acquisition would be given the ownership of the land where they would be resettled. The ownership of land would be guarded by the principles of the CNT and SPT Acts.UNI AK BM
SOURCE: The Web India 123
The Centre has circulated the draft goods and services tax (GST) Bills with the states, but it does not contain the four-slab rates agreed to by the GST Council earlier. The Union government has also circulated the draft compensation Bill with states. With a heated debate on in Parliament over the government’s demonetisation move, the Centre is likely to introduce the Central GST and integrated GST Bills in late November or early December in the ongoing session in the form of money Bills, a move that may draw flak from the Opposition. The GST Council, a body having representation from the Centre and states, will discuss these Bills on November 24 and 25.
While the Centre and the states have already decided on four-tier GST rates – five%, 12%, 18% and 28% – these rates did not find mention in the GST Bills, sources said. “Rates are not a part of the Bills at the moment. Most probably, powers will be taken to notify exemptions and rates. Even today, the Central Board of Excise and Customs notifies these,” one of the sources said. It has also not yet been decided how to ring-fence these rates, one of the crucial demands of the Congress, sources added. “There is no finality as of now on how rates will be ring fenced.” The Centre will have to clear CGST, IGST and compensation Bills in Parliament and states SGST Bill in their respective assemblies before GST could be rolled out from April 1, 2017. States will be given seven days to suggest changes or improvement to the draft laws for GST, after which these will be taken up by the GST council, sources said. The Centre is likely to introduce the CGST and IGST Bills in the second half of the winter session – November-end or early-December. With the Opposition attacking the ruling dispensation in Parliament over the demonetisation issue, the government is unlikely to bring three Bills related to GST in the coming days. CGST and IGST Bills are likely to be money Bills, a source in the Parliamentary Affairs Ministry said. This might draw criticism from the Opposition, which wants it to be tabled as finance Bill because the Rajya Sabha, where they have an upper hand, does not have the power to shoot down money Bills. The GST Compensation Bill will provide legal backing to the Centre’s promise to compensate states if their revenue growth rate falls below 14% in the first five years of the GST rollout. The base year for calculating the revenue of a state has been decided as 2015-16. The compensation law would have the taxes subsumed and the revenue forgone by each state on account of GST rollout. It will give the details on how the Centre plans to raise funds for compensating the revenue loss. The Centre and states had earlier agreed on around 28% tax on high-end cars, tobacco, pan masala and aerated drinks to compensate states. Also, clean energy cess would not be subsumed into GST and would be used for funding compensation. Once the requirement of compensation is over in five years of the GST rollout, these cesses would cease to exist. The Bill would also specify how much revenue is being raised from which item by way of levy of cess and also the way it is reimbursed to the states, leaving no room for ambiguity. It would also specify at the end of five years if there is a surplus in the cess pool and in what proportion it should be allocated between the Centre and states
SOURCE: The Business Standard
As the debate on demonetisation rages on across the nation, Finance Minister Arun Jaitley has changed his facebook cover photo which states that India can no longer live with black money. Integrity and ethical conduct are pre-requisites for the country's development, he states. "India cannot afford to live with black money any longer. Honesty, integrity and ethical conduct are requirements of India's development," said Jaitley's facebook cover photo. With opposition ganging up over demonetisation of Rs 500 and Rs 1,000 currency notes, the government has been maintaining that the move was needed to eliminate black money, counterfeit notes and terror financing. Prime Minister Narendra Modi had on November 8 announced demonetisation of high-value currency notes and asked holders of such notes to deposit them in banks by December 30. Since then, seemingly unending queues of people trying to deposit and exchange their scrapped currency notes are being witnesses in front of banks and post offices. Initiating the debate on demonetisation in the Rajya Sabha, Congress leader Anand Sharma said the "ill-timed" and "ill-conceived" move had unleashed "economic anarchy" in the country and benefited a few.
SOURCE: The Business Standard
Jyrki Katainen, Vice-President of European Commission (Jobs, Growth, Investment & Competitiveness), was recently in India to initiate talks for an India-EU Bilateral Investment Treaty (BIT) as some of these pacts which India has individually with EU member-states are expiring soon. In an interview with BusinessLine , Katainen said EU is willing to fast-track the talks beyond the purview of the free trade agreement. Excerpts:
You held meetings with the Finance and Commerce Ministers to restart the stalled negotiations on free trade agreement or Broadbased Trade and Investment Agreement. What was their response?
Both the Ministers said they are interested in resuming the FTA negotiations and also to negotiate a new investment protection agreement. FTAs are strategically important for the EU because it helps in renewing the European economy. We would like to add India on top of the list because it is a big market.
Were you able to identify a common timeframe when the FTA talks would resume?
There is one challenge that we would like to address before the FTA negotiations and it is the continuation of bilateral investment treaties (BIT). Now when India is terminating these agreements with the European countries, it will take some time to negotiate a new BIT, which will take at least two years.
How will expiry of the BITs impact investments from the EU?
The first one, which India has with the Netherlands, will expire in the next two weeks. And the rest will expire in March, April and May. Moreover, there will be a legal gap between the time when a BIT expires and a new agreement comes to place. It’s a very serious matter. Some of the European companies have said it will adversely impact them if there is no protection on their investments at all. Because, in the interim period, it will raise capital costs and then it may harm European investments into India.
So, according to you, what could be an immediate solution?
Our proposal has been that India holds on to the BITs and not let them expire unless new BITs come in. We can fast-track the BIT talks and try to get it done as soon as possible but it will take time, may be two years or so.
Is the EU willing to negotiate the BIT out of the FTA talks?
We are ready to fast-track BIT talks. We want to have the BIT ready and implemented before the FTA is ready. But we want the legal gap filled up with something and the easiest way is to continue with the existing BITs till we have a new one. This is a practical solution for the companies that are willing to invest here.
Were you able to finalise a date for the BIT talks to start?
We have not finalised a date yet but we are ready to start as soon as possible.
Are there plans to club the BIT with FTA, at a later stage?
Yes, we can merge the two when the FTA will be ready.
How do you assess India’s model BIT?
According to our assessment, we have lots of common ground. So, it won’t be too difficult to have a joint BIT quickly and we have same interests. Although I do not know the details of the Indian model, I know there are some similarities in both models.
On the FTA, are you willing to start the talks from scratch, something that India has asked?
Both sides know each other’s priorities unless they have changed sides. But at least from the European side, our priorities have not changed. If there is a political will, we could find lots of areas in which we can find a common ground. It’s a matter of negotiations and compromise.
Indian exports to the EU had been plummeting for the last couple of years. What are you doing about it?
The EU is the world’s largest single market and we are interested in trade and investments with India. The FTA will make it easier and cheaper. It will also bring regulatory convergence.
SOURCE: The Hindu Business Line
Continuing its downfall for the fourth-straight session, the rupee today fell by 20 paise to end at near five-month low of 67.94 against the US currency in a highly volatile trade amid unabated dollar outflows. Sustained greenback buying by banks and importers amid a continued pullout of capital by foreign funds predominantly weighed on the domestic currency, dealers said. The dollar maintained its bullish momentum in Asian and early European trade after a robust US retail sales data reiterated speculation that the Federal Reserve will raise rates soon, forex traders said. The rupee resumed modestly higher at 67.68 compared to the previous close of 67.74 at the Interbank Foreign Exchange market and strengthened further to 67.61 due to an adequate supply of greenback and also firm local equities. However, in late afternoon trade, the rupee slid in line with retreating stock markets and touched an intra-day low of 67.97 per dollar. The local currency finally settled at 67.94 — its lowest since June 24 this year- showing a loss of 20 paise, or 0.30% in the day. The rupee had settled at 67.96 against the dollar on June 24.
The rupee has tumbled by over 2% or 151 paise in since November 10 on sustained capital outflows. Domestic equities ended almost steady despite a spectacular start on the back of late selling pressure in key frontline heavyweights amid heightened concerns about global growth. Foreign portfolio investors continued their intense selling and offloaded worth Rs 1,957.04 crore on Wednesday, according to provisional data from exchanges. Meanwhile, falling for the third straight month in October, retail inflation slipped to 14-month low of 4.20%, strengthening the case for the Reserve Bank of India (RBI) rate cut in its monetary policy review next month. The dollar Index was quoted sharply higher by 0.35% at 100.55 in the afternoon trade. Meanwhile, the RBI on Wednesday fixed the reference rate for the dollar at 67.7791 and euro at 72.8422.
In cross-currency trades, the rupee fell back against the pound sterling and closed at 84.37 from 84.09, while firmed up further against the euro to end at 72.70 as compared to 72.96 on Tuesday. The home unit gained further ground against the Japanese yen to finish at 61.97 from 62.57 per 100 yens earlier. In the forward market, a premium for dollar jumped due to fresh paying pressure from corporates. The benchmark six-month premium for April rose to 138-140 paise from 134-136 paise and the far-forward October 2017 contract also moved higher to 299-301 paise from 295-297 paise from 318-320 paise. Crude prices rose sharply amid reports that the Opec (Organisation of the Petroleum Exporting Countries members) are scrambling to finalise the implementation details of an output cut deal struck in September.
SOURCE: The Business Standard
Belarus is the ‘Focus Country’ in the 36th edition of India International Trade Fair, being held from November 14 to 27. Many companies and industries from Belarus representing varied sectors such as textiles, education etc are exhibiting in IITF. Needless to say, they are looking for business opportunities and partnerships in India. Tatsiana Matsiushonak, ConcernBellagrom, Republic of Belarus and a cooperation specialist in the Foreign Economic Relations Department, spoke to The Dollar Business about possible opportunities that exist in the textile, apparel and footwear sector of Belarus. “We are here for the first time. We are representing the interests of the textile, apparel and footwear industry of our country. We are looking for possible partners and would also like to develop a relationship with the Indian market,” she said.
Matsiushonak expressed keen interest in the Indian textile industry. She said, “We know that India is leading in the textile industry. But Belarus too has varied textile items that could interest the Indians. For example, we have a wide variety of linen products that are quite exclusive to our country.” When asked about investment opportunities she said, “We are open to any kind of cooperation which is mutually beneficial, be it in manufacturing or investment. Like I said earlier, we have some exclusive fabrics, like linen, which can be used in upholstery or apparels. Business in readymade apparel is tough and we don’t see much scope in that area. But an opportunity in linen is what we are looking forward and I'm confident that something could happen there.”
Alena Kasyanik, who is representing the Ministry of Education of Belarus, said, “I am pleased that India has invited our country to participate in this fair. I am awestruck seeing the enormous size of the fair.” Alena was pleased and excited to see different Indian states showcasing their unique items and added, “this provides a good opportunity for Belarus to showcase its products and to find good partners.” On the education front, Kasyanik stated there are a lot of educational opportunities for Indian students in Belarus and acknowledged the presence of Indian students in Belarus universities. When asked about a possible partnership in the education sector, she said, “We are trying in that direction. We are happy to see that many Indians are keen to study in our universities and hope that some kind of a collaboration will happen on that front soon. We hope to see an increase in Indian students in our country."
SOURCE: The Dollar Business
Textile recycling company Savanna Rags has its origins in Zambia, where more than 22 years ago brothers Ahmed and Yunus Suleman traded in secondhand textiles from merchants who imported from the UK, selling the material on to locals. Years later, the tables have turned and Savanna Rags is firmly established in Mansfield, Nottinghamshire. After the brothers moved to the UK in 1994, they set up on Wood Road with some 20 employees. Today, the company has grown to be one of the largest textile recyclers in the UK, having moved to a former mill on Forest Road, employing over 170 people and exporting thousands of tonnes of clothing a week from its 1.3 acre site. Savanna Rags handles about 500 tonnes of material a week, which is sorted onsite and graded into over 60 categories. All items are sorted and graded in the 48,000-square-foot warehouse, via a purpose-built production line. Then items are fine-graded and quality checked before they are bagged for the relevant overseas markets. Items are fine-graded and quality checked before they are bagged for the relevant overseas markets. Savanna Rags was set up 1994 and has since grown substantially. The company handles 500 tonnes of material a week. The warehouse covers 48,000 square foot Ahmed Suleman, director Material is graded into over 60 categories Savanna Rags now employs over 170 people. Most material is exported to West Africa Items are fine-graded and quality checked before they are bagged for the relevant overseas markets.
Export
The bulk of material is exported oversees, primarily to Africa and a small percentage to Eastern Europe. Although the company has been exporting to Eastern Europe for 20 years, it has had to adapt to changing conditions in the region which, according to director Ahmed Suleman, “used to be a big market but now it is shrinking.” As is the case for many textile recyclers in the UK, the East African Community’s (EAC) proposed ban on the import of used clothing (see letsrecycle.com story) is a worrying matter for Savanna Rags.
Commenting on the EAC issue, Mr Suleman notes: “East Africa is a very big market, if we lose that, we would have more rags in the market here and then they would be rushing to one market, which is West Africa”. Currently, West Africa is Savanna Rags’ main export market, in particular Ghana, Ivory Coast, Nigeria and Togo. “It’s a workable market at the moment,” Mr Suleman adds. Clothes are sent to Felixstowe, Suffolk, where they are shipped to Africa, a journey which takes several weeks. But Mr Suleman is hopeful that things might still turn around with the EAC: “Africa is a volatile market – you have to see what happens,” he says. “There’s hope that it’s not going to come to that. The indication we are getting is that all the countries have to agree and that might not happen.” Savanna Rags also exports around 100 tonnes of ungraded material a week to the Middle East.
Charity work
A large part of the company structure and ethos is based around charity work in the local community and beyond. Savanna Rags has set up its own charity, the Peaceful (Uhuru) Trust, which has raised almost £150,000 for worthy causes. The charity works on development projects in Zambia, Zimbabwe, Tanzania and Malawi and also supports local hospitals and causes nearer home. Savanna collects a large part of its material from charity shops, including those run by the Peaceful (Uhuru) Trust, which has four shops across Nottinghamshire. The company also has a longstanding contract with disability charity Scope (see letsrecycle.com story), and works with a significant number of other national charities including the British Red Cross and the British Heart Foundation. The remaining volume is collected from Savanna’s network of around 420 textile banks, or supplied by merchants. Savanna Rag clothing banks are primarily located in car parks of schools, local authorities and other sites across the Midlands. The company also buys in clothing from the public through a cash-for-clothes scheme.
Future growth
Mohammed Patel, head of logistics, says that the company is hoping to expand in future, as it is outgrowing its current premises. “In an ideal world we need something twice as big just for storage,” Mr Patel says, but adds that he is conscious that any new location needs to remain easily accessible to employees and merchants. Determined to continue the growth of recent years, the company is aiming to grow its annual turnover from £18 million to £20 million, while building the Peaceful Trust too and finding new ways to help people that need it.
SOURCE: The Letsrecycle
Faisalabad Chamber of Commerce and Industry (FCCI) President Engineer Muhammad Saeed Sheikh on Wednesday stressed the need to promote chamber-to-chamber relations between Pakistan and Nepal in order to fully exploit the available economic potential. He was talking to Nepalese Mid Region Chamber of Commerce and Industry President Arun Raj Sumargi. Saeed Sheikh said that both countries were enjoying good diplomatic relations but bilateral trade between the two countries was negligible. He said that trade delegations would be arranged to provide an opportunity to the businessmen of two countries to have direct interaction with each other and start trade in traditional as well as nontraditional sectors immediately.
Saeed Sheikh welcomed Arun Raj and said that Faisalabad was one of the premier chambers of the country with 5,000 members within its fold. With regards to population, Faisalabad was the third largest city while it was second in revenue generation, he added. He said that Faisalabad was the textile hub of Pakistan but other sectors like chemical, sugar and confectionary were also working in this metropolis. However, textile was the main strength of the city. He said that out of $13 billion total textile export of Pakistan, the share of Faisalabad was 55 percent. Commenting on the Pak-Nepal business relations, he said that both countries were members of SAARC and SAFTA but despite of these positive factors, our bilateral trade volume was only $2.70 million. "The Pakistani exports were 2.2 million, which included textile, medical, surgical goods, footwear, pharmaceuticals and food items. On the other hand, Nepal's export is only $0.4 million, which included coffee, tea, organic chemical, herbs, spices and paper products etc," the FCCI president added. He said that both countries should concentrate on enhancing their bilateral trade by developing B2B relations between their entrepreneurs. He demanded direct air link, exchange of sector specific trade delegations and single country exhibitions to give a quantum jump to the bilateral exports. Arun Raj said that he had misconception about Pakistan before coming to this country. However, this notion has been dissipated after his arrival in Faisalabad. He said that he would try to arrange trade delegation of Nepali businessmen so that they could also personally visit Faisalabad and witness the opportunities available this city.
SOURCE: The Daily Times
The textile industry in Nigeria may face extinction if the Central Bank of Nigeria (CBN) does not allow the manufacturers access to foreign exchange (forex). The textile manufacturing industry is in crisis with the non-availability of forex for procurement of raw materials. If this situation prevails, few of the manufacturers may suspend production. The concern was raised by Hamma Kwajaffa, director-general of the Nigerian Textile Manufacturers' Association (NTMA) in an interview with the News Agency of Nigeria in Lagos. However, it was on November 7, 2016 that CBN had released $660 million to the manufacturers to source raw materials and spare parts, as reported by the Nigerian news agency. The textile industry is on the brink of crisis, said Kwajaffa, adding that the number of appeals made by the manufacturers for access to foreign exchange also went in vain. In an attempt to allow NTMA members access to forex, Kwajaffa had also called for improved collaboration between the apex bank and commercial banks. “To access foreign exchange, we have to go through our banks. They keep telling us that they do not have foreign exchange to give. The situation has impeded our production activity because most of our production components cannot be sourced locally. By now, many companies ought to have fabrics in the market for Christmas season but they cannot do that. Some of the manufacturers have already stopped production, and it is becoming difficult to convince others not to suspend production,” Kwajaffa said. “Easy availability of foreign exchange will allow textile manufacturers access to procure raw materials, and thus help in enhancing production, resulting in job creation and increased contribution to Nigeria's gross domestic product,” he added. At the peak of the economic boom in the early 80s, Nigeria had 84 textile mills. The number has dropped to 24 now. The workforce in these industries nationwide has also been reduced from 250,000 to about 20,000. (RR)
SOURCE: Fibre2fashion
World ending stocks of cotton are forecast to decrease by 7 per cent to 17.8 million tons at the end of 2016-17 as China continues to reduce its stocks. Ending stocks in China, where much of the excess stocks are held, dipped 13 per cent to 11.3 million tons as the government sold over 2 million tons from its reserves from May through September 2016. From 2009-10 to 2014-15, world ending stocks increased by 140 per cent and reached a world record of 22.2 million tons. In 2015-16, the drop in world production led to a 14 per cent reduction in stocks to 19.1 million tons. Meanwhile, the Chinese government restricted import quota to the volume required by its WTO commitments in 2015 and 2016. The government has also announced that it will continue to sell from its reserves next year, beginning March 2017 when the majority of the new crop will have been sold. As a result of the government selling from its reserves, cotton stocks in China are expected to decline by 15 per cent to 9.6 million tons by the end of 2016-17. However, stocks outside of China may rise by 4 per cent to 8.2 million tons, after falling by 16 per cent to 7.9 million tons, the International Cotton Advisory Committee (ICAC) said in a release. The stock-to-use ratio for the world less China is projected at 34 per cent, which is about four months of consumption, and in line with the 10-year average.
In 2016-17, world cotton production is projected to increase by 7 per cent to 22.4 million tons as a 9 per cent increase to 753 kg-ha in the world average yield offsets a 2 per cent contraction in world cotton area to 29.7 million hectares. India will remain the world's largest cotton producer, although its production is forecast to remain unchanged from 2015-16 at 5.8 million tons. Output in China is projected to decrease by 4 per cent to 4.6 million tons while production in the US is expected to grow by 24 per cent to 3.5 million tons. After a 34 per cent drop in production due to adverse weather, competition with other crops, low prices and an outbreak of pink bollworm, Pakistan's cotton production is expected to recover by 24 per cent to 1.9 million tons in 2016-17. After facing lower inventories in 2016 due to strong export demand, cotton production is forecast to increase by 8 per cent to 1.4 million tons in Brazil.
In 2016-17, world cotton consumption is projected to remain unchanged at 23.8 million tons, despite the widening gap between polyester prices and international cotton prices. Mill use is expected to rise in three of the top ten consuming countries – Bangladesh, Vietnam, and the United States, where consumption is forecast to increase by 12 per cent to 1.2 million tons, 13 per cent to 1.1 million tons and 1 per cent to 762,000 tons, respectively. This will offset losses in China, Turkey and Brazil, where mill use is projected to decrease by 2 per cent to 7.2 million tons, 3 per cent to 1.45 million tons, and 12 per cent to 645,000 tons, respectively.
SOURCE: The Global Textiles
Bangladesh apparel makers want to form a single entity to oversee safety and workers rights issues in the clothing industry after the expiry of ongoing safety assessment by the global buyers platforms. Currently, RMG factories are being inspected by Alliance for Bangladesh Worker Safety, Accord on Fire and Building Safety in Bangladesh and the National Initiative to improve workplace safety in the apparel industry. The tripartite inspection will end in June 2018, which started in mid-2014 to improve safety in Bangladesh RMG sector.
A BGMEA committee formed to prepare guidelines for setting up a new platform to oversee post-Accord and Alliance safety assessment in the apparel industry has made the recommendation, sources at BGMEA told the Dhaka Tribune. The recommendations will be placed before the BGMEA board in a meeting, scheduled to be held early December for the approval. The aim of the single platform is to bring all inspections under a common platform to avoid extra expenses, time and hassle. “Manufacturers do not want to depend on foreign initiatives for a long time for safety inspection and other related issues. That is why the committee recommended forming a single platform,” a committee member, seeking anonymity, told the Dhaka Tribune.
In the proposed platform, there will have representative from the Department of Inspection for Factories and Establishments (DIFE), BGMEA, BKMEA, buyers, Bangladesh Fire Service and Civil Defence, Labour and Employment Ministry and RAJUK, International Labour Organisation (ILO) and worker federations. It is a long-term vision of the sector that is keen to see a single platform, which will oversee the safety standards, workers rights and social compliance issues instead of individual inspection, said another member of the committee. “We do not want elimination of Accord and Alliance. Instead of their extensions, we want a new platform with all stakeholders,” he added. The formation of the platform will finally come into being only after having discussions with all the stakeholders, he added. A widespread public outcry over safety began after the Rana Plaza factory disaster that killed more than 1,135 workers and injured over 2,500 people on April 24, 2013. In 2014, the Accord on Fire and Building safety and Alliance for Bangladesh Worker Safety took a five-year initiative to improve fire, electrical and building safety standard in RMG factories from which their members source products.
SOURCE: The Global Textiles
