INTERNATIONAL
Textile Raw Material Price 2016-12-06
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1078.07 |
USD/Ton |
1.07% |
12/6/2016 |
|
VSF |
2176.18 |
USD/Ton |
-0.26% |
12/6/2016 |
|
ASF |
1832.58 |
USD/Ton |
0% |
12/6/2016 |
|
Polyester POY |
1116.73 |
USD/Ton |
0.84% |
12/6/2016 |
|
Nylon FDY |
2662.96 |
USD/Ton |
3.91% |
12/6/2016 |
|
40D Spandex |
4223.52 |
USD/Ton |
0% |
12/6/2016 |
|
Polyester DTY |
5397.51 |
USD/Ton |
0% |
12/6/2016 |
|
Nylon POY |
1338.64 |
USD/Ton |
1.63% |
12/6/2016 |
|
Acrylic Top 3D |
2505.48 |
USD/Ton |
3.55% |
12/6/2016 |
|
Polyester FDY |
2004.38 |
USD/Ton |
0% |
12/6/2016 |
|
Nylon DTY |
1424.54 |
USD/Ton |
1.53% |
12/6/2016 |
|
Viscose Long Filament |
2834.77 |
USD/Ton |
3.66% |
12/6/2016 |
|
30S Spun Rayon Yarn |
2820.45 |
USD/Ton |
0% |
12/6/2016 |
|
32S Polyester Yarn |
1708.73 |
USD/Ton |
0.46% |
12/6/2016 |
|
45S T/C Yarn |
2548.43 |
USD/Ton |
0% |
12/6/2016 |
|
40S Rayon Yarn |
1846.89 |
USD/Ton |
0.78% |
12/6/2016 |
|
T/R Yarn 65/35 32S |
2176.18 |
USD/Ton |
0% |
12/6/2016 |
|
45S Polyester Yarn |
2963.62 |
USD/Ton |
0% |
12/6/2016 |
|
T/C Yarn 65/35 32S |
2219.14 |
USD/Ton |
0% |
12/6/2016 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0.11% |
12/6/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
12/6/2016 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
12/6/2016 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
12/6/2016 |
|
45S T/C Fabric |
0.63 |
USD/Meter |
0% |
12/6/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14317 USD dtd. 6/12/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile industry representatives are hopeful of revival of business once the cash flow begins in the market. Textile sales had gone down by around 50-60 per cent after the scrapping of high-denomination Indian currency notes on November 8. This announcement by the Central government had applied brakes on textile sales in the initial period.
“Surat generally gets bulk orders from various parts of the country. Demonetisation has badly affected our business dealings. Consumers are spending as low as possible. Textile sales have gone down by 50-60 per cent. Placing of order has also reduced by around 75 per cent. The situation is such that weaving has decreased by 60 per cent and processing by 30 per cent. Cash inflow is also very slow. However, it is a positive sign for us that few consumers are still purchasing garments via credit/debit and online system,” Southern Gujarat Chamber of Commerce and Industry president BS Agrawal told Fibre2Fashion.
Despite slow business in the textiles, representatives of the sector welcomed the move hoping that it will ensure systematic functioning of the entire value chain related to the industry.
“Initially, the sales had gone down to around 15 per cent. With time, the sales have improved a bit and we hope that it increases with the recovery of cash crunch in the market. However, demonetisation will definitely benefit the textile business in the long run. It is expected that this initiative by the government will restrain all unbilled sales,” said Naishadh Parikh, chairman, Confederation of Indian Textile Industry.
“The situation is not very good. It will take time for the market to move towards cashless economy. Large retailers have not been much affected as consumers are doing purchases with plastic money and via online. However, with the ongoing wedding season, domestic retail shop owners are bearing the brunt of demonetisation,” said Ajay Sahai, director general and CEO of Federation of Indian Export Organisations.
SOURCE: Fibre2fashion
Government has extended the export entitlement quota for readymade garments & knitwear, yarn and fabrics & made-ups to the US, Canada and European Union for one year with effect from 1 January, 2017. "The government hereby decides to extend the operation of the residuary provisions of yarn, fabrics & made-ups export entitlement (quota) policy for a further one year with effect from 1 January, 2017," said a notification issued by Textiles Ministry. Similarly, it also extended the operation of the residuary provisions of garments and knitwears export entitlement (quota) policy for a further one year with effect from 1 January, 2017. The garments and knitwears export entitlement policy is applicable in respect of countries where such exports are covered by restraints under the provisions of the agreement on textiles and clothing.
Export entitlements will be allotted only to exporters registered with the competent registering authorities as per the export-import policy prevailing from time to time. Quantities that become available from time to time on account of surrenders, flexibilities or otherwise shall also be allocated under the First Come First Served (FCFS) system. Perfect gift for 2-12 year-oldsMagic Crate Help this mother live for her new born baby!Milaap Recommended By Colombia. The government had earlier decided to enforce operation of the residuary provisions of garments and knitwears export entitlement (quota) policy and yarn, fabrics & made-ups export entitlement (quota) policy initially for one year with effect from 1st January, 2005, and extended from time to time. These provisions had been extended up to 31 December 2016.
SOURCE: The Economic Times
Former Tamil Nadu chief minister J Jayalalithaa paid special attention for the growth of textile industry in the state during her entire tenure as chief minister, the Southern India Mills' Association (SIMA) has said. Jayalalithaa served five terms as TN CM, for over 14 years between 1991 and 2016. She breathed her last Monday night in Chennai. Jayalalithaa Jayaraman, fondly called 'Amma', was very proactive in all the textile policy matters and even in the recent meeting with prime minister she personally took up the long pending issue of Technology Upgradation Fund Scheme and the industry could get the entire subsidy arrears cleared up-to-date within a short span of time, SIMA chairman M Senthil Kumar said in a press release. She also helped to resolve the textile effluent pollution issue and successfully implemented the zero liquid discharge treatment system and made Tamil Nadu as the model for the entire globe in terms of sustainability, Kumar added. She also came out with numerous welfare schemes to eradicate child labour employment in a proactive manner.
SIMA chairman highly praised the bold and proactive steps initiated by the former CM on a war footing to mitigate the acute power shortage problem that prevailed in Tamil Nadu during 2008-2011. It is due to her steps that Tamil Nadu has now become the highest power surplus state in the whole of country, thus making the entire industry in Tamil Nadu highly competitive in the global market. He added that she was the first chief minister to demand for an exclusive green corridor for transmitting the green energy across the country and also motivated the industrialists in the state to make large scale investments in wind power and solar power generation, which helped Tamil Nadu become a leader in green energy generation and protecting the world from global warming.
Cotton Cultivation Mission, a proposal mooted by SIMA, was another policy measure announced by Jayalalithaa for increasing the area under cotton, quality, productivity and the income for cotton farmers in Tamil Nadu, said Kumar. SIMA chairman also recalled the support extended by Jayalalithaa for the development of Palladam Hi-tech Weaving Park. He added that the entire textile community in the state and the nation would remember the contributions made by the great leader.
SOURCE: Fibre2fashion
The supply crunch in the textile industry had driven up prices higher than international prices and since the traders are unable to meet obligations, buyers could look to other markets. Cotton prices across the country are ruling high on subdued arrivals. The lack of demand in the apparels industry has also impacted arrivals and although farmers are getting high prices, they prefer to hold back because of the currency shortage in the market.
India is the world’s largest producer of cotton and also the second largest exporter. The present cash crunch is leading to delays in sales of cotton and is creating shortages in the domestic market as well as reducing supplies to the global market, the International Cotton Advisory Committee (ICAC) said in its latest report. Last month, Prime Minister Narendra Modi had scrapped Rs 500 and Rs1,000 notes but the move disrupted trading of farm commodities like cotton, soya as most farmers prefer payments in cash. MM Chokalingam, Director, Marketing, Cotton Corporation of India (CCI) said that although the country has contracted some 6 lakh bales for export to countries including Bangladesh and Vietnam, traders are finding it difficult to meet contractual obligations because there is no kapas in the market. He added that prices are currently in the range of Rs 5,200 per quintal while Minimum Support Prices are Rs 4,160 per quintal. This is because some traders are still offering old currency notes to farmers. Some clarity will emerge by the month-end once the currency issue closes. Till then prices will continue to remain high.
According to him, cotton arrivals are presently in the range of 1.20 lakh bales across the country on a daily basis although there is no much consistency. Given the existing cotton prices, there is little need for the Corporation to go in for MSP operations.The international rates are higher by 4-6 cents than the domestic market but traders do not stand to gain since they are unable to supply cotton as per the contract.
Last year, Pakistan was the biggest exporter and had exported some 20 lakh bales from India. This time, however, because of the border tensions, cotton export to the country has been affected, industry people said. According to industry sources, Bangladesh has contracted some 2 lakh bales, China has contracted the same amount while Vietnam could export some 1 lakh bales from India. With expectations of a bumper crop of some 350 lakh bales, Indian traders had contracted exports for some 6 lakh bales so far to Bangladesh, China, Vietnam and Pakistan but just 6 lakh bales. Last year, the country shipped some 69 lakh bales in export.
SOURCE: Yarns&Fibers
Cotton market in Andhra Pradesh, one of the major producers in the country, has plunged into a deep crisis in the aftermath of demonetisation, as transactions have almost come to a halt and prices have slumped by roughly Rs. 1,000 per quintal. It is almost a month since the Prime Minister announced the move to scrap the Rs. 500 and Rs. 1,000 notes and one of the worst-hit commodities market in the State is cotton. The crop is grown widely in Krishna, Guntur, Prakasam, and Kurnool districts and to an extent in the two Godavari districts. The ginning mills, most of them located in Guntur district, supply cotton to textile mills in other states such as Maharashtra, Tamil Nadu, Gujarat and Karnataka.
After demonetisation, the ginning mills are in a crisis and they are unable to purchase cotton through brokers due to liquidity crunch. According to trade sources, almost 70-80 per cent of the transactions have come to a halt and the market has been hit hard. A month ago, quality cotton was selling in the range of Rs. 5,300-5,500 per quintal and the prices have now slumped to Rs. 4,300-4,500 per quintal, and farmers are unwilling to sell at these rates. On the other hand, the Cotton Corporation of India (CCI) has opened more than 40 cotton purchase centres in the State, but the prices offered are much less than the prevailing market price at Rs. 4,100 per quintal and farmers are therefore unwilling to sell cotton at CCI purchase centres. The net result is that the cotton market is almost at a standstill after demonetisation. Trade circles and the farmers are desperately waiting for release of enough cash to revive the market.
SOURCE: The Hindu Business Line
India’s garment industry is a $100 billion powerhouse, with $40 billion worth of textiles and garments exported annually. It is the country’s second largest sector after agriculture, employing at least 45 million workers directly, it and contributes to the economic livelihood of at least another 60 million Indians. And as is the case of much of the global garment industry, the sector in India is a complicated one with a tangled supply chain. Small factories and shops, many of them family-run, serve as subcontractors to larger textile and garment suppliers, which in turn churn out clothing for some of the world’s most recognized brands. The result is that bonded labor has become common across India, as suppliers seek to keep costs down in a hyper-competitive industry. And what may come across to many families as at first a benign way to secure a daughter’s future and pay for her marriage dowry has become part of a corrupt system entrapping as many as 120,000 young women and girls annually.
One large driver of bonded labor in India, especially in the southern state of Tamil Nadu, is the Sumangali system, in which girls as young as 13 are hired on contract for as long as five years. Many of them work in spinning mills, which for decades relied on full-time adult male workers along with some married women hired on a temporary contract basis. But since the late 1980s, more spinning mills have relied on these young girls and women, who are often promised a clean place to live, plenty of social activities, onsite health care and a generous lump sum after they complete their contract. According to the NGO Anti-Slavery International, girls and their families are promised as much as 60,000 rupees ($882) in a lump-sum payment at the end of the typical three-year contract.
The reality, however, is often starkly different, as outlined in Anti-Slavery’s 2012 landmark report. Working conditions are often dangerous; living quarters are often squalid; these young women and girls are often kept confined to the mills, even if they become seriously ill; and deductions for healthcare costs or mistakes made on the shop floor can reduce their final payment, already a pittance, to almost nothing.
The Fair Wear Foundation, which has long investigated this practice, says some aspects of the Sumangali system need to be understood in the context of India’s social system and Hindu culture. Nevertheless, the way Sumangali (which means “married woman” in Tamil) has been conducted in India in most cases is illegal, according to a report the organization released in 2010. These labor rights abuses have been ongoing despite the fact that India has banned all forms of forced or slave labor. “India’s labor laws are actually quite clear, and bonded labor has been illegal in the country for a long time,” Jakub Sobik, an Anti-Slavery spokesperson, told TriplePundit. “But these violations of human rights continue because of weak implementation across the country.” The lack of any enforcement, and local authorities’ preference to look the other way, has the most devastating impact on the children of India’s marginalized communities. Especially vulnerable are those who are traditionally from India’s lower social castes, local tribal populations and migrant families across Tamil Nadu.
Another NGO dedicated to ceasing human trafficking and slavery, Switzerland-based Terre des Hommes, says its work has raised awareness somewhat, but that its organization’s efforts are often frustrated by local government officials’ reluctance to acknowledge that such problems exist. “There is often no direct response, as most of the time there is a ‘I will look into it,’ and sometimes, even a total denial,” said Antje Ruhmann, a child rights officer for Terre des Hommes. “Occasionally, the government institutes an inquiry on their own to find out the actual situation on the ground.” Ms. Ruhmann said some trade groups, such as the Southern India Mills’ Association, said they have tightened hiring guidelines for their members, but implementation and regular monitoring are not rigorous enough to stop these abuses.
The international garment industry says it is doing more to crack down on suppliers who profit from labor rights abuses such as the Sumangali system. But evidence of continued human suffering suggests companies can do far more. “The garment companies say they are regularly undergoing third-party audits, but it’s not a secret anymore that audits rarely work properly,” said Mr. Sobik of Anti-Slavery. “Businesses need to do far more to ensure that their suppliers, and those suppliers’ subcontractors, are following the law to ensure that bonded labor in any form is not tied to their global supply chains.”
Terre des Hommes’ Ms. Ruhmann is also dubious about social audits as a mechanism to clean up India’s garment industry. Wages promised by the Sumangali system are low in part because of the rather loose interpretations of India’s apprentice system, which dates back to sweeping labor legislation passed at the time of the country gaining its independence in 1946. Nevertheless, Terre de Hommes and Anti-Slavery insist that their interpretations of what “apprenticeship” means is one excuse for suppliers to pay extremely low wages – not to mention the deplorable conditions in which these workers often find themselves. Ms. Rumhann says both auditors and labor enforcement officers need to hold these businesses accountable. “Hostels should be registered with government departments. No apprenticeship should be allowed beyond six months. And all social audits should include local people on the ground, particularly local civil society organizations,” she said. So, are the efforts of NGOs including Terre des Hommes and Anti-Slavery making a difference? Awareness is indeed increasing, with exposés, such as last year’s investigative reporting by Reuters, shining light on these abuses. The Guardian has also dedicated resources to revealing bonded and slave labor in India and other nations that contribute to the garment industry’s global supply chain. Rumhann points to the results of Terre des Hommes’ impact from four years of the organization’s interventions: psychological counseling for almost 6,000 girls, over 1,000 benefiting from skills training and over 1,800 young women who found better paying employment. But she also infers that there is a long road ahead before bonded labor is eradicated from the garment industry’s global supply chain. “Due to our regular awareness building meeting with our stakeholders, a handful of companies have reduced recruiting child laborers, as in girls,” she said. “However, for the other girls who have been working in these conditions, the situation has not changed much.”
Mr. Sobik also agreed that we are far from the day when a consumer can purchase an item of clothing with total confidence that it’s free of slavery from thread to store shelf. “There has been some increase in awareness, in part because of the work of media outlets such as the Guardian,” he said, “but we are far from the systematic change needed to eliminate slavery, including bonded labor schemes such as Sumangali in India.”
SOURCE: The Triple Pundit
Used garments dumped in India via ships from East Asian countries are most sought after in Northeast Indian states of Nagaland, Meghalaya, Mizoram and others with the demand for these goods surging in at early October and lasting till Christmas eve. While a second-hand jacket can be bought for as cheap as Rs 150 at the beginning of December in Nagaland, the rates dip to as low as Rs 5-10 on Christmas eve, said local cloth sellers. “During the pre-Christmas period you can get anything from socks to a jacket to a pair of jeans for as cheap as Rs 5. The hawkers will shout the cheap rates out,” said seller Shelly Kemp in central Kohima’s second-hand market. “Inke parab Christmas ke time sabse zyaada sale hota hai, fir humare Bihar chale jaatey hai (Most sales of old clothes are mostly during before Christmas, after which I return my home in Bihar,” said Jaikar Sahani, a migrant old-garment seller.
Korean clothes being of better quality are the most sought after and also cost the most in wholesale. Small retailers have to buy old clothes in 50 kg to 100 kg belts, rates of which depend on the quality of the clothes and their country of origin. “A belt of 50 kg consignment of good Korean clothes can cost around Rs 1.2 lakh. Cheaper quality clothes cost from Rs 40,000 to Rs 70,000,” said wholesale dealer Hino Kali Sohe. Meanwhile, customers are also very fond of the Korean clothes and prefer them over anything sourced from Guwahati or Siliguri. “The Koreans have a great sense of fashion. Their clothes are very cool, and also very cheap. Why spend Rs 5,000 when you can the same product, albeit used at Rs 150 or Rs 200 and if lucky at even Rs 5,” said teen Christina Lotha with a wink.
The Northeast Indian states being a hilly region with no major production of modern textiles, costs of brand new clothes are very high which are sourced from metro Kolkata or cities like Guwahati in Assam and Siliguri in north Bengal. This, along with profound cultural influence of south Korean movies and soaps on the youth are said to be the major reasons for preference of used Korean textiles. This ensures that wearing of used clothes does not become a social stigma or looked down upon by the people. “It is widely known and accepted that we wear used clothes from East Asia. There is no shame in it,” said Jennifer Awomi.
SOURCE: The North East Today
Fabric and apparel major Raymond has partnered Khadi and Village Industries Commission (KVIC) to introduce a new line of clothing under the brand Khadi by Raymond, which will directly compete with Fabindia. KVIC will certify Raymond to use Khadi mark to sell ready-made garments and fabric which will be available at KVIC and Raymond outlets across the country. "Khadi is looking for an economic revolution and Raymond has technical expertise as well as significant global presence. This is a perfect match", said Sanjay Behl, CEO Raymond. "Our idea was really to own the complete value chain by getting directly into the source of Khadi in India and the most widest and proficient in Khadi is KVIC," he added. The initiative is taken under the KVIC Act that permits it to promote the sale and marketing of Khadi or products of village industries or handicrafts and forge links with established marketing agencies.
As per the signed MOU, Raymond has agreed for a guaranteed initial procurement of a substantial amount of Khadi fabrics from the 2300 clusters under KVIC in the initial year. Apart from retailing the brand, Raymond will provide technical and design expertise to Khadi manufacturing clusters for crafting readymade garments for its apparel brands. "This is historic for us because a typical government organisation is joining hands with a private company like Raymond. Despite having the best products in the world, we could not take Khadi to the globe because of very limited resources. But this partnership will allow us to do that," said VK Saxena, KVIC chairman. According to KVIC this joint venture is also a step towards making a radical shift in people's perception of Khadi from a fabric that stands for nationalism to a fabric that stands for fashion. The association will add an incremental employment of 2.1 lakh man hours for spinners and weavers.
In the past, Raymond has had similar associations with the handloom sector which included hand-crafted khadi products as well but have never branded and marketed them on a scale this big. Raymond has a near 60 percent market share in the Rs. 18,000-crore suitings segment. Raymond plans to invest about Rs 500 crore to open 400-500 new stores across all its portfolios in the next 5 years. The company is also investing the same amount in setting up a new plant in Ethiopia to cater to its global markets like Europe and US. The company, currently manufacture textiles from three manufacturing unit; Chhindwara in Central India, Vapi in Gujarat, near Mumbai and Jalgaon in Maharashtra is also ramping up its production capacity. In Feb, this year Raymond invested Rs 450 crore in a new textile unit at Nandgaon Peth in Amravati district in Vidarbha which will have an annual capacity of 20 million metres of cotton fabric.
SOURCE: The Economic Times
India needs to build up its manufacturing sector and participate in the global value chain network to attract FDI, a senior executive of the Asian Development Bank (ADB) said here today.
“India need Foreign Direct Investment (FDI) and it needs to participate in the global value chain,” said ADB’s deputy chief economist Juzhong Zhuang, referring to the push of building up manufacturing in the country. He noted the Indian government-initiated business reforms, make India a more attractive FDI destination. “So far India has a well-developed service sector, (but) it has a large potential in the manufacturing sector,” stressed Zhuang after launching ADB’s Asian Economic Integration Report 2016. India should focus on manufacturing, imports parts, assemble products and supply to the domestic market as well as export, said Zhuang. The ADB report examines current trends in trade, finance, migration, remittances, and other regional cooperation and integration issues.
“Trade and FDI have been key drivers of growth and prosperity in Asia and the Pacific,” he said. But he called on the region to “guard against the threat of rising protectionism and make concerted efforts to push for freer trade and better investment policies to preserve the region’s growth momentum.” The report noted that the anemic global economic recovery continues to weigh on the region’s trade growth, which continues to decelerate. Last year, trade growth in Asia slowed to 2.3 per cent, below the global average of 2.7 per cent. But it highlighted that greater trade openness and FDI can strengthen the region’s resilience to slow global growth. Countries in the region need to improve their institutional quality, business environment, and policy effectiveness to encourage FDI, said the report.
SOURCE: The Financial Express
India and the EU are in disagreement over whether to negotiate a bilateral investment treaty (BIT) for mutual protection and promotion of investments as part of the proposed free trade agreement (FTA), or separately. The EU wants the two partners to enter into a BIT as soon as possible and the FTA should follow later as the individual investment protection agreements signed by its member-countries with India have already started to lapse. It has also urged India to allow the existing BITs to continue till a new one is negotiated. “New Delhi, however, wants the new BIT, which is to be negotiated with the EU as per the model text approved by the Cabinet, to be a part of the FTA. It is also not keen on extending the existing treaties with individual EU member countries after they lapse,” a government official told BusinessLine . Officials from the EU, who met senior officials from India’s Department of Economic Affairs and Commerce Department last month and discussed the matter, are now expected to respond on how the FTA negotiations should proceed, the official added.
Contentious issues
The proposed India-EU FTA, officially known as the broad-based trade and investment agreement, has been stuck for the past few years due to disagreement between the two sides over contentious issues such as lowering of import duties on automobiles and alcohol by India and recognition of India by the EU as a ‘data-secure’ country. The FTA, which would focus on goods and services, will also have a separate chapter on investments which would include measures for its promotion and protection. India’ BIT with Netherlands has already lapsed on November 30 and similar agreements with most other EU member countries are set to lapse in the first half of next year. New Delhi has come up with a model BIT draft based on which it now seeks to re-negotiate all its existing investment agreements to avoid a string of litigations it has been facing over the last few years from global companies. It understandably doesn’t want to give extensions to the existing agreements that lapse.
Investor interest
The EU argues that the gap between the expiry of the existing BITs and the implementation of the new BIT would result in an uncertain situation for investors from the country. While the existing investments would already be covered under the provisions of the existing BITs for the next few years even after they lapse (as the existing agreements provide for such coverage), it would not hold true for new investments made. Indian officials, however, say that even if new foreign investments were not covered under a BIT for sometime, it would not spell doom as the existing laws in India, especially under the ‘Make in India’ campaign, were foreign investor friendly. The EU is India’s top trading partner, ahead of China and the US. EU investments in India amounted to €38.5 billion in 2014, increasing from €34.7 billion in the previous year, according to EU figures.
SOURCE: The Hindu Business Line
The Narendra Modi government's note ban has impacted diplomats and the functioning of embassies, but not everybody is complaining. Russian Ambassador to New Delhi Alexander Kadakin lodged a strong protest with South Block about the cash crunch that his mission has faced since November 9. Several others have either not been as vocal, or like the Germans, are looking at the business opportunities the move would offer their companies.Munich-based Giesecke and Devrient (G&D), for example, supplies security features to the Reserve Bank of India (RBI) for currency notes, and machines to bank branches across the country to detect counterfeits. On Tuesday, Germany's Parliamentary State Secretary (equivalent to minister of state) for Economics and Energy Uwe Beckmeyer met senior finance ministry officials, Economic Affairs Secretary Shaktikanta Das, and was also slated to meet National Security Advisor Ajit Kumar Doval. When asked how demonetisation was likely to impact Germen investments in India, Beckmeyer said as a German policymaker he should keep away from making any statements about Indian's internal politics. Beckmeyer said he had a meeting with Economic Affairs Secretary Das and was told "that demonetisation is going on quite successfully." "German companies are also involved in this (demonetisation), including printing bank notes that are hard to counterfeit," the visiting German minister said. He hoped that the note ban would work.
Giesecke and Devrient was set up in India in 2001 after RBI's "clean note policy". According to its website, the company has footprints in India, Bangladesh and Pakistan, too. Its machine portfolio encompasses every stage of the cash cycle, from printing plants to sorting machines. It provides substrates and security features for banknotes. However, several embassies, particularly those of developing countries, have faced cash problems after demonetisation. Embassies and high commissions of countries with vibrant business relations with India and significant staff strengths have found preferential treatment from private banks, with bank vans visiting the embassy premises to facilitate withdrawal of cash.
The Russians, who rely on State Bank of India, have not been that fortunate, leading their envoy Kadakin to write a strongly worded letter to the MEA. Other Central Asian Republics like Kazakhstan have faced similar problems, while Pakistan's embassy had even threatened to issue notices to Indian officials serving in Islamabad if they weren't allowed to withdraw their salaries in American dollars. In his letter to MEA, Russian envoy Kadakin has complained this his embassy's normal functioning was getting affected with the "inadequate" amount of weekly limit of Rs 50,000. State Bank of India has told the embassy its cash withdrawal limit was Rs 50,000 a week. This, the bank said, was according to the Government of India directives with no exceptions unless otherwise advised by the Reserve Bank.
A Russian embassy official said they were awaiting for a reply from the MEA and hoped that the issue was resolved quickly. The official warned that Russia would be forced to explore other options, including raising the issue in Moscow by summoning senior Indian embassy officials. Moscow could even retaliate by restricting cash withdrawals for Indian diplomats posted in Russia. The Russian embassy has 200 staffers. The MEA didn't respond to reports about Russian complaint. The Dean of Diplomatic Corps has also raised the issue, as have Ukraine and Kazakhstan.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 52.42 per barrel (bbl) on 05.12.2016. This was higher than the price of US$ 51.46 per bbl on previous publishing day of 02.12.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3573.79 per bbl on 05.12.2016 as compared to Rs. 3518.13 per bbl on 02.12.2016. Rupee closed stronger at Rs. 68.17 per US$ on 05.11.2016 as against Rs. 68.37 per US$ on 02.12.2016.. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 05, 2016 (Previous trading day i.e. 02.12.2016) |
Pricing Fortnight for 01.12.2016 (Nov 12, 2016 to Nov 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
52.42 (51.46) |
44.87 |
|
(Rs/bbl |
3573.39 (3518.13) |
3061.48 |
|
|
Exchange Rate |
(Rs/$) |
68.17 (68.37) |
68.23 |
SOURCE: PIB
A Taiwanese company will spend $18.5 million to bring a sports fabric weaving and finishing operation that will employ 610 to Forest City. Everest Textiles USA, a unit of Everest Textile Co. Ltd. in Tainan City, Taiwan, expects to start production of the fabric during the second or third quarter next year, says Tom Johnson, interim director of the Rutherford County Economic Development Commission.
Here's an example of a new Everest Textile fabric. “We are very pleased to see the return of this type of industry to the county,” Johnson says. N.C. Rep. David Rogers says the textile’s return to Rutherford County shows western North Carolina is “competitive with any region in the world when it comes to manufacturing.” Everest Textiles will take over an existing building in Forest City, which measures almost 400,000 square feet, to create the plant. Workers there will weave, dye and finish the fabric, which will be used in sports apparel. It’s the first U.S. operation for Everest Textile Co. The Taiwanese company now supplies apparel companies including Nike , Columbia and Patagonia from factories in Taiwan, China and Thailand. Scott Chen, vice president of Everest Textile Co., says the company is known for innovation. “Everest positions itself as one of the leading global enterprises and commits to contribute to human society by providing innovative, environmentally friendly and comfortable textile products to the industry and consumers,” he says. Michael Chen, U.S. legal counsel for Everest Textile, says the plant represents a “tremendous opportunity for all parties involved.” “As a native North Carolinian, it is exciting to see Everest Textile USA investing in the state and people of North Carolina, while also creating innovative products,” Chen says.
Everest Textiles qualifies for about $3.1 million in state and local incentives. The largest is a $3 million state Job Development Investment Grant that will be paid to Everest Textiles over 12 years. Johnson says he’s been working on the project since March. He declined to disclose the exact location of the plant site, saying details haven’t been worked out.
SOURCE: The Charlotte Business Journal
Despite various intervention programmes initiated by the Federal Government to revive the textile industry, operators in the sector have sought the revival of commodity boards to improve access to raw materials needed by textile manufacturers. Indeed, the operators want the Federal Government to establish a cotton corporation in the country in order to boost production of the commodity and revitalise the textile industry. Commodity Board, at the best of times, promoted the production of quality produce to meet with the quality standards of manufacturers and encouraged raw material availability for industries by creating a storage facility for excess agricultural produce.
The President of Nigerian Textile Manufacturers Association (NTMA),Mrs Grace Adereti, in a chat with The Guardian, said the creation of the corporation would ease textile manufacturers’ access to raw materials for production. “When we contacted the farmers, they said that they are not ready to supply to us at the price negotiated by the ginners. We discovered that the farmers base their price on what they will generate from exporting the cotton. “If we accede to the price, our output will become uncompetitive considering the infrastructural deficit in the country, which affects the cost of production. “We are in a fix. Some factories have suspended production because they do not have cotton for production. In the past, there was a market board and government had control over the price of cotton. “We want the government to intervene in this matter and save manufacturers. We have the machinery and the workforce and we are ready to produce, but we are hindered by the present situation,” she said.
The Director-General of the association, Hamma Kwajaffa, also alleged that rivalry among government agencies contributed to the challenges hindering the growth of the textile industry. “The former Minister of Agriculture initiated the creation of the cotton corporation, but he had a rivalry with the Minister of Trade that said establishing the corporation falls within his domain. “That was how the whole matter was stalled at the Federal Executive Council. The absence of regulation makes everyone to fix prices that they want across the value chain. We will prefer that local usage of cotton is given preference before export,” Kwajaffa said. He said the corporation would create shared prosperity while stimulating the growth of the agricultural and industrial sectors of the economy.
SOURCE: The Guardian Nigeria
Textile is the most important manufacturing sector of Pakistan having largest production chain with inherent potential for value addition at each stage of processing from cotton to ginning, spinning, fabric, dyeing and finishing made up garments. The sector contributes nearly one fourth of industrial value added, provides employment to about 40% of industrial labour force. Consume about 40% of banking credit to manufacturing sector and accounts for 8% of GDP. Its average share of about 58% in national export, however, despite being the 4th largest producer and 3rd largest consumer of cotton globally Pakistan’s comparative advantage diminish due to export of low value added textile products.
Technical Textile are an emerging area of high value addition but Pakistan still lags behind in technical textile products now the Government and Textile Industry making efforts synchronizing textile products with emerging needs of world market by developing higher value added products there is need to invest in R&D in this area. In the past, Government as well as the textile industry has kept their focus on conventional and traditional textiles ignoring technical textile and knowledge based product.
Technical Textile defined as textile material and product manufactured primary for their technical performance and functional properties rather than their aesthetic and decorative Technical Textile end use range from simple product such as dental floss and sutures to heart valves and vascular prosthesis from air filter to heat and flame barriers and from car seat covers to load bearing composite materials.
Application of Technical Textiles
There are 12 main application areas for textiles have been explain below:-In which Mobil Tec’s Automotive Textile sector is the largest single consumer technical textile having essential component of more functional parts of all road vehicle in addition to provision of area of decoration and warm soft touch. Mobiltec market share is 25% polyester remains the principal fibre world wide for seating fabrics the manmade fibre for tufted carpet wrap knitted fabric which include tricot poll double needle bar are most widely used. Increasing use of printed fabric particularly in Asia is likely to share of knitted fabric both in flut and velour forms. Whereas, Geotech are mainly applied for earth related under ground work, road construction, ground stabilization, erosion control during 2000 to 2005 Geo tech showed largest growth with meditec.
In Pakistan there is huge scope of the expansion of functional textile in different segment of textile industries like Home tech, Mobi Tech. Medi tech, Geo Tech and Spo Tech for example Home tech include thread yarn and Textile beneficent it has got certain advantages, being a 4th largest producer of cotton, having strong inference with cheap labor force already enjoy a significant precise in the conventional textile, enjoying GSP plus status Pakistan can make significant contribution in this technical textile field which will be helpful in maximizing export.
Pakistan’s share in technical textile is too little because of the lack technological advancement which restricted Cotton’s presence in home textiles where textile fibrous materials are becoming basic component in bridges, architecture combat vehicle automotive aeroplane medical implant protective wear against bullet shock radiation. World consumption of this sector is increasing rapidly. In Pakistan there is a need to work on Mobi tec, Home tech Medi tec Protective tec through this priority list can enhance export potential while reducing the imports in bulks. Further development of technical textile market will be centered on new material, new process and new application with economic liberalization and globalization there is a dire need for improving technical knowhow because all economy is knowledge based. There is an urgent need to invest on research and development.
In textile policy 2014-19 Government decided to develop a proper strategy for the promotion of technical textiles in the country. For this purpose exclusive centre of excellence to impart training, develop skills and targeted to share relevant information about world trends in such field like geotech, meditec, spotec will be established. Government is also pursuing the KOICA who has shown interest in establishing a research facility for technical textiles university Faisalabad. The non woven sector is one of the emerging sub sector having considerable share in value added products to encourage this sector Ministry of Textile Industry developing a model for skill development and sharing knowledge for skill development for human resource development as there is an urgent need for promoting innovation, advancement in technology for this package for academia is need of time.
In current Textile policy, Government of Pakistan has taken special initiatives for institutional restructuring and human resource working under the ministry in field of Research, textile engineering, international trade matters, negotiation project development project monitoring tariff rationalization and other related matter for enhancing capacity building of the Ministry and its organizations as well. In this context, National Textile University will continue to provide higher education would fulfil the gap in research and development National Textile University will be supported and helped to establish department for technical textile in collaboration with foreign donor agencies and also set up a department for textile dyes, pigments finishing to support and chemical manufacturing in the country. Since promotion of technical textiles require huge amount of finance in implementation machanisim Ministry is approaching for allocation of funds from Export Development Fund, PSDP through PC-I, while donors are also requested to assest the financing.
The Textile Policy initiatives will strive to compliment strengthen support relevant initiatives taken by other federal Ministries, provincial government or donors will also strive to avoid any duplication. For Human Resource development Ministry of Textile Industry will provide technical support for up-gradation of EDF funded textile training institutes to meet International requirements and eliminate skill gap for manufacturing high value added textile and technical textile product Hiring of foreign trainers, designing of courses for training of master trainers in collaboration with foreign donors. By taking all these steps the sector of technical textile will be in a position to contribute significantly.
SOURCE: The Pak Observer
Turkey’s Economic Minister, Nihat Zeybekci, during his visit to Ethiopia is expected to lead a team of Turkish business tycoons. The Economic Minister’s trip to Ethiopia is scheduled for some time in the coming month, according to Ayalew Gobeze, Ethiopia’s Ambassador to Turkey. The business tycoons are said to visit potential business locations in Ethiopia and also participate in bilateral meetings with Ethiopian government officials and business community. In the recent years, Turkey’s investment to Ethiopia has been growing. Out of the 6 billion USD Turkish investors spent in Sub-Saharan countries, half of it was in Ethiopia. The investors are mainly targeting textile and garment sub sectors.
The Ambassador added that investors in garments, agro processing and textiles are expected to expand their businesses in the country. In the last few weeks, two business forms focused on Ethiopia, were held in Turkey. The latest Turkish/African business forum held two weeks ago, Ethiopia was talked about as one of the best investment destinations for Turkish business people and many came forward to give their testimony about the opportunities there.
SOURCE: Yarns&Fibers
Due to non-availability of the required infrastructure including natural gas and paucity of funds, the voluntary winding up of the Pakistan Textile City Limited (PTCL) has been started. This was revealed in the National Assembly Standing Committee on Textile Industry which met in the chairmanship of Khawaja Ghulam Rasool Koreja here on Tuesday. The committee was given briefing on the closure of the Pakistan Textile City Project, Karachi, along with the policy to sell out its land and Plastics Technology Centre (PTC). The committee expressed its reservations over the closure of Pakistan Textile City Project, Karachi, and observed that due to mismanagement and corruption, the debt of textile city is exceeding to Rs 2.4 billion. The committee directed the ministry to sell out 250 acres of its land for payment of its outstanding debt and efforts should be made to make it operational by involving Chinese/foreign companies for its betterment.
The committee was informed that the company owes a debt of Rs 2.4 billion to the National Bank of Pakistan, out of which Rs 1.3 billion were spent on the purchase of land at Port Qasim and Rs 1 billion have so for been incurred as interest on loan. On the daily basis the markup payable is Rs 700,000 approximately. These challenges could be easily handled by selling 200 acres of land to K-Electric, for setting up a coal-fired power plant. The land could not be sold so far as the purpose to establish coal-fired power plant is not covered by the objectives of the PTCL declared in its memorandum of association. A summary was, therefore, submitted to the Prime Minister for placing the case before the ECC for approval. However, the Finance Division conveyed in principle approval of the Prime Minister, dated March 17, 2016, for winding up of Pakistan Textile City Limited after a due process. The Prime Minister constituted a committee to furnish its recommendations for further appropriate steps.
The Prime Minister's Office conveyed the orders of the PM according to which the recommendations of the committee have been approved in principle. Accordingly, the Finance Division shall immediately take the lead for voluntary winding up of the company, after meeting all necessary prerequisites. The sixty-fifth meeting of the Board of Directors of Pakistan Textile City Limited ("Textile City") was held on November 17, 2016. It was resolved that due to non-availability of required infrastructure, including natural gas, and financial resources, the company is unable to continue its existence and as decided by the committee of winding up formed earlier by the federal government, the process of voluntary winding up be started as laid down in the Companies Ordinance 1984. The meeting further resolved that the general meeting of the shareholders be convened after completion of all formalities and the chairman was authorised to fix the date of general meeting of shareholders of the company for this purpose. As such the voluntary winding up of the Pakistan Textile city Limited is in process under the Companies Ordinance 2016 (previously called Companies Ordinance 1984).
The secretary ministry of textile industry presented the report on the performance of Plastic Technology Centre (PTC). He was of the view that unfortunately, the PTC was in terrible condition and needs to be focused. The committee was of unanimous view that new campus of National the Textile University should be established at the PTC in order to make it profitable organisation. The committee was informed that the PTC, Karachi, is undergoing financial crisis and for the last six months, no salary or recurring expenditure has been paid to the centre. Its monthly operating expenses are Rs 1,754,437. Moreover, the annual estimated expenses of PTC are Rs 21.05 million. It is also pertinent to mention here that Plastic Technology Centre is not receiving any regular budget from the Finance Division. The matter was discussed by the secretary ministry of textile industry with the secretary finance.
The ministry of textile industry requested the finance ministry that an amount of Rs 21.05 million may be allocated to clear the earlier liabilities on account of salaries, miscellaneous expenses and to cater for expenses in the current financial year during which other options will be explored to run the centre. The ministry of textile industry has proposed to move a summary to the Prime Minister for reshaping/ merging the PTC, SFDAC and PKGTI. Following three options are in the pipeline for consideration including: making these ailing organisations part of National Textile University as campus; declaring them a new textile university and winding up their status under Section 42 of the Companies Ordinance; and converting them into an attached department of ministry of textile industry. However, the ministry is recommending option number 01 for consideration of the Prime Minister.
SOURCE: The Business Recorder
Bangladesh's exports in November rose 5.5 percent from a year earlier to nearly $2.9 billion, driven by stronger garment sales, official data showed on Tuesday. Exports for July through November, the first five months of the country's 2016-17 financial year, rose 6.3 percent from a year earlier to $13.69 billion, the Export Promotion Bureau said. Sales of garments, comprising knitwear and woven items, totalled $11.13 billion in July-November, up 6.4 percent from a year earlier. Garments are the key foreign-exchange earner for the South Asian nation of 160 million, whose low wages and trade deals with Western markets have helped make it the world's second-largest apparel exporter after China
SOURCE: The Reuters
Many textile and garment enterprises are investing in textile and dyeing complexes to ensure material for sustainable development, Vietnam Television (VTV)reported recently. To avail themselves of business opportunities from the Trans-Pacific Partnership (TPP) agreement, many textile and garment firms have over the past two years started building textile and dyeing complexes. For instance, 10 enterprises have invested hundreds of millions of US dollars in those complexes in southern Binh Duong Province. However, US President-elect Donald Trump said his country would leave the TPP but investment to those industrial complexes would still continue for long-term development strategies. Esquel Garment Manufacturing Viet Nam Co Ltd has operated in Viet Nam for 10 years and mainly imported material from China. In 2015, the company invested in a textile and dyeing factory in Binh Duong partly for availing business opportunities from the TPP. The factory has completed construction of the building in the first stage and it will begin operations in a year.
With information emerging that the US could leave the TPP, the company would consider carefully its investment plans for the factory in the second and third stages. However, Nguyen Van Luong, deputy general director of Esquel Garment Manufacturing Viet Nam, said the decision on investment was under the company’s long-term development strategy in Viet Nam but not only for TPP. Textile and garment enterprises said that TPP has prompted them to increase investment in textile and dyeing for production of garment products. In the long-term, development of textile and dyeing would help Viet Nam complete its production process for garment products and avoid dependence on material imports as being done at present, VTV reported. Meanwhile, Nguyen Xuan Duong, chairman of Hung Yen Garment Company said TPP would present more opportunities to local textile garment firms to export to the US, but if there was no TPP, exports to the US would have no effect.
During his election campaign, President-elect Donald Trump had said that if he won the elections the US would impose import tariff of 45 per cent on Chinese products. So, Duong said, garment producers who have investments in China could consider moving their business to other countries, including Viet Nam, to avoid high import tariff for products imported from China, the Dien dan Doanh nghiep newspaper reported. Duong said that Viet Nam’s textile and garment exports next year would face many difficulties as expectations. Hung Yen Garment Company has signed contracts to produce garment for exports until March and April 2017. He expected the company to receive more export orders after Tet (the Lunar New Year) festival to produce stable exports until October 2017. According to the General Statistics Office, Viet Nam gained a year-on-year increase of 4.5 per cent in export value to US$21.5 billion for the first 11 months of this year. This year, the nation expected to gain a total export value of textile and garment at around $29 billion.
SOURCE: VietNamNet.
The U.S. trade deficit widened to a four-month high in October as overseas sales weakened and American companies imported more equipment and consumer goods. The gap grew to $42.6 billion from the prior month’s revised $36.2 billion, Commerce Department figures showed Tuesday. The 17.8 percent increase from September was the largest since March 2015. The Bloomberg survey median called for a $42 billion shortfall.
Stronger demand for imported merchandise indicates trade will weigh on U.S. growth after net exports in the third quarter contributed the most since the end of 2013. What’s more, the latest rally in the dollar could squelch prospects for a pickup in exports as American-made goods become more expensive overseas. “On balance, trade is expected to be a drag on GDP growth,” Jay Bryson and Tim Quinlan, economists at Wells Fargo Securities LLC, wrote in a note. “The primary rationale for that is the fact that growth in the United States is still relatively steady and we are forecasting steady growth in consumer spending. The global economy is still on shakier footing.”
Bloomberg survey estimates ranged from shortfalls of $37.5 billion to $44 billion after an initially reported $36.4 billion September deficit. Exports decreased 1.8 percent, the most since January, to $186.4 billion in October on slower sales of foods, consumer goods and industrial supplies, the Commerce Department data showed. At the same time, exports of services were a record. Imports rose 1.3 percent to $229 billion, reflecting the largest inflow of merchandise since September of last year. The value of telecommunications gear, pharmaceuticals and mobile phones entering the U.S. in October increased. After eliminating the influence of prices, which renders the numbers used to calculate gross domestic product, the trade deficit widened to $60.3 billion, the highest in four months, from $54.2 billion in the prior month.
Trade contributed 0.87 percentage point to U.S. economic growth in the third quarter, the most since the final three months of 2013. A jump in soybean shipments to overseas customers that boosted exports in the third quarter is in the process of reversing. Trade and inventories are two of the most volatile components in GDP calculations. The report also showed the trade gap with China, the world’s second-biggest economy, narrowed to $31.1 billion from $32.5 billion as U.S. exports to the nation were the strongest since December 2013. Trade deficits with European Union nations, Japan and Mexico increased in October from a month earlier.
SOURCE: The Bloomberg
China’s stabilizing economy has bolstered household confidence and raised companies’ expectations of hiring more workers next year, separate surveys showed yesterday. The China Wealth Index, which is compiled every two months by Bank of Communications and research firm Nielsen, rallied to 140 in November — a record in the survey’s history as it rose 5 points from September. A reading above 100 reflects optimism among nearly 2,000 households interviewed. “China’s economic growth has stabilized around 6.7 percent this year, which creates a comfort zone psychologically for households,” said Lian Ping, chief economist at BoCom. “The stock market is recovering while the property sector has seen signs of renewed optimism in the past two months, which buoyed the confidence of consumers,” Lian said. The component indexes showed people’s confidence in the broader economy shot to 136 in November from 128 two months earlier, while the household income gauge gained to 150 from 148. Also, people’s willingness to invest added 6 points to 131.
Another index that measures people’s willingness to buy property rose to 125 from 115, but Lian cautioned that recent tightening measures may rein in sentiment. A separate survey by recruitment consultancy firm Michael Page found nearly half of the 1,000 companies interviewed across various sectors in the Chinese mainland plan to hire staff next year, while 45 percent expect to offer 6-10 percent salary rise — a sign of confidence from businesses. “We see steady recruitment,” said Andy Bentote, senior managing director for China at Michael Page. “Professionals are in demand and receive multiple job offers.”
SOURCE: The Global Textiles
