|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1065.171 |
USD/Ton |
0.68% |
11/27/2016 |
|
VSF |
2201.113 |
USD/Ton |
0% |
11/27/2016 |
|
ASF |
1848.704 |
USD/Ton |
0% |
11/27/2016 |
|
Polyester POY |
1119.333 |
USD/Ton |
0% |
11/27/2016 |
|
Nylon FDY |
2527.525 |
USD/Ton |
1.74% |
11/27/2016 |
|
40D Spandex |
4260.685 |
USD/Ton |
0% |
11/27/2016 |
|
Polyester DTY |
5445.011 |
USD/Ton |
0% |
11/27/2016 |
|
Nylon POY |
1328.756 |
USD/Ton |
0% |
11/27/2016 |
|
Acrylic Top 3D |
2354.209 |
USD/Ton |
2.52% |
11/27/2016 |
|
Polyester FDY |
2022.02 |
USD/Ton |
0% |
11/27/2016 |
|
Nylon DTY |
1386.528 |
USD/Ton |
1.05% |
11/27/2016 |
|
Viscose Long Filament |
2671.955 |
USD/Ton |
1.09% |
11/27/2016 |
|
30S Spun Rayon Yarn |
2845.271 |
USD/Ton |
0% |
11/27/2016 |
|
32S Polyester Yarn |
1704.274 |
USD/Ton |
0% |
11/27/2016 |
|
45S T/C Yarn |
2541.968 |
USD/Ton |
0% |
11/27/2016 |
|
40S Rayon Yarn |
2989.701 |
USD/Ton |
0% |
11/27/2016 |
|
T/R Yarn 65/35 32S |
2224.222 |
USD/Ton |
0% |
11/27/2016 |
|
45S Polyester Yarn |
1834.261 |
USD/Ton |
0% |
11/27/2016 |
|
T/C Yarn 65/35 32S |
2195.336 |
USD/Ton |
0% |
11/27/2016 |
|
10S Denim Fabric |
1.327312 |
USD/Meter |
0% |
11/27/2016 |
|
32S Twill Fabric |
0.81603 |
USD/Meter |
0% |
11/27/2016 |
|
40S Combed Poplin |
1.146774 |
USD/Meter |
0% |
11/27/2016 |
|
30S Rayon Fabric |
0.652824 |
USD/Meter |
0% |
11/27/2016 |
|
45S T/C Fabric |
0.634048 |
USD/Meter |
0% |
11/27/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14443 USD dtd. 27/11/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Tirupur Exporters' Association (TEA) has urged the Centre to empower successful textile clusters with adequate infrastructure such as world-class design studio, Research and Development Centre and incubation centre for technical textiles. In a pre-budget memorandum submitted to the Finance Minister Arun Jaitley, TEA said these infrastructure facilities will facilitate rapid growth of not only the existing textile business, but also enable its foray into the niche segments creating quantum growth opportunities to the industry. There is a dire need to build large-scale labour housing and hostels in Public-Private Partnership mode so as to enable the permanent migration of skilled labourers towards industry clusters, association president, Raja M Shanmugham said. Besides, a focused and dedicated agency similar to Silk Board or Coir Board should be formed specifically for the Knitwear sector, which can serve as a catalyst for rapid growth of this segment, he said.
Tiruppur, being the knitwear capital of the country with 46 per cent market share in knitwear exports, is embarking upon an ambitious goal of achieving a turnover of Rs One lakh crore by 2020, from the present Rs 35,000 crore (both domestic and exports), Shanmugham noted. The association also requested the implementation of Factories (Amendment) Bill, 2016 which was passed in Parliament, for the benefit of garment sectors which will also be helpful to fulfill buyers compliances, it said.
SOURCE: The Economic Times
Textiles Ministry is eyeing niche overseas markets to boost domestic handloom and handicraft exports as many global companies are willing to tie up with Indian weavers and artisans, a top official said. "There is a huge scope for promoting Indian handloom and handicraft products in the niche markets world over," Textiles Secretary Rashmi Verma said at an Assocham event here. She said that though overseas shipments of most sectors declined, handicraft exports continued to grow at 17 per cent.
The Textiles Secretary said that all stakeholders should make efforts to engage with local artisans and weavers and hand-hold them for ensuring that they get right price and market for their products. Verma said the ministry has signed memoranda of understanding (MoUs) with 20 e-commerce firms to engage with artisans and weavers in various handloom and handicraft clusters and provide them a direct marketing platform. "This will go a long way in ensuring that they get the right price for their product as they are able to sell their product directly to the consumer," she said. Verma said the government is taking measures for skilling weavers, for giving them design inputs, quality raw material, tools and upgrading their looms to empower them so that they continue to remain engaged in this craft. "We are finding that younger generation is slowly getting disinterested in this sector and moving towards information technology (IT) as the children of the weavers and artisans are not joining this profession," she observed. According to Verma, an analysis conducted by the ministry found that many weavers and artisans have become workers and labourers in the hands of traders or exporters. "They get paid wages on a daily basis on whatever work they do in one day, so instead of selling their craft and talent, they are now selling their labour, as a result, this has disinterested the young generation," she said. She also said that dearth of working capital, dependence upon middle men for raw material, working capital and even the design are certain factors forcing the weavers and artisans to sell off their talent and craft.
SOURCE: The Economic Times
The government today said it has trained over 5.3 lakh youth in textile trades over the past two years, particularly in garment segment. Of this, "more than 81 per cent of persons trained have been placed including 79 per cent of the trained women," an achievement report prepared by the DIPP and the Textiles Ministry said. The training was given under the Integrated Skill Development Scheme (ISDS). The textile sector accounts for 10 per cent of the country's manufacturing, 5 per cent of GDP and 13 per cent of exports earnings, it said. Textiles and apparel sector is among the 25 thrust areas of the government's 'Make in India' initiative. The sector is the second largest employer in the country employing nearly 51 million people directly and 68 million indirectly in 2015-16. "Efforts are being made to restore glory of cottage-based traditional sectors like handlooms, handicrafts, jute and wool through an integrated approach covering entire value chain," it said. Further, it said between March 2014 and March 2016, the FDI equity inflows in the sector added up to USD 427.55 million. FDI equity inflow grew by 16 per cent in 2015-16 over the previous year.
SOURCE: The Economic Times
Claims of cleaning up the economy and getting rid of black money through demonetisation ring hollow in Ichalkaranji town, better known as the Manchester of Maharashtra, as textile mills and cotton-weaving powerlooms are being offered banned currency notes towards payment. In just 15 days, the daily turnover at the textile hub has plummetted from Rs 45 crore to Rs 13 crore as traders are cancelling orders unless the mills accept payment in demonetised notes. Bulk orders have been cancelled and transportation of raw material has been delayed. More than 80,000 workers engaged in the looms and the yarning, sizing and processing units are leaving the town as payment of their wages has been deferred. Most of these workers are from Uttar Pradesh and Bihar.
Located more than 200 kilometres from Pune, Ichalkaranji has been a major textile hub in the country and sends ready cloth to Ahmedabad, Mumbai, Madhya Pradesh, Delhi, West Bengal and Karnataka. Since the first textile unit was set up here in 1904, the town has thrived on the booming cotton trade that caters to the needs of major national and international brands. Satish Koshti, president of the Ichalkaranji Powerloom Weavers Cooperative Association Limited, "The industry was already struggling because of stiff competition. Now, with the government's note-ban bombshell, we are completely crippled." Koshti said their transactions usually take place through the banking system. "But since demonetisation, cloth traders have been demanding that we accept payment in cash, else the orders will be cancelled. We don't have any option but to cancel the orders. Contracts worth more than Rs 100 crore have been scrapped.Earlier, these traders used to pay through cheques." Koshti said the association has nonetheless appealed to every member not to accept payment in banned notes. "The government is keeping a close watch on deposits of more than Rs 2.5 lakh. How can we accept cash payments now? The traders have even cancelled future orders. The situation is difficult," he said.
Even major firms like Arvind Cotsyn Limited are struggling with growing inventory . Company director Laxmikant Marda said, "There is no demand for material. Traders are offering old currency notes, which we cannot accept. Our stock is piling up." Chemical supplier Anil Saude said the demand for chemicals at the looms has gone down drastically due to cancellation of orders. The nearly 1.25 lakh looms in the town were expecting good business after the bountiful monsoon this year and had secured orders from north India and Karnataka. But their expectations have been shattered.
SOURCE: The Times of India
Most of the textile and apparel industry does not avail CENVAT, highlights a report released by the Ministry of Textiles adding that the CENVAT route will prepare the textile and apparel industry for GST when it comes into force. Central Value Added Tax (CENVAT) is a tax levied on the manufacture or production of movable and marketable goods in India. The Textiles & Apparel Achievement Report released by DIPP on November 24 shows that there has been an upward revision of duty drawback rates wherein All Industry Rates (AIR) of Duty Drawback has been revised for various products from November 23, 2015. “The revised rate encourages the industry to follow the CENVAT route as exporters opting CENVAT facility would get enhanced drawback rate and value,” the report mentioned adding that this will prepare the textile and apparel industry for GST when it comes into force. The report also shows comparison when of Duty Drawback rates when CENVAT is availed by exporters and when it is not. In case of Cotton Yarn, when the CENVAT was not availed, the duty drawback rates were in the range of 2.8-4.7 in the year 2014 and between 2.5 - 4.5 in 2015. However, when the CENVAT was availed, the duty drawback rate were in the range of 0.9 – 1.3 in 2014 and between 1.2 – 1.4 in 2015. In case of Apparel, when the CENVAT wan not availed the duty drawback rates were in the range of 7.2 – 10.5 in 2015 while when the CENVAT was availed, the rates were in the range of 2.0 – 3.5 in 2015. Similar were the cases with Cotton Fabric, Man-Made Fabric and Home Textiles.
The report also highlights that the textile sector in India accounts for 10% of the country’s manufacturing production, 5% of India’s GDP, and 13% of India’s exports earnings. Textile and apparel sector is the second largest employment provider in the country employing nearly 51million people directly and 68 million people indirectly in 2015-16. Further, Textiles and Apparel exports are estimated to reach USD 62 billion by 2021 from the USD 38 billion in 2016. Traditionally, India’s key export demand has been driven by Europe and America, but new markets such as Iran, Russia and South America are opening up new possibilities for growth, emphasizes the report.
SOURCE: The KNN India
Union minister Smriti Irani visited the Sardar Vallabhai Patel International School of Textiles and Management on Saturday and interacted with the students and the faculty members. The Union textile minister, who arrived in the city on Saturday morning, first visited Isha Yoga Centre. She then proceeded to the Sardar Vallabhai Patel Institute, where she inspected its surroundings. After that, the minister participated in a closed door interaction with the students and the faculty. Despite repeated attempts, the minister refused to comment on the purpose of her visit to the institution. After spending nearly 45 minutes at the institute, the minister proceeded to the Southern India Textiles Research Association (SITRA). The minister also met members of the textile industry and accepted from them some memorandums.
SOURCE: The Times of India
Union Minister of Textiles, Smriti Zubin Irani, today inaugurated a Garment Making centre here at Lamboikhongnangkhong. The estimated cost for installing the centre will be Rs 18-crore and to be completed within nine months. She also distributed "Pehchan" Identity Cards to the artisans. Speaking on the occasion, Smriti said the scheme for identifying weavers were launched on October 7, 2014 and now more than two thousand weavers have been identified and issued the identity cards. "The Prime Minister wants to give special attention to the development of the NE states. The minister also informed about the MUDRA scheme which would provide the direct connectivity to the weavers so that they can be easily identified for International Exhibition. For textile promotion in the state, the Central Government has sanctioned Rs 200-crore. The state Awardee will be given Rs.30,000 per month to train weavers. Twelve clusters from three district are selected for Design Workshop training and will be given Rs.300 per day to the trainees.
The Apparel & Garment Making Centre at Imphal, Manipur has been constructed under the North-East Region Textile Promotion Scheme (NERTPS) launched by the Union Textile Ministry following the announcement of the Prime Minister Narendra Modi. The project has been completed by the Manipur Handlooms and Handicrafts Development Corporation (MHHDC). Under this intervention, each state now has one centre with three units having approximately 100 machines each. NBCC, which has been appointed for the construction of the infrastructure and installation of machinery at the centres has completed its task and the machinery has also been installed successfully at all three units. The capacity building through this centre will include skill development (3 month training for 600 trainees per centre at Rs 10,000 a month, market linkages (3 domestic exhibitions and one international exhibition), EDP programme (one month training programme per unit), EDP programme (one month training programme per unit), and management support including design services (Four persons for three years). The Manipur State Government has allocated land measuring approximately 1.5 acres at Lamboikongnangkhong, Imphal, Manipur for this centre. Three operating agencies have been selected for this centre. Each centre is estimated to generate direct employment for approximately 1200 persons. The primary objective is to promote entrepreneurship in apparel manufacturing, provision of state of the art infrastructure, provision of skill development, market linkage and other services and creation of additional employment.
SOURCE: The Web India
The textiles ministry of India is looking at exploring new markets for the handloom and handicraft sector as many global companies are willing to tie-up with Indian weavers and artisans, said textiles secretary Rashmi Verma. The ministry has signed memorandum of understanding (MoU) with 20 e-commerce companies to help artisans market their products directly. Though most of the sectors registered a decline in exports of Indian products to global markets, export of handicrafts continued to grow at the rate of 17 per cent, said Verma while addressing an event organised by the associated chambers of commerce and industry in India (ASSOCHAM). “There is a huge scope for promoting Indian handloom and handicraft products in the niche markets world over. All stakeholders should make efforts to engage with artisans and weavers in the country and hand-hold them not only for ensuring that they get right price and market for their products and also get recognition which they deserve in the world and domestic markets,” she added. The government is taking a number of steps for skilling weavers, for giving them design inputs, quality raw material, tools and upgrading their looms to empower them so that they continue to remain engaged in this craft.
An initiative to train children of weavers and artisans to become entrepreneurs has also been started by the textiles ministry to help them emerge as leaders in producers' groups and market their products through e-commerce and other channels directly. “We are finding that younger generation is slowly getting disinterested in this sector and are moving towards information technology (IT) as the children of the weavers and artisans are not joining this profession. This (training programme) is also in one way trying to attract children of weavers and artisans back into this trade,” continued Verma. She added that there are a number of design workshops especially for the weavers and artisans whereby they are informed about current market trends and demand of the market because they have to be sensitised to the needs of the market and only then they will be able to produce what the consumer wants and not try to sell whatever they have made. Verma informed that the ministry had conducted an analysis and found that many of the weavers and artisans have become workers and labourers in the hands of traders or exporters. The dearth of working capital, dependence upon middle men for raw material, working capital and even the design are certain factors forcing the weavers and artisans to sell off their talent and craft. “It is very-very important that we all together take steps so that dignity of the weaver and artisan is restored and we empower them to be able to sell their talent and their products and not their labour,” said Verma.
SOURCE: Fibre2fashion
The Fashion Design Council of India (FDCI) hosted a fashion show at the Italian Embassy in New Delhi, in which nine Indian fashion designers showcased creations made from traditional textiles of the states of Madhya Pradesh, Gujarat and Rajasthan. Each of the nine designers who took part, presented five outfits, in their inimitable style. These nine designers included Aneeth Arora, Rajesh Pratap Singh, Rohit Kamra, Rina Singh, Samant Chauhan, Sanjay Garg, Swati Kalsi, Swati Ubroi and Ashish, Vikrant and Viral of Virtues The rendering of Madhya Pradesh was presented by Sanjay Garg, Samant Chauhan and Swati Kalsi, while the indigo story of Gujarat was done by Aneeth Arora, Rina Singh and Virtues and the vibrancy of Rajasthan was captured by Rajesh Pratap Singh, Swati Ubroi and Rohit Kamra.Models wore hand crafted jewellery from Shri Hari DiaGem, who were the exclusive jewellery partners for the Heritage 365-FDCI fashion show.
SOURCE: Fibre2fashion
The Bengaluru-based Brigade Group, which holds World Trade Centre licences in south Indian cities, has envisaged an investment close to Rs. 2,500 crore by 2020. The company -- which received the licence to set up WTC in Bengaluru, Kochi, Thiruvananthapuram, Chennai and Hyderabad -- will set up a combined 7 million sq ft space to enable an international environment to global IT/ITeS firms, MR Jaishankar, Chairman and Managing Director, said. He was speaking to BusinessLine on the sidelines of the inauguration of WTC Kochi, which is the group’s second operational centre after Bengaluru.
Chennai centre
“We have secured land for WTC Chennai for which construction will start next year,” he said, adding that the investment will be to the tune of Rs. 1,000 crore for 2.5 million sq ft. The company is looking for the right parcel of land in Thiruvananthapuram and Hyderabad. WTC, a licensed member of the World Trade Centres Association (WTCA), New York, will showcase the strengths of each region and state in different economic sectors such as industry, tourism, agriculture, fisheries, biotechnology, healthcare and others.
Demonetisation effect
Asked whether the real estate sector in India will be benefited out of the currency demonetisation, Jaishankar said the move would clean up the system and enable international players to come and invest in the country. The reforms initiated by the government in the sector like tax reduction, Real Estate Regulatory Bill, reduction in stamp duties coupled with the passage of GST Bill will revive the sector. The black money in real estate sector emerged on account of the higher tax burden on the consumer, which is to the tune of 22-25 per cent, he added.
SOURCE: The Hindu Business Line
India must focus on improving connectivity along the Silk Route in order to establish itself as a hub for Asia-Europe trade, a senior executive of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said. "South Asia can again be a hub of economic activities through improved connectivity, as it was in the ancient times," said Nagesh Kumar, director of UNESCAP's South and South-West Asia Office. "Reviving the Asian trade route would put South Asia at the centre of Europe and East Asia," he said, calling on India to explore the full potential of the region. He said the eastern side of the Silk Road is developing fast with India-Myanmar-Thailand Trilateral Highway along with the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement. The time has come for India to work on the western side of the Silk Road, he said. "There is a very interesting proposal of the International North South Transport Corridor (INSTC) linking South Asia and Central Asia through port of Bandar Abas or Chhabbar port in Iran. "UN-ESCAP has also proposed extension of the Istanbul-Tehran-Islamabad Container Train Corridor to Delhi-Kolkata-Dhaka and Yangon, using existing operational interconnections along the Trans-Asian Railway Routes," he told PTI after addressing the Responsible Business Forum on Sustainable Development held in Singapore from 22to 24 November. "These two corridors had the potential to make South Asia a hub of trade of Europe and Central Asia with East Asia, benefiting particularly the landlocked countries in South Asia such as Afghanistan and those in Central Asia, emerge as bridges linked up through multimodal routes," Kumar said. Kumar also underlined India's strong relationship with UN-ESCAP, since its establishment in 1947 and as the host of the grouping's South and South-West Asia (UNESCAP-SSWA) Office since 2011.
India also hosts UN-ESCAP's Asian and Pacific Centre for Transfer of Technology (APCTT) since 1977, which assists the group's member states in capacity building for transfer and development of technology. UN-ESCAP-SSWA fosters regional cooperation between the 10 countries in the subregion for inclusive and sustainable development. India's development experience and technologies can be valuable for other developing countries. These offices are striving to facilitate the sharing of experiences and knowledge between India and other developing countries in South Asia and beyond, he said. "We have very intensive cooperation programmes with South Asian countries which are going to grow more," he added.
SOURCE: The Economic Times
The finance ministry on Saturday released three draft laws for the proposed Goods and Service Tax (GST), addressing most of the industry’s concerns on the efficiency of input tax credit mechanism, but said the final settlement of compensation for states would be subject to CAG vetting the states’ claims of revenue loss. While quarterly payment of compensation to states is envisaged, the Centre has also laid claim to any excess amount that might accrue to the GST Compensation Fund, while the earlier idea was to disburse such surplus solely among the states.
Half of the excess amount would go to the consolidated fund of India and would form part of the overall tax kitty, which as per statute, is divided in a fixed proportion between the Centre and states, according to the draft compensation Bill. The remaining 50% would be disbursed among the states in the ratio of their total revenues from state GST (SGST) in the last year of the five-year transition period. Any compensation paid to a state found to be in excess of the amount actually due to them after the CAG audit would be adjusted against next year’s compensation, the draft law said.
Also, the proposed cess to be imposed on certain luxury items and sin goods like tobacco to create the compensation fund would apply at all stages of value addition with credits.
This would ensure that the cess would not cause cascading of taxes in the GST regime. Apart from the compensation Bill, the model GST law (the central and state GST laws will be framed on the basis of this) and the integrated GST bill for levy of tax on imports and inter-state trade are the other two draft laws released by the ministry. “The revised draft Model GST Law in public domain is a welcome move. Industry had raised several issues; key amongst them was need for an efficient credit mechanism, easy to implement valuation provisions, protection of tax or duty credits embedded in goods and services during GST transition, centralised registration for services sector etc. While devil lies in details, a quick perusal suggests that input credit mechanism envisaged is broad and efficient and will remove cascading,” said Harishanker Subramaniam, national leader (indirect tax), EY India.
SOURCE: The Financial Express
The Centre has set a modest 14 per cent target for revenue growth under the Goods and Services Tax and prescribed a formula that it will use to compensate States for any revenue loss under the GST for five years.
Council meeting
“The projected nominal growth rate of revenue subsumed for a State during the transition period shall be 14 per cent per annum,” said the draft GST compensation law, which was made public along with those of the Central GST (Goods and Services Tax) law and the IGST (Integrated GST) law, ahead of the crucial December 2-3 GST Council meeting. According to official sources, the projected revenue growth is based on the actual average revenue growth of the States. “This is an average projection and will end any uncertainty of States towards the Centre’s intent for compensation,” said Mahesh Purohit, President and Director, Foundation for Public Economics and Policy Research. The total GST compensation payable in any financial year will be the difference between the projected revenue in the financial year and the actual revenue collected by the State, using 2015-16 as the base year. The Centre will provisionally calculate and compensate the States on a quarterly basis.
Tough deadline
Though the Centre has been moving on GST implementation, meeting the April 1, 2017 deadline for rolling out this indirect tax may not be easy. “Meeting the deadline of April 1, 2017 could be tough if we look at the ongoing strain between some States and the Centre due to demonetisation,” said Bimal Jain, Chairman, Indirect Tax Committee, PHDCCI.
SOURCE: The Hindu Business Line
To offset the immediate downturn that industry will go through following the demonetisation move, India Inc has pitched for sharp cut in corporate tax rates in the upcoming Budget.
Rather than go in for phased reduction of corporate tax rate over the next four years, the Modi-led Government should cut corporate tax rate from the existing 30 per cent to 18 per cent (including all surcharges and cess) at one go, the Confederation of Indian Industry (CII) President Naushad Forbes suggested at the pre-Budget meeting convened by the Finance Minister Arun Jaitley here. In return for the slashing of corporate tax rate to 18 per cent — the same rate as existing MAT rate — the Government can remove all tax incentives, concessions and need no grandfathering of previous incentives, Forbes suggested. “We are not asking for removal of MAT. We have suggested that corporate tax rate itself be slashed to 18 per cent at one go. Time is right for Government to usher in simplified corporate tax system. Our calculations show that current effective tax rate is about 19.8 per cent (without any tax incentives/concessions),” Forbes told BusinessLine after the meeting.
Forbes also said that any such corporate tax rate reduction to 18 per cent will bring India in line with the most attractive international destinations such as Singapore, Sri Lanka, UK and Turkey. It will send a powerful message to Indian industry and global investors that India is an attractive investment destination and would be a huge enabler for Make in India. CII has also suggested that Government must accelerate public sector disinvestment and look to divest/privatise by December 31, 2017, 100 companies including the 74 identified by NITI Aayog.
More tax reforms
Industry chamber Assocham suggested that the Government must follow the bold demonetisation move with more tax reforms to spur private investments and consumption in the economy. “The Government must let go of its hold and empower the people to spend more in the current trying times. We have suggested both corporate tax rate cut and enhancing income tax exemption so that more money is left in their hands,” Sunil Kanoria, President, Assocham, told BusinessLine. This apex industry chamber also called for abolition of minimum alternate tax (MAT). For individuals, Assocham suggested that tax rate should be ‘nil’ upto taxable income of ₹5 lakh. For taxable income between ₹5 lakh to ₹25 lakh, the tax rate should be 10 per cent and 20 per cent for taxable income between ₹25 lakh to ₹1 crore. The tax rate of 25 per cent should be applied for income above ₹1 crore.
On Goods and Services Tax (GST), Kanoria said that he had suggested to the Government that average GST rate be pegged at 15 per cent and the maximum rate at 25 per cent. Also GST on turnover upto ₹1.5 crore be handled by the State Government and above that be handled by the Central Government.
SOURCE: The Hindu Business Line
Finance Minister Arun Jaitley on Saturday urged captains of industry to increase private investments, especially in infrastructure sector. In his pre-Budget consultations with industry and trade representatives, Jaitley said that the Government has taken many steps to improve business environment and ushered in transparency through systematic changes. He said in the first half of the current fiscal, the Indian economy has achieved robust growth despite volatility and uncertainty in global economy. Jaitley said this was made possible by a slew of policy measures undertaken by the present Government, including enhanced public investment, kick-starting stalled projects and improving the status of financial inclusion.
Along with the Finance Minister Arun Jaitley, the pre-Budget consultative meeting was also attended among others by Ashok Lavasa, Finance Secretary, Shaktikanta Das, Economic Affairs Secretary, Hasmukh Adhia, Revenue Secretary, Anjuly Chib Duggal,. Secretary, Financial Services, Rita A Teotia, Secretary, Department of Commerce, Ramesh Abhishek, Secretary, DIPP and Arvind Subramanian, Chief Economic Advisor. Indian industry was represented among others by the Presidents of the three apex chambers — FICCI (Harshvardhan Neotia ), CII (Naushad Forbes) and Assocham (Sunil Kanoria). The meeting was also attended, among others, by industrialists Shashi Ruia (Essar Group) and GM Rao (Chairman of GMR Infra).
SOURCE: The Hindu Business Line
Thanks to the demonetisation of Rs. 500 and Rs. 1,000 notes, the rupee has fallen to Rs. 68.52 from Rs. 66.5 on November 9 — or, 3 per cent in less than a fortnight. However, the fall being so sudden, exporters have not benefited by it. Most exporters have covered their receivables, effectively locking themselves to a particular level of exchange rate. For instance, exporters from Tirupur, Tamil Nadu, have said that the rupee would have to depreciate further for them to benefit by it.
According to TB Kapali, a Chennai-based forex consultant, the current situation illustrates the need for using all available market instruments. If exporters had bought a simple option instead of a forward cover, they could have cashed in on this opportunity, he told BusinessLine . An option is an instrument that gives its buyer the right, but not the obligation, to buy or sell a commodity. If you buy an option, the worst you can lose is the option premium, or the cost of the option, he said. It would have protected an exporter from any appreciation of the rupee, while giving him the benefits of depreciation — as in this case.
Vidyashankar Krishnan, Vice-Chairman and MD of auto components maker MM Forgings, disagrees. “Options has never been an attractive proposition,” said Krishnan, because they are pricey. It is better to have a consistent policy of hedging, he said, adding that MM Forgings covers most of its receivable, leaving only a small portion open. Krishnan further said he finds ‘options’ also very illiquid — if you want to exit the option before the expiry date, you won’t be able to do it. Another exporter, Manickam Ramasami, CMD of Loyal Textiles, also prefers straight hedging. “Options only help banks make money,” he observed. On his part, Kapali believes that options are not expensive if bought in a “quiet market”. He feels that options can be sold any time as they are now allowed to be traded on the NSE platform.
Where’s rupee headed?
Both Krishnan and Kapali said the rupee will continue to be under pressure. “If foreign investors get the feeling that the overall economic policy is not in capable hands, there will be a big rush of funds to get out of India,” said Kapali. While he reckons that the rupee could go as low as Rs. 73 to a dollar, Krishnan feels the RBI will not let such a free fall happen, and will intervene to stem the fall. Madhusudhan Khemka, MD of wind turbine firm ReGen Powertech, feels “there is no logic” behind the belief that the rupee will continue to fall. It will start “climbing up” soon, he said.
SOURCE: The Hindu Business Line
The World Bank has urged Pakistan to fully normalise trade relations with India to facilitate deep forms of trade integration as this step would allow Pakistan to benefit from New Delhi's fast growth and promote complementarities, including value chain activities and investment potential. This is one of the key recommendations of a technical note titled "Pakistan-unlocking private sector growth through increased trade and investment competitiveness" prepared by a World Bank team comprised of Rafay Khan of the Trade and Competitiveness, South Asia and Nadia Rocha of the Trade and Competitiveness Global Practice of the World Bank Group. Guillermo Arenas, Olivier Cattaneo, Michael Ferrantino and Saima Zuberi also gave their input to the note.
World Bank's team argues that Pakistan still needs to fully leverage its strategic location and its proximity not only to regional but also global trade leaders. Integration with its neighbouring countries and regions is all the more important given the need for the country to diversify both its product basket and markets. Removal of international sanctions on Iran, as a starting point offers Pakistan the greatest opportunity to enter a relatively untapped market. According to the World Bank, Pakistan needs to make Pakistan-Afghanistan Joint Economic Commission (JEC) effective. To streamline implementation of bilateral economic co-operation reforms, it would be important to make the JEC more effective. The JEC should meet on a biannual basis with the predetermined agenda. The JEC should also invite members of Pakistan Business Council (PBC), the Pakistan-Afghanistan Joint Chamber of Commerce and Industry and consumer associations to discuss outstanding issues. The JEC should become the main forum to review the status of large-scale projects that impact transit cooperation.
The Bank has also recommended that Pakistan should revise and fully implement the Afghanistan-Pakistan Transit Trade Agreement (APTTA) in the light of recent international and regional developments, and: (i) enforce measures aimed at minimising the incidence of customs fraud and avoidance, and monitor and curb informal trade; (ii) fully incorporate the Convention on the International Transport of Goods in the revised agreement. Both Pakistan and Afghanistan have acceded to the Convention; (iii) include updated provisions related to visa and transit facilitation, and harmonisation and simplification and custom procedures, banking channels, and dispute resolution; and (ix) extend the APTTA to other countries in the region such as Tajikistan, so as to maximise its benefits.
The Bank's team, in its technical note has asked Pakistan to conduct intensive ex-ante analysis on the expected impact of any proposed trade agreements. Pakistan-China FTA serves as a cautionary note while targeted tariff concessions on imports from China have resulted in an increase of value-added exports from Pakistan. Pakistan's exports to China remain at no or partial concessions-about 70 per cent of exports are in tariff lines at less than 50 per cent or no concession. The Bank further stated that Pakistan should fully normalise trade relations with India to facilitate deep forms of trade integration. Deep integration with India could entail building on signed agreements on mutual recognition and visas, and improving infrastructure, institutions, services, policies, procedures, and market- oriented regulatory systems. While Pakistan has grown on average by 3.37 per cent per year over the past eight years, South Asia region has grown on average by 6.6 per cent during that period. Critical economic sectors need to be re-energised and reinvigorated to ensure that Pakistan can grow at rates that will promote socio-economic development and generate jobs for growing population.
During 2005-15, Pakistan's exports of goods and services rose from $16.05 billion to $22 billion, an increase of only 37.6 per cent compared to an increase from $9.2 billion to $32.3 billion or 248 per cent in Bangladesh, $32 billion to $162.1 billion or 400 per cent in Vietnam and $99.6 billion to $263.3 billion or 165 per cent in India. Pakistan's trade performance has been unsatisfactory. Exports have only grown by 3.17 per cent on average over the past five years. Aided by large reductions in trade barriers and technological advances, developing countries-led by China and other developing markets-have become the drivers of global trade.
SOURCE: The Business Recorder
The Trade Development Authority of Pakistan (TDAP) announced 50 percent special subsidy for the Sialkot exporters on holding trade exhibitions abroad. Addressing a meeting of Sialkot exporters held at Sialkot Chamber of Commerce and Industry (SCCI), TDAP Chief Executive S M Muneer said that the TDAP was evolving effective strategy to promote trade abroad and to boom up national exports by taking the exporters into confidence. He said that the TDAP was opening trade promotional ways and bringing maximum foreign investment in Pakistan to win the trust of the foreign investors. To a question raised by Central Chairman of PRGMEA Ejaz A. Khokhar, SM Muneer announced to hold pre and post budget seminars at Sialkot on regular basis under the supervision of TDAP. He said that the TDAP has also increased the number of its annual foreign trade exhibitions from 114 to 146 a year. He assured the Sialkot exporters of ensuring early solution to their al the problems. He asked the exporters to tap the international rice and textile markets, saying that there were bright opportunities of trade development. He also asked the Sialkot Chamber of Commerce and Industry (SCCI) to hold an international standard exhibition of the Sialkot-made products including sports goods and surgical instruments at Sialkot city to lure the foreign buyers. He said that there should be an international standard Expo Centre at Sialkot. He said that government has brought maximum betterment by reducing loadshedding of electricity in the country, saying that the country would soon get rid of the prevailing energy crisis. He said that the Sialkot exporters have been playing an instrumental role in strengthening and boosting the national exports and economy by earning precious foreign exchange to the tune of US$ 2 billion. He said that the TDAP would help and encourage the Sialkot exporters at every level, enabling them to enhance the national exports, as the TDAP would ensure the easy access of Sialkot exporters to the international trade markets.
He urged the exporters to focus on non-traditional export products, saying that the non-traditional export products could have a great potential and pave the way for capturing the new international trade markets. He added that TDAP would develop and promote export holistically, through focus, synergy, and with collective wisdom of the stakeholders. In addition to aggressive, innovative, and proactive marketing and promotional efforts, it will achieve the objective of rapid export growth through interaction and coordination with respective public and private-sector stakeholders, he hoped. He said it will also enhance value of products and services by broadening the export base of the products. It will enhance capability and capacity of goods and services by fostering supportive export culture and facilitation; and by encouraging export oriented foreign investment and joint ventures, he added.
Sialkot exporters’ group leader Riazud Din Sheikh, SCCI President Majid Raza Bhutta, SVP Adnan Arshad Sethi, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Ejaz A. Khokhar, Sialkot Dry Port Trust (SDPT) Chairman Khawar Anwar Khawaja, former SCCI presidents, the officials of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the representatives of all the main trade bodies were also present.
Later, addressing another meeting of the Sialkot exporters and the heads of the different chambers of commerce and industry, he narrated that the TDAP will also help improve market access through advising the government on matters of trade diplomacy. Sialkot exporters urged the TDAP to evolve an effective mechanism for the proper use of the Export Development Fund (EDF) meant for the promotion and development of country’s export sector. They told the visiting CE of TDAP that the Sialkot exporters deserve all the EDF-related incentives for the promotion and enhancement of exports. They pointed out that the Sialkot industries were being ignored regarding distribution of EDF due to the lack of mechanism. They also demanded a special package of trade relative incentives by TDAP especially the direly needed Research & Development funds for upgrading and modernising the industries of. Sialkot exporters added the advanced manufacturing and production technologies should immediately be brought in Pakistan from abroad for developing and boosting these industries in the larger national interest. Sialkot business community urged the government to make some effective and positive measures for ensuring the continuity of the economic policies for strengthening the national economy and promotion of sustainable trade activities in the country. The government’s encouragement and patronisation were vital for the business community which could also pull the the national economy from the stressful. They urged the Trade Development Authority of Pakistan (TDAP) to prepare an ultra modern advanced trade strategy for ensuring the maximum consumption of Sialkot made traditional and nontraditional export items in the international markets.
SOURCE: The Nation
The minister of trade, commerce and industry of Papua New Guinea (PNG) has directed the small medium enterprise (SME) corporation to conduct a study into the textile and garment industry of the country. The study aims to identify measures and policies that can be put into place for cutting down on import bills and manufacture high quality garments. The study can help identify barriers and formulate new policies to recommend appropriate measures for the growth of the textile industry, said Richard Yakam, first assistant secretary, trade division, department of trade, commerce and industry. The country can boost its garment and textile industry by implementing appropriate measures and cater to the increasing demand for clothes using the results of the study. The SME corporation and the department of trade, commerce and industry of the country have also started a textile and garments training programme, according to PNG media reports. The course is being offered by Women's Textile Training Program. However, finding markets to sell products manufactured in the country continues to be a challenge.
SOURCE: Fibre2fashion
Fiji’s garment industry is facing stiff competition from countries like China, Indonesia and Bangladesh who are producing cheap clothing. As a result, the Textile Clothing and Footwear Council is keeping its focus on Australia and New Zealand. The Council was an exhibitor at the recent International Sourcing Expo Australia in Melbourne and President Kaushik Kumar says they were there to promote the garment industry as a whole. “Our pricing is definitely high compared to low cost Asian manufacturers, our biggest advantage I guess is we are close to Australia and New Zealand which are our main markets – we communicate well and one of the main selling points we have is our ability to do small runs and quick delivery.” TCF has been taking part in the Expo for the past seven years. The Council was an exhibitor through it’s ‘Make it in Fiji’ initiative. The industry received one hundred thousand dollars through the National Export Strategy marketing grant and Kumar says this has helped them to participate at the Expo. The TCF Industry was joined by the Fiji Consulate General based in Sydney who displayed Fijian-made products at the expo
SOURCE: The FBC
The ongoing 6th Vietnam International Textile & Garment Industry Exhibition and the 16th Vietnam International Textile & Apparel Accessories Exhibition, known as VTG 2016, held from November 23 to 26, 2016, at Saigon Exhibition & Convention Center (SECC) in Ho Chi Minh City, is proving to be a huge success attracting large number of visitors this year. The event is officially organised by Vietnam National Trade Fair & Advertising Joint Stock Company (VINEXAD) and Yorkers Trade & Marketing Service Co., Ltd. (YORKERS).
Coming from 20 countries, the exhibitors are occupying 550 booths in 7 halls, using a total space of over 10,000 square metres. Exhibitors are mostly from Australia, Bahrain, Bangladesh, Cambodia, China, Germany, Hong Kong, Hungary, India, Indonesia, Italy, Japan, Korea, Macau, Malaysia, Myanmar, New Zealand, Singapore, Taiwan, and Vietnam with 5 extension halls and 3 Country Pavilions, showing a variety of high-performance textile and apparel machines and a broad range of quality fabrics and accessories. This year, the show witnesses many advanced machines supplied by renowned international leading brands: Brother, Groz-Beckert, Hashima, Heinz Walz, Hikari, Kansai, Nomoto, Pegasus, and Tajima. Heinz Walz screen printing machine features the highest precision and biggest printing area since its launch in 1968, and is 100 per cent made in Germany. Tajima highlights an ultimate flagship model of electronic multi-head automatic embroidery machine, which boasts unsurpassed flexibility and sophisticated automation performance systems, including digitally controlled presser foot, to secure fabric stability.
In terms of industrial sewing machines, Hikari is demonstrating a series of high-end computerised sewing and overlock machines with automatic trimming. Ngaishing is covering almost all facets of garment manufacturing machine lines like cutting room equipment, shirts assisting, etc. Halls D to G are exhibiting categories as cotton, fibre, yarn, fabric, and accessories, with country pavilions established for exhibitors from China, India, and Korea. The exhibits include 100 per cent Australian cotton contamination free yarn, water washable velvet, fancy loose knit fabrics, rayon bed cloths, folk style home textile originally from handmade natural dye or fibre, acrylic imitation fur & feather, denim, cotton, knitting and nylon fabric. A series of knowledge-sharing seminars are held to shed light challenges and solutions associated with textile, garment, cotton, and fibre sectors, and touch on TPP & FTA issues that may impact the sustainable development of the sectors.
SOURCE: Fibre2fashion
Iran has not responded yet to Pakistan’s proposal of a Free Trade Agreement (FTA) between the two countries, a highly-placed source said on Sunday. The proposal was made following Iranian President Hassan Rowhani’s visit to Pakistan in March when both the countries had decided to boost bilateral trade from $1 billion to $5 billion over the next five years. Last year, Islamabad and Tehran had reached an understanding during the 7th Pakistan-Iran Joint Trade Committee meeting in the Iranian capital to increase the volume of trade.
Commerce Minister Khurram Dastgir Khan, who headed the Pakistani delegation, had expressed concern over arbitrary and unilateral import bans, high textile tariffs and the import authorisation system and called for early elimination of all non-tariff barriers under the 2006 Preferential Trade Agreement (PTA). However, commerce ministry officials are confident that both the countries would resolve their differences in due course of time because there is a strong urge on both the sides to honour the agreements reached between Prime Minister Nawaz Sharif and President Rowhani.
Two new land routes
Iran is set to open two new land routes with Pakistan in an effort to bolster bilateral trade, a senior commerce ministry official said. “The Pishin-Mand and Reemand-Gadb routes would play a significant role in boosting bilateral trade to $5 billion,” he said on the condition of anonymity. Officials and business circles in Pakistan hoped that the lifting of economic sanctions on Iran could open up massive trade opportunities for both the countries. “Their bilateral trade can get a boost if both the two sides encourage border markets along their 930km-long frontier.”
The single border post at Taftan not only facilitates the travel movement, but also caters for trade on both sides of the border. Opening of new trade posts along the border, both on the Pakistani side — were agreed between the two countries during Dastgir’s visit to Teheran. Reemdan-Gadb is highly significant because it connects Gwadar with the Iranian port city Chabahar. During Rowhani’s visit, both the countries had declared Gwadar and Chabahar as sister ports. Another important factor, contributing towards enhancing bilateral trade, is the blood relationship that exists between the Baloch living on both sides of the border which is driving the two countries to facilitate border trade.
According to estimates by Quetta and Zahedan trade and business chambers, in the commodities the two countries can have tradable items worth $1 billion to $1.5 billion while the inclusion of the IP gas pipeline project and the import of 3,000 megawatt electricity from Iran to Pakistan would easily add another $2 billion to bilateral trade. The trade is likely to receive further boost due to the improved security situation in Balochistan. The planned joining of Iran in the China-Pakistan Economic Corridor in the near future would not only help both the countries to have new avenues for more economic cooperation, but would also contribute towards creating an atmosphere for exemplary diplomatic relations. Similarly, the so-called ‘IPI peace pipeline project’ — now a ‘Friendship Pipeline’ — could move towards China. If gas can go to China, so does the pipeline. However, analysts have expressed concern that US president-elect Donald Trump, who threatened to ‘scrap or renegotiate’ the nuclear deal with Iran, may try to derail the agreement under pressure from Israel. Although Iranian leaders are putting up a brave face, Iranian media commentaries are fearful of a fallout if the nuclear agreement was scrapped. Such an eventuality would entail negative repercussions on trade between Pakistan and Iran.
SOURCE: The Tribune
The Islamabad Chamber of Small Traders (ICST) on Sunday expressed deep concern over continued fall in textile exports. The business community asked the government to take immediate steps to counter the downward trend in textile exports, resulting in an extremely negative impact on the economy. "The government should make a plan to provide affordable energy to Punjab's value-added sector which rely on the supply of LNG," said ICST patron Shahid Rasheed Butt. He said that Punjab's textile sector was buying costly LNG while Sindh was getting uninterrupted supply of natural gas throughout the year. He said Pakistan's textile exports fell 4.35 percent to $4.082 billion in the first four months of the current fiscal year, which is alarming. Exports have continued to fall for the last three years, he added, mentioning that raw cotton exports had fallen by 56.81 percent, while cotton yarn exports dropped 17.24 percent. Exports of knitwear, which is also a major earning sector, had decreased by 1.85 percent to $802.894 million in the period under review, he added.
He noted that during this period bed wear exports increased four percent to $707.366 million, while exports of readymade garments improved 2.62 percent to $698.403 million but the earnings may slide in the coming months as energy shortages during the winter will take their toll on the textile industry.
SOURCE: The Daily Times
It is too early to declare the TPP dead but it is definitely on life support, according to Emeritus Professor Carl Thayer from the Australian Defense Force Academy. US President-elect Donald Trump announced on November 21 that the US will withdraw from the TPP on the first day of his presidency and instead pursue free trade agreements (FTAs) on a bilateral basis. The bottom line, according to Professor Thayer, is that the TPP Vietnam signed but not yet ratified is unlikely to be ratified by the US in its present form. Six of the eleven TPP signatories already have FTAs with the US and the other five enjoy low tariffs, he added. “It could take several years in Vietnam’s case to negotiate an FTA,” he believes. “All eleven signatories need to coordinate their lobbying of the new US Secretary of State and other relevant Cabinet-level officials in a Trump Administration on the merits of the TPP.” Mr. Dezan Shira from Dezan Shira & Associates also believes that Vietnam, together with other countries, must continue with other deals. “With the diminishing prospects for the TPP it is now possible that countries such as Vietnam and Malaysia, which had made substantial compromises on issues such as labor rights, will now have to move on to other deals,” he said.
The Regional Comprehensive Economic Partnership (RCEP), for instance, could be a viable alternative for Vietnam in the event that the TPP fails to go ahead. “Vietnam stands to gain from increased sourcing of production from such RCEP member countries as Japan, South Korea and China,” he said. “Like Vietnam, countries involved in the TPP will have a Plan B.” Mr. Pham Hong Hai, CEO of HSBC Vietnam, said that too much focus is being given to the possibility that the TPP will not proceed and have forgotten that negotiations over other FTAs are ongoing. A bigger deal is the FTA of the Asia Pacific (FTAAP), an initiative nurtured for 20 years by APEC that links 21 economies around the region, including China and the US, he said. The FTAAP covers 60 per cent of global GDP and 50 per cent of world trade. The bulk of the FTAAP is complete and the final chapter is being worked on. The RCEP, which links the world’s three largest consumer markets - China, India and ASEAN - creates a free trade area between 16 Asian economies generating around $22.4 trillion in GDP and about $10 trillion of total world trade, according to HSBC research. “This deal will be particularly advantageous for ASEAN as it will reduce the incongruity across pre-existing FTAs and thereby strengthen the appeal of the region as a production base,” said Mr. Hai.
Negotiations over the RCEP are ongoing and the 15th negotiating session concluded in October. The RCEP includes ASEAN-10, China, India, Japan, South Korea, Australia, and New Zealand; countries with which ASEAN already has FTAs. As the first pan-Asia free trade deal it boasts a list of impressive figures, such as covering roughly half of the world’s population and nearly 30 per cent of global GDP. Mr. Shira, however, noted that the RCEP is of a lower standard than the TPP. “The RCEP does not include provisions that emphasize the protection of intellectual property, the free flow of information, or the leveling of the playing field between private businesses and State-owned enterprises,” he said. Unlike most other FTAs, the TPP included special provisions on areas such as labor standards, governance and transparency, and environmental and intellectual property protection, Mr. Shira added.
Looking ahead, Professor Thayer predicts two scenarios if the TPP is killed off. The first is that when Mr. Trump appoints his Secretary of State it might provide an opportunity to look again at the TPP and perhaps re-open negotiations to get US agreement. “But we do not know who the new Secretary of State will be,” he said. The second possibility is that Southeast Asian signatories to the TPP could move to bring forward discussions on the RCEP, including China but not the US. “With or without the TPP, the US is still a very important trade partner of Vietnam and Vietnamese businesses need to watch movements closely while retaining a spirit of going forward, to take advantage of all the agreements that are in the pipeline,” Mr. Hai said. “Building a strong domestic market is something we need to do in parallel.”
SOURCE: The Vietnam Net
