INTERNATIONAL
Textile Raw Material Price 2016-12-14
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1234.76 |
USD/Ton |
3.33% |
12/14/2016 |
|
VSF |
2204.46 |
USD/Ton |
0.13% |
12/14/2016 |
|
ASF |
1853.95 |
USD/Ton |
0.00% |
12/14/2016 |
|
Polyester POY |
1245.62 |
USD/Ton |
2.63% |
12/14/2016 |
|
Nylon FDY |
3012.67 |
USD/Ton |
1.46% |
12/14/2016 |
|
40D Spandex |
4301.75 |
USD/Ton |
0.00% |
12/14/2016 |
|
Polyester DTY |
5467.71 |
USD/Ton |
0.00% |
12/14/2016 |
|
Nylon POY |
1499.09 |
USD/Ton |
2.48% |
12/14/2016 |
|
Acrylic Top 3D |
2867.83 |
USD/Ton |
1.54% |
12/14/2016 |
|
Polyester FDY |
2027.76 |
USD/Ton |
0.00% |
12/14/2016 |
|
Nylon DTY |
1578.76 |
USD/Ton |
1.87% |
12/14/2016 |
|
Viscose Long Filament |
3186.48 |
USD/Ton |
1.38% |
12/14/2016 |
|
30S Spun Rayon Yarn |
2853.35 |
USD/Ton |
0.00% |
12/14/2016 |
|
32S Polyester Yarn |
1853.95 |
USD/Ton |
1.59% |
12/14/2016 |
|
45S T/C Yarn |
2607.12 |
USD/Ton |
0.00% |
12/14/2016 |
|
40S Rayon Yarn |
2998.19 |
USD/Ton |
0.00% |
12/14/2016 |
|
T/R Yarn 65/35 32S |
2245.02 |
USD/Ton |
0.00% |
12/14/2016 |
|
45S Polyester Yarn |
1911.89 |
USD/Ton |
0.00% |
12/14/2016 |
|
T/C Yarn 65/35 32S |
2216.05 |
USD/Ton |
0.00% |
12/14/2016 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0.00% |
12/14/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0.00% |
12/14/2016 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0.00% |
12/14/2016 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0.00% |
12/14/2016 |
|
45S T/C Fabric |
0.64 |
USD/Meter |
1.14% |
12/14/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14484 USD dtd. 14/12/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The country’s exports will likely face a temporary “slowdown” due to the cash crunch following the announcement of demonetisation on November 8, according to commerce secretary Rita Teaotia. Already, merchandise exports witnessed a rise in only three of the past 23 months through October. Small and medium enterprises, who deal mostly in cash, have been particularly worried after demonetisation. “It is a fact that perhaps the demonetisation process, as has been pointed out, may cause a momentary setback (to) or momentary slowdown (in exports),” Teaotia said.
The merchandise exports data for November are scheduled to be released on Thursday, which would bring further clarity on the extent of slowdown. However, demonetisation should be viewed as an opportunity for capitalising “on the benefits that we can get from a far more transparent, far more open and let me say far less messy cash-based transactions,” she said. In the long run, the gains to the country from demonetisation — combined with the rollout of the goods and services tax — will be substantial.
Separately, Teaotia told PTI that the commerce ministry has initiated a broader consultative process with all export promotion councils to gauge the level of adaptation to demonetisation. Commerce and industry minister Nirmala Sitharaman has already held meetings with exporters following demonetisation and assured them that she would take up their demand of raising the cash withdrawal limit with the finance ministry to minimise the impact on production chain. In one of the meetings, exporters had sought up to a ten-fold hike in the cash withdrawal limit from the current R50,000 a week to be able to conduct certain necessary business transactions. At an awards ceremony, organised by the Engineering Export Promotion Council, said the engineering sector is “leading the reversal of the decline of exports over the last two years and has allowed us in October to register a growth of 9.6% in overall exports from India”. EEPC India chairman T S Bhasin said notwithstanding the short-term difficulties, the digitisation would lower transaction costs for exporters in the long run. From the exporters’ point of view, Bhasin added, revising upward the investment limit of plant and machinery in the micro and small enterprises would be as big a step as demonetisation.
SOURCE: The Financial Express
Demonetisation in India — the world’s top producer and second largest exporter of cotton — is “temporarily exacerbating” global supply of the fibre and may prompt importers like Bangladesh to look for alternative sources to stock up immediately, US-based International Cotton Advisory Committee (ICAC) says in its latest report. “Insufficient supplies of the new notes have led to a currency crisis since much of the Indian economy operates on a cash basis, including payments to farmers. This has led to delays in sales of cotton and shipments to ports, creating shortages in the domestic market as well as reducing supplies to the global market,” the ICAC said. However, it added that the impact will be “limited as the crisis is likely to be resolved in the near future”.
ICAC still maintains its earlier forecast of an annual 34% drop in Indian cotton export volume to 8,25,000 tonnes in the current marketing year that started on October 1. But given the delay in Indian cotton reaching the global market, other exporting countries may gain, according to the report. As such, cotton exports by India have been adversely affected by a slowdown in purchases by China, its top buyer traditionally, in recent months. The report said: “Bangladesh, which imports from India, may use cotton from other countries for its immediate needs.”
Bangladesh is expected to be the largest importer of cotton for a second straight year in 2016-17 as its mill use continues to grow with imports projected to rise by 1% to 1.4 million tonnes. Exports from the largest supplier, the US, are projected to increase by 29% to 2.6 million tonnes. Similarly, Australia will likely export 21% more from a year before at 750,000 tonnes in 2016-17, thanks to a good harvest there. Exports from Burkina Faso and Mali, the sixth and seventh largest exporters, could rise by 13% to 295,000 tonnes and by 17% to 255,000 tons, respectively. “Cotton from these origins may replace some of India’s exports if their crops reach the global market sooner,” the report said.
Despite weak global cotton demand and projected higher output in 2016/17, international cotton prices have remained elevated. This is because the unanticipated shortfall in production in 2015 and 2016 led to a 14% decline in both global stocks and in inventory outside of China. Prices have remained high as the bulk of the crop in the current year is reaching the international market only now, the ICAC said. After declining by 1% in the previous season, world cotton mill use is expected to remain stable at 24.2 million tonnes in 2016/17. Cotton consumption is projected to remain stable in the top three consuming countries: China at 7.4 million tonnes, India at 5.2 million tonnes and Pakistan at 2.3 million tonnes. Higher cotton prices and lower demand for cotton yarn from China have limited growth in cotton mill use in India and Pakistan. Global cotton output will likely rise 7% to 22.5 million tonnes in 2016-17 from a year before. Though India’s cotton area dropped 8% to just under 11 million hectares, production will likely remain unchanged from 2015-16 at 5.8 million tonnes, thanks to an improved yield, the ICAC said.
SOURCE: The Financial Express
The hosiery associations of the city have postponed their strike against the demonetisation move of Prime Minister Narendra Modi till December 25 now. The decision was taken following a meeting with Punjab BJP president Vijay Sampla. Hosiery association leader Tarun Jain, who left for Delhi, said the state BJP president has assured a meeting of the delegation of various hosiery associations with Union Textile Minister Smriti Irani and Finance Minister Arun Jaitley.“We have a meeting with the Union Textile Minister tomorrow and thereafter we are going to meet Finance Minister Arun Jaitley. The local BJP leaders have taken up the issue of crisis in the hosiery industry very forcefully with the senior ministers. We are hoping that the ministers will address our grievances. Hence, we have unanimously decided to postpone the protest till December 25,” said Tarun Jain.
District president of the BJP Ravinder Arora also admitted that the hosiery industry had taken a hit following the demonetisation move. “However, the hosiery traders stood with us and appreciated Prime Minister Narendra Modi’s decision to curb black money,” said Ravinder Arora. Yesterday, the local unit of the BJP conducted three closed-door meetings with the representatives of hosiery associations and tried appeasing them to call off their strike. Other BJP leaders, including those associated with hosiery, were also present during the meeting. Hosiery traders and manufacturers said their business had suffered a huge loss due to the demonetisation move of the government. Some units were on the verge of closure, they said. The leaders said they have stopped production and 50 per cent of their staff has already returned home. Hosiery traders demanded that the government extend the withdrawal limit so that they could pay the salaries of the rest of the staff. The hosiery association announced to hold a strike on December 16 which caused jitters in the local unit of the BJP.
SOURCE: The Tribune India
Traders and industrialists in general and textile sector in particular, considered to be the vote bank of the BJP, have come on roads against the saffron party-led NDA government in the Centre over its decision of demonetisation of Rs 500 and Rs 1,00 currency notes. They will hold a protest on December 16. Holding banners and buntings, proclaiming ‘Provide cash in banks to save industry’, and ‘Save industry’, members of the Amritsar Textile Processors Association (ATPA) held a protest march and handed over a communiqué to ADC Tejinder Singh Sandhu in this regard. The communiqué, addressed to President Pranab Mukherjee, Prime Minister Narendra Modi and Finance Minister Arun Jaitley, also served an ultimatum to the government that if the situation persisted even after the conclusion of the 50-day period on December 30, then the industry would go on an indefinite strike and would lock-up their units from the first week of January.
Kamal Dalmia of the ATPA said the communiqué also incorporated three major demands of the industry. These demands are interest on all advances to the industry by banks must be waived off for a period of six months, repayment of term loans for the purchase of machinery should be postponed for the next six months and advance tax, which is deposited on every December 15, must be allowed to be paid till March 15. He said the liquidity scarcity crippled the industry and trade as the government provided only Rs 4.61 lakh crore to the banks, which is 37 per cent of the Rs 12.44 lakh crore accepted in scrapped Rs 500 and Rs 1,000 notes up to December 10.
Perturbed at continuous non-availability of liquidity, industrialists were already forced to stop their units for four days a week. Addressing mediapersons, ATPA president Krishan Kumar Sharma said the textile and textile processing industry laid off nearly 10,000 workers since demonetisation. He said the textile and textile processing industry was labour intensive. There are about 40 processing units in Amritsar and nearly 700 units of warp knitting and textile weaving depend upon the former. The production of processing units drastically came down to about 25 per cent since the implementation of the demonetisation move. He said: “Much of the demonetisation debate has focused on whether the economy can be revived or become more cashless. The implication is that if it does both, all will be well. This ignores demonetisation’s biggest impact, which will be on the distribution of resources within the economy and whatever happens to the economy as a whole.” The policy might prove fruitful in the long run, which time will tell. But its execution for the public at large had been disastrous, he added. Punjab Pradesh Beopar Mandal (PPBM) has endorsed the call for a ‘protest day’ on December 16 over the issue. Its president PL Seth said his organisation flayed the government for the cash withdrawal limit and harassment of businessmen by sending notices from the Income Tax Department.
SOURCE: The Tribune India
As weavers are currently losing business due to poor marketing facility for their products, it is seen that many weavers are increasingly quitting their generations old profession. Keeping these problems in view, the district administration is gearing up to set up a handloom bazaar in Srikakulam, Andra Pradesh. The authorities have decided to allocate Rs.1 crore from the special development funds to set up Handloom Bazaar. Plans are afoot to provide a site for the project near the district veterinary hospital, said G Raja Rao, district handlooms and textiles assistant director. The bazaar will have two floors. The ground floor will have 20 and odd shops, while the first floor will be utilized for other commercial uses. The collector has directed to complete the construction works of the proposed bazaar by March next year.
According to Rajam Weavers’ Association president Surya Rao, of the 13,000 weaver families in the district only 30 percent are now eking out their living from weaving. The weavers are increasingly switching to other professions or taking up menial jobs as running families with the meager income is becoming difficult. Moreover, only old weavers are sticking to their family profession, but the younger ones are shying away as the community is incurring recurrent losses owing to lack of marketing facility and poor publicity of products.
SOURCE: Yarns&Fibers
Welspun India Ltd, one of the world’s leading home textiles companies, has forayed into flooring solutions with the foundation stone laying of Rs 600 crore state-of-the-art facility in Anjar, Gujarat to manufacture carpets, area rugs and carpet tiles. The new facility will have an annual capacity of approximately seven million square metres. The upcoming facility will house one of the most modern plants in the country. Most of the capital expenditure will be done over the next 18 months, the company said. The new project ushers in a new chapter of Welspun’s growth story by adding flooring solutions to its current portfolio of home textile products. It also strengthens Welspun’s commitment in enhancing employment opportunities in Kutch region by creating more than 7,000 direct and indirect jobs. “I applaud Welspun Group for reinforcing its commitment to ‘Make in India’ with this new carpet project. I appreciate Welspun’s commitment to Gujarat for creating employment opportunities in the state and contributing to its overall economic development,” said Gujarat chief minister Vijay Rupani after laying the foundation stone for the new carpet facility.
Speaking at the ceremony, BK Goenka, chairman, Welspun Group, said, “Flooring solutions has immense potential as a growing business. We believe that this segment will benefit from the synergies with our existing product line and customer base thereby creating strong growth opportunity for the domestic as well as international market. The investment represents our ongoing pursuit of expansion and is a testimony of our strength as one of the leading manufacturers globally.”
Welspun has also inaugurated a first-of-its-kind facility to treat 30 MLD waste water at Welspun City in Anjar. The facility will recycle and treat the waste water generated in Anjar and Gandhidham-Adipur. Welspun will reuse the water obtained after Biological treatment, Ultra Filtration & RO processes for its production activities. This will reduce the company’s dependency on the Narmada River resulting in increase of fresh water availability for the communities for domestic use. “With the inauguration of our waste water treatment plant, we are hoping to set an example for the industry by preserving a scarce resource like water for the communities around our manufacturing facilities,” said Goenka.
SOURCE: Fibre2fashion
The hum of hundreds of sewing machines at work nearly drowns the quiet laughter of the group of women, sorting through the striped orange-and-white jumpers piled high on their table. More garments in the same pattern are being knitted on the machines beyond, and the air is thick with cotton dust and the overwhelming odour of freshly dyed yarn whirling off bobbins mounted on the sewing machines. We are at the Warsaw International Factory at Tirupur in Tamil Nadu, one of the numerous such garment units that dot the town often referred to as the knitwear capital of India. Named apparently after the Eastern European military pact that was disbanded around the same time the factory was opened in the early 1990s, it was founded by Raja M. Shanmugam, a first-generation entrepreneur.
December is usually a frenetic time at Tirupur with orders pouring in from all over the world, but Shanmugam—like most of the other factory owners Mint spoke to—is worried. “The government’s move to demonetize Rs500 and Rs1,000 notes has obviously impacted every single individual in the country,” says Shanmugam, “but Tirupur got really badly affected because it is largely a cash-based economy. Workers here have always been paid only in cash.” While he appreciates the rationale behind the move—“We all want to see a clean India”—Shanmugam admits that the first month after demonetisation was a nightmare. “The sudden imposition of the new rule caused chaos,” he says.
Shanmugam, who is also the president of the Tirupur Exporters’ Association (TEA), says that he even contacted the Union finance ministry to get a reprieve with respect to the cap on the amount that an individual can withdraw from his bank account. "We all want to see a clean India... The sudden imposition of the new rule (demonetisation) caused chaos. I requested that they allow us to withdraw an amount equivalent to the average of the previous six months for individual concerns,” he says. “It was turned down.”
The textile industry is labour-intensive. The Tirupur cluster that has an annual business of Rs40,000 crore directly employs over 5 lakh people, according to a 25 November report in Mint. It doesn’t help that labour is already in short supply. “There is a constant demand for workers here,” says M.P. Muthurathinam, president of the Tirupur Exporters and Manufacturers Association, adding that if workers are not paid their wages on time, they simply do not return to work the next week. In short, the cash shortage has disturbed the market equilibrium.
At another small exports unit, S. Natraj, a small man with a large moustache, is peering into the monitor of an ancient desktop. The frazzled accounts manager explains his obvious distress. “I have to go to the bank again now,” Natraj says . “I stand there the whole day to withdraw money, but by the time my turn comes, the bank is usually out of cash.” According to Natraj, the unit needs at least Rs5,000 every day to pay for what are called tea expenses—a daily advance of Rs200 per worker—in addition to the couple of lakhs that go every week towards wages. “Productivity is getting affected,” Natraj says. “Workers are taking leave and queuing up in front of banks all day, even forfeiting their wages for that day. They have to take care of their families, after all.”
Mohammed Mustafa, who owns the export unit, adds, “If I say anything to them, they will simply go to another factory.” Most employees here are contract employees who have to be paid every Saturday. If workers don’t turn up and the order is delayed, Mustafa says he will incur extra expenditure as he will be forced to send the products by air rather than by container ships as usual. He has stopped taking fresh orders as he is struggling to finish pending ones.
Tirupur’s tragedy has left some collateral damage as well—at the markets peddling what is popularly called export-reject surplus. These are branded clothes made for exports, but do not make the international cut. They can be purchased by the value- and fashion-conscious for as low as Rs100 a T-shirt. The Khaderpettai market in Tirupur boasts of a long line of stores of this sort, most of them currently populated only by sad-looking salesmen and shop owners: the little liquid cash available must be reserved for essentials, not squandered on clothes, after all.
Suresh, who owns one such store here, admits as much. “This is a cash-and-carry business; as there is no money floating in the system, people cannot purchase anything from here,” he says. He hopes that this will stabilize in a few months, “but it is really difficult for us. Our sales have fallen by nearly 70%”, he says. Fortunately, regular business-to-business transactions haven’t been impacted too much. The export industry that was worth over Rs20,000 crore, according to a 2015 TEA report, is mostly cashless, says A. Sakthivel, chairman of the Federation of Indian Export Organizations. But the cash crunch has indeed caused a lot of problems, he says. “We were in great difficulty for the first 15 days because we stopped getting money from the bank. We could withdraw only Rs20,000 a week whereas we need Rs15-20 lakh per week to pay the wages,” he says.
Like others, he hopes this will prove to be a temporary phase. “Banks have been very cooperative,” he says, adding that officials came down to factories, opened accounts for all workers and issued ATM cards. “Now, we hope to put up ATM machines in large factory premises so that people don’t have to travel long distances or wait in queues to draw money.” Sujatha, who has worked at Warsaw International for almost 15 years, agrees it has been difficult to balance both work and ATM visits. “There are such long queues at the ATM, and even if we do manage to get money, it is usually in Rs2,000 notes. You cannot buy milk and vegetables with that. Even the landlord wants to be paid only in cash,” she says. Noora Hasan, a migrant from Varanasi, has a bigger problem, “My wife calls me every day asking me to send money home. But how do I send anything if there is no money available?” laments Hasan, who has seven children. “This is very difficult.”
SOURCE: The Live Mint
The city-based Science Engineering and Technology Upliftment (SETU) Foundation will sign a memorandum of understanding (MoU) with Department of Heavy Industries, Union Ministry of Heavy Industries and Public Enterprises, for setting up of the Common Engineering Facility Centre (CEFC) near Bardoli, some 40 km from here. The CEFC, will be set up on 5 acres of land at an estimated cost of Rs 50 crore, with active participation of the local industry and industry associations including Surat Engineering Vikas Association (SEVA), Textile Machinery Manufacturers Association of India (TMMAI) and the Sardar Vallabhai Patel Education Society, Bardoli. The facility would enable textile machinery and other capital goods manufacturers to develop capital goods to meet large requirements and improve capacity utilization, thereby reducing the variable cost of operation. Girish Shankar, secretary, ministry of heavy industries & public enterprises will sign an MoU with SETU on December 14.
Chairman of SETU, Hetal Mehta told TOI, "This is basically a product development-cum training centre to upgrading our technology and quality of production matching the global standards. This facility will help the MSME units in South Gujarat to improve their quality of products and efficiency with the use of advance engineering." SETU has tied up with the France-based software company, Top Solid Design Software, whose 95 per cent of the softwares are used in aviation and ship building sectors world wide. The company will provide software development support at the centre. Mehta said, "Technology gap in India is more than 40 years compared to the rest of the developed countries. Through this centre, our aim is to help narrow down the gap and provide up-to-date and modern engineering products for the textile and engineering sectors." Mehta said that even for a small testing, the textile machinery manufacturers and engineering firms have to visit either Mumbai or Ahmedabad.
SOURCE: The Times of India
The Cabinet approved a Major Port Trust Authorities Bill to replace the Major Port Trusts Act of 1963. This is aimed at more autonomy in decision making to the 12 major ports. “It would lead to greater flexibility and professional management at the major ports,” Shipping Secretary Rajive Kumar told Business Standard. The 12 major ports -- Kandla, Mumbai, JNPT (Navi Mumbai), Marmugao, New Mangalore, Cochin, Chennai, Ennore, VO Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) — handle 61 per cent of total cargo traffic.
The number of sections in the Bill are 65, from the existing 134 lengthy sections. Also proposed is a leaner Board of Port Authority, comprising 11 members from the present 17-19. A more compact Board with professional and independent members will strengthen decision making and strategic planning, went an official statement. Provision has been made for inclusion of representatives of the state government in which the major port is situated. Also, officials from the ministries of railways and defence, and the departments of revenue and customs, apart from a government nominee and a member representing the employees.
The Bill seeks to give the Tariff Authority for Major Ports (TAMP) the power to fix rates, to then be a reference for purposes of bidding for public-private partnership (PPP) projects. Residual functions of TAMP for major ports would be conducted by an independent review board, to be created under the new law. The new Board to be constituted under the Bill would look into disputes between ports and PPP concessionaires, to review stressed PPP projects and suggest measures, and to look into complaints regarding services rendered by the ports or private operators operating within these.
It has been delegated full powers to enter into contracts, planning and development. At present, prior approval of the central government is required in 22 cases. It further empowers the Board to make its own Master Plan in respect of the area within the port limits and to construct within port limits any pipelines, telephones, communication towers, electricity supply or transmission equipment.
SOURCE: The Business Standard
The Finance ministry raised its pitch over implementation of the goods and services tax (GST) from April 1, 2017 even as the Centre and states are yet to reach an agreement over the prickly issue of administrative turf over assessees and only two days are left for the winter session of Parliament to be over. Barely a week before the next meeting of GST Council on December 22 and 23, the ministry in tweets and later through a press statement state said: “Members of GST Council are participating in meetings with a very positive attitude and are working towards roll-out of GST as per the deadline.” It said the GST Council has already taken a number of important decisions, paving way for the roll-out of GST with effect from April 1, 2017. The ministry said discussions in the GST Council were very cordial and all decisions consensus, hinting that decision on the contentious issue of administrative control over assessees may also be taken with all on board unlike some quarters suggesting that the Council might resort to voting. The press statement said compared to the time taken in arriving at a consensus on the Constitutional Amendment Bill for GST, the subsequent events after the passing of the Bill indicate that the Union government and states have done well in taking all necessary steps for GST implementation.
It said the GST Council in its first meeting decided that GST would be rolled out by April 1, 2017. Accordingly, various timelines had been decided for various aspects of implementation of GST such as recommendation of the Model GST Laws by the GST Council and its passage by Parliament and state legislatures; the development of front-end information technology modules on the common GST portal and the back-end IT systems; testing and integration of GST front-end and back-end IT systems of all stakeholders; training of both Central and state tax officials; sensitisation of the trade, industry and consumers. As many as 99 Sections the model GST law have already been considered by the Council and remaining sections will be discussed in the next meeting of the Council scheduled for December 22 and 23. The last meeting of the Council on Sunday did not take up the issue of administrative turf, which led to an impression that the April 1, 2017 roll-out target is impossible to achieve.
As the winter session of Parliament comes to an end on Friday, the GST Bills could only come up in the Budget session and that too when there is an agreement on administrative control. Kerala finance minister Thomas Isaac had said the Centre's move on withdrawal of high-value currency notes eroded the trust of states. And, that it affected the cooperative sector in Kerala. “Do you think I would come here to shake hands on GST?” he had told reporters. However, Jaitley had said, “Our target is April 1 and we stand by it. We do not have the luxury of time as April 1 is the first possible day when GST can be implemented and the last possible day is September 16 (2017). So, the discretion for the roll-out is only five months and 16 days.” The Centre will have to pass central GST, integrated GST and Compensation Bills in Parliament for the roll-out, while states are required to pass respective state GST Bills in their respective assemblies.
SOURCE: The Business Standard
India’s annual rate of inflation, based on monthly wholesale price index (WPI), dropped to a five-month low of 3.15 per cent for November 2016 over corresponding month of the previous year. Build up inflation rate in the financial year 2016-17 so far stood at 4.45 per cent compared to a build up rate of 0.80 per cent in the same period of the 2015-16. Annual rate of inflation was 3.39 per cent for October 2016 and minus 2.04 per cent in November 2015. Meanwhile, the official WPI for all commodities (Base: 2004-05 = 100) for the month of November, 2016 rose by 0.1 per cent to 183.1 from 182.9 for the previous month, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry.
The index for manufactured products (weight 64.97 per cent) for November, 2016 rose by 0.3 per cent to 157.9 from 157.4 for the previous month. The index for textiles sub-group also rose by 0.1 per cent to 141.8 from 141.7 for the previous month due to higher price of tyre cord fabric (5 per cent), gunny and hessian cloth (2 per cent) and cotton fabric (1 per cent). However, the price of jute sacking cloth (4 per cent), jute yarn (2 per cent) and jute sacking bag (1 per cent) declined. The index for primary articles (weight 20.12 per cent) declined by 0.9 per cent to 259.4 from 261.8 for the previous month. On the other hand, the index for fuel and power (weight 14.91 per cent) rose by 1.8 per cent to 190.7 from 187.3 for the previous month due to higher prices of aviation turbine fuel, bitumen, furnace oil, high speed diesel, kerosene, LPG and petrol. Meanwhile, the all-India consumer price index (CPI) on base 2012=100 stood at 3.63 (provisional) in November, 2016 compared to 4.20 (final) in October, 2016 and 5.41 in November, 2015, according to the Central Statistics Office, ministry of statistics and programme implementation.
SOURCE: Fibre2fashion
India has some more time to decide on the final offers on reducing import tariffs for the 15 partner countries of the regional comprehensive economic partnership (RCEP) — which includes China and the 10-member ASEAN — as the recent negotiating round in Indonesia failed to deliver a consensus on the broad numbers. The next round of negotiations scheduled in Kobe, Japan, in February 2017, however could bring in more pressure on India to increase its level of ambition on overall tariff liberalisation as Australia and New Zealand have already raised the pitch for greater market access. “Last week’s negotiating round in Indonesia failed to deliver results in terms of broad numbers for tariff reduction in goods as Australia and New Zealand were not satisfied with the numbers being discussed. Since the two countries have near zero tariffs on most goods, they would want all RCEP members to eliminate tariffs on as many goods as possible,” a government official told BusinessLine . The other members of the RCEP are Japan and South Korea.
India, on the other hand, does not want to offer very high levels of liberalisation to China, Australia and New Zealand — the countries with which it does not have free trade agreements. “There is a general agreement between all members that there would be one offer for all, but of course there has to be deviations as it is not possible to offer the same levels of openness to all countries for all products. What we can offer to our existing FTA partners such as the ASEAN or Japan, cannot be the same as what we offer to China, Australia and New Zealand,” the official said. The deviations can be worked out only when there is an agreement on the overall level of tariff cuts for all members which would serve as the base.
India’s offer
New Delhi had initially offered to eliminate tariffs on 80 per cent of items for ASEAN, 62.5 per cent of items for Japan and South Korea and 42.5 per cent of items for China, Australia and New Zealand, but the offers will be re-worked now with an attempt to move towards a common base. “If we had progress in the talks in Indonesia, members could have worked on final offers in February in Japan, which could have been then followed by a Ministerial meet in March as was being originally planned. But now members would try to achieve in Japan what they failed to achieve in Indonesia and the Ministerial meet seems likely only in August,” the official added. There was also not much movement in the area of services with members not improving substantially upon their earlier offers. Despite New Delhi’s attempts to get countries to make meaningful offers to liberalise movement of workers, most members did not respond positively.
SOURCE: The Hindu Business Line
While Pakistan recently lifted the ban on cotton imports from India, Indian exporters are unable to capitalise on the move. Last year, of the initial three million bales (one bale is 170 kg) of export orders during the October-December period, 1.5 million bales were to Pakistan. With daily arrivals still under pressure, exporters are unable to take orders. Pakistan had banned import from India in the fourth week of November, citing quality issues. The ban was lifted a few days ago as industry urged the Pakistan government to do so. According to the Indian cotton industry, Pakistan might import 700,000-800,000 bales in 2016-17. Last year, India had exported 2.5 million bales to Pakistan, which had faced a crop failure.
After demonetisation, several mandis are not fully operational as arrivals have dwindled. Cotton arrivals are down 25-30 per cent from last year, despite a slight improvement in early December. Last December, daily arrivals had stood at 200,000 bales; this year, it is 140,000-150,000 bales a day. This month, arrivals increased by about 30,000 bales after farmers began accepting payments through cheque. “While India is the best choice for Pakistan for cotton imports, Indian exporters are unable to profit from it. Demand is there from Pakistan and other countries but Indian exporters are not in a position to fulfil the demand. More, as supply is tight, exporters are not in a condition to fulfil their commitments they made for November and December. Exporters are not booking new contracts, as they are not sure about supply,” said Shirish Shah of Bhaidas Karsandas Company from Mumbai.
After the note ban, cotton prices had gone up to Rs 40,000 per candy of 355 kg, now ruling at Rs 38,800-39,200 per candy. This year, India had booked export contracts of 2.2 million bales for October, November and December delivery but, the country had exported about 500,000 bales only by the end of November. Cotton balance sheet According to exporters, in this scenario, India’s total exports might decline by 20-25 per cent at the end of the year. Chirag Pan, CEO of Jaydeep Cotton Fibres, said, “India exports 70 per cent of cotton during October and March every year. The industry expects six million bales of cotton exports in the current cotton year (October-September) but in this scenario, exports might not be over 4.5 million bales.” More, despite some amount of export demand, cotton ginners are unable to process much as they are not getting raw cotton from farmers.
Subodh Goenka of J S Cotton Industry from Akola, Maharashtra, said: “Generally at this time, ginning activity should be on in full swing but due to supply shortage and higher prices, ginning activity has been quite low.” Raw cotton has been trading at Rs 990-1,060 per 20 kg in Gujarat, with prices going up by Rs 20 per 20 kg in December so far.
SOURCE: The Business Standard
The coming months will be a test to see if last month’s sharp devaluation of Egypt’s currency will boost demand for its products at home and abroad. After nearly six years of pegging the pound to the dollar at a rate far above market value, the central bank last month finally let go and let it float. One dollar now buys more than 18 Egyptian pounds compared with the official price of 8.88 pounds in early November. Egypt’s biggest manufactured exports are garments and textiles. Can we expect a boom in sales now that their price abroad has plummeted?
The industry suffered badly since the central bank began pegging the pound against the dollar after Egypt’s uprising in 2011, pricing its products out of the international market. The problem became more acute as currency controls tightened over the past couple years, with exports of garments plummeting by 14.7 per cent in the year to end of June and those of cotton textiles by 7.2 per cent, according to central bank figures. This is in sharp contrast to the years after 2003, when the central bank sharply devalued the currency. From 2003 to 2011, textile exports shot up by an average annual 17 per cent and garment exports by 19 per cent, only to begin slackening thereafter.
Textile exports surged from US$120.1 million in 2002-03 to $782.6m in 2012-13 before falling back to $682m in 2015-16. Garment exports similarly rose, from $218.3m in 2002-03 to $810.3m in 2014-15 before dropping back to $690.8m last year. Already there has been an uptick in orders since the Egyptian pound was floated on November 3 but it will take time before any exports surge might occur, says Mohamed Kassem, the chairman of the Readymade Garments Export Council of Egypt. The devaluation, which has made imported products more expensive, should increase local demand for garments and textiles as well. "We will see two waves of textile and garment production growth: first with the use of idle capacity, then with new investment."
The fact the pound’s price has fallen by more than half means Egypt is back on the radar with foreign textile buyers, he says. But because many components and materials are imported, the price of Egyptian textiles will not fall by half. Domestic inflation should also be factored in. Imports account for 30 to 60 per cent of the inputs of domestically produced garments. Spinners using Egyptian cotton, however, can expect an especially big benefit from the currency flotation. "We have seen an uptick in orders but it will take three to four months before exports actually start to increase," he says. "It is premature to call it a surge in orders. Producers are concentrating on reversing the decline."
Many buyers came to a textile exhibition and conference in Cairo on November 11 and 12, held fortuitously just one week after the flotation. Since then, Egyptian exporters have been travelling abroad trying to make sales before Christmas. Egypt will struggle to regain markets after a slowdown in the international economy. Growth in China has weakened, Europe is not in good shape and the recovery in America has not gathered pace. "A realistic estimate is that exports will be 10 per cent higher in 2017 than in 2016," Mr Kassem says. The second part of the equation, an increase in foreign investment in Egypt’s cotton industry, is not likely until late next year, he says.
Mr Kassem has been a driving force behind a plan to build a new city dedicated to textiles manufacturing near Minya, 200 kilometres south of Cairo. The government has allocated 1.3 million square metres for the project, which will be a joint venture with the China National Textile and Apparel Council. A memorandum of understanding with China was signed early this year and a delegation of Egyptian garment and textile makers will visit China in March for a roadshow. "Hopefully we will see results by the third quarter of 2017," Mr Kassem says. The Minya project will be a pilot scheme for up to 10 similar textile cities the government hopes to encourage, mainly in Upper Egypt. It is to be a completely private investment, Chinese and Egyptian. The city would be a hub with a focus on spinning and weaving as well as on dyeing and finishing to supply yarns and fabric to garment makers across Africa. The advantage of Minya is that it is close to the Red Sea for exports to Sub-Saharan Africa and to the Mediterranean for exports to North Africa and Europe. The project would take two to three years before new production capacity can come on stream. Although Mr Kassem would like to see more efficiency in government, such as in customs, licensing and taxation, he says the situation has greatly improved after the pound was allowed to weaken. "I am a lot more optimistic."
SOURCE: The National
India’s scrapping of high-value bank notes last month has dragged down economic growth in neighbouring Nepal with trade, remittances and tourist numbers all down, BMI Research, a group company of the Fitch rating agency, said on Wednesday. BMI has revised down its forecast for land-locked Nepal’s economy, saying that India’s demonetisation could shave Nepal’s growth down to 2.2 percent for this fiscal year to July 2017, from an earlier estimate of 2.5 percent. Nepal’s $21 billion economy was already suffering with growth at less than 0.8 percent in the 2015-16 fiscal year after earthquakes in 2015 that killed about 9,000 people. “The disruption in funds from India is likely to weigh on ongoing reconstruction efforts,” the research agency said in a report, adding that Nepal’s economy was heavily reliant on India for trade, jobs and aid. The announcement by Prime Minister Narendra Modi on Nov. 8 to ban 500- and 1,000-rupee notes was intended to flush out billions of dollars in unaccounted wealth and hit the finances of militants suspected of using fake currency.
The Nepal Rastra Bank, the central bank, has now banned Indian currency, saying it wanted a formal communication from the Indian central bank about new Indian bank notes being brought into circulation. “Until such a notice is received, we will not accept the new Indian notes,” said central bank official Rajendra Pandit. That leaves thousands of Nepalis doing informal trade along the open border with India without the means to receive or make payments for their business. Nepali Prime Minister Pushpa Kamal Dahal, a former Maoist rebel commander, spoke to Modi after the currency ban to ask for arrangements for the exchange of the now defunct Indian cash held in Nepal, but that has yet to happen.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 53.11 per barrel (bbl) on 14.12.2016. This was lower than the price of US$ 53.38 per bbl on previous publishing day of 13.12.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3588.29 per bbl on 14.12.2016 as compared to Rs. 3602.70 per bbl on 13.12.2016. Rupee closed weaker at Rs 67.56 per US$ on 14.12.2016 as against Rs 67.49 per US$ on 13.12.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 14, 2016 (Previous trading day i.e. 13.12.2016) |
Pricing Fortnight for 01.12.2016 (Nov 12, 2016 to Nov 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
53.11 (53.38) |
44.87 |
|
(Rs/bbl |
3588.29 (3602.70) |
3061.48 |
|
|
Exchange Rate |
(Rs/$) |
67.56 (67.49) |
68.23 |
SOURCE: PIB
The National Assembly (NA) was informed on Wednesday that the government has taken various steps to strengthen textile and other sectors in the country. Minister for Commerce Khurram Dastgir Khan told the house during question hour that sales tax of five export oriented sectors namely textile, leather, sports goods, surgical goods and carpets has been made part of zero rated tax regime from July this year. According to media reports, he said that technology upgradation fund scheme for the textile sector is also available and the facility of duty free import of textile machinery is continuing. The minister said mark-up rates on export refinance facility, has been brought down to three per cent and the long-term finance facility is continuing at five per cent.
SOURCE: The Nation
Pakistan’s Punjab based textile bodies have formed Punjab Textile Forum to boost textile business in the province by restoring competitiveness in exports. The forum has approached the government to seek support for the core issues being faced by the textile industry. The forum constitutes of the Punjab chapters of six textile associations. All Pakistan Textile Mills Association (Aptma), Pakistan Textile Exporters Association (PTEA), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Readymade Garments Exporters and Manufacturers Association (PRGEMA), All Pakistan Textile Processing Mills Association (APTPMA) and the Council of Power Looms Association (CPLA) are members of the forum.
The new textile body has urged the Pakistan government to introduce textile industry revival package and help them to overcome structural imbalances in the industry as early as possible. Early announcement of incentive package by the government will increase the export orders at the Heimtextil exhibition next month, the forum members said at a joint press conference. The representatives urged the government to charge nominal energy tariffs from the textile units in Punjab. They also asked the government to create more opportunities for the growth of textile industry in the province. It will be possible for the Punjab textile industry to compete at the international level if there is reduction in the cost of doing business.
SOURCE: Fibre2fashion
The Bangladesh government has launched a new project titled ‘Promoting Social Dialogue and Harmonious Industrial Relations’ to improve workplace relations in the readymade garment (RMG) sector. The programme will enhance dialogue between the government, employers and workers and will also help in preventing and solving disputes and increase productivity. The project is funded by Sweden and Denmark governments and implemented by the International Labour Organization (ILO) in collaboration with the Government of Bangladesh, employers, and trade unions. The initiative to strengthen conciliation and arbitration mechanisms will continue till March 2021. “With its focus on strengthening social dialogue and constructive dispute resolution, this project provides a defining opportunity for Bangladesh to achieve its social and economic transformation goals, through partnership and inclusion,” said ILO director-general Guy Ryder at the launch.
A key focus of the project will be on enhancing the grievance handling capacity, procedures and mechanisms of the department of labour (DoL), Bangladesh. This will include specialised training for 15-20 DoL officials to create a national pool of conciliators. An independent pool of arbitrators will also be established. In addition, Workers’ Resource Centres will be established to support capacity building for unions and to help them deal with dispute situations. “Bangladesh government is fully committed to fostering better workplace relations. This important project, through its core focus on improving industrial relations through social dialogue, will benefit every industry across Bangladesh,” said Md Mujibul Haque, minister of labour and employment.
The project will be initially piloted in the RMG sector, with gradual scaling up within the sector. However, the impact of the project and particularly that of the dispute resolution mechanism will cover all other sectors. Through the project, improved dialogue will be fostered between trade unions and employers in at least 150 unionised enterprises. This will be achieved by developing social dialogue skills and expertise of both managers and union representatives. Workplace cooperation mechanisms and capacity of unions and employers will also be boosted in 350 non-unionised factories, while practical grievance handling procedures will be developed in each of the 500 participating factories.
SOURCE: Fibre2fashion
Niger State Governor, Abubakar Bello, has urged Indonesian investors to cash on the abundant availability of high quality cotton in the state to establish textile manufacturing companies. The governor made the call on Wednesday at a meeting with the Indonesian Ambassador to Nigeria, Mr Harry Purwanto, at his office in Minna, the state’s capital.He acknowledged the uniqueness of Indonesian fabrics and informed the envoy that Niger State was endowed with abundant and high quality cotton. Governor Bello assured the Indonesian business community of conducive business environment that would guarantee profitable return on their investment. He commended their Small Medium Enterprise (SME) sector and noted that his administration was eager to partner Indonesia with a view to developing and perfecting the SME sector in Niger State. “We are impressed by the way your country handles her SMEs. We are ready to partner with you to develop our SMEs the way you have developed yours,” he told the visiting ambassador. The governor also called for collaboration in the areas of agriculture, tourism and youth development, which he said were the priority areas of focus of his administration. He further acceded to the request for allocation of land for an industrial park in Tegina, Rafi Local Government area of the state for the manufacturing of Indonesian products.
On his part, Mr Purwanto expressed the readiness of Indonesian investors to collaborate with the State government in developing Nigeria’s vast natural and economic potentials. He said his country and Nigeria had a lot in common and stood to benefit from the over half a century diplomatic relationship. The ambassador disclosed that a team of investors had earlier visited Nigeria, with the sole aim of establishing an industrial park. He also commended the efforts of the Niger State Governor towards making the state conducive for its inhabitants.
SOURCE: The Channels TV
The Russian market for laundry and cleaning services may reach US$1 billion in value terms over the next few years, despite the consequences of the financial crisis in the country, according to recent statements by Denis Manturov, Russia’s Minister of Industry and Trade, who has responsibility for the development of the laundry and cleaning industry. During the period 2011-2013, the industry almost doubled in value terms and reached US$500 million, mainly due to a significant increase in demand for laundry and cleaning services. However the introduction of Western sanctions against Russia associated with the economic crisis in the country, resulted in a significant decline of the market, both in volume and value terms, due to a significant cut in spending by the majority of Russian households.
In contrast to other market segments, laundry and cleaning services have enjoyed great popularity in the former USSR. During Soviet times the number of enterprises specialising in the provision of laundry and drycleaning services in the USSR was estimated at more than 7,000, with 100% of them owned by the state. The collapse of the USSR in 1991 resulted in the stagnation of the industry during the 1990s and bankruptcies for the majority of enterprises. However, the industry began to head into recovery of the industry in the early part of the first decade of the 21st century.
At present the Russian industry comprises more than 1,000 enterprises, the majority of which are located in Moscow and St. Petersburg. Of these, the 10 companies that can be considered as large have seen their market share growing steadily. Because of the current financial crisis in Russia, the number of enterprises is declining, as the market experiences a period of consolidation.However, despite this, the market demonstrates growth, both in volume and value terms. According to predictions from analysts at the Russian Ministry of Industry and Trade, the annual growth rates of the Russian laundry and cleaning services market are expected to be in the range of 15%-17% during the next several years, while in the case of Moscow and St. Petersburg these figures will be higher. Among the leading market players companies such as FACILICOM Group, SC Ronova, and Diana dominate. The latter, a local network of dry cleaning and laundry enterprises, remains the largest player in the market, with its share currently estimated at 30% and this continues to grow.
At present the average profitability of Russian laundry and cleaning enterprises is estimated at 7%-8%. According to the Russian Ministry of Industry and Trade, the industry as whole experiences a process of consolidation, reflected by a significant decline of the number of laundries and dry cleaners in the local industry and their acquisition by larger players. Manturov believes this consolidation remains one of the most pressing problems for the industry, as it is preventing the growth of competition in the market. At the same time, other industry problems are the ever growing prices for the majority of cleaning services in Russia and the decline of consumer demand for them. The generally low level income of local population and a lack of awareness of such services could be considered as another problem, which prevents rapid development of the industry.
Finally, the industry is still characterised by a poor level of technical equipment, despite the fact that in recent years sales of specialised equipment in Russia has significantly increased. Local drycleaners and laundries prefer to buy equipment abroad, due to the low quality of local production, which is reflected in low quality of steel, as well as low lifetime expectation for the equipment. Until recently there was no production of textile equipment in Russia, although in recent years some capacities were established. Another problem for the Russian textile care industry is the lack of insurance schemes. In contrast to the EU and the USA where local insurance systems cover about 70% of the cost of damaged items (due to technology failure or breakdown) Russia still does not have such a practice.
Bucking the trend from previous times, a significant part of the industry’s orders account for corporate clients. According to Marcel Khasanshin, head of Edna-STROYTORG, one of Russia’s largest networks of laundries, public institutions and state agencies account for about 40% of orders. The remaining account for private business, as well as individuals. This is in contrast to the Soviet era, when the majority of orders (up to 97%) accounted for the country’s population. Currently, drycleaning and laundry services account for 2% and 3% respectively of the total volume of consumer services in Russia. At the same time in the case of Moscow and St Petersburg, Russia’s largest cities, these figures are higher, being estimated at 1.8% and 2.4% respectively. The Moscow laundry market remains the largest, both in volume and value terms, being estimated at 20,000-22,000 tonnes per year in volume terms. At the same time, according to data of the Russian Federal State Statistics Service (Goskomstat), the installed capacity of drycleaners in Moscow is estimated at 10kg of clothes per 10,000 inhabitants, significantly higher than the average Russian figures.
According to plans announced by the Russian government, these figures should increase significantly over the next few years, while particular attention will be paid to an increase in the number of laundries and drycleaners in the vast Russian province. This is expected to be achieved through the provision of subsidies and other support to the potential investors in the establishment of drycleaners. However, the amount so far has not been disclosed. In the case of Moscow, according to the Department of Consumer Market and Services of Moscow, the city has about 180 drycleaning and laundry enterprises with a number of pick-up points amounting to around 1,000 units; 18 large laundry enterprises with the capacity up to 30 tons a day, as well as more than 50 institutional laundries and drycleaners owned by hotels, hospitals and military units. At the same time, in contrast to the EU and the USA, the majority of local laundry and drycleaning enterprises prefer direct expansion to franchise development, which remains uncommon for the industry. Seasonality of demand could be considered one of the main features of the domestic market of drycleaning services, with the highest demand observed during the period of August to October and from April to May. At the same time the demand for laundry services is more or less stable throughout the year.
The Russian laundry and drycleaning industry still lags behind the EU in terms of rates and level of development. For example, if in the EU each dry cleaner accounts for 10,000 residents then in Moscow this proportion is estimated at 1 per 100 000-150 000 people, with significantly higher figures in the Russian provinces. Another difference between the local market from the EU is the almost complete lack of self-service laundries, as well as the practice of outsourcing. Textile service has not yet gained the same popularity in Russia, as in Western markets. In contrast to the EU and the USA, where laundry and drycleaning services have long been the norm, in Russia, most people still prefer to do their washing at home. Still, despite the existing problems, according to predictions of analysts of the Russian Association of Laundry and Dry Cleaning (RALDC) Enterprises, the domestic market will continue to grow in the future, amid the ever improving local standards of well-being and level of culture. The latter is reflected by the fact that currently more and more Russians prefer to turn to specialised dry cleaning and laundry, instead of doing their own washing at home.
The most intensive growth is expected to be observed in major cities, including Moscow, St Petersburg, as well as the largest Siberian city, Novosibirsk. According to predictions, the number of laundry and drycleaning enterprises in the largest cities should grow by around 15-20% annually, over the next few years. More enterprises and pick up points are expected to be opened in shopping centres and other similar facilities. Russia’s Industry and Trade analysts also predict that during the next several years the majority of leading local players will start expansion into the regions, which provide huge potential for further growth. However, at the initial stage the expansion is expected to take place in cities with populations of about 1 million people, and later in other densely populated regions of the country.
SOURCE: The Laundry and Cleaning News
The second Made-in-Rwanda exhibition opens today at Gikondo Expo Grounds in Kicukiro District., organized by the Private Sector Federation in partnership with Minister for Trade, Industry, and East African Community Affairs (MINEACOM). It gives an opportunity to Rwandan manufacturers to showcase what they can do and their production potential to satisfy local market as government seeks to increase exports and bridge the import gap.
The Minister for Trade, Industry, and East African Community Affairs (MINEACOM), François Kanimba, said that there is need for more value addition to locally-made products to attract citizenry consumers and appeal to the regional market. The exhibition offers an opportunity to assess the results of the Made-in-Rwanda sensitization campaign that has been running for the past months. Sectors that will showcase their products include textile, ICT, agro-processing, manufacturing, construction, furniture, service sector among others. Since they started the Made-in-Rwanda drive, the number of manufacturers and exhibitors has been going up. The Government has come up with different initiatives to support it, such as removing taxes on raw materials for textile industry, VAT law was revised, among others, and soon electricity tariff will be reduced. Kanimbas said that they hope these will boost domestic consumption, export and reduce import bill.
During the exhibition, a survey will be conducted through questionnaires that will be handed out and filled by the exhibitors to inform future policy formulation. An open meeting on Made-in-Rwanda will also be held. Stephen Ruzibiza, the chief executive of the Private Sector Federation, called on the public to attend the expo to witness the potential of local firms. Different quality products will be on display at affordable prices.
Further to identify priority sectors that can quickly contribute to domestic market recapturing, the ministry conducted a study on “Domestic Market Recapturing Strategy (DMRS)” that was validated in February last year. The study indicated that the total foreign exchange savings induced by DMRS could reach almost $450 million per year. According to the ministry, a successful Made-in-Rwanda drive could save the country up to 18 percent of what it spends on imports.
SOURCE: Yarns&Fibers
A textile product manufactured for non-aesthetic purposes is called a technical textile. A technical textile used in home furnishing and clothing is called hometech textile. The hometech textiles market comprises a strong part of the technical textile market including upholstered furniture industry. Household textiles and furnishings. Hometech textiles range from filter products used in vacuum cleaners to fiber fills in mattresses and pillows. Hometech products are made of both synthetic and natural fibers. Hometech textiles are widely utilized in furniture & interior decoration, sun protection, cushion materials, carpeting, fireproofing, wall coverings, flooring and textile reinforced fittings etc. Hometech textiles ranks 4th largest in sales of all the other technical textiles. Western Economies account for the biggest market share of hometech textiles followed by Asia Pacific. Hometech Textile products are in continuous use by household as well as commercial sectors.
The global hometech textiles market can be segmented on the basis of Geography, applications and end use types. On the basis of geography, the global hometech textiles market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, Middle East & Africa and Japan. On account of applications the global hometech textiles market can be segmented into commercial and household. Hometech textiles are widely used in commercial sector like offices and business organizations as well as domestic and household purposes. Considering end use types, the global hometech textiles market can be segmented into fiberfill, mattress and pillow components, carpet backing cloth, stuffed toys, blinds, HVAC filters, vacuum cleaner filter cloth, non-woven wipes, mosquito nets and furniture fabrics.
The robust increment in office and commercial construction is a main factor aiding in driving the global hometech textiles market. With growing population worldwide, the demand for hometech textiles is growing proportionally. Rising disposable incomes & customer spending and increasing purchasing power of customers in developing countries is driving the growth of the global hometech textiles market. With rapid industrialization and increasing demand of technical textiles in industries is another factor leading the global hometech textiles market to grow.
The major challenge faced by the global hometech textiles market is frequent changes in raw material prices. The rise and degradation in raw material prices is affecting the imbalance in prices of the global hometech textiles market. Moreover, low degree of consumer preference towards the technical textiles, specially hometech textiles is a major reason posing as a restraint to the global hometech textiles market. In addition, less requirement of luxurious needs such as hometech textile products is again a critical challenge to the global hometech textiles market.
Due to population explosion in the continent, Asia Pacific accounts for the maximum share of the global hometech textiles market. North America holds the second largest share of the total hometech textiles market across the globe. Latin America follows North America as the third largest consumer of hometech textiles worldwide. Europe accounts for a huge number of nations involved in importing, manufacturing and exporting hometech textiles. Western Europe holds a larger share than the Eastern Europe. MEA is a growing market for hometech textiles followed by Japan.
SOURCE: The Open PR
Lenzing plans to construct a state-of-the-art plant with a production capacity of 90,000 tons per year at its site in Mobile, Alabama. The new facility will be the largest Tencel fibre plant in the world with an investment of total US$293 million (EUR275 million) and will utilize the latest technological standards. The Supervisory Board of Lenzing AG has approved the investment in a new Tencel fibre plant in the USA. The new plant is scheduled to start in the first quarter of 2019 and it will set a new milestone in the history of lyocell fibres. The decision to build this plant in the US was supported by the good infrastructure at our Mobile site and attractive energy costs.
The Lenzing Group currently has a worldwide production capacity of 222,000 tons per year of Tencel fibres. The new plant in Mobile, in addition to the already announced debottlenecking projects at the other Tencel fibre sites will increase the total Tencel fibre capacity by more than 50 percent by 2019. This investment represents another major milestone in the implementation of their corporate strategy sCore TEN. It will bring them a big step further to reach their target of 50 percent revenue from specialty fibres by 2020, said Lenzing CEO Stefan Doboczky. This expansion also underscores their commitment to all their Tencel fibre customers, who continue to make their products even more sustainable using Tencel fibre, the world’s most sustainable botanic fibre. According to the manufacturer, the implementation of the Lenzing’s expansion programme is essential for driving the Lenzing Group’s organic growth agenda. Therefore, it was decided to create a new Management Board role, pooling together the key technical, operational and engineering responsibilities.
The Supervisory Board of the company appointed Heiko Arnold as the new Chief Technology Officer. In addition to a strong scientific and technical education, Arnold has gained many years of experience with BASF in the realization of major investment projects and continuous operational improvements as well as extensive know-how in Research & Development. He will be responsible for all technical departments in the Lenzing Group.
SOURCE: Yarns&Fibers
Teijin Limited, a technology-driven world leader in aramid fibres, has announced the launch of Xfire Denim, a practical and fireproof denim-like aramid fibre fabric for firefighting uniforms. The new aramid fabric is expected to meet the growing demand for extra-manoeuvrable clothing for volunteer fire corps. Sales of Xfire Denim will begin this month. Japanese manufacturers will start selling uniforms for fire corps made with Xfire Denim in 2017. Made with Teijinconex meta-aramid fibre, Xfire Denim is produced with a proprietary technology to realise a pliant texture similar to that of denim, a universally popular fabric. Xfire Denim also offers outstanding comfort and design flexibility. The fabric’s unique appearance also is practical because it enables professional and volunteer fire corps to be easily distinguished when working side-by-side.
The launch of Xfire Denim further strengthens Teijin’s leading position in the Japanese market for protective apparel, where the company is renowned for incorporating high-performance materials in innovative hybrid safety solutions. Looking ahead, Teijin forecasts global sales in its safety and protection field to rise to JPY 20 billion by 2020. Over the decades, Teijin’s durable, heat-resistant and flame-retardant aramid fibres have provided police, fire-fighters and chemical-plant workers with increasingly high-performance clothing for added protection and safety. Teijin is the top-selling brand of protective apparel for professional fire-fighters in Japan, who highly value the heat-resistant and flame-retardant properties of Teijinconex.
SOURCE: Fibre2fashion
U.S. industrial production dropped sharply in November, mainly because power plants reduced output due to unusually warm weather. The Federal Reserve reported Wednesday that output at America's factories, mines and utilities fell 0.4 percent last month. It was another sign that American industry is struggling even as the overall U.S. economy looks healthy. The Federal Reserve is confident enough to be considering an interest rate hike later in the day. Utility output plunged 4.4 percent, following a 2.8 percent downturn in October. A warm fall meant Americans used less heat. Factory output slipped 0.1 percent. A drop in auto production, which is volatile month to month, offset increased output elsewhere. Mining production rose 1.1 percent despite a steep drop in output at coal mines. "Beyond the disappointing headline, the general improving trend in mining and manufacturing should justify this afternoon's broadly expected Fed move," Jennifer Lee, senior economist at BMO Capital Markets, said in a research note. Still, industrial production has now dropped three of the last four months and has fallen 0.6 percent in the past year. November's drop was steeper than economists had expected.
American industry has been hurt by a strong dollar, which makes U.S. goods costlier in foreign markets. Factory production is up just 0.1 percent over the past year. Energy companies have slashed production in the face of low oil prices. That is why mining output is down 4.6 percent since November 2015 despite the uptick last month. Mines have shed 87,000 jobs over the past year, and factories have lost 54,000.
SOURCE: The Times Union
